TEHRAN- The disruptions created in the Strait of Hormuz have doubled the importance of developing alternative trade routes; a path that those active in the economy fields consider Oman and the transit capacities of Jask to be among its most important opportunities.

According to the Mehr News Agency, while the recent military and security tensions in the Persian Gulf region have created challenges for one of the most important arteries of global maritime trade, those active in the economy fields and trade experts believe that developing alternative routes, strengthening logistics infrastructure, and expanding economic cooperation with neighboring countries, especially Oman, can reduce some of the negative effects of these developments on Iran's foreign trade. Increased transportation costs, rising cargo insurance rates, delays in cargo handling, and concerns among economic activists about continued uncertainty in the region's maritime routes have turned more attention than ever to the capacities of Makran coasts and the eastern ports of Hormozgan province, particularly the port of Jask.

In recent weeks, many Iranian transport companies, exporters, and importers have tried to manage the effects of disruptions in regional trade by revising their trade routes and using new maritime transport capacities. Private sector activists believe that the new regional situation has shown that dependence on a limited number of trade routes can create significant risks for the country's economy, and for this reason, diversifying transport routes and strengthening cooperation with regional economic partners has become more important than ever.

Development of transit in Jask and Sirik

In the meantime, Oman has become one of Iran's most important trading partners due to its stable political and economic relations with Iran, suitable geographical location, and access to important regional and international markets. In recent years, the volume of economic exchanges between the two countries has been on a growing trend, and many Iranian traders consider Oman as a gateway to access the markets of Arab countries, East Africa, and even some global markets.

Economic experts believe that at a time when global trade is more affected than ever by geopolitical developments, regional conflicts, and changes in supply chains, the development of logistics infrastructure and facilitation of trade processes can play a decisive role in maintaining and increasing Iran's share of regional markets. Therefore, establishing new trade procedures in the southern ports of the country has been considered as part of a strategy to increase the resilience of the maritime economy and reduce the vulnerability of foreign trade.

In this regard, Khamis Jaber Nakhilo, head of the Oman specialized desk at the Bandar Abbas Chamber of Commerce, referring to the measures taken in recent years to develop economic cooperation between the two countries, stated: "A significant part of the infrastructure needed to strengthen Iran-Oman trade has been provided through the continuous efforts of the private sector and the cooperation of executive bodies. One of the most important achievements of these efforts is the approval of the transit procedure in the port of Jask and the port of Sirik, which was one of the main demands of economic activists for years."

He added: "The issue of establishing a transit procedure in these ports was raised many times in expert meetings and the government-private sector dialogue council, and finally, with the cooperation of relevant institutions, it came to fruition. The implementation of this procedure can facilitate the movement of goods, reduce some logistics costs, and develop trade exchanges in the region."

Diversifying trade routes

At the same time, the role of traditional maritime trade has received more attention than ever. Over the past decades, dhow operators and sailors in the south of the country have maintained trade links between Iranian ports and neighboring countries under the most difficult economic, sanctions, and security conditions. Many experts believe that the valuable experience of these activists, along with the development of modern port and logistics infrastructure, can help increase the flexibility and resilience of the country's maritime trade.

In recent years, seafaring trade and traditional maritime transport have played an important role in meeting some of the market's needs and maintaining economic ties between regional countries. For this reason, many economic activists are calling for more support for this sector and facilitating regulations related to dhow operators' activities so that existing capacities can be used to better manage the current situation.

On the other hand, rising transportation and marine insurance costs after the escalation of regional tensions have become a major concern for exporters and importers. Some reports indicate that the insurance cost of cargo on sensitive maritime routes in the region has increased, which could affect the final price of goods. Under such circumstances, taking advantage of new transit capacities, developing cooperation with regional partners, and reducing administrative and customs barriers are among the solutions that can reduce some of the pressures on economic activists.

Economic experts believe that recent developments have once again revealed the importance of developing regional trade and diversifying trade routes. In their view, to maintain its position in regional markets, Iran's economy needs to strengthen transport infrastructure, develop strategic ports, increase private sector participation, and expand cooperation with neighboring countries.

In the meantime, developing economic cooperation with Oman, strengthening the role of the private sector, expanding maritime transport services, and utilizing new capacities such as the Jask transit procedure can usher in a new chapter in the trade relations of southern Iran; a chapter whose main goal is to increase the resilience of the country's trade against crises, reduce the vulnerability of supply chains, and maintain a stable flow of economic exchanges in high-risk regional conditions. Many economic activists hope that with the continuation of these measures and the completion of infrastructure projects, southern Iran will become one of the most important trade and transit hubs in the region in the coming years.

EF/MA