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Iran tests new trade corridor transporting Russian goods to India

The Russian economy's growing isolation has reawakened interest in a long-awaited Iranian trade route: a "North-South Transport Corridor" connecting Russia and the Persian Gulf. In each direction, the complicated route would require three modal switches.

The Logistician by The Logistician
16/06/2022
in Blog
Iran tests new trade corridor transporting Russian goods to India

Image: Minh Trang

HIGHLIGHTS

  • Iran’s state-run shipping business has begun the first transfer of Russian products to India via a new trade corridor that passes via the Islamic Republic.
  • The Russian cargo consists of two 40-foot (12.192-meter) containers of wood laminate sheets weighing 41 tons that left St. Petersburg on Saturday for the Caspian Sea port city of Astrakhan.

FULL ARTICLE

Set up intermodal transport

For years, the United States has imposed sanctions on Iran’s economy, isolating the country’s maritime and port industries. It does, however, continue to trade with a few nations, notably Venezuela, India, and China. 

According to an Iranian port official, Iran’s state-run shipping business has begun the first transfer of Russian products to India via a new trade corridor that passes via the Islamic Republic.

Map of North-South Transport Corridor to help connect goods from Russia to India via Iran

The proposed International North-South Transport Corridor would transport Russian goods by rail to Astrakhan, by freighter across the Caspian Sea to Bandar Anzali, by truck across Iran to Bandar Abbas, and by water to India, all of which would be arranged by the Islamic Republic of Iran Shipping Lines (IRISL), a US-sanctioned organization.

According to the state-run Islamic Republic News Agency, the Russian cargo consists of two 40-foot (12.192-meter) containers of wood laminate sheets weighing 41 tons that left St. Petersburg on Saturday for the Caspian Sea port city of Astrakhan.

According to Dariush Jamali, director of a joint-owned Iranian-Russian terminal in Astrakhan revealed that the relocation would take 25 days and will be coordinated and managed by the Islamic Republic of Iran Shipping Lines Group and its regional offices in Russia and India.

The resistance to the ban from the US

The agreement is one of numerous indicators of Iran’s aim for tighter economic relations with Russia. Iranian Deputy Foreign Minister Mehdi Safari stated on Sunday that in order to boost Russian investment, Tehran may consider removing visa restrictions for visiting Russian businesses. Alireza Moghadasi, Iran’s customs administrator, met with his Russian counterpart on Friday to sign a memorandum of understanding on a new customs deal for “green customs crossings” for Russian goods.

The agreement between Iran and Russia is aimed at countering tough sanctions from the US and the West

“Since the United States and the West have imposed heavy sanctions on Iran, the two nations may work together to overcome sanctions,” Moghadasi said Iranian official television.

Tran Van Hieu

Seven years into China’s Belt and Road

Source: Gcaptain
Tags: IndiaIntermodalIranRussian

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