TEHRAN- The acting secretary of the Supreme Council of Iran's Free Trade, Industrial and Special Economic Zones has announced the start of the operational phase of the Sarakhs Economic Zone, in Khorasan Razavi province, following the establishment of customs and registration infrastructure in the region.

According to IRNA reporting from the Secretariat of the Supreme Council of Free Trade, Industrial and Special Economic Zones, following an order from Hossein Ferdowsi, Deputy for Development Management and Resources of the Ministry of Economic Affairs and Finance and acting head of this secretariat, members of the working group for establishing and developing new free zones were dispatched to the Sarakhs and Dogharoon free zones to field-evaluate and operationalize the process of setting up executive, customs, and organizational infrastructure in these zones.

During this mission, with the presence of working group members, deputies and directors of the Supreme Council of Free Zones Secretariat, board members and managers of the Sarakhs Free Zone, the process of establishing customs systems, company registrations, and activating commercial services in this zone entered the implementation phase.

* Creating capacity for unloading, loading of 10m tons of goods in Sarakhs Free Zone

Iran's Trade Promotion Organization held a specialized meeting with senior national officials in trade and transportation sectors to maximize use of the cargo and logistics capacity of the Sarakhs Free Zone and to plan for the rapid activation of the China-Sarakhs corridor.

A specialized meeting on the rapid activation of the Sarakhs-to-China rail corridor was held with the participation of the CEO of the Railway Company, the head of the Trade Promotion Organization, CEOs of companies exporting lead and zinc mineral inputs as well as bitumen and fuels, deputies and experts from the Ministry of Foreign Affairs and Ministry of Transport, the representative of Sarakhs parliament, and the CEO and board members of the Sarakhs Free Zone Organization, with priority and focus on the free zone as the main actor of this corridor.

The CEO of the Islamic Republic of Iran Railways stated at this meeting, highlighting the importance and position of the Sarakhs Free Zone in international transport exchanges: "Currently, 2.8 million tons of goods are transported annually through Sarakhs, while the region's capacity is 10 million tons."

Jabar Ali Zakeri expressed hope that with the establishment of the free zone, this full capacity would be utilized.

Zakeri continued: "Currently, Sarakhs possesses the highest and most complete necessary facilities in rail transport and logistics, which can play a significant role in the country's trade."

The CEO of the Sarakhs Free Zone Organization also said at the meeting: "One of the reasons for reduced traffic on this route was the lack of return cargo from Sarakhs to China. However, with the foresight of the respected head of the Trade Promotion Organization, a major development will occur in the near future. Exporting zinc and copper concentrate from the Aprin dry port in Eslamshahr to China via Sarakhs could be the first step in providing return cargo from the Sarakhs-to-China route."

Rasoul Rais Jafari clarified: "Reducing distance, adjusting tariffs, and providing quality services will make freight costs on the China-Iran rail route far more economical compared to sea routes."

Rais Jafari concluded: "Given the favorable infrastructure and existing rail capacity for transport, unloading, and loading — including the ability to exchange 400 pairs of bogies and several kilometers of broad and standard gauge tracks in the free zone — rail logistics operations, with the participation of the Chinese International Logistics Park company and a current capacity of over 600 wagons per day, will increase Sarakhs' current capacity to 1,000 wagons daily."

The establishment of free trade zones (FTZs) in Iran dates back to the Iranian calendar year 1368 (March 1989 - March 1990) following the fall in the country’s oil income in the preceding year which prompted the government to promote non-oil exports.

The first two free trade zones of Iran were established in the south of the country. The first one was Kish Free Trade Zone established in 1368 on Kish Island in the Persian Gulf and the second one was Qeshm Free Trade Zone established the year after on Qeshm Island in the Strait of Hormuz. 

Some five other free trade zones have been also established in the country since then, including Chabahar in southeastern Sistan-Baluchestan Province, Arvand in southwestern Khuzestan Province, Anzali in northern Gilan Province, Aras in East-Azarbaijan Province and Maku in West-Azarbaijan Province, both in the northwest of the country. 

The development of existing free trade zones and the establishment of new FTZs has become one of the major economic approaches of the Iranian government.

In early April, the previous secretary of the Iranian Free Zones High Council, emphasizing support for entrepreneurs amid war conditions, stressed the design and formulation of support packages for them in free zones.

Reza Masrour made the remarks in a meeting of the Free Trade and Special Economic Zones High Council, which was held to review the implementation of national missions in these zones.

During the meeting, Masrour, highlighting the need to provide adequate services to the people and entrepreneurs in free zones, stated: "Following the recent attacks by the United States and Israel against our country, the issue of accelerating the provision of legal facilities, especially for entrepreneurs, has been communicated to the free zones organizations."

He added: "According to this directive, the boards of directors of commercial-industrial free zones organizations, within the framework of the powers provided for in laws and regulations—including articles of association and by-laws—shall take the necessary actions to assist in determining and collecting duties, such as entry fees, issuance and renewal of construction permits, and other similar cases. Additionally, applying the maximum legal period for the installment payment of debts owed by entrepreneurs and supporting the import of essential goods needed by the country are also on the agenda."

Masrour clarified: "These measures are being taken with the aim of facilitating business conditions, supporting producers and traders, and strengthening the economic capacity of the country's free trade and special economic zones, so that entrepreneurs can continue their activities with greater peace of mind and efficiency under the current circumstances."

MA