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Domestic Economy

Shahid Rajaee Rail Cargo Transport Registers 49% Increase

More than 4.93 million tons of goods were transported by railroad from Shahid Rajaee Port of Hormozgan Province to destinations across the country during the current Iranian year’s first eight months (March 21-Nov. 23) to register a 49% rise year-on-year, according to a local official.

“The shipments were transported using 88,298 wagons,” Alireza Mohammadi Karajiran was also quoted as saying by the news portal of the Ministry of Roads and Urban Development.

He noted that around 292,512 tons of the total sum were essential goods, including wheat, vegetable oils, barley and corn.

Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.

Shahid Rajaee Special Economic Zone, located in the southern Hormozgan Province, accounts for the highest share of all goods exported from and imported to Iran.

The economic zone, which has a loading/unloading capacity of 100 million tons per year, accounts for over half of Iran's trade and about two-thirds of total freight transit through the country.

The lion’s share of Iran's containers is handled at Shahid Rajaee Port Complex.

With 18 gantry cranes and 40 berths, Rajaee is the most advanced container port of Iran. Launched in 1985, the port has expanded regularly and is connected to 80 ports worldwide.

The significance of this port lies in its large capacity, including its location in the Persian Gulf, container terminal, fuel bunkering, access to 24 kilometers of railroads and round-the-clock truck transportation.

In terms of transit, again Shahid Rajaee Special Economic Zone tops the list of Iranian customs terminals.

Hormozgan Ports and Maritime Organization finalized investment contracts with five local and one foreign company on Dec. 24, 2020. Agreements worth 250 trillion rials ($833 million are aimed at developing 2,400 hectares of hinterlands newly added to Shahid Rajaee Port and improving southern ports to ports of third generation.

The agreements include investment by Bama Company in establishing zinc, lead and manganese factories, Entekhab Industrial Group in construction of home appliance plants, Kayhan Port and Maritime Services Company in establishing a variety of industries and Nahavand Arman Company in setting up a refinery.

A Chinese company will also invest in establishing a container manufacturing plant.

Ports and Maritime Organization also finalized a memorandum of understanding with Bank Melli Iran Brokerage Company to provide financial guarantees for these projects, the ministry’s news portal, News.mrud.ir, reported.

Investment projects in Shahid Rajaee Port will create 20,000 jobs and their duration must not exceed three years, former minister of roads and urban development, Mohammad Eslami, had 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 development plans, their capacity must reach 500 million tons in five years,” he added.