Iran and Kazakhstan strike port deal, eye $3 billion trade target

Iran has finalized an agreement to allocate land to Kazakhstan at the Port of Shahid Rajaee in Bandar Abbas. Once all necessary procedures are completed, the land will be transferred to Kazakhstan. The announcement followed a meeting between Serik Zhumangarin, Kazakhstan’s Deputy Prime Minister and Minister of National Economy, and Farzaneh Sadegh, Iran’s Minister of Roads and Urban Development.

A central focus of the talks was the development of transport routes and port infrastructure. Iran confirmed its readiness to give Kazakhstan access to Chabahar Port, which offers direct connections to markets in South and Southeast Asia. According to Sadegh, construction of the Chabahar-Zahedan railway line is more than 90% complete, with its launch expected within the coming months. The line is set to play a pivotal role in regional transportation by integrating Chabahar into the international railway network linking the Indian Ocean with Central Asia and Europe.

For its part, Kazakhstan expressed willingness to offer Iranian companies port space, berths and terminals at Aktau and Kuryk to support logistics operations in the Caspian Sea.

The two sides also discussed expanding the International North-South Transport Corridor (INSTC) and following through on agreements reached during Iranian President Masoud Pezeshkian’s official visit to Kazakhstan on Dec. 10, 2025.

Last year, cargo volumes along the corridor rose 12% to 3.5 million tons, while rail traffic between Kazakhstan and Iran surged 69%.

To boost the INSTC’s capacity to 20 million tons per year — a target both sides consider achievable — Zhumangarin proposed developing a joint roadmap for modernizing transport infrastructure.

Iran remains one of Kazakhstan’s most important trade and economic partners in the region. By the end of 2025, bilateral trade had grown 26.4% to $430.2 million. Both countries are now aiming to push that figure to $3 billion, backed by the current roadmap and a free trade agreement between Iran and the Eurasian Economic Union.

Beyond reaffirming their commitment to accelerating the implementation of previously reached agreements and advancing transport and logistics infrastructure, the two sides also agreed to coordinate efforts to attract foreign investment.

The Port of Shahid Rajaee is one of two sections of Bandar Abbas Port, located in Iran’s southern Hormozgan Province on the northern shore of the Strait of Hormuz.