The port of Chabahar is a seaport in south-eastern Iran, located on the Gulf of Oman, at the mouth of the Strait of Hormuz. It is situated in Sistan-va-Baluchestan, one of Iran’s least developed provinces. Contrary to Bandar Abbas, the busiest port in Iran, Chabahar is a deep-water port with direct access to the Indian Ocean that is outside the Hormuz Strait. It is Iran’s only seaport and consists of two separate ports called Shahid Beheshti and Shahid Kalantari. The last Shah of Iran proposed the port’s development in 1973. Work in Chabahar began when the Shah of Iran, Reza Pahlavi, was in power. The Iranian Revolution of 1979 hindered the development of this port. Following the 1979 Islamic revolution, US firms involved in various infrastructure investments fled the country. The new government took on these projects. The port of Chabahar grew in importance during the Iran-Iraq war of 1983 when ships were hesitant to enter the Strait of Hormuz. The port’s first phase opened during the Iran-Iraq war, when Iran began shifting maritime trade up the east coast toward the Pakistani border to reduce the reliance on Persian Gulf ports which were susceptible to attack by the Iraq Air Force. Chabahar is substantial for its fishing industry and will serve as a major trade hub designed to connect South Asia, Central Asia, and the Middle East. Chabahar can emerge as a potential global trading hub – and an arena for geopolitical competition. Chabahar is vital for both India and Iran to reduce their dependence on the Suez Canal for transporting cargo to Europe. Chabahar is a strategic port from an Indian perspective. Apart from being easily accessible from India’s western coasts, it serves several important functions. For starters, by having access to the port, India can reduce its commute time to Central Asia by one-third. Second, a link between Afghanistan and India could be built without going through Pakistan and this could help the already established diplomatic, security and economic relationship between New Delhi and Kabul. Third, India gains road access to four cities in Afghanistan via Chabahar: Herat, Kandahar, Kabul, and Mazar-e-Sharif. This will help India strengthen its trade with Afghanistan (“Chabahar and Beyond” 2016). However, the Taliban’s return to power in 2021 gives rise to a certain level of uncertainty. The current geopolitical environment, both regional and global, creates opportunities for India to overcome possible uncertainties.
New Delhi views Chabahar port as a means of bypassing Pakistan’s land routes to gain access to the Afghan and Central Asian markets.
Being one of the world’s fastest-growing economies, expansion of trade relations and access to new markets is a necessity for India. As an investor, New Delhi views Chabahar port as a means of bypassing Pakistan’s land routes to gain access to the Afghan and Central Asian markets. Pakistan’s Gwadar port is one possible route for India to access Central Asian markets, India has long aimed for alternative routes due to its adversarial relationship with Pakistan (“Chabahar Port: A Step toward Connectivity for India and Afghanistan,” n.d.). Additionally, the port will strengthen relations between India and Iran, which may help counterbalance strong Sino-Pakistani cooperation. According to the Minister of Foreign Affairs (MEA), India and Iran share close historical and civilizational ties, “Our bilateral relations are marked by strong linkages across institutions, cultures and people-to-people ties,” the MEA said in a statement. Afghanistan also seeks to explore new trade routes to reach international markets. It aims to reduce its dependence on Pakistan, which handles most of the Afghan trade due to the country’s landlocked status.
