Iran's Northern Ports as a Factor in Eurasian Trade Development
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Tehran Times
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Iran's Northern Ports as a Factor in Eurasian Trade Development

Amin Ofoghi, CEO of the Mazandaran Free Zone Organization, stated that the Mazandaran Free Zone, established last year, is a valuable gift from the XIV government to the people of Mazandaran province and instills new hope in it.

He continued by focusing on the country's northern free zones and ports. In this region, including the ports of Amirabad, Novshahr, and Babolsar, as well as the area between Juybar and Babolsar, there is an area of about 460 hectares that will eventually be integrated into the sectors of trade, tourism, and technology.

Speaking about the significance of northern ports in the country's maritime exchanges, Ofoghi noted that approximately 65% of Iran's maritime operations in the Caspian Sea pass through the ports of Amirabad and Novshahr, and another 27% pass through the ports of Anzali and Caspian. Thus, about 92% of all the country's maritime exchanges are carried out in the free zone ports.

The CEO of the Mazandaran Free Zone Organization emphasized that these ports can be either sovereign or based on ownership rights. He expressed hope that the presence of officials would help resolve the issue of integrated management and unified regulation in these ports, as such management plays a critically important role in developing exchanges and utilizing existing capacities.

Ofoghi explained the philosophy behind creating the northern free zones: their goal is to promote relations with Eurasian states. It is planned to transform the northern free zones into a major transit and trade hub for the CIS and Eurasia by developing logistics infrastructure in both hardware and software, activating economic diplomacy, and international corridors.

He added that one of the tasks assigned by the government to the northern ports during recent military events and under current conditions was the supply of vital goods. Thanks to this, the Mazandaran free zones were able to provide about 70% of the necessary goods to the northern part of the country through the northern ports.

Addressing the unused capacity of the northern ports, the CEO of the Mazandaran Free Zone Organization reported that there is a potential of 30 million tons that has been invested in, but at best, only about 9 million tons of this volume is operational. The infrastructure is created, and the laws exist, but activating this unused capacity requires integrated management.

Ofoghi expressed confidence that the northern ports can directly conduct trade in food products and necessary goods with Russia and Kazakhstan, bypassing intermediary countries, as they are among Iran's most important partners in the Caspian Sea.

Citing the experience of free zones in creating direct trade routes, he recounted that during the life of the late engineer Torkhan, a project was implemented in the free zones to supply goods from China without intermediaries. As a result, 15,000 containers were imported along the China-Kazakhstan route to the Caspian port.

The CEO of the Mazandaran Free Zone Organization, noting his 23 years of experience working in free zones, recalled that the goal back then was to create routes as a form of economic defense to ensure goods, raw materials, and intermediate components. He also mentioned that there were two ports in Anzali—the Caspian Port and the Anzali Port—both located in free zones. Although 15,000 containers with bidirectional cargo arrived at the Caspian Port, not a single container went to the Anzali Port. The reason was obvious: the Caspian Port employed integrated management and free zone laws, whereas the Anzali Port had a sovereign status, and ownership was held by another body. This experience showed how much integrated management in ports contributes to the development of trade exchanges.

The CEO of the Mazandaran Free Zone Organization expressed hope that today they would be given at least one year for the northern free zones to activate existing capacities by applying Article 65 and implementing integrated management, in order to demonstrate practical results.

Ofoghi also pointed to problems in the tanker and maritime transport sector under the Iranian flag. Cargo often went to Chabahar, the northern free zones, or Solyanka Port in Astrakhan—the only port where over 50% belongs to Iran outside the country—and even to European ports like Hamburg, but these routes did not continue. He suggested that the reason is the need to apply the benefits and exemptions provided by the free zone. It is crucial for a foreign company that its activities take place within the free zone and that it receives legal benefits and incentives.

The CEO of the Mazandaran Free Zone Organization noted that if trust among investors and cargo owners can be restored, there is huge potential to activate trade routes. Just two weeks ago, cargo arrived at the Amirabad port along the same China-Kazakhstan route.

Referring to the legal possibilities of free zones, Ofoghi explained that ships can be accepted in free zones from any point in the world under different flags without waiting and faster, because the law defines free zones as closed customs territories. He added that other bodies must act within their powers, and issues of customs, quarantine, and standards can be resolved directly within the free zones.

