Iran's trade (excluding crude oil exports) with Caspian Sea littoral states reached 4.62 million tons worth $2.49 billion during the first eight months of the current Iranian year (March 21-Nov. 21), registering a 17.47% rise in value, but a 5.2% fall in terms of weight compared to the similar period of last year, according to the Islamic Republic of Iran Customs Administration.
Russia was Iran’s main trading partner among the Caspian states with 2.63 million tons (up 23.73%) worth $1.48 billion (up 8.36%) during the period under review. It was followed by Azerbaijan with 517,497 tons (down 9.42%) worth $484,993 million (up 32.87%), Turkmenistan with 924,553 tons (down 0.16%) worth $311,820 million (up 35.58%) and Kazakhstan with 560,878 tons (up 30.62%) worth $209,164 million (up 39.11%).
Iran’s exports exceeded 2.64 million tons worth $1.33 billion during the period, registering a 7.56% and 29.44% rise in weight and value respectively.
Russia was Iran’s biggest export destination with 901,711 tons (up 29.34%) worth $466,574 million (up 17.63%), followed by Azerbaijan with 503,156 tons (down 9.09%) worth $460.96 million (down 37.25%), Turkmenistan with 896,386 tons (up 0.17%) worth $293.82 million (up 41.93%) and Kazakhstan with 344,787 tons (up 66.54%) worth $111.92 million (down 8.8%).
Imports from the four countries under review hit 1.98 million tons worth $1.15 billion during the eight months, to register an 18.51% fall in weight, but a 15.72% rise in terms of value.
Russia was the top exporter to Iran with 1.72 million tons (down 23.82%) worth $1.01 billion (up 1.8%). It was followed by Kazakhstan with 216,090 tons (up 83.88%) worth $97.23 million (up 158.46%), Azerbaijan with 14,341 tons (down 19.46%) worth $24.03 million (down 17.67%) and Turkmenistan with 28,167 tons (down 9.91%) worth $17.99 million (down 21.62%).
Iran’s trade with Caspian states hit 7.91 million tons worth $3.48 billion in the fiscal 2021-22, up from 6.24 million tons worth $2 billion year-on-year.
Russia, Iran Plan to Launch Trade via Caspian Sea
In a move that reflects both the increasing ties between Moscow and Tehran and the difficulties both countries have in shipping via the Caucasus land bridge given its instability and political changes, the two governments have announced plans to launch trade via the Caspian Sea between Astrakhan in Russia and Bandar Anzali in Iran, wrote Paul Goble, an author for the Eurasia Daily Monitor of the Jamestown Foundation, in a post published by Eurasia Review.
The two sides have further agreed that Russia will be allowed to transfer from ships to railroads across Iran 12 million tons of cargo a year, approximating 3,000 trainloads. In this way, the Caspian Sea will become for Moscow a trade window to the world.
Earlier this year, Russia and Iran had agreed to trade via Kazakhstan and Turkmenistan, but the sea route is preferable because fewer political and security issues are involved and because Iran is now a member of the Shanghai Cooperation Council and thus is tied more closely to Russia.
Moreover, Russian analysts say, this new Caspian route gives Russia an alternative to complete dependence on China and sends a message to Central Asian and South Caucasus countries that the North-South trade route Russia has long wanted can be more important for them too and that they should cooperate with it rather than seek east-west ones.
And what is especially important, these analysts say, is that this new Caspian sea route is “a natural counterweight” to Turkey’s presence and ambitions in the region, as it challenges the networks Ankara and the West have set up to undermine or exclude Russian influence there.
INSTC to Boost Share of Caspian Ports Shipping
The combined capacity of Iran’s five Caspian ports, namely Anzali, Noshahr, Fereydounkenar, Astara and Amirabad, has reached 35 million tons, accounting for only about 13% of the total capacity of Iranian ports, according to Jalil Eslami, the deputy head of Ports and Maritime Organization of Iran.
“Poor export infrastructures and lack of adequate equipment are to blame for the low shipping traffic of northern Iranian ports and freight forwarding companies, as well as traders’ reluctance to use their services,” Ali Chagharvand, director of Plan Management, Planning and Monitoring Department of Iran Chamber of Commerce, Industries, Mines and Agriculture, wrote for Tasnim News Agency.
