By Mahnaz Abdi

From south to north: How Iran is redefining trade routes in crisis times

August 18, 2026 - 18:30

TEHRAN- As geopolitical tensions continue to strain maritime traffic through the Strait of Hormuz, Iran has demonstrated that its foreign trade is far from vulnerable. By rapidly developing northern ports and expanding railway infrastructure, the country is successfully diversifying its trade routes and ensuring the continued flow of essential goods.

According to the Ports and Maritime Organization (PMO), loading and unloading operations at Iran's northern ports have increased significantly, rising from 18 percent to 30 percent in the current Iranian calendar year. Mohammad Shakibi-Nasab, Deputy Minister of Transport and Urban Development and Managing Director of the PMO, attributed this growth to a strategic shift in response to reduced shipping activity in southern waters. "Following the reduction in the arrival of goods and ships to southern ports, a support package was prepared with the aim of supporting the private sector, preserving human capital, and preventing workforce layoffs," he stated.

The PMO's support package has proven effective. Despite the prolonged siege conditions, no significant layoffs have occurred among private sector companies active in the ports. Shakibi-Nasab emphasized that the core of the initiative was workforce protection, and the organization is now planning further measures to strengthen the resilience of private firms by increasing their share of generated revenues.

In parallel, the Trade Promotion Organization (TPO) has been pursuing an aggressive agenda to develop alternative logistics routes. Mohammad Ali Dehghan Dehnavi, head of the TPO, confirmed that railway capacity has doubled compared to the same period last year, while northern ports have seen a capacity increase of over 60 percent. "In this short period of time, significant measures have been taken in the logistics sector, and alternative routes are being rapidly developed," he said.

Acknowledging that sea routes remain more cost-effective and convenient, Dehnavi noted that Iran's extensive land borders with neighboring countries provide a valuable advantage. "The development of other routes can compensate for part of this shortfall," he explained.

To further facilitate trade, the government has introduced a 180-day extension of the import deadline, direct currency transactions, and reforms to the order registration process. The Ministry of Industry, Mining and Trade has prioritized the supply of raw materials to domestic industries, ensuring that production and employment are maintained despite external pressures.

While challenges remain—including border congestion and increased costs in some areas—Iran's proactive approach to diversifying its trade corridors underscores a clear message: the country is not helpless in the face of maritime disruptions. With northern ports gaining capacity and railways expanding at record speed, Iran is building a more resilient and adaptable trade infrastructure for the future.

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