A transit train carrying 36 containers from Russia has traveled through Iran’s transport corridor to Saudi Arabia, marking a milestone in regional trade relations. Miad Salehi, the head of Iran Railways, made the announcement on Sunday, stating that it was the first time transit cargo from Russia had utilized the Incheh Borun rail border near Turkmenistan to reach its destination. The cargo will be transported from the port city of Bandar Abbas on the Strait of Hormuz to the Saudi Arabian port city of Jeddah by sea.
This successful transit is part of the International North-South Transport Corridor (INSTC), a major multi-mode transit system that connects ship, rail, and road routes for moving cargo between Russia, Iran, Azerbaijan, India, and Central Asia. The INSTC is seen as an alternative to the Suez Canal and has gained significance due to Western sanctions that have prompted Russia to redirect its trade flows from Europe to Asia and the Middle East.
Hojatollah Abdolmaleki, the Secretary of Iran’s Supreme Council of Free Economic Zones, highlighted that one of the new transport corridors within the INSTC has officially commenced operations. This corridor links Russia and Arab countries by rail through Iran and by sea through the Persian Gulf, opening up new trade opportunities for all involved.
In terms of cargo volume, the INSTC has witnessed considerable growth in recent years. In 2022, the total cargo flow along the corridor reached 14.5 million tons, and this figure is projected to increase to 17.6 million tons by the end of this year, according to Russia’s Transport Ministry. Such growth further solidifies the INSTC’s positioning as a significant trade route in the region.
Russia has expressed its belief that the INSTC could serve as a viable substitute for the Suez Canal, which currently handles 12% of global trade on a daily basis. President Vladimir Putin has emphasized the importance of interconnectivity throughout the INSTC and has proposed the establishment of regular freight shipping lines. The volume of goods transported via the corridor is expected to nearly triple over the next seven years, prompting discussions about the potential for a logistics hub on the African coast.
The successful transport of cargo from Russia through Iran’s transport corridor to Saudi Arabia underscores the strengthening ties between these countries and the broader region. It also highlights the growing importance of the INSTC in facilitating trade and connectivity among nations. As trade flows continue to evolve, the role of alternative trade routes like the INSTC will become increasingly prominent, providing new opportunities and boosting economic growth for participating nations.
In conclusion, the transit train from Russia to Saudi Arabia via Iran’s transport corridor represents a significant achievement in regional trade cooperation. As part of the broader INSTC project, this transport corridor offers an alternative to traditional trade routes and strengthens economic connectivity between Russia, Iran, Arab countries, and beyond. With the potential for further growth and development, the INSTC is poised to reshape regional trade patterns and foster greater collaboration among participating nations.
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