Iran-Kazakhstan trade to improve transit via North-South Transport Corridor

Transport Materials 4 January 2020 12:28 (UTC +04:00)
Iran-Kazakhstan trade to improve transit via North-South Transport Corridor

TEHRAN, Iran, Jan.4


Iran and Kazakhstan trade development can improve transit of goods via International North-South Transport Corridor (INSTC), said Deputy Head for International Affairs at Iran Chamber of Commerce.

Mohammad-Reza Karbasi discussed the importance of the International North-South Transport Corridor, which links Iran via Bandar Abbas port to Turkmenistan and Kazakhstan and shall eventually connect the CIS countries to the Persian Gulf, in an interview with Trend.

"Creating infrastructure along the route will facilitate trade via INSTC, and development of ports in Iran will improve maritime transportation," the official said.

"Signing preferential tariff agreement with Kazakhstan can lead to further trade development between two countries including bilateral cooperation in trading industrial goods, providing technical services, developing nanotechnologies and health tourism," Karbasi added.

"Iran and Kazakhstan can make joint investments in Kazakhstan's projects, but there should be more efforts to solve the banking obstacles," the deputy head of the Camber of Commerce said adding that due to the re-impose of the US sanction against Iran, the country has faced challenges in trade, money transfer and banking issues.

"Iranian companies are implementing large technical and engineering projects in Kazakhstan. We have discussed the barter mechanism between banks of Iran and Kazakhstan to facilitate the trade. Utilizing the currency of two countries in trade can be a mechanism for the trade, and we should create the ground for economic cooperation," Karbasi said.

"There are several corridors connecting the two countries. One goes through Bandar Abbas to Tehran and Almaty via railway and road; however, there are issues that shall be addressed in the framework of trilateral cooperation of Kazakhstan, Iran and Turkmenistan," the official noted.

"We should move toward activating maritime route Anzali-Amirabad-Aktau, which can facilitate cargo transit and save costs; therefore, Iran needs to increase its maritime capacities," he said.