Iran and China relaunched the container train service at Tehran’s Aprin Dry Port on Sunday in a bid to streamline trade between both countries, IRNA reports. The relaunch also inaugurated the first phase of the China-Iran-Europe railway corridor, which will connect both countries to Europe. The full route aims to connect China, Turkmenistan, and Kazakhstan.

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Making history: The China-Kazakhstan-Turkmenistan-Iran corridor is reportedly the first logistics solution for the rapid delivery of goods from the eastern coast of China to the Persian Gulf. The first Chinese transit train departed to Tehran on 16 July from Shaanxi province in northwestern China.

New trade avenues for Iran: The route will offer Iran a new point of access given that 85% of its international trade relies on maritime transportation. The new rail route will position Iran as a key trade hub connecting Asia and Europe, and will allow Beijing access to markets in West Asia and Europe. The trade route will also help both countries maneuverWestern sanctions that have affected trade.

A little help from friends: Relations between Iran and China have made strides forward since last year, with initiatives such as Iran’s Look East policy and the 25-year cooperation agreement strengthening bilateral relations. Shipping capacity between Iran and China — which accounts for almost all of Iran’s LPG sales — increased back in March. Iran’s oil production also ramped up, hitting a five-year-high of 3 mn barrels per day in 2023, with the majority of exports bound for China.

Building many relationships: Iran recently operated its 37km Rasht-Caspian railway that connects the Persian Gulf to the Caspian Sea to boost trade links between the two regions. Iran and Russia inked a EUR 1.6 bn agreement in May 2023 to build the Rasht-Astara railway to complete the International North-South Transport Corridor (INSTC). The 7.2 km INSTC links Russia, India, Iran, and Arzbejian via ship, rail, and road routes.

IN OTHER RAIL UPDATES-

Iran + Russia + Kazakhstan + Turkmenistan have inked a roadmap agreement to develop the eastern route of the International North-South Transport Corridor (INSTC), slated for 2024 to 2025, Mehr reports. Under the document, the corridor’s capacity is set to reach 15 mn tons per year by 2027 and 20 mn tons by 2030, Tass reports.

REFRESHER- The 7.2 km INSTC links Russia, India, Iran, and Azerbaijan via ship, rail, and road. Iran and Russia inked a EUR 1.6 bn agreement in May 2023 to build the Rasht-Astara railway to complete the INSTC.

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