Iran opens $1-bln port extension in south

Iran launched operations on Sunday at its USD 1-billion extension to the Chabahar port, located in the country’s south.

Chabahar, 300 kilometres east of the Strait of Hormuz in Sistan and Baluchestan province, is the only Iranian port with direct access to the Indian Ocean as well as the Sea of Oman and the Persian Gulf, and is designated as a free trade and industrial zone. 

Iranian President Hassan Rouhani led Sunday’s inauguration ceremony.

India and Iran signed an agreement in 2002 to develop Chabahar into a deep-sea port, with a total project investment of USD 500 million pledged by India. The country’s first USD 235 million in investment was used to more than triple the port’s capacity to 8.5 million tpy.

India aims to see the Chabahar port become a trade hub, giving it greater access to markets such as Afghanistan, Turkmenistan, Turkey and Azerbaijan. The port is thought to be in competition with Pakistan’s Chinese-aided Gwadar port project, and will allow India to bypass Pakistan in its west-reaching trade route.