Iran diversifies trade routes as northern ports and railways expand amid Strait of Hormuz tensions

As geopolitical tensions continue to affect maritime traffic through the Strait of Hormuz, Iran is accelerating efforts to diversify its foreign trade routes by expanding northern ports and railway infrastructure, seeking to maintain the flow of essential goods despite disruptions in southern waters.

Iran (IMNA) -  According to the Ports and Maritime Organization (PMO), loading and unloading operations at Iran’s northern ports have increased from 18 percent to 30 percent during the current Iranian calendar year. Mohammad Shakibi-Nasab, Deputy Minister of Transport and Urban Development and Managing Director of the PMO, said the increase reflects a strategic shift following a decline in the arrival of goods and ships at southern ports.

He said the PMO prepared a support package aimed at assisting the private sector, protecting human capital and preventing workforce layoffs. The measures have so far helped prevent significant layoffs among private companies operating at the country’s ports despite the prolonged difficult conditions.

Shakibi-Nasab said protecting employment remained at the center of the initiative, adding that the PMO is preparing additional measures to strengthen the resilience of private companies by increasing their share of generated revenues.

At the same time, the Trade Promotion Organization (TPO) has been working to expand alternative logistics corridors. Mohammad Ali Dehghan Dehnavi, head of the TPO, said railway capacity has doubled compared with the same period last year, while the capacity of northern ports has increased by more than 60 percent.

He described the developments as part of a rapid expansion of alternative trade routes, saying that significant measures had been implemented in the logistics sector within a short period.

Dehnavi acknowledged that maritime transportation remains more cost-effective and convenient than alternative routes. However, he pointed to Iran’s extensive land borders with neighboring countries as a major advantage, saying the development of land-based routes can compensate for part of the decline in maritime trade.

The government has also introduced a series of measures to facilitate imports and support domestic production. These include a 180-day extension of the import deadline, direct currency transactions and reforms to the order-registration process.

The Ministry of Industry, Mining and Trade has meanwhile prioritized the supply of raw materials to domestic industries in an effort to maintain production and employment despite external pressures.

The shift toward northern ports and expanded railway capacity is not without challenges. Border congestion and higher costs in some areas continue to put pressure on trade flows. Nevertheless, Iran’s efforts to develop alternative corridors demonstrate an attempt to reduce dependence on maritime routes through the south and create greater flexibility in the country’s trade network.

With northern ports handling a growing share of cargo and railway capacity expanding rapidly, Iran is seeking to build a more resilient logistics system capable of maintaining trade flows during periods of disruption while strengthening the country’s ability to adapt to changing regional conditions.

News ID 997006

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