IRISL Shipping Revenues Surpass $770 Million in Year to June 20

EghtesadOnline: The Islamic Republic of Iran Shipping Lines earned $778 million from shipping activities during the year ending June 20.

News ID: ۷۵۱۰۹۵

26 September 2020

According to a report read by IRISL senior officials at the company’s annual general meeting, a mandatory yearly gathering of the company’s interested shareholders, Iran’s top shipping company transported 23 million tons of cargo over the period, despite facing harsh US sanctions and the outbreak of coronavirus.

Of its subsidiaries, Khazar Sea Shipping Lines, transported 1.7 million tons of cargo, Bulk Carrier Company accounted for 60 billion ton-miles and Container Transportation Company transported 626,000 TEU containers over the year to June 21.

IRISL Multimodal Transportation Company handled 977,000 tons of bulk goods and 2,183 TEU containers over the period. It accounted for 20% of transportation handled by all Iranian major ports during the period, with a 19% share in southern ports’ market and 27% of northern ports’ market.

The company purchased 303,000 tons of low-sulfur fuel for use by ships worth $145 million during the period.

Over half of the monthly 30,000 tons of fuel consumed by the shipping line is supplied by domestic producers, the remaining needs to be met through imports, Fars News Agency reported.

The Islamic Republic of Iran Shipping Lines was established in 1967 and commenced its commercial operation by employing two home trade vessels and four larger oceangoing vessels.

With around half a century experience in worldwide marine transportation field and employing a reliable international network, IRISL is well known to its clients as their global partner and capable of performing a wide spectrum of services, reads an introduction on the group's website.

According to the Journal of Commerce, IRISL ranked 14th in Alphaliner’s rankings of leading carriers in 2019, with a consolidated capacity of more than 150,000 TEUs.

IRISL’s global ranking, based on existing fleet and order book, as well as TEU capacity available on ships, is now 15 among top 100 containership operators.

According to global shipping monitor Alphaliner’s Sept. 25 report, IRISL’s 151,706 TEU capacity places it between Korea Marine Transport Co., Ltd with 162,317 TEU and China’s Antong Holdings with 141,872 TEU.

IRISL owns 43 vessels and operates four chartered ships, but has no new ships on its order book.

Iranian Commercial Ports' Throughput

Data published by the Ports and Maritime Organization of Iran show Iran’s 21 major commercial ports handled a total of 48.42 million tons of commodities during the first five months of the current Iranian year (March 20-Aug. 21) to register a 26.5% decline compared with the similar period of last year.

Non-oil goods accounted for more than 30.98 million tons of the total throughput, showing a 33.9% fall year-on-year.

The remaining 17.44 million tons pertained to oil products, indicating an 8.24% decline YOY.

Container loading and unloading decreased by 40.24% to stand at more than 531,650 TEUs.

The 21 ports under study include Iran’s southern ports of Abadan, Imam Khomeini, Bushehr, Khorramshahr, Genaveh, Bandar Lengeh, Chavibdeh, Arvandkenar, Charak and Dayyer located on the shores of the Persian Gulf, Shahid Rajaee, Shahid Bahonar, Qeshm and Tiab at the mouth of the Strait of Hormuz, Jask and Chabahar on the coasts of the Sea of Oman and the northern ports of Fereydounkenar, Noshahr, Astara, Amirabad and Anzali on the Caspian Sea shoreline.

A total of 21.15 million tons of commodities were exported from these ports and over 12.47 million tons were imported, registering a 31.83% and 9.16% decline respectively YOY.

More than 1.21 million tons of goods were transited through these ports during the same period, indicating a 44.73% decrease YOY.

More than 139.65 million tons of commodities were loaded and unloaded at the ports under review in the last Iranian year (March 2019-20) to register a meager rise of 0.17% compared with the corresponding period of last year.

Non-oil goods accounted for more than 95.48 million tons of the total throughput, showing a 0.08% year-on-year growth.

The remaining 44.16 million tons pertained to oil products, indicating a 0.7% increase YOY.

About 69.65 million tons of commodities were exported from the ports under review and more than 31.15 million tons were imported during the period, showing a 10.28% and 13.92% growth respectively compared with the similar period of last year.

A total of 23.11 million tons of commodities were loaded and unloaded in Hormozgan Province’s Shahid Rajaee Port from March 20 to Aug. 21, registering a 27.26% drop compared with the similar period of last year.

This made Shahid Rajaee the country’s busiest port during the period. Non-oil goods accounted for around 13.78 million tons and oil products more than 11.77 million tons of the total, showing a 35.15% decline and an 11.87% rise respectively year-on-year.

Located 23 kilometers west of the port city of Bandar Abbas, the capital of Hormozgan Province, Shahid Rajaee is Iran’s biggest container port.

Over half of Iran’s commercial trading is carried out at Shahid Rajaee that also accounts for over 85% of all container throughput in the country.

According to Mohammad Reza Rezaei-Kouchi, the head of Majlis Development Commission, Shahid Rajaee Port has a 6% share in the region’s total container throughput per annum, ILNA reported.

Imam Khomeini Port in the southern Khuzestan Province was the second busiest port during the five-month period, handling more than 14.97 million tons of commodities. The figure shows a 19.83% fall YOY.

Imam Khomeini is the main hub of essential goods imports.

Also known as necessity goods, essential goods are products consumers will buy, regardless of change in income levels.

Imam Khomeini port has 40 wharfs and 140 kilometers of railroad within its premises. Last fiscal year (March 2019-20), 3 million tons of goods were transported from this port via 53,000 wagons. Close to 90% of Iran's demand for livestock feed raw material and 79% of grains are imported from this port.

Non-oil goods accounted for 10.59 million tons and oil products for close to 4.38 million tons of the total throughput at Imam Khomeini Port, registering a 12.61% and 33.18% fall respectively year-on-year.

The third busiest was Qeshm Port, also in southern Iran. A total of 2.06 tons of goods were loaded and unloaded there, indicating a 32.32% downfall compared with the similar period of last year.

Non-oil goods accounted for more than 2.01 million tons and oil products for 48,590 tons of the total throughput in Qeshm Port, showing a 32.52% and 23.28% decrease respectively YOY.

A total of 1.87 million passengers were transported to and from the aforementioned ports, registering a 76.2% plunge compared with last year’s similar period.

Qeshm is the largest island in Iran. It is located off the southern coast of Persian Gulf, near the port cities of Bandar Abbas and Bandar Khamir.

The island is home to a 300-square-kilometer free zone and stretches over 135 km. It has a strategic location off the Strait of Hormuz, 60 km from the Omani port of Khasab, and about 180 km from the UAE’s Port Rashid.