The major modes of transportation of cargo in Iran are the railway, road, air, and sea. They facilitate transportation of cargo within Iran, as well as in the international trade with other countries. As of 2016, over 90% of cross-border trade was conducted via seaways, while the majority of domestic trade took place via roadways. The country has a great geographical strategic importance as it is located in five international transit and business corridors. Other drivers for the Iranian market are: the great capacity of exchange between its northern and southern neighbors, existence of several strategic ports such as the Shahid Rajai Port, free trade zones such as the Persian Gulf region, low prices of fuel and energy, low cost of labor, and a capable railway transportation network. The growth in Iran’s exports has been another driver for the growth in the freight and logistics market. The total non-oil exports in 2016 were about 94 million metric ton at a value of USD 42 billion, while the imports reached a total of 35 million metric ton at a value of USD 41 billion. Among Iran’s largest exports by value are, oil and gas, gaseous hydrocarbons, propane, petroleum bitumen, polyethylene film grade, as well as iron and steel products.
The terrain of Iran consists of rugged and mountainous rims surrounding high interior basins and this has been a major drawback the development of an elaborate railway network. For example, the Trans-Iranian railway requires more than 300 bridges and over 100 tunnels. Currently, there are less than 13,000 kilometers of railway track in the country, which is far from adequate for both passenger travel and international trade. There are significant plans to invest and expand the railway infrastructure with an expected investment of over USD 8 billion by 2022. The goal is to increase the total rail coverage to over 25,000 kilometers by 2025.
As of 2017, there are 8 active airports in Iran. The Imam Khomeini Airport, located 30 kilometers to the south west of Tehran, is the largest and the most profitable one. In 2015, it handled over 6.5 million passengers, and this is expected to grow to 8 million in 2016. There are a total of 266 aircrafts in Iran according to the Ministry of Transportation and Metropolitan Development, of which only 108 are currently active and 12 were built after the year 2000. An upgrade of the airport infrastructure is highly necessary for Iran to drive the market further.
Almost 90 % of Iran's foreign trade takes place through its territorial waters. Iran’s ports are highly important for the market studied. The Islamic Republic of Iran Shipping Lines Group is the primary domestic player in this area. Following the adoption of the JCPOA, the company has announced its intention to join the world’s top 10 shipping lines by 2020.
Iran has a total area of 1,648,195 sq.km including 31 provinces, all of which are connected via roads. Roadways also link Iran internationally via borders at the north, west, and east of the country. In total there is 83,485 km of “inter-province” roads, including main roads, highways, freeways and access roads, and a further 140,000 kilometers of inner-town and suburban roads. Iran’s freight and logistics industry is in need of a lot of investments, as the market has emerged as a profitable sector for foreign investment in the country.
Current and future freight and logistics market outlook in Iran.
Various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Market segments that are expected to witness fastest growth during the forecast period
The latest developments, market shares, and strategies employed by the major market players.
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1.1 Key Deliverables of the Study
1.2 Market Definition
1.3 Executive Summary
2. RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. REGULATORY ENVIRONMENT AND KEY POLICY INITIATIVES
4. IRAN FREIGHT & LOGISTICS MARKET DYNAMICS
4.4 Porter's Five Forces Analysis
4.5 Industry Value Chain and Cost Structure Analysis
5. IRAN FREIGHT & LOGISTICS MARKET SEGMENTATION AND ANALYSIS (MARKET SIZE, GROWTH, AND FORECAST)
5.1 By Freight Transport
5.1.3 Sea and Inland
5.2 By Freight Forwarding
5.2.1 Sea Freight
5.2.2 Air Freight
5.4 Courier, Express and Parcel
5.5 Value-added Services
5.6 Cold Chain Logistics, Chain Logistics, Last Mile Logistics, Return Logistics and Other Emerging Areas
6. By End User
6.2 Oil and Gas, and Quarrying
6.3 Agriculture, Fishing, and Forestry
6.4 Manufacturing and Automotive
6.5 Distributive Trade
6.7 Other End Users (Pharmaceutical and Food & Beverages )
7. COMPANY PROFILES (OVERVIEW, FINANCIALS**, PRODUCTS AND SERVICES, RECENT DEVELOPMENTS, AND ANALYST VIEW)
7.1 5 Continents International Transport Co.
7.2 Tidewater Middle East Co.
7.3 Arvand Sealand Co. PJS
7.4 Saadat Group
7.5 Tehran Nasim International Transportation
7.6 KGP Transport and Logistics Co.
7.7 Meshkin Co. Ltd
7.8 DHL Iran
7.9 Pshahanf Tarabar Co.
7.10 Soheil Tarabar International Transport Co. Ltd*
8.1 GDP Distribution, by Activity
8.2 Insight on Capital Flows
8.3 Economic Statistics – Transport and Storage Sector Contribution to Economy
8.4 External Trade Statistics – Export and Import, by Product
8.5 Insights on Key Export Destinations
8.6 Insights on Key Import Origin Countries
*List Not Exhaustive
**Subject to Availability on Public Domain