Speaking at a meeting of the Mashhad Chamber of Commerce and Industry’s Transport Committee, Gholam Hossein Shafeie mentioned the competitiveness of the transit market in the region, saying, “Competitors are creating alternative routes by spending huge amounts of money to replace Iran in the transit market.”
Stating that Turkey has made several efforts to strengthen the Trans-Caspian Corridor for transiting goods between East and West, he added, “With the integration of the Trans-Caspian Corridor in the Silk Road Project, this corridor will be connected with the China-Central Asia-West Asia corridor that passes through Iran.”
Shafeie further referred to the recent changes in the world including the war between Russia and Ukraine, saying, “In this period, due to the change in the global transport routes, new opportunities have been provided for Iran and we should take full advantage of such opportunities.”
The Islamic Republic has been taking serious measures for the development of its railway network as well as its ports and shipping infrastructure in order to encourage more countries to join the project.
Using the capacities of the International North-South Transit Corridor (INSTC), Iran will be able not only to expand the volume of trade with Russia and the countries of the region, it can also gain a huge share of the mentioned countries’ annual transit.
Currently, Russia has proposed to take part in some railway projects in Iran in order to accelerate the development of the Islamic Republic’s railway network along the mentioned route.
The row between Europe and Russia over the Ukraine war, which resulted in harsh sanctions being imposed on the country made Russia look for new ways for distributing its goods across the world, especially in Asia and mainly through the INSTC.
According to official data, one of the major advantages of INSTC is that the cost of transporting goods through this corridor is cheaper by 30%. It also halves the time it takes to transport Indian goods to Russia via the Suez Canal.
Iran can use this transit route to distribute European commodities in the shortest possible time and at a lower cost than other routes to the Indian Ocean and the Persian Gulf.
