The geographical position of Iran has made it a connecting bridge between the east, the west and the south of Asia. The transit shipping of goods through the territory of Iran is a big economic opportunity that matters to the forwarders and the traders of the region. In this article we look at the role of Iran in the international corridors and its effect on trade.
Executive summary: the intercontinental position of Iran provides a shorter and cheaper route for the transit; the western borders (Bazargan and Urmia) move the goods of Turkey and Europe and the main challenge is the border stoppage and the coordination of the documents of several countries.
Why is Iran important for the transit?
Iran provides shorter routes for connecting the landlocked countries and the markets:
- the connecting bridge of Central Asia to the open waters
- a more secure and cheaper route in comparison with the long routes
- access to the active land borders with the neighbours
See the full review of the active corridors of Iran in the transport corridors of Iran.
The role of the western borders in the transit
The western borders, especially Bazargan and Urmia, are of special importance for the incoming goods from Turkey and the European countries. Compare their capacity in Urmia customs or Bazargan customs?.
| Route | Main role | Note |
|---|---|---|
| Bazargan | the entry of the heavy cargo from Turkey | a strong infrastructure |
| Urmia | medium and fast consignments | a higher speed |
| the other borders | the connection to the rail network and the south | complementary |
The challenges of the transit shipping
Despite the advantages, there are also challenges:
- A border interruption: the time of passing the border and the inspection can be long (the process in the customs inspection)
- Extra costs: the details in the hidden costs of the clearance
- The coordination of several countries: the complexity of the international documents
Note: choosing an optimal route and an experienced forwarder strongly reduces the transit challenges.
The opportunity of the traders
The transit shipping for the trader:
- access to the new markets through Iran’s territory
- the shortening of the transit time and the cost
- the benefit from the combined transport network (the details in the combined transport)
FAQ
Why is Iran attractive for the transit?
Because of the shorter route and the intercontinental position that reduce the time and the cost of the shipping.
What is the biggest challenge of the transit from Iran?
The border interruption and the coordination of the documents between several countries; it is controlled with an experienced forwarder.
How does the transit bring profit to the trader?
By reducing the cost and the time of the arrival of the goods to the market, the profit margin goes up.
Which border is better for the transit?
Depending on the type of the goods; for the heavy cargo Bazargan and for the medium consignment Urmia is more suitable.
Summary
The role of Iran in the regional transit is a strategic opportunity for the trade. By knowing the routes, managing the border challenge and choosing a professional logistics partner, you can get the most out of this geographical advantage. The Vira Farabar Logistics team accompanies you in the coordination of the transit and the international shipping.
