Iran and Kazakhstan have agreed on starting a test run at the beginning of 2023 for a multimodal sea-rail freight service to give landlocked Kazakhstan a connection to the Persian Gulf.
The two countries are forming a technical committee to analyze the feasibility of a rail freight service from the north of Iran to the port of Bandar Abbas in the south, RailFreight reported.
Astana and Tehran have recently joined forces for port and logistics operations in the port of Bandar Abbas.
Kazakhstan is interested in reefer container services transporting meat and livestock products, grain and flour, and other bulk products via Bandar Abbas. Such a service will also open up new possibilities for Iran to ship commodities to Central Asia and the CIS countries.
Call for Boosting INSTC
According to Hossein Abbasnejad, the director general of the Ports and Maritime Department of Hormozgan Province, this cooperation plans to boost traffic on the International North-South Transportation Corridor. “The corridor is, in fact, gaining relevance after the Russian invasion of Ukraine. This is because some customers prefer to bypass Russia when carrying out transportation services,” he added.
A memorandum of understanding was signed by Iran and Kazakhstan on Oct. 31, which is aimed at increasing bilateral cooperation.
The two parties have agreed to increase the volume of cargo transiting from Kazakhstan to Iran to 4 million tons a year, which would equate to a 400% growth compared to current numbers.
More Iranian Projects to Use INSTC
Last week, Iran also agreed with Armenia to create a connection between the two on the INSTC. The new connection, which will be via road and not via rail, will link Tatev, in southern Armenia, with Tabriz, in northwest Iran.
Ali Ziaei, director of Transportation Research Groupe at ITAN, shed some light on why road was chosen over rail for this route.
The two countries considered the option of a rail connection in 2021 after Azerbaijan banned traffic on the Goris-Kapan Highway in southern Armenia.
“Currently, the most viable option for the Iran-Armenia rail connection is to reopen the Jolfa rail border and reactivate rail freight between Azerbaijan and Armenia. The rail networks of these countries are integrated into Caucasus, Russia and CIS. As a result, the Jolfa railroad can connect Europe to the Persian Gulf,” Ziaei said.
This option, however, is not well seen by Armenia, which imposed a transport blockade on Azerbaijan and Turkey, halting operations on the Jolfa railroad.
Russia has been quite vocal in asking Armenia to lift the ban, or it will risk exclusion from the INSTC project.
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