Domestic Economy

Tehran, Muscat Sign Deal on Direct Shipping Line

Tehran, Muscat Sign Deal  on Direct Shipping LineTehran, Muscat Sign Deal  on Direct Shipping Line

Tehran and Muscat have signed an agreement to establish a direct shipping line between Iran’s Shahid Rajaee Port and Oman’s Sohar Port.

The agreement was signed between Iran and Oman chambers of commerce as well as the Iranian private shipping company Jahan Darya Shipping AG on Saturday, following a visit by a business delegation from Oman to Tehran, IRNA reported.

Three vessels including two container ships and a bulk carrier will set sail on the new route as of May 15 and are scheduled to travel the route every 15 days, CEO of Jahan Darya Shipping AG, Abdolhossein Khedri told reporters, adding that the number of trips as well as the vessels' capacities may increase if necessitated by higher demand.

An Omani trade delegation of 50 high-ranking business owners and investors arrived in Tehran on April 24 to hold negotiations with Iranian companies and industry players.

Speaking to the Times of Oman, Edwin Lammers, executive commercial manager of Sohar Port and Freezone, said that Oman can play the role of a trade facilitator between Iran and other countries once the international sanctions on Iran [imposed by the West over Iran's nuclear program] are lifted.

Sohar Port and free zone is located around 200 kilometers northwest of the capital Muscat. The existing road network and the future rail system and airport provide direct connectivity to the UAE.

The new shipping line is part of Iran and Oman's plan to establish shipping lines between four Omani ports of Sohar, Sultan Qaboos, Musandam, and Shinas and the Iranian ports of Chabahar, Bandar Abbas, and Bandar Imam Khomeini, Iranian Ambassador to Oman, Ali Akbar Sibeveih told Tasnim news agency in September.

> North-South Corridor

In addition to facilitating exports by Iranian traders, the new route will give Oman access to other countries including the Commonwealth of Independent States (CIS) in the north of Iran.

President Hassan Rouhani announced during a visit to Ashgabat in early March that Iran and Turkmenistan are determined to activate the 'North-South Corridor' that will go through Oman, Iran, Turkmenistan and Uzbekistan, in order to meet the interests of the all countries in the region.

> Joint Investment Company

In the meeting of Iran and Oman chambers of commerce on Saturday, the two countries also agreed to establish a joint investment company.

The company will invest in important projects in the two countries, IRNA quoted Mohsen Zarrabi, the Iranian head of Iran-Oman Joint Chamber of Commerce, Industries, Mines and Agriculture as saying.

Iran's major non-oil exports to Oman include industrial and agricultural products, while Oman exports iron ore and mineral products to Iran.