Transit via Iranian border crossings and the country’s foreign truck commutes have increased to levels recorded before the outbreak of the coronavirus pandemic, says director general of the Transit and International Transport Bureau of the Road Maintenance and Transportation Organization.
“After the coronavirus spread across the region more than a year ago, our surrounding countries closed their borders to Iranian transit trucks. Later, regulations were loosened, but commutes were still restricted and controlled. This resulted in a drastic fall in the country’s transit activities,” Javad Hedayati was also quoted as saying by the news portal of the Ministry of Roads and Urban Development.
At present, he added, truck commutes from Iran’s 24 border crossings are back to pre-Covid days with the exception of our border with Turkmenistan, which has still retained the ban.
“We have made a request with the National Coronavirus Headquarters and the Health Ministry to prioritize the vaccination of transit drivers so things could speed up in our international transportation sector. This is what many countries have done and we need to do the same for close to 150,000 drivers that facilitate our foreign trade and transit,” Hedayati said.
A total of 7.53 million tons of commodities were transited through Iran during the last Iranian year (March 2020-21), showing a 0.89% decline compared with the year before, according to the spokesperson of the Islamic Republic of Iran Customs Administration.
“The transit volume came despite the outbreak of Covid-19, which closed down many of our border crossings for a few months,” Rouhollah Latifi was also quoted as saying by Fars News Agency.
The official noted that the country’s top 10 busiest border crossings in terms of transit were Shahid Rajaee Special Economic Zone in the southern Hormozgan Province with more than 3,3 million tons, Bazargan in West Azarbaijan Province with 703,000 tons, Bashmaq in Kurdestan Province with 687,000 tons, Sarakhs in Khorasan Razavi Province with 457,000 tons, Imam Khomeini Port checkpoint in Khuzestan Province with 447,000 tons, Bileh Savar in Ardabil Province with 337,000 tons, Jolfa in East Azarbaijan Province 312,000 tons, Razi in East Azarbaijan Province with 188,000 tons, Astara in Gilan Province with 156,000 tons and Bandar Lengeh in Hormozgan Province with 139,000 tons.
“These 10 border crossings accounted for 89% of Iran’s overall transit during the period under review,” he added.
With 12 wharfs, Shahid Rajaee is Iran’s biggest container port, accounting for 90% of the country’s total container throughput.
Over half of Iran’s commercial trading is carried out at Shahid Rajaee, which is located 23 kilometers west of the port city of Bandar Abbas, the capital of Hormozgan Province.
Hormozgan Ports and Maritime Organization finalized investment contracts with five local and one foreign company on Dec. 24. Agreements, which were signed in the presence of Minister of Roads and Urban Development Mohammad Eslami, are worth 250 trillion rials ($1 billion) and take aim at development of 2,400 hectares of hinterlands newly added to Shahid Rajaee Port and elevate southern ports to third generation ones.
The United Nations Conference on Trade and Development developed a framework that classifies ports into first, second and third generations. First-generation ports only perform traditional port activities, i.e., they are simply interfaces between the land and the sea. Second-generation ports are characterized as support service centers for transport, industry and trade, which provide certain value-added cargo services, such as labeling volumes, consolidation, deconsolidation and completing production processes. Third-generation ports are dynamic links in international trade networks and active agents that design and implement strategies for the complete development of a port’s area of influence.
The agreements include investment by Bama Company in establishing zinc, lead and manganese factories, Entekhab Industrial Group in construction of home appliance factories, Kayhan Port and Maritime Services Company in creating a variety of industries and Nahavand Arman Company in establishing a refinery.
A Chinese company will also invest in establishing a container manufacturing plant.
The Ports and Maritime Organization also finalized a memorandum of understanding with Bank Melli Iran Brokerage Company that will provide financial guarantees for these projects, the ministry’s news portal, News.mrud.ir, reported.
“Investment projects in Shahid Rjaee Port will create 20,000 jobs and their duration must not exceed three years,” Eslami said.
“Increasing the capacity of Iranian ports to 280 million tons was the main approach pursued by the ministry and PMO over the past 40 years. As per the development plans, their capacity must reach 500 million tons in five years.”
Mohammad Rastad, the managing director of Ports and Maritime Organization, said PMO has finalized 336 contracts worth 1,300 trillion rials ($5.2 billion) with the private sector.
