Kazakhstan has signed a landmark agreement with Iran to build and operate a dedicated transport and logistics terminal at Shahid Rajaee Port in Bandar Abbas, marking a major step toward expanding the country's trade routes to global markets.

The Build-Operate-Transfer (BOT) agreement was signed during an official ceremony hosted by Iran’s Ports and Maritime Organization. Under the deal, Iran will allocate land at Shahid Rajaee-its largest commercial port-for the construction of the Kazakhstan-operated logistics hub, The Caspian Post reports via Kazinform.

The agreement will remain in force for 27 years, including two years for construction and 25 years of operation. Commercial operations are expected to begin in the project's third year.

The terminal will significantly strengthen transport and logistics cooperation between Kazakhstan and Iran while enhancing the strategic International North-South Transport Corridor (INSTC). The new facility is expected to improve supply chain resilience, increase transit capacity, and expand export opportunities for Kazakh goods.

Once operational, the terminal will provide Kazakhstan with faster and more efficient access to markets across the Persian Gulf, South Asia, Southeast Asia, and East Africa, reinforcing the country's role as a key Eurasian trade hub.

The project follows Iran’s announcement in June that it was prepared to offer Kazakhstan access to operations at Chabahar Port, another strategic gateway providing direct maritime links to South and Southeast Asian markets.