Chabahar’s viability whets India’s global port acquisition appetite; Africa, West Asia being explored
Keen to cash in on Chabahar’s “success”, India is looking to “actively expand” its global footprint in port operations. It is eyeing acquisition, operations and development opportunities in African nations — for ports, berths and terminals — and also in West Asia, government sources in the know, told businessline.
Plans are afoot to strengthen presence in the neighbourhood and further ramp-up operations at Chabahar — increased container handling of up to 1,00,000 TEUs (full capacity) by FY26 and bringing in Indian shipping liners to start operations there.
Sources say, India-funded Chabahar Port operations are expected to handle nearly 1,00,000 TEUs by FY26, at nearly full operating capacities.
In FY25, the port is expected to handle close to 75,000 TEUs (container traffic) and by “January-end has crossed 65,000 TEUs” — which is FY24 levels, those in the know said. The terminal handled 64,245 TEUs (twenty equivalent units), data from India’s Shipping Ministry show. It was just 9,126 TEUs in FY23.
In investment mode
Chabahar Port continues to be in “investment mode” and the Indian operator — India Ports Global Ltd (IPGL) — is hoping to bring-in Indian shipping lines to start operations “soon”. Marketing activities have also been taken-up to ensure operational viability of the port.
“Operations are commercially viable, but it will take some more time to be profitable as geopolitical turmoil continues,” another source said.
The Economic Survey 2024-25 noted, that the Shahid Beheshti Port at Chabahar connects Mumbai to Eurasia via the INSTC (International North–South Transport Corridor), reducing transport costs and time, leading to a 43 per cent increase in vessel traffic and a 34 per cent rise in container traffic for FY24.
“So there are some more ports under consideration and acquisitions or setting up operations there are being actively explored,” a source said; adding that African and West Asian ports that are “strategically located” are being looked at.
Neighbourhood Plans
In Myanmar, IPGL has assumed control of operations at Sittwe Port. This port is a vital component of the Kaladan Multimodal Transit Transport Project, linking Bangladesh, Thailand, and Kolkata.
By enhancing connectivity through Myanmar, India aims to establish a seamless trade corridor to Southeast Asia, reinforcing its Act East Policy and strengthening regional economic partnerships.
Down South, India is expanding its influence in Sri Lanka with the development and operation of Kankesanthurai Port by IPGL. This initiative not only boosts bilateral trade but also revives maritime passenger connectivity, with a regular ferry service planned between Nagapattinam (India) and Kankesanthurai (Sri Lanka). MoUs are expected to signed soon.
Consortium
A Ministry official added, talks are on to set up a consortium across some PSUs and Ministries to take up “greenfield port development projects”. Unlike the IPGL, which is primarily a port operator, this consortium will have “project execution expertise”.
“Right now we are coordinating with various Ministries and several approvals across PSU entities and their Boards are required. So it is still work in progress,” the person in the know said.
