Kazakhstan has embarked on a strategic initiative to bolster its logistics capabilities by investing in Iran’s Shahid Rajaee Port, located in Bandar Abbas.
This move aims to establish a dedicated terminal and logistics centre, enhancing Kazakhstan’s access to global maritime routes and strengthening its position in international trade. On 29 April 2025, officials from Kazakhstan and Iran signed a memorandum of understanding (MoU) to collaborate on the development of this facility. Under the agreement, Iran’s Ports and Maritime Organization will allocate land within or near the port, while Kazakhstan is expected to submit its investment proposal within 30 days.
Shahid Rajaee Port is Iran’s largest commercial port on the Persian Gulf, handling approximately 85% of the country’s container traffic. The planned terminal will not only facilitate Kazakhstan’s cargo but also serve as a transit point for neighbouring Central Asian countries, thereby expanding international trade through Iran’s southern ports. This development aligns with Kazakhstan’s strategy to diversify its trade routes and reduce dependency on traditional corridors. By leveraging Iran’s extensive coastline and access to international waters, Kazakhstan aims to create stable transit routes to Asia, the Middle East, and Europe.
The collaboration also signifies a strengthening of economic ties between Kazakhstan and Iran. Iran, seeking to modernize its port infrastructure, views Kazakhstan’s investment as a step towards enhancing bilateral trade and transit cooperation. The partnership is expected to lay the groundwork for future joint ventures and reinforce Kazakhstan’s position in transregional logistics chains. Despite a recent explosion at Shahid Rajaee Port on 26 April 2025, which resulted in significant casualties and damage, the agreement underscores both nations’ commitment to advancing their economic collaboration. The incident, while tragic, has not deterred the planned investment, indicating the strategic importance of the project for both countries.
Kazakhstan’s investment in Shahid Rajaee Port represents a significant step towards enhancing its logistics network, fostering regional cooperation, and promoting sustainable economic growth through improved connectivity and trade facilitation.
Kazakhstan and Iran Forge Logistics Partnership