Ali Madani Zadeh, the Minister of Economy, during his recent trip to Moscow, pointed out the necessity of activating Iran's northern borders. He stressed that, given the U.S. maritime blockade, transferring a larger volume of trade to the northern ports and land corridors should be prioritized. This issue has become even more significant considering the problems faced by the country's southern ports.
Trade Through Northern Ports
While the world's attention is focused on the oil market and the Ukraine war has disrupted grain shipments, Iran is seeking new ways to meet its economic needs. With seven land neighbors and access to the Caspian Sea, Iran theoretically has more options for trade compared to countries that rely solely on a single maritime passage.
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Alireza Salavati, a political economy analyst, believes that Iran has untapped potential. He acknowledges that the northern ports of Iran have an annual nominal capacity of over 30 million tons, while less than one-third of this capacity is utilized. This could help increase the transport of grains and general goods.
Transportation Challenges and Costs
Jafar Ghaderi, a member of the Economic Commission of the Parliament, pointed to the problems arising from Iran's dependence on southern ports and questions how much capacity the land corridors have. Transportation costs are also a significant issue. Majid Reza Hariri, the head of the Iran-China Chamber of Commerce, announced that the cost of transporting a container from China to Iran through southern ports is about $3,000, while the same transportation via land route costs nearly $12,000.
Ground trade may face serious challenges due to high transportation costs, especially for low-value goods. According to Omid Shakouri, an energy strategist, none of the alternative transportation options can fully replace energy exports through southern routes.
Overall, land corridors can help Iran maintain its vital economic activities, but they require investment and infrastructure development. If this investment continues, the maritime blockade may accelerate infrastructure projects that Iran previously viewed as long-term opportunities.
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