The CEO of the Mazandaran Free Zone Organization stated that under current wartime conditions, goods must be able to enter free zones, and the cargo owner must have a warehouse receipt, while customs, quarantine, and standardization procedures must also be conducted in the same zone. He recalled that Article 14 provides for permission for goods to enter free zones, and Article 24 addresses related issues, but when determining duties, the legal powers of the free zones must also be taken into account.

Emphasizing that cost, time, and safety are the three main factors in activating trade corridors, he stated that, believing that the law has granted free zones the authority to set tariffs and costs, they can influence the reduction of route time and cost.

The CEO of the Mazandaran Free Zone Organization continued that the routes they tested are very important for cargo owners, and the route must be reliable for a foreign cargo owner. He believes that if the northern free zones can reduce the number of decision-making bodies and existing bureaucracy, the advantages of the free zones will become the basis for their role, especially in the field of national logistics sustainability.

Ofoghi, citing the view of the late Torkhan, said that the late engineer always insisted that projects in free zones should be implemented as models. If they succeed, they are ready to implement the integrated management plan for the northern ports stipulated by law and approved by the government, and in case of success, apply this model to other free zones.

Highlighting the potential of northern ports to become third-generation ports, he noted that globally, production facilities are located deep inside ports, which significantly reduces logistics costs. In this model, raw materials are imported, production takes place, and the final product is prepared for export or entry into the mainland or target countries. This is possible in the northern ports, but one organization must issue the license, production certificate, and value-added certificate. Ofoghi stated that the law has granted this right to free zones, and he asks the government to help them realize this legal possibility.

Regarding the ability of free zones to develop joint transport companies, he noted that success can also be achieved in the banking, fuel, and other service sectors. Many joint commissions have advocated for the creation of joint transport companies, but this phrase has been repeated many times over the past 15 years, and very few such companies have been formed, and no successful joint logistics transport companies have been created. The CEO of the Mazandaran Free Zone Organization opined that in free zones, thanks to the ability to register a company and have a foreign investor owning 100% of the shares, as well as the ability to own land and capital inflow/outflow, joint logistics companies can be launched with port management.

Ofoghi, speaking about the importance of Amirabad Port, noted that it is one of the most important Caspian ports, but unfortunately, they do not have enough Iranian-flagged vessels and tankers in the Caspian Sea, and the pier opposite Amirabad has not been fully used for over 20 years. He added that this capacity is needed more today than ever. A private investor is ready to implement a railway project, put it into operation, and even transfer it to the government.

The CEO of the Mazandaran Free Zone Organization continued that two important Caspian ports, namely Amirabad Port and Caspian Port, are connected to the railway network, but the share of rail transport is very small, especially in the north of the country, where traffic problems are observed. Ofoghi stated that if the management of this issue falls into the hands of the free zones, it will be possible to transfer cargo from roads to railways. For a foreign investor, the existence of regular and scheduled transport lines in Iran is also extremely important.

Citing the experience of regular shipping lines, he recounted that they had experience working with liner routes: a shipping company on the route to Kazakhstan had liner services for three years, and any cargo owner in Iran knew that if they delivered their goods at a certain time, they would go to Kazakhstan and return at a certain time. Today, there are no liner services in the Caspian Sea, although free zones have this capability, and the law permits such activity.

Ofoghi also mentioned the potential for joint production with third countries. He reported a joint request for the possibility of establishing joint production for the third-country market. Previously, having visited the free zones of other countries with four CEOs of free zones, they showed great interest in joint production for the third-country market. In this model, raw materials and technologies can arrive through their ports, using Iranian legislation, labor, and energy, and foreign investments can also participate in this cycle; however, obstacles sometimes arise related to land use, as the Port Authority does not agree and claims it will act according to existing rules.

In conclusion, Ofoghi emphasized that their request is for the creation of a unified command for the northern ports, so that multiple decision-making bodies, instead of being located at the entrance to the free zones, operate within an integrated and coordinated management framework, thereby allowing the potential of the northern free zones to be utilized for the development of trade, logistics, economic diplomacy, and the country's economic resilience.

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