Iran is on the verge of completing the Chabahar-Zahedan railway, a pivotal infrastructure project aimed at enhancing trade routes across Central Asia and the Indian Ocean. This railway is integral to the International North-South Transport Corridor (INSTC), offering a strategic alternative to traditional maritime routes like the Suez Canal. By linking the Indian Ocean to Central Asia and beyond, Iran aims to reduce freight travel time by up to 40%, via this railway.
According to Mehr News Agency, Spanning approximately 634 kilometers, this railway will connect Chabahar, Iran’s sole oceanic port on the Gulf of Oman, to Zahedan near the Afghanistan-Pakistan border, integrating the southeastern region into the national rail network. Construction commenced in 2013, and by November 2022, the 154-kilometer Zahedan-Khash section was inaugurated, featuring one tunnel, 12 large bridges, and seven stations . As of late 2023, over 65% of the project was completed, with full operation anticipated by March 2026.
According to recent updates, Iranian officials have expressed intentions to complete the remaining sections, with various timelines projected, including an aim to finish the project by late 2025 or March 2026. As of early 2025, the physical progress of the project is reported to be around 80 percent. The estimated value of the Chabahar-Zahedan railway project is approximately $1.5 billion. Iran has allocated funds from its National Development Fund for the construction. India had initially shown interest in funding parts of the project, and a Memorandum of Understanding was signed with Iranian Railways. However, Iran decided to proceed with the construction independently in 2020, citing delays in proposed Indian funding, partly due to concerns over US sanctions (Zee News).
