Iran: investments in international projects provide access into Asian and European markets

 

With a population of 74 Million inhabitants and a GDP amounting to USD 407 Billion (in 2010), Iran is one of the Asian states with the most ambitious infrastructure projects, the extension of the railway infrastructure having a central role in the economic development. The positive impact of the railway transport on the industrial sector, the contribution that it has in reducing transport costs and travel times, in increasing the quality of services and the benefits brought to the freight transit, have determined this transport mode to be vital for the economic development of Iran and the region.

In order to develop the railway infrastructure, Iran is currently building 11,000 km of railway line, a figure equivalent to the total lenght of the network in 2005. The authorities have announced that 1,000 km of line will be completed by the end of this year. At national level, the strategy aims at doubling the network length which will determine all regions to be connected to the railway network in the next years. Therefore, 18 provinces out of the 31 provinces already benefit from railway connections, 9 provinces implement projects and other four provinces elaborate the documentations necessary for the design and construction of lines.
It is not only the national projects that have a strategic importance for Iran’s economy, at international level the authorities signing already a series of agreements for the consolidation of railway connections. Therefore, the network integration and the increase of the transported freight volume and the transit volume rely on the execution of projects with Kazakhstan, Russia, Turkey, Turkmenistan, Uzbekistan. “Iran carries out important projects for the development of the network and of connections in the region. Infrastructure projects are initiated with neighbouring countries, and in this way the transported freight volumes will significantly increase, and we will have access on markets in the Central Asian states, the CIS states and the European market”, declared Hadi Namazi, Manager of the Economic and Commercial Department of the Embassy of the Islamic Republic of Iran in Romania, on the occasion of the Railway Days 2012 – Railway Investment Summit in the Wider Black Sea Area 2012.
As regards the cooperation relations with Russia, Iran carries out important railway projects. Due to the Ardabil-Parsabad line project (in the North-West part of Iran), the railway networks of both states could be connected through Azerbaijan, as the studies for the project have already been completed, and construction works could be initiated in the following period. The line will be connected to the Azerbaijan’s network, being subsequently extended to Russia. Likewise, the railway administrations of the two states and Azerbaijani Railways carry out the project for the execution of the Rasht – Astara (Iran) – Astara (Azerbaijan) line, a project vital for the international transport corridor North-South, the freight volume to be transported on the North-South Corridor being estimated at 25-26 million tonne by 2015.
Meanwhile, Iran initiates the construction works of the Gorgan-Incheh Borun line section that will connect Iran to Turkmenistan, Kazakhstan and Uzbekistan, the necessary investments amounting to USD 98 Million.
Also at the beginning of October, Iran and Turkey signed an agreement for the construction of Kars – Igdir – Bazarghan – Julfa railway corridor. The investments necessary for the 400-km line (200 km on the territory of both states) amount to USD 800 Million, the line capacity being of 3-4 million tonne per year. By implementing the international projects, Iran contributes to facilitating the access of transport markets to Central Asia, Persian Gulf, but also to Europe, the projects becoming a real stimulus regarding the extension of external economic relations for each state.
Imports      Exports
Total trade (US$ Mil), 2010 ………………………………………84,459       108,055
Services trade (US$ Mil), 2010 ………………………………….19,438             7,531
Merchandise trade (US$ Mil), 2010 …………………………. 65,021        100,524
Agriculture (% of merchandise trade), 2010 ……………….14.48                 4.97
Fuels and mining (% of merchandise trade), 2010 ………11.88               82.38
Manufactures (% of merchandise trade), 2010…………….58.76               12.64

 

[ by Pamela Luică ]

 


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