Chabahar’s viability whets India’s global port acquisition appetite; Africa, West Asia being explored

In a bid to expand its global footprint in port operations, India is actively exploring port acquisition, development, and operations opportunities in Africa and West Asia, according to government sources. The move comes as India looks to capitalize on the success of Chabahar Port, which has witnessed record container traffic growth in recent years.

Chabahar Port Expansion: Full Capacity by FY26
The India-funded Chabahar Port is set to achieve full operational capacity of 1,00,000 TEUs (twenty-foot equivalent units) by FY26. In FY25, container handling is projected to reach 75,000 TEUs, with the port having already surpassed 65,000 TEUs by January 2025, matching FY24 levels. This marks a massive growth from just 9,126 TEUs in FY23.

India Ports Global Ltd (IPGL), the Indian operator of Shahid Beheshti Terminal at Chabahar, is focused on ramping up operations by:

Attracting Indian shipping lines to start operations.
Strengthening logistics and supply chain connectivity through the International North-South Transport Corridor (INSTC).
Implementing marketing strategies to enhance the port’s commercial viability.
Strategic Expansion into Africa & West Asia
India is now looking to expand its influence in global maritime trade by acquiring or developing strategically located ports, berths, and terminals in Africa and West Asia. Sources indicate that multiple port acquisition deals are currently being explored.

Strengthening Regional Trade: Key Port Developments
Myanmar: Sittwe Port
IPGL has assumed control of Sittwe Port operations, a crucial part of the Kaladan Multimodal Transit Transport Project.
The port connects Bangladesh, Thailand, and Kolkata, improving trade connectivity to Southeast Asia.
Sri Lanka: Kankesanthurai Port
India is expanding operations at Kankesanthurai Port under IPGL.
A regular ferry service is planned between Nagapattinam (India) and Kankesanthurai (Sri Lanka), boosting bilateral trade and maritime passenger connectivity.
MoUs for port development and ferry services are expected to be signed soon.
Formation of a Port Development Consortium
To accelerate greenfield port development projects, the Indian government is working on setting up a consortium of PSUs and Ministries. Unlike IPGL, which focuses on port operations, this consortium will have project execution expertise.

India’s aggressive expansion in global port infrastructure aligns with its goal to become a leading maritime trade hub, strengthening supply chain networks across Eurasia, Africa, and Southeast Asia.

Stay updated with the latest in India’s supply chain, logistics, and port infrastructure developments at The Journal of Supply Chain.