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PMO’s Managing Director: All Iranian ports are operated by private sector

PMO’s Managing Director: All Iranian ports are operated by private sector
Mohammad Rastad: today's ports can only maintain and enhance their competitiveness if they act as a link in an integrated, global logistics chain

PMO News Portal - Mohammad Rastad’s speech on the occasion of Chabahr day at the Second edition of International Maritime Summit-2021 in the virtual format

First of all, I would like to thank the Ministry of Ports, Shipping and Waterways of India for holding the Chabahar Day event. I am confident that the path of cooperation between Iran and India regarding the port of Chabahar will grant significant achievements for the two countries. In addition, Afghanistan, as another member of the Tripartite Transit Memorandum of Understanding known as the Chabahar agreement, will benefit from this cooperation. I hope to see new members from the countries in the region joining the Chabahar Transit Memorandum.

Today, ports around the world have undergone substantial changes in terms of management, investment, leadership and role-playing in logistics. Traditional ports were merely terminals for changing modes of transportation, but today's ports can only maintain and enhance their competitiveness if they act as a link in an integrated, global logistics chain. Port management has also changed from government and public oriented to local and even private management, which has awarded a great deal dynamism and vitality in this industry. In this context, government investment is focused solely on port infrastructure, and port superstructure and equipment investments are provided by the private sector. Needless to say, there are many cases of private sector investment, even in the field of port infrastructure. In the field of port management, as was anticipated, the private sector plays the main role. Today, we see global port operators which, regardless of their nationality, are present in all parts of the world to invest and operate commercial ports. In addition, large shipping lines invest in ports around the world and establish their own port terminals. The port industry has faced substantial changes in recent years, and in order to maintain and increase the market share of maritime transport, countries must adapt to these developments inevitably.

In the Islamic Republic of Iran, the Ports and Maritime Organization, as the responsible authority for commercial ports and commercial shipping, has set out to keep pace with global developments. Today, all Iranian ports are operated by private operators. We have a record of significant investments by the private sector in the country's ports. These investments are not only in the field of equipment supply, but also in the field of construction of port superstructures such as indoor and outdoor storage warehouses, grain storage silos, liquid bulk storage tanks, value-added factories and logistics services. currently, over 330 contracts have been concluded by the Ports and Maritime Organization of the Islamic Republic with the private sector in the above mentioned fields. there are even cases of private sector investment in port infrastructure. Fortunately, this is a progressing trend in Iranian ports.

One example of the private sector involvement in Iranian ports is the activities of the Indian company IPGL, in the port of Chabahar as an investor and port operator. Under a ten-year BOT contract, the Indian operator will invest $ 85 million to supply Chabahar port equipment. Fortunately, last month we had the arrival of the first batch of equipment provided by the Indian operator, including two mobile cranes, and in the next few days, two more cranes will arrive to the port of Chabahar. We hope that the rest of the equipment pledged by the Indian operator, including gantry cranes, RTG and other container equipment, will soon be delivered at Chabahar port.

Chabahar port with its privileged geographical position, can serve as an intermediary between the coastal countries of the Indian Ocean and likewise connect the large Indian market to the countries of Central Asia and Afghanistan. Strategic cooperation between Iran and India in equipping and managing Chabahar port will grant many benefits to both countries and countries in the region. In recent years, the Ports and Maritime Organization of Iran has significantly developed the infrastructure of Chabahar port and increased the port's capacity from 5.2 million tons to more than 8 million tons per year. In the second phase of its development plan, the capacity of Chabahar port will increase to 33 million tons. Fortunately, in recent years, we have always had an increase in the rate of unloading and loading in Chabahar port, so that an uprising trend was recorded from less than one million tons of port operations to more than 3 million tons. The transit of goods between India and Afghanistan has been facilitated and become operational through the port of Chabahar. Regular container lines have been established between Chabahar port and Indian ports. In general, noteworthy favorable conditions have been achieved for the prosperity of Chabahar port. One of the other key measures that can upgrade Chabahar port is the connection of the port to the national railway network, which its project is being carried out at a good pace. Recently, the annexation of Chabahar port to the free zone has also triggered the port to benefit from the legal facilities and benefits of the free zones, and it will definitely have a significant impact on the desirability of the port for the good owners.

 Iran-India cooperation in Chabahar port is a perfect illustration of acceleration in the development of the port with public and private sector investment. Undoubtedly, such regional cooperation will activate port capacities and fill in the transportation gaps in the most optimal way, and all countries in the region and will enjoy the benefits of smooth-running low-cost logistics. I take this opportunity to invite all interested countries in the region, to consider Chabahar port as a distinctive transit hub for their products. We welcome superstructure investments for the development of logistics activities in the region.

In the end, I would like to thank the esteemed organizers of this event, and I hope to see an increase in regional interactions and cooperation within the framework of joint agreements for the development of trade and maritime transport and transit of goods.

Saturday Mar 6, 2021
11:19
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