TEHRAN- The head of the China Desk at the Ministry of Foreign Affairs of Iran said: “A strategic view of the Iran-China rail corridor is a prerequisite for preserving our country's position in the Silk Road.”

Chamber of Commerce, Mehdi Farazi, speaking at a meeting with entrepreneurs from this province, added, referring to the challenges and capacities of rail transport between Iran and China: The Islamic Republic of Iran has anticipated all transport models in its basic documents for cooperation with China, and now requires a strategic perspective to preserve and develop its position in the region's transit corridors.

Stating that maritime transport has a long history in Iran-China exchanges, he said: In the 1990s, air transport development also took shape through Mahan Air, such that prior to the recent military developments, the number of this airline's flights to China was 15 per week, which increased to 20 per week after the war.

According to Farazi, this shows that disruptions to sea routes even affect the aviation sector, and entrepreneurs must define short-term and medium-term alternative models for crisis situations.

The head of the China Desk at the Ministry of Foreign Affairs, referring to the launch of the Yiwu-Iran rail route in 2016 concurrent with the Chinese president's visit to Iran, stated: The most important challenge for this route from the beginning has been the lack of return cargo from Iran to China.

He added: The private sector at that time called for reciprocal government support to sustain this route, while China, with a strategic view of the Belt and Road Initiative, managed to consolidate its logistics chain through phased subsidies and export management.

Farazi continued: In 2022, it was also proposed that revenue from the transit of Chinese goods to Europe be allocated as a subsidy to Iran's rail export and import sector to ensure the route's sustainability.

He also announced a proposed plan for the complete exemption of government ownership rights for export goods transported by rail and said: This proposal has a legal budget line in parliament and could be an effective incentive for developing rail transport.

Farazi, criticizing the lack of coordination among the country's various transport sectors, asserted: While the Islamic Republic of Iran Shipping Lines has had an official office in Shanghai for over 25 years, such cohesion and presence have not yet been established in the rail sector. He added: Disagreements and lack of coordination among responsible bodies have made decision-making more complex, and without a strategic view, temporary solutions will not meet the country's needs.

Referring to some regional political disputes on transit routes, he said: Disagreements between Kazakhstan and Uzbekistan at times caused restrictions on train passages, but Iran has tried, with a strategic view, to cement its position as the heart of the rail Silk Road.

Regarding the current state of rail transport between the two countries, the head of the China Desk at the Ministry of Foreign Affairs stated: According to the additional protocol to the Tehran document, rail transit time should be 14 days, and any delay is subject to a fine, but following an interim order from China's National Development and Reform Commission during the recent military developments, transit time increased to about 40 days.

He added: This issue was also raised in telephone conversations between Dr. Araghchi and the Chinese side, and with political follow-ups, the rail route was reactivated.

Farazi also emphasized that technically, there is no problem with the bogie-changing process or trains entering Turkmenistan.

Referring to the activity of three major Chinese forwarder companies cooperating with Iran, Farazi said: The main challenge in rail and sea transport is the return of empty containers to China due to the lack of export cargo from Iran.

According to him, the accumulation of two thousand empty containers at Apirin station is a result of wartime conditions and lack of internal cohesion and requires immediate reform.

He also announced an important event in the field of China's dry ports within the next month and a half and called on Yazd's economic and logistics activists to participate actively in this event to establish direct contact with Chinese forwarders.

In another part of his remarks, Farazi emphasized the role of the private sector in developing Iran-China economic cooperation and said: We should not wait solely for government solutions. Provinces, especially Yazd, must directly enter the arena of cooperation with major Chinese companies by forming specialized consortiums and designing efficient financial models.

The Vice Chairman of the Yazd Chamber of Commerce, referring to the province's extensive industrial and export capacities, called for government support to reduce the cost of transporting goods from China to Iran and said: With approximately four thousand active industrial units, the province is considered one of the country's important economic hubs, and its key advantage is that over 90% of industries are managed by the private sector.

Ali-Asghar Beigi added: The small share of government investment in Yazd's industries has made decision-making more dynamic in the industry and trade sectors, and many problems and obstacles are resolved through interaction and cooperation among entrepreneurs within the province.

Pointing to Yazd's industrial capacities, he stated: Over 55% of the country's tile and ceramic industries are located in Yazd, and textiles, steel, electricity and electronics, and building materials are among the province's other strong sectors, such that all construction materials needed are produced within the province, and its supply chain is completely local.

The Vice Chairman of the Yazd Chamber of Commerce also noted the province's agricultural capabilities and said: Yazd's greenhouse products rank second in the country, and successful exports are made to Russia. Additionally, pistachio exports to China are ongoing continuously, and we hope that with the support and guidance of officials, a new chapter will be opened in developing trade relations with China.

As recently started by a railway expert, Iran-China commercial train frequency to one daily train would enable cargo movement of one million tons per year.

Mohammad Javad Shahjouei, a rail industry expert, in an interview with Mehr News Agency, detailed the potential of rail trade between Iran and China. He stated that regarding rail connectivity between Iran and China, routes such as Kazakhstan-Turkmenistan-Iran and China-Pakistan-Iran have been defined. Additionally, the China-Uzbekistan-Afghanistan-Iran route could become operational if Afghanistan's rail infrastructure is completed.

He added that currently, the first two routes — the Kazakhstan-Turkmenistan-Iran corridor and the China-Pakistan-Iran route — exist in terms of infrastructure connectivity and are operable. Although the Pakistan route has not yet been fully utilized, the Kazakhstan-Turkmenistan route has been active so far.

The rail industry expert noted that currently, according to the Railway Administration, trains on the China-Iran route run once every three to four days. However, this capacity can be upgraded to one daily train. If this level is achieved, the route could move approximately one million tons of cargo annually.

He emphasized that if the Pakistan and Afghanistan routes become operational, a significant portion of trade between Iran and China could be conducted via the rail network.

Shahjouei stated that an important point is that because rail transport is more expensive than sea transport, the goods using this route are mainly those that are in the middle or end of the value chain and possess higher added value.

EF/MA