ISAS Insights

On 3 December 2017, Iran’s President Hassan Rouhani inaugurated a much awaited US$1 billion (S$1.35 billion) project to expand Shahid Beheshti Port at Chabahar, located in Iran’s south-eastern province of Sistan and Baluchistan. Chabahar is the country’s sole deep-water harbour and only direct access point to the Indian Ocean. This is also an achievement for India, following the port development pact signed in 2016 during Prime Minister Narendra Modi’s visit to Tehran, in which India committed to making US$500 million (S$676 million) available to develop the port and related infrastructure. Hopes are high for a boost in regional trade and connectivity. However, doubts persist over the port’s viability. In particular, India faces a tricky challenge in managing relations with Iran and the United States at a time of global uncertainty.