The door is opening for Iran to re-join global and regional container trades as sanctions imposed by the United Nations, the US and European Union now seem highly likely to be lifted, according to a release from TOC Middle East.
While not fully compensating for the sluggish growth in global container volumes this year, it added, the easing of sanctions on Iran would at least afford an opportunity for shipping lines to reconnect with the second most populous country in the Middle East, and one that needs to rebuild after several years of economic damage. Indeed, the past three months alone have seen a number of global carriers, including Evergreen, HMM, Hanjin, Yang Ming, UASC, CSCL and CMA CGM, adding Bander Abbas to several Asia-Middle East port rotations.
In the port sector, DP World is reportedly interested in talking to Iranian authorities about developing one or more terminals in the country, and Contship Italia has signed a strategic memorandum of understanding (MOU) with Sina Port & Marine Company (SPMCO) to exchange experience and know-how on various aspects of port operations and logistics management.
Of course, caution is needed. The sanctions have created pent-up demand, but they have also restricted the liquidity needed to finance it. The collapse in global oil prices is damaging Iran’s state revenues and cutting incentives to invest in rebuilding its primary export industry. However, it should also be remembered that lifting sanctions could also release up to US$100 billion in Iranian assets frozen abroad.
Potential roadmaps for this important country of nearly 80 million will be debated at TOC Middle East, to be held on 8-9 December at the Le Méridien Dubai Hotel & Conference Centre, Dubai, UAE.