Afghanistan is crucial for India’s ‘neighbourhood first’ strategy. India assisted Afghanistan in becoming a full member state of SAARC in 2007. It signed a Preferential Trade Agreement with Kabul in 2003 following the establishment of the interim government post the US’s intervention in 2001. Under the North-South Transport Corridor framework, India, Afghanistan, and Iran signed the Chabahar port agreement in 2003, allowing all three countries to use the Chabahar port as a trade hub. India is working on constructing the Chabahar port primarily to compete with the Gwadar port project and to connect it to Russia’s International North-South Transport Corridor (INSTC). India has already built a 218-km-long road from Delaram to Zaranj (“India Completes Zaranj-Delaram Highway in Afghanistan” 2008) and now plans to connect this road to Chabahar port and deliver goods through this route. India is also keen on using the Chabahar port to connect the oil-rich Central Asian countries by road connectivity via the Milak (Iran) and Zaranj-Dilaram (Afghanistan) roads. For India, the port, which is only 940 kilometers from Mundra in Gujarat, is about more than just facilitating the flow of trade with Afghanistan. Rather, the development of Chabahar is a crucial component of the country’s grand strategy to connect with Central Asia. India’s justification for wanting to develop the Chabahar Port goes beyond its interest in Afghanistan. Enhancing regional trade and connectivity as well as thwarting China’s expanding influence in the Indian Ocean are other top priorities for Indian foreign policy (“What Are India, Iran, and Afghanistan’s Benefits from the Chabahar Port Agreement? Manohar Parrikar Institute for Defense Studies and Analyses,” n.d.).
Geopolitical Challenges
The port of Chabahar will be of little use if Afghanistan is not stable. Indian interest in the Chabahar Port, therefore, continues to be closely linked to the geopolitical changes the region is currently experiencing.
The competition for regional dominance between India and China can be seen in the development of ports in the regions. Indian involvement in the Chabahar port is important in securing India’s interest in the region. A calculative China will seize any opportunity that India might present in the port facility. If China moves in, Indian investments in the Chabahar port may be unfavorably affected (Pant and Mehta, 2018). A significant barrier is the complex nature of India-Iran relations, in which the former does not hold a privileged position. Given India’s priorities in the Middle East, it is unlikely that the relationship with Iran could compete with the comprehensive partnership that China and Pakistan share, which includes a strong defence and security arrangement. Iran may find it challenging to ignore or exclude China, its largest foreign investor, from the Chabahar project. Additionally, China has successfully completed several infrastructure projects in Iran, including the Tehran Metro, and has allocated US$ 1.5 billion through its EXIM Bank for the electrification of the Tehran-Mashhad railway line (“$1.5b China Loan for Iranian Rail Project” 2017).
Peace and stability in Afghanistan will also impact the performance of the Chabahar Port. The tumultuous security situation in Afghanistan could jeopardise trilateral efforts between India, Iran, and Afghanistan to operate the Chabahar Port facility. And finally, the port of Chabahar will be of little use if Afghanistan is not stable. Indian interest in the Chabahar Port, therefore, continues to be closely linked to the geopolitical changes the region is currently experiencing.
References
“$1.5b China Loan for Iranian Rail Project.” 2017. Financial Tribune. July 25, 2017. https://financialtribune.com/articles/economy-domestic-economy/68986/update-15b-china-loan-for-iranian-rail-project.
Amirthan, Shawn. 2016. “What Are India, Iran, and Afghanistan’s Benefits from the Chabahar Port Agreement?” Strategic Analysis 41 (1): 87–93. https://doi.org/10.1080/09700161.2016.1249184.
“Chabahar and Beyond.” 2016. Www.thehindubusinessline.com. May 25, 2016. https://www.thehindubusinessline.com/opinion/editorial/chabahar-and-beyond/article8646239.ece.
“Chabahar Port: A Step toward Connectivity for India and Afghanistan.” n.d. Thediplomat.com. https://thediplomat.com/2019/07/chabahar-port-a-step-toward-connectivity-for-india-and-afghanistan/.
“India Completes Zaranj-Delaram Highway in Afghanistan.” 2008. Development News from Afghanistan, August 24, 2008. https://afghandevnews.wordpress.com/2008/08/24/india-completes-zaranj-delaram-highway-in-afghanistan/.
Pant, Harsh V., and Ketan Mehta. 2018. “India in Chabahar.” Asian Survey 58 (4): 660–78. https://doi.org/10.1525/as.2018.58.4.660.
“What Are India, Iran, and Afghanistan’s Benefits from the Chabahar Port Agreement? Manohar Parrikar Institute for Defence Studies and Analyses.” n.d. Idsa.in. https://idsa.in/strategicanalysis/40_1/india-iran-and-afghanistans-benefits-from-the-chabahar-port-agreement.
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