The Shahid Beheshti Terminal is the principal Indian-operated facility within the port of Chabahar, located on the Makran coast of Iran's Sistan and Baluchestan province, facing the Gulf of Oman outside the Strait of Hormuz. Chabahar comprises two distinct port complexes—Shahid Kalantari and Shahid Beheshti—of which the latter has been the focus of Indian investment and operation. The legal foundation rests on the trilateral Transit and Transport Corridor agreement signed in Tehran on 23 May 2016 by Prime Minister Narendra Modi, Iranian President Hassan Rouhani, and Afghan President Ashraf Ghani, alongside a bilateral contract under which India committed to equip and operate the Shahid Beheshti Terminal. India Ports Global Limited (IPGL), a joint venture of the Jawaharlal Nehru Port Trust and the Kandla (Deendayal) Port Trust, was constituted to execute the project, while a special-purpose vehicle, India Ports Global Chabahar Free Zone (IPGCFZ), undertook on-the-ground operations.
Procedurally, the engagement advanced in defined phases. India committed an investment of roughly USD 85 million to develop and equip Phase I of the terminal, including the supply of port cranes and cargo-handling equipment. India Ports Global formally took over operations of the terminal in December 2018, becoming the first instance of India operating a foreign port. The interim arrangement that governed operations from 2018 was renewed annually pending a long-term contract. The decisive procedural step came on 13 May 2024, when IPGL and Iran's Ports and Maritime Organization signed a ten-year contract in Tehran for the equipping and operation of the Shahid Beheshti Terminal, under which India committed approximately USD 120 million in equipment investment, with an additional credit window of around USD 250 million offered for associated infrastructure.
The terminal's mechanics are tied to a broader corridor architecture. Cargo discharged at Shahid Beheshti is intended to move overland through the proposed Chabahar–Zahedan railway and onward road links toward the Afghan border at Zaranj, connecting to the Zaranj–Delaram highway that India built and inaugurated in 2009. Chabahar is also positioned as a node of the International North–South Transport Corridor (INSTC), the 7,200-kilometre multimodal route agreed by India, Iran, and Russia in 2000 and ratified subsequently, which links the Indian Ocean to Russia and Northern Europe via Iranian territory and the Caspian Sea. The terminal thus functions simultaneously as a gateway to landlocked Afghanistan and Central Asia and as a potential southern anchor of the INSTC.
Contemporary milestones illustrate the terminal's operational record. In 2017, India shipped its first consignment of wheat to Afghanistan through Chabahar as humanitarian assistance, demonstrating proof of concept before formal handover. By 2018–19 the terminal had begun handling commercial traffic, and during the COVID-19 period it served as a conduit for relief shipments to Afghanistan and Iran. New Delhi has consistently flagged the project at the level of the Ministry of External Affairs and the Ministry of Ports, Shipping and Waterways, with the 2024 long-term contract signed in the presence of Union Minister Sarbananda Sonowal in Tehran. Iran's Ports and Maritime Organization remains the counterparty managing the surrounding port estate and the Chabahar Free Trade-Industrial Zone.
Shahid Beheshti must be distinguished from the Gwadar port in Pakistan's Balochistan, located roughly 170 kilometres to the east, which is operated by China Overseas Ports Holding Company as the maritime terminus of the China–Pakistan Economic Corridor. While analysts frequently frame Chabahar and Gwadar as competing strategic projects, they serve overlapping but distinct hinterlands. The terminal should also be distinguished from the broader port of Chabahar and from the INSTC itself: Shahid Beheshti is a single terminal facility, whereas Chabahar is the port complex and the INSTC is the corridor network it feeds. Confusing the terminal with the corridor obscures the fact that India's operational rights pertain specifically to one facility, not to Iranian transit infrastructure as a whole.
The principal controversy surrounding the terminal concerns United States secondary sanctions on Iran. Although the project received a sanctions exemption from the US government in November 2018—recognising its role in Afghan reconstruction and reconstruction-linked transit—the waiver's durability remained uncertain, and following the May 2024 ten-year contract a US State Department spokesperson cautioned that entities engaging in business with Iran risk sanctions exposure. The Taliban's return to power in Kabul in August 2021 also altered the Afghan dimension, complicating the corridor's original tripartite logic. Persistent delays in the Chabahar–Zahedan railway, reduced banking channels owing to sanctions, and limited cargo volumes have constrained the terminal from realising its projected throughput. Russia's intensified interest in the INSTC after 2022 has, conversely, renewed momentum.
For the working practitioner, the Shahid Beheshti Terminal is a concrete instance of how connectivity diplomacy intersects with sanctions law, regional rivalry, and the strategic imperative of bypassing Pakistan to reach Afghanistan and Central Asia. It is a recurring subject in UPSC General Studies Paper II under international relations and India's neighbourhood policy, and a live case study in how a single infrastructure asset becomes an instrument of statecraft. Desk officers tracking India–Iran relations, INSTC logistics, or the Afghan question must understand the terminal not as an isolated port but as the maritime hinge of an aspirational overland network whose viability hinges on geopolitical and legal variables beyond New Delhi's sole control.
Example
In May 2024, India Ports Global Limited signed a ten-year contract with Iran's Ports and Maritime Organization in Tehran to operate the Shahid Beheshti Terminal at Chabahar, with Union Minister Sarbananda Sonowal present.
Frequently asked questions
It gives India a maritime gateway to landlocked Afghanistan and Central Asia that bypasses Pakistan entirely, and serves as a southern anchor of the International North–South Transport Corridor linking India to Russia and Europe. It is India's first overseas port operation.
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