Transportation is one of the most important steps in Supply chain management (SCM); especially in International business and due to Iran’s geographical location- middle east- Iran has been playing a key role in that matter. Having Caspian in the north, Persian Gulf and Oman Sea in the south, as well as being located in the Heart of Silk road, makes Iran one of the most strategic countries in transportation industry.

Roads

Once a history, Silk-road is now what China is investing in, which will increase the amount of trade between China, and Iran, and the countries, in Europe. The first shot at this, was a 32-container train from Wuyi, China that arrived in Tehran, Iran about a year ago in June 2016, which shortened the typical ship-based travel time by 30 days.

Iran has also a wide range of Roads, covering a distance of 180,958 kilometers, with 15,000 kilometers of paved highways and freeways.

Yearly about 12 million Tons of Goods are transported through Iran, only by roads.

As road transport is still the default transportation method in Iran, the government is aiming to step up investment levels in both public transport and its road network. Updates to roads across the nation will provide international trucking firms with many new routes to explore. And, given Iran’s favourable geographic location, this could provide a highly lucrative revenue stream for transport and logistics firms.

Railway

Iran is benefiting from 10,459 kilometers of railroads. The routes, connected to middle East and Europe railways from West (Razi border); to Azerbaijan railway from North West (Jolfa border); to Caspian sea and ports of Turkmenistan, Kazakhstan, Azerbaijan and Russia from North (ports of Amirabad, Neka and Turkmenistan), to Central Asian, Russia and China railways from North East (Sarakhs border), to Pakistan railway from South East (Mirjaveh border) and to Persian Gulf and open seas of the world from South (Bandar Abbas and Imam Khomeini ports).

Sea

In Maritime sector, promotion of capacity of ports of Chabahar and Shahid Rajaee in South and Amirabad in North as well as establishment of shipping lines in the region are among measures taken in the framework of transport cooperation vision which shall deeply affect transportation and trade in Asia and the Pacific. Ports of Shahid Rajaee, Amirabad and Anzali enjoy outstanding location in transit route of the North- South corridor. In addition, ports of Imam Khomeini, Shahid Bahonar, Lengeh, Boushehr, Chabahar and Noshahr have got their own unique potentials.

Bandar Abbas, Iran’s main container port in the country and largest hub in the Persian Gulf. The port accounted for 37% of the country’s total transit traffic in 2011. The vast majority of the country’s oil exports are by sea. As such, significant investment in upgrading existing facilities, or construction of new ports, is being seen. Much of this investment is being sourced from international Organizations.

For example, India’s Petroleum and Natural Gas Ministry announced in 2016 that it will be investing $20 billion in the development of a major port at Chabahar on Iran’s southern coast. Outside of the oil trade, a number of sea freight operators are either re-entering Iran or signing Memorandums of Understanding (MoU) to begin work. New maritime ties have been established; including with Swiss MSC allowing Swiss and Iranian companies to form joint ventures; as well as with South Korea to allow both countries to enjoy mutual unrestricted port calls and search and rescue assistance.

Air

Iran currently has close to 300 airports. 50 of these ports are for commercial use while only a handful serve international flights. The Iran Airports and Aviation Development Forum announced in 2015 that it will be investing some $8 billion in 27 new terminals around the country.

Iran has a long way to go before its ambition of becoming a regional air transport hub is realized. With traffic of 6 million passengers a year, Tehran’s airport is dwarfed by Dubai’s 78 million. Iran plans to boost capacity to 45 million on the way to a target of 70 million.

Carriers in the Persian Gulf Arab countries dominate long-haul travel, thanks to smart, efficient hubs and a strategic position that places two-thirds of the world’s population within an optimal 4-8 hours’ flying time from Dubai, home to regional heavyweight Emirates.

The only serious regional competitor to these carriers for now is Turkish Airlines. But the variety of short- and long-haul jets acquired by Iran suggests that it wants a share of the spoils in the future.