India and Iran are pushing forward with the development of Chabahar Port, with plans to significantly expand its capacity and connect it to the Iranian railway network by mid-2026. This move comes despite potential threats of renewed US sanctions.

The port's capacity is set to increase fivefold, from 100,000 TEUs (twenty-foot equivalent units) to 500,000 TEUs. Concurrently, a 700-kilometre railway line will be completed, linking Chabahar to Zahedan, thereby integrating the port into Iran's wider rail infrastructure. These projects are expected to conclude by the middle of next year, facilitating improved access to Central Asian and Eurasian markets via the International North-South Transport Corridor (INSTC).

India has committed an investment of $120 million for acquiring port operations equipment and has offered a credit window of $250 million for developing surrounding infrastructure. Despite concerns over US sanctions, Washington has not yet acted on previous announcements to end waivers benefiting Chabahar.

The port has seen a steady rise in cargo handling, with volumes increasing from 1.2 million tonnes in FY21 to 2.84 million tonnes in FY24. Since India Ports Global Limited took over operations in 2018, Chabahar has handled over 450 vessels, 134,082 TEUs of container cargo, and more than 8.7 million tonnes of bulk and general cargo. India has already supplied port equipment worth $24 million, with further procurement underway.