"Traders and transportation companies do not avail themselves of the numerous advantages of Iran’s northern ports that are in recession. Economic players believe that they are uneconomical. This is while by removing obstacles, freight transportation and trade through northern ports can become a viable alternative to other transit routes and even southern ports,” he said.
According to the official, a meager 5-6 tons of the overall capacity of northern ports were used in the fiscal 2020-21, as demand for their services has declined in recent years.
"Noshahr Port has considerable advantages, including its proximity to the capital city and major commercial and industrial centers, easy access to the consumer markets of Central Asia and Eastern Europe, access to airport, availability of facilities for storage and movement of commercial goods, petroleum products and solid bulk cargo, having exclusive warehouses and special facilities for export and transit, as well as direct connection through pipelines to Chalous oil reservoirs. However, due to several reasons, the port’s shipping traffic is even lower than that of Amirabad Port,” he said.
The operationalization of the International North-South Transportation Corridor could give impetus to northern ports.
Iran’s state-owned Islamic Republic of Iran Shipping Lines has moved to expand its network by facilitating the transport of Russian goods to India via INSTC, a land-sea corridor passing through a dozen countries to bypass Western sanctions against Russia, Splash247.com reported.
The corridor has entered the operational phase after completing a trial phase in June when containers of wood laminate sheets departed from St. Petersburg toward Nhava Sheva Port in India.
IRISL Plans to Boost Caspian Shipping
New vessels will soon be joining IRISL to increase the capacity of shipping in the Caspian Sea, said the head of the Islamic Republic of Iran Shipping Lines recently.
“Agreements have been signed between Khazar Sea Shipping Lines [a subsidiary of IRISL Group] and a domestic manufacturer for the production of two RO-RO ships and two general cargo vessels, which are due to be delivered within two years,” Mohammad Reza Modarres-Khiyabani, the CEO of IRISL Group, was also quoted as saying by Mehr News Agency recently.
With the four new vessels, the capacity of Khazar Sea Shipping Lines will increase by 16%, he added.
Established in 1992, Khazar Sea Shipping Lines is one of the biggest providers of marine transportation services in the Caspian Sea.
KSSL recently announced that container transit shipping lines have been launched between the ports of northern Iran and Russia’s Makhachkala Port.
It will from now on transport refrigerated and general container consignments from ports in Iran’s northern provinces to the port in Makhachkala, previously known as Petrovskoye, IRNA reported.
Makhachkala is the only Russian port on the Caspian Sea shores, the access route to which is not severed in winter by frozen waters.
Transporting containers from Iran to Moscow via this port is 30% more efficient in terms of time and cost compared to the route that passes through Azerbaijan Republic.
Makhachkala is the capital and largest city of the Republic of Dagestan in Russia located along the shore of Caspian Sea.
KSSL and the Trade Promotion Organization of Iran signed a memorandum of understanding on Oct. 13 to establish six regular shipping routes for the transport of freight between Iran’s northern ports in the Caspian Sea and those of Russia and Kazakhstan.
The signatories, Davoud Tafti, the CEO of Khazar Sea Shipping Lines, and Alireza Peymanpak, the head of TPO, agreed to expand marine transportation lines to eight by March 2022.
“Freight will be transported on a regular schedule between the Iranian ports of Amirabad, Anzali and Noshahr, and Russia’s Makhachkala and Astrakhan, and Kazakhstan’s Aktau. Two other optional routes from Iran’s Astara and Fereydounkenar ports have been included in the MoU to carry cargo to the above-mentioned ports in Russia and Kazakhstan on demand,” Tafti was quoted as saying by ILNA.
The shipping line has the capacity to transport 200,000 tons of cargo per year while container loading and unloading capacity amounts to 6,000 TEUs per year.
The company has 23 vessels under its name, 15 of which can carry containers.
Infrastructures are ready for commodity transit from Iran's southern ports to the north and through Caspian Sea, the CEO told Trend News Agency in an interview.
"We are interacting with southern ports, commodity owners and companies in China, Russia, South Korea, Singapore and India for promoting cargo transportation through the International North-South Transportation Corridor and Iran's East-West Transit Corridor to Eurasian countries," Tafti explained.
