Shahryar Naqizadeh, Director General of International Trade of Iranian Railways, said that the Southern Corridor through Iran is the safest and most economical rail route for transporting cargo from China to Europe.
In an interview with IRNA, he referred to the six-nation railway agreement recently signed in Istanbul between Iran, China, Uzbekistan, Turkey, Turkmenistan and Kazakhstan. He said a meeting with representatives of these countries focused on developing the East-West Corridor through Iran was held in Beijing earlier this year.
According to Nakizadeh, participating countries agreed to apply uniform fares and reduce transit times to revitalize the southern branch of the East-West Rail Corridor.
He explained the route and said there are currently three transport corridors connecting China and the European Union. The first is the Northern Corridor, which runs through Mongolia and Russia. The second is the Intermediate Corridor, which will split into a rail route to Russia and a mixed sea-rail route across the Caspian Sea to Azerbaijan, Georgia and the Black Sea.
The third, long known as the Southern Corridor, is inactive to this day, but stretches back 2,000 years through Iran to the original Silk Road.
He stressed that Iran’s railway diplomacy and recent meetings in Beijing and Istanbul are focused on revitalizing the Southern Corridor. Nakizadeh said talks between Beijing and Istanbul led to an agreement to implement unified tariffs in all six countries and reduce transportation costs. Another agreement included reducing transit times by coordinating authorities to ensure cargo passes through each country as quickly as possible.
Highlighting early achievements, he said 40 trains from China have entered Iran since the beginning of this year, compared to only seven trains in the previous seven years.
He said that based on the capacity provided by this agreement, transport trains from China to Europe will also pass through Iran.
Referring to the 60 million tons of cargo shipped annually by rail from China to Europe, Nakhizadeh said diverting just 10% of this flow to the Southern Corridor via Iran would bring significant economic benefits to the country. To achieve this, the railway links from Marand to Maku and Bazargan to Cesme Soraya will need to be completed and further extended to Kars in Turkey.
He pointed out that the relevant memorandum of understanding has been signed and will be finalized in the upcoming talks between the presidents of Iran and Turkey.
Given the disruption of the Northern Corridor due to the Ukraine-Russia conflict and the combined complexities of the Intermediate Corridor, including the need to cross the Caspian Sea, higher costs and slower transport, a fully rail-based Southern Corridor would be the most attractive option for shippers, Nakhizadeh argued.
He added that the current cost of shipping a 40-foot container from Xi’an, China to Tehran under current tariffs is $4,500. Return flights are 50% off for $2,500.
He said the rail corridor is very attractive to traders and commercial operators because the transit time along the 9,000-kilometre route is up to three weeks, which is significantly faster than sea transport.
MNA/86012056