The Chabahar Port is a deep-water seaport in Iran's Sistan-Baluchistan province, located on the Gulf of Oman, and is Iran's only oceanic port. It is an institution and a strategic infrastructure project for India, comprising two separate ports: Shahid Kalantari and Shahid Beheshti. The concept was first proposed in 1973, but India's involvement began with discussions in 2002 and a roadmap of strategic cooperation signed in January 2003. The port's primary purpose is to provide India with an alternative trade route to Afghanistan and Central Asia, bypassing the land route through Pakistan.
The mechanism for India's participation is centered on the Shahid Beheshti terminal. In May 2016, India, Iran, and Afghanistan signed a trilateral agreement to establish the International Transport and Transit Corridor. India Ports Global Limited (IPGL) operates the terminal. The port is a key node in the proposed International North-South Transport Corridor (INSTC), a multi-modal route connecting the Indian Ocean to Northern Europe via Iran and Russia. It is also viewed as a strategic counter to the China-developed Gwadar Port in Pakistan.
A major recent change occurred on May 13, 2024, when India and Iran signed a 10-year long-term contract for the operation of the Shahid Beheshti terminal, replacing the previous annual renewals. Under this agreement, IPGL will invest approximately $120 million to equip the port, and India has offered a $250 million credit line for infrastructure projects. The project's continuity is consistently challenged by the threat of renewed US sanctions against Iran.