Iran and Transit

Due to its exceptionally suitable geographical location, the Islamic Republic of Iran is one of the countries that enjoy significant transit advantages. Upon the development of transit network and a secured and efficient relation, the country is able to employ these advantages to increase foreign currency income and promote its strategic position in the region in a desirable way. In south of Iran, there exists the Persian Gulf, with the world's major oil producing countries located therein. This region is considered as the world's energy bottleneck. In north of Iran, there exists the Caspian Sea, that acts as a bridge linking Iran, Russia, Kazakhstan, Turkmenistan and Azerbaijan, and it can play a significant role in trading among these states. On the other hand, Iran neighbors Iraq, Turkey, Pakistan and Afghanistan from the west and the east. In other word, we can say Iran is connected to 15 countries of the world through sea and land borders, and it can, in its own turn, act as a link between these countries (within themselves and with other regions of the world). On the other hand, these countries cover a large population and maintain a large income, which issue, in its own turn, in addition to the fact that they have God-blessed national resources and wealth, is considered as an effective factor for transit and trade development in the region. The connection of Middle Asian countries with Persian Gulf and the trade relation established between Eastern Asia with European countries through Iran is cost saving, so that many countries are now considering establishing such connections through Iran.

Advantages of Transit through Iran:

Considering the strategic and transit situation of the country, we can identify lots of opportunities and advantages for transit in Iran. Of course, the proper and timely operation of these opportunities as well as making necessary investments and wide advertisements are essential in effective employment of strategic and unique position of the country's transit. So the way these advantages and opportunities are employed, and the transit connection with target states is established, can play a significant role in facilitating the trade between Asia, Europe and countries of the region as well as the transit development. In general, the advantages of transit from the territory of the Islamic Republic of Iran are as follows:

1- Iran's location on the route of north-south transit corridor and as a result, making a connection between Russia, states in eastern, central and northern Europe, Middle Asia and Caucasus on one side and states of southern, southeastern and eastern Asia, Pacific and Persian Gulf sates on the other side, make significant advantages for this country. In addition, because of shortened route in north-south corridor and mobilization of facilities and infrastructures as well as the vast facilities provided in different transit sectors, Iran's route maintains numerous attractions for cargo transit. Shahid Rajaee, Amirabad and Bandar Anzali Ports maintain special position in north-south transit corridor. In addition to the said ports, Shahid Bahonar, Lengeh, Bushehr, Chabahar, Imam Khomeini and Noshahr Ports, maintain their own unique role-playing potentials.

2- The established transit link between Afghanistan and Middle Asia through‌ the country's east transit routh (Chabahar-Milak Corridor); geographical proximity of Chabahar Port to Afghanistan, broad investments in different transportation sectors specially marine sector, established transportation facilities and infrastructures in the country's east rough and the government's extensive supports, have changed Chabahar Port into a transit pole for Afghanistan and in case the barriers are removed, in addition to development of the East rough, we will observe the booming of transit in the said rough. Chabahar Port is considered as the most important port on the transit route of the state east rough, but because of some structural deficiencies, in terms of cargo transit to Afghanistan, it is less important than Bandar Abbas.

3- Because of being located in the geographical center of ECO members states, Iran has found the opportunity to play an active role both in establishing trade and economic relations between ECO members states, and also in trading of export and import goods of members states under various trade cooperation and agreements.

4- Broad discounts and facilities for transit through Iran, including come exemption and discounts with regard to port and warehousing costs, so that despite the unique facilities granted for development of transit through Chabahar particularly for Afghanistan transit goods, the transit goods enjoy such exemptions with regard to warehousing up to 10 days after unloading and 30% discount in warehousing costs up to one month thereafter.

5- Governmental supports and low-priced services rendered and the shortened route, granting necessary facilities for accelerating the cargo transit through Iran; in a coordinated move, all governmental organizations are bound to remove the barriers and facilitate the cargo transit from the country and they have taken necessary measures in this regard. In this line, we can point out the valuable measures taken for mobilization and development of ports, roads and railroads, including Bafgh-Mashhad railway project.

6- Existence of abundant capacities and potentials in different transportation sectors of the country, quantitative and qualitative increase of equipment and development of new capacities in railway, roads and sea transport infrastructures and fleet as well as unloading and loading equipment in the ports of the country; although we have witnessed a relative decrease in volume of cargo transit over the past two years, but currently we are again witnessing the increase of the volume of transit of goods belonging to Middle Asian states, Caucasus, Iraq and Afghanistan, which is due to successful measures taken for development and flourishing of transit within the territory of the Islamic Republic of Iran.

Reference: http://transit.pmo.ir/en/transit/iranandtransit