Domestic Economy

Trade With Caspian States Exceeds $3b in 11 Months

Iran's trade (excluding crude oil exports) with Caspian Sea littoral states stood at 6.96 million tons worth $3.07 billion during the 11 months to Feb. 19, according to the Islamic Republic of Iran Customs Administration.

Russia was Iran’s main trading partner among Caspian states with 4.3 million tons worth $1.99 billion during the period under review. It was followed by Azerbaijan Republic with 778,764 tons worth $527.59 million, Turkmenistan with 1.26 million tons worth $329.63 million and Kazakhstan with 624,053 tons worth $221.59 million.

Iran’s exports hit 3.47 million tons worth $1.5 billion.

Russia was Iran’s biggest export destination with 1.04 million tons worth $539.39 million, followed by Azerbaijan with 758 tons worth $491.81 million, Turkmenistan with 1.22 million tons worth $299.6 million and Kazakhstan with 459.513 tons worth $165.32 million.

Imports from the four countries under review hit 3.49 million tons worth $1.57 billion.

Again, Russia was the top exporter to Iran with 3.26 million tons worth $1.45 billion.

Kazakhstan followed Russia with 164,540 tons worth $56.27 million, Azerbaijan with 20,258 tons worth $35.78 million and Turkmenistan with 40,673 tons worth $30.03 million.

Non-oil trade with Caspian states hit 6.24 million tons worth $2 billion in the fiscal 2020-21.

 

 

Northern Ports’ Potential Untapped 

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. 

“In the last fiscal year [ended March 20, 2021], a meager 5-6 tons of the 30-million-ton capacity of northern ports were used, as demand for their services has declined in recent years.”

According to the Ports and Maritime Organization of Iran, northern ports, such as Anzali, Nowshahr, Fereydounkenar and Astara, do not account for a significant share of the country’s loading and unloading operations. Nowshahr 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 the airport, availability of facilities for storage and movement of commercial goods, petroleum products and solid bulk, having exclusive warehouses and special facilities for export and transit, as well as direct connection through pipelines to Chalous oil reservoirs. However, due to many reasons, the port’s shipping traffic is even lower than Amirabad Port’s.

A total of 4 million tons and 4.5 million tons of goods were loaded and unloaded, respectively, at the southern ports of Imam Khomeini and Shahid Rajaee during the month ending Nov. 21. 

Among the northern ports, the highest throughput was registered by Amirabad Port with only 260,000 tons of goods while the share of Nowshahr Port was lower than 50,000 tons during the period under review.