The launch of Khaf-Herat railroad prepares the ground for boosting Afghanistan's exports to other countries, including the export of minerals to Iran, says the head of Afghanistan Economic Activists Association in Khorasan Razavi Province.
The railroad was launched to link Khaf in northeastern Iran to Rozanak in Afghanistan’s Herat Province last week.
The launch of the strategic railroad took place in a ceremony on July 11, which was attended by officials of both Iran and Afghanistan.
“The railroad provides a connection for Afghan traders to Iran's Chabahar Port and from now on, Afghan traders can transport their products by train from Chabahar to Herat,” Haj Bashir Ahmad Arbabi was also quoted as saying by IRNA.
The official noted that Afghanistan has about 300 unexploited mines, including iron ore and coal mines.
The Khaf-Herat railroad will boost trade, export and transportation between the two countries and help connect Iran with China, he added.
“Chinese products are transported from the northern borders of Afghanistan to Rozanak train station in Herat and then they are transported to different destinations in Iran through the Trans-Iranian Railroad,” he said.
The cross-border railroad has returned to service after the completion of work to repair infrastructure damage at Rozanak in Afghanistan, caused during the Taliban takeover in 2021, International Railway Journal reported.
In December 2022, the governments of Iran and Afghanistan agreed to complete repairs within six months. Work was undertaken by Afghanistan Railways under the supervision of Iran's Construction and Development of Transportation Infrastructures Company.
Rozanak is the current eastern terminus of the route that will eventually run for 225 km from Khaf in Iran to Herat in Afghanistan.
The first 140 km from Khaf to Rozanak opened in December 2020, together with new customs facilities at the border. Work on the remaining 85 km section between Ghurian and Herat was halted during the fighting in 2021.
Reopening the Khaf-Rozanak railroad and completing its extension to Herat has been a priority infrastructure project for both countries, with Iranian railroad officials recently visiting Afghanistan to discuss further cooperation with Afghanistan Railways on construction work and cross-border operations.
Used by both freight and passengers trains, the Khaf-Herat railroad will provide Afghanistan with access to sea ports and neighboring countries, improving trading links with Central Asia, Russia, Turkey and Europe.
The new railroad is also expected to reduce transport costs, stimulate cross-border trade and develop economic relations.
According to Arbabi, business activities are improving after recovering from problems caused by the change of government in Afghanistan and Afghan businessmen are currently active in the fields of transportation, commerce, agriculture, industry, mining, hotel, petrochemical and fuel.
Noting that Afghan businessmen undertake part of exports from Iran to Afghanistan, he added that recent months have seen increased commercial activities in the field of exports to Afghanistan and fuel trade, as hotel industry managed by Afghan nationals have flourished in Khorasan Razavi.
“Currently, 550 businessmen and business owners are members of Afghanistan Economic Activists Association in Khorasan Razavi, and with the official registration of 1,600 companies in various commercial and services fields in the province, Afghan nationals account for 16,000 of the population of business owners,” he said.
Khaf-Herat railroad is also part of a major 2,000-kilometer-long East-West railroad running through China, Uzbekistan, Afghanistan and Turkey to Europe.
According to Khorasan Razavi Governor General Yaqoub Ali Nazari, the railroad will reduce the costs and time of transportation of Iranian goods to Afghanistan, and connect Kabul with other Asian and European countries.
"With the launch of the only railroad between Iran and Afghanistan, our country's exports to Afghanistan will accelerate and increase. One of the advantages of this railroad is higher speed and lower cost of supplying goods to Afghanistan, which will increase significantly by alleviating security and traffic problems at the Dogharoun border," he said.
According to Taliban officials, the Herat-Khaf railroad is divided into four sections, with three sections already completed. The remaining section is expected to be finalized soon. Two sections are located within Afghanistan, while the other two are situated in Iran.
A test run of the railroad saw a freight train arrive in Herat Province on May 9 via the Khaf-Herat railroad.
$1.6b Worth of Trade in Fiscal 2022-23
Iran has been Afghanistan’s top trade partner in recent years and is a key provider of fuel to its eastern neighbor. Its trade with Afghanistan (non-oil exports plus imports) stood at 3,405 tons worth $1.66 billion in the fiscal 2022-23 (ended March 20), registering a 10% fall in terms of value compared with $1.85 billion in the year before, according to the Islamic Republic of Iran Customs Administration.
Iran registered $1.6 billion in trade surplus with the neighboring country during the period, IRIB News reported.
The main exported goods include light oils and products, excluding gasoline, oil and other products obtained from the distillation of coal tar at high temperature, bituminous mineral oils, liquefied natural gas, flooring, apple, tomatoes, mineral oil and gasoline.
The above-mentioned goods accounted for 36% of the weight and 39% of the value of the total exports to Afghanistan during the year.
The report noted that most of the goods exported to Afghanistan from Iran are petroleum and petrochemical based products.
Meanwhile, refined lead, sunflower seeds, plants and herbs used in perfumery and pharmaceuticals were the top imported products from Afghanistan during the period, accounting for 39% of the total import’s value.
Other imported goods include sesame, green mung beans, pinto beans, single thread string, pepper, cotton, fennel seeds and other kinds of plants.
Iran and Afghanistan have 815 kilometers of common border.
Afghanistan has always been one of Iran's most important neighbors due to its geographical location. Therefore, provinces that have a common border with this country are very important regions. These provinces include Khorasan Razavi, South Khorasan and Sistan-Baluchestan.