Shahid Rajaee Port’s Rail Cargo Transport Grows to 5.5 Million Tons

EghtesadOnline: Atotal of 5.52 million tons of commodities were transported via railroad to and from Shahid Rajaee Port in the southern Hormozgan Province in the last Iranian year (March 2020-21), registering a 3.72% increase compared with the year before, according to the director general of the province’s Ports and Maritime Organization.

News ID: ۷۸۶۴۰۶

28 April 2021

“The number of wagons carrying this volume of goods marked a year-on-year increase of 13.2%,” Alireza Mohammadi Karajiran was also quoted as saying by the news portal of the Ministry of Roads and Urban Development.

With 12 wharfs, Shahid Rajaee is Iran’s biggest container port, accounting for 90% of the country’s total container throughput.

Over half of Iran’s commercial trading is carried out at Shahid Rajaee, which is located 23 kilometers west of the port city of Bandar Abbas, the capital of Hormozgan Province.

Hormozgan Ports and Maritime Organization finalized investment contracts with five local and one foreign company on Dec. 24. Signed in the presence of Minister of Roads and Urban Development Mohammad Eslami, the contracts are worth 250 trillion rials ($1 billion) and take aim at developing 2,400 hectares of hinterlands newly added to Shahid Rajaee Port and improving the southern docks to third-generation ports.

The United Nations Conference on Trade and Development (UNCTAD) developed a framework that classifies ports into first, second and third generations. First-generation ports only perform traditional port activities, i.e., they are simply interfaces between the land and the sea. Second-generation ports are characterized as support service centers for transport, industry and trade that provide certain value-added cargo services, such as labeling volumes, consolidation, deconsolidation and completing production processes. Third-generation ports are dynamic links in international trade networks and active agents that design and implement strategies for the complete development of a port’s area of influence.

The agreements include investment by Bama Company in establishing zinc, lead and manganese factories, Entekhab Industrial Group in construction of home appliance plants, Kayhan Port and Maritime Services Company in creating a variety of industries and Nahavand Arman Company for establishing a refinery.

A Chinese company will also invest in the construction of a container manufacturing plant.

Ports and Maritime Organization also finalized a memorandum of understanding with Bank Melli Iran Brokerage Company that will provide financial guarantees for these projects, the ministry’s news portal, News.mrud.ir reported.

“Investment projects in Shahid Rjaee Port will create 20,000 jobs and their duration must not exceed three years,” Eslami said.

“Increasing the capacity of Iranian ports to 280 million tons was the main approach pursued by the ministry and PMO over the past 40 years. As per development plans, their capacity must reach 500 million tons in five years.”

Mohammad Rastad, the organization’s managing director, said Ports and Maritime Organization has finalized 336 contracts worth 1,300 trillion rials ($5 billion) with the private sector to date.