Context
India is rapidly positioning itself as a major maritime power, leveraging strategic investments and expansion in key ports both within and outside its borders. The most notable among these is the ambitious expansion of Iran’s Chabahar Port, which is central to India’s regional connectivity and global trade aspirations.
India’s Capex-Led Expansion at Chabahar Port
India has announced a ₹4,000 crore capital expenditure plan to significantly expand operations at the Shahid Beheshti Terminal of Chabahar Port in Iran. The goal is to increase the port’s capacity fivefold—from the current 100,000 TEUs (twenty-foot equivalent units) to 500,000 TEUs over the next decade. This expansion includes:
- Procurement of at least five mobile harbour cranes
- Consideration of a second berth for expanded operations
- Modernization and mechanization of port infrastructure
India Ports Global Ltd (IPGL), the Indian operator at Chabahar, is leading these efforts, with ongoing marketing initiatives to attract Indian shipping lines and ensure operational viability.
Strategic and Economic Significance of Chabahar
Chabahar Port is not just a commercial venture—it is a linchpin in India’s regional strategy:
- Eurasian Gateway: Chabahar is of paramount importance in the International North-South Transport Corridor (INSTC), a 7,200-km multi-modal corridor with linkages from India to Iran, Afghanistan, Central Asia, Russia, and Europe. Transit time and cost are said to be reduced by as much as 40% and 30%, respectively, through this corridor, when compared to traditional routes.
- Bypass Pakistan: Allowing a direct route for Indian trade towards Afghanistan and Central Asia, the port bypasses Pakistan and restricts Indian dependence on its neighbour for overland connectivity.
- Counterbalance in front of China: Chabahar poses a strategic counter to Gwadar Port of Pakistan, developed with Chinese support under the China-Pakistan Economic Corridor (CPEC).
- Humanitarian-Area Stability: The port has been used for the delivery of humanitarian aid into Afghanistan and Iran, thereby contributing to boosting the soft power of India and the area of its influence.
Recent Achievements and Milestones
India’s investments are already yielding results:
- Chabahar handled over 65,000 TEUs by January 2025, on track to reach 75,000 TEUs for FY25, and is projected to handle 100,000 TEUs by FY26.
- Vessel traffic increased by 43% and container traffic by 34% in FY24, reflecting growing operational momentum.
- India has provided $120 million in grant assistance for port equipment and committed a $250 million Line of Credit to Iran for Chabahar’s development.
Expanding India’s Maritime Footprint
India’s ambitions extend beyond Chabahar:
- Myanmar: IPGL operates Sittwe Port, a key node in the Kaladan Multimodal Transit Transport Project, connecting India’s northeast to Southeast Asia.
- Sri Lanka: India is developing Kankesanthurai Port and launching a ferry service to enhance trade and passenger connectivity between India and Sri Lanka.
- Africa: India is exploring port and berth operations in African countries, starting with Tanzania, where agreements have been signed for industrial park and port development.
Challenges and Geopolitical Considerations
Despite its progress, India faces challenges:
- US Sanctions: While India previously secured a US sanctions waiver for Chabahar due to its humanitarian role, future waivers remain uncertain amid shifting US policies.
- Regional Tensions: The strategic location of Chabahar amid tensions with Pakistan and competition with China underscores the port’s geopolitical significance.
Conclusion
India’s aggressive port sector expansion, led by the Chabahar project, is reshaping regional connectivity, enhancing trade routes, and bolstering its strategic standing. By modernizing key ports and forging new maritime partnerships, India is set to play a pivotal role in the evolving dynamics of global trade and geopolitics.
Source: PressReader
UPSC Mains Practice Question
Q. Evaluate the strategic and economic importance of India’s global port expansion plans and the key challenges in their implementation.
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