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persian gulf Archives - IRAN This Way https://iranthisway.com/tag/persian-gulf/ Become familiar with Iranian lifestyle! Tue, 17 Sep 2019 13:12:04 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.9 https://iranthisway.com/wp-content/uploads/2016/04/cropped-ir-fave-iocn-32x32.png persian gulf Archives - IRAN This Way https://iranthisway.com/tag/persian-gulf/ 32 32 Bushehr Port/ Video https://iranthisway.com/2019/09/17/bushehr-port-video/ https://iranthisway.com/2019/09/17/bushehr-port-video/#respond Tue, 17 Sep 2019 12:52:18 +0000 http://iranthisway.com/?p=10926 The port of Bushehr is located in 28,58 N and 50, 50 E in the north end of a peninsula on the coast of the Persian Gulf. This peninsula is 14 Km long. The depth of water is near to 7m in the external anchorage leading to internal anchorage by the external channel 9200m in...

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A great part of commercial exchanges around the world is carried out by ships. Ports are connections between production and distribution networks that have turned coastal cities like Bushehr into places with economic and strategic dynamics. By Shahriar Azimi & Parvin Ebrahimi - 2018, PressTv

The port of Bushehr is located in 28,58 N and 50, 50 E in the north end of a peninsula on the coast of the Persian Gulf. This peninsula is 14 Km long. The depth of water is near to 7m in the external anchorage leading to internal anchorage by the external channel 9200m in length and from the internal anchorage to Khor Soltani, Bushehr berth and then to Khor Booder by the internal channel 3900m in length. The channel is 140m in average width.
Climate in Bushehr Port

Climate in Bushehr Port
Bushehr port has got a semi-tropical climate with very hot and humid Summer and temperate Winter. The seasonal South Western winds blow on Bushehr sea from the beginning of June to the end of October but they rarely reach the harbor. The seasonal North Eastern winds blow on Bushehr sea and sometimes very strongly on the land from the end of December to the beginning of May.
The power of North Wind usually reaches to 6 in Beaufort scale, but it may rarely border on 8.
The average power of Wind in Winter is 4 in Beaufort scale
The temperature range during summer is +35 to +40 degrees centigrade, whereas it mat border on +2 degrees centigrade in Winter.
The humidity range during Winter is %40 to %80 and %30 to %99 in Summer.

TIDAL RANGE
The ebb and tide in Bushehr port is diurnal. The tidal range differs from 1 m to 1.6 m.
The highest tide may reach to 2 m and the lowest ebb may border on .7 m. The speed of water current in the internal channel and Khore Soltani may reach to 2-3 knots in ebb and flow conditions
The maximum height of the wave in the external anchorage is almost 1.5 m and .6 in the internal anchorage. Services

ROAD SERVICES

The port of Bushehr is connected to neighboring cities via 4 important routes:

  • Bushehr – Khormooj – Kangan – Lengeh – Bandar Abbas extended 920 Km in length.
  • Bushehr – Borazjan – Shiraz extended 290 Km in length.
  • Bushehr – Borazjan – Yasooj – Isfahan.
  • Bushehr – Genaveh – Deylam – Mahshahr – Abadan extended 690 Km in length.

It is worth mentioning that Bushehr – Borazjan route is a highway

AIRPORT

The port of Bushehr is one of the most accessible ports of the country to airport with only 5 Km distance. The international airport of Bushehr is provided with domestic flights to Tehran, Isfahan, Shiraz, Mashad, Kish, Kharg and international flights to Dubi and Jaddeh.

SHIP BUILDING FACTORIES

These factories, located near the port, are capable of repairing vessels of any kind up to 2500 tons onshore and building offshore constructs. Iran -Sadra Company has up to now built some huge oil platforms belonged to Southern Pars Area.

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Iran’s South Pars gas output doubled in five years https://iranthisway.com/2018/12/23/iran-south-pars-gas-output/ https://iranthisway.com/2018/12/23/iran-south-pars-gas-output/#respond Sun, 23 Dec 2018 14:01:14 +0000 http://iranthisway.com/?p=10806 The output from the giant South Pars Gas Field in the Persian Gulf has been doubled in the past five years, the managing director of Pars Oil and Gas Company said. “Iran is now extracting around 600 million cubic meters per day of natural gas from the field, twice the amount five years ago,” Mohammad...

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The output from the giant South Pars Gas Field in the Persian Gulf has been doubled in the past five years, the managing director of Pars Oil and Gas Company said.

“Iran is now extracting around 600 million cubic meters per day of natural gas from the field, twice the amount five years ago,” Mohammad Meshkinfam said.

“Except for Phase 11, other phases including 13, 14, 22, and 24 have come on stream,” the official added.

He noted that the company has built 13 refineries, drilled 267 wells, and laid 3,500 kilometers of subsea pipes.

According to Meshkinfam, the field’s daily output will soar to 850 million cubic meters of natural gas, one million barrels of condensates, 10 million tons of LPG and 5,000 tons of sulfur when it is in full operation.

South Pars, which is located in the Persian Gulf and shared between Iran and Qatar, is the world’s largest gas reserve. It holds an estimated 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of condensates.

The megaproject is being developed in 24 phases.

According to an estimate, Iran’s recoverable gas stands at 10 trillion cubic meters and Qatar’s is estimated to be over 25 trillion cubic meters.

Meshkinfam had earlier said that “more than $70 billion have been spent on the gas project over the last 15 years and the field requires between $20 billion and $30 billion in additional spending to become fully operational.”

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Photo: Persian Gulf Star Refinery https://iranthisway.com/2018/08/06/photo-persian-gulf-star-refinery/ https://iranthisway.com/2018/08/06/photo-persian-gulf-star-refinery/#respond Mon, 06 Aug 2018 13:10:35 +0000 http://iranthisway.com/?p=10744 Iran’s Persian Gulf Star Refinery in the southern province of Hormozgan is the first of its kind designed based on gas condensate feed-stock recovered from South Pars gas field which Iran shares with Qatar in the Persian Gulf. Construction of the refinery started in 2006, but the project was delayed as the result of some ...

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Iran’s Persian Gulf Star Refinery in the southern province of Hormozgan is the first of its kind designed based on gas condensate feed-stock recovered from South Pars gas field which Iran shares with Qatar in the Persian Gulf.

Construction of the refinery started in 2006, but the project was delayed as the result of some  financial limitation due to the sanctions against Iran.

Planned to have a total crude oil processing capacity of 360,000 barrels per day, Persian Gulf Star is projected to be complete by the end of the next Iranian calendar year 1397 (March 20, 2019).

The facility is owned by Oil, Gas and Petrochemical Investment Company (49%), Oil Industry Pension Fund (33.1%) and National Iranian Oil Refining and Distribution Company (NIORDC) (17.9%).

The project is estimated to be completed at a cost of approximately $3.4bn.

Once fully operational, the refinery will add over 36 million liters of Euro-4 and Euro-5 quality gasoline to the country’s gasoline production capacity to increase it to 100 million liters per day.

When the first phase of Persian Gulf Star Refinery was inaugurated by President Hassan Rouhani on April 30, 2017, Iran said it is now self-sufficient in gasoline production.

“By inaugurating the first phase of this refinery an old dream came true. We are self-sufficient in gasoline production and in near future we will be able to export,” Rouhani said in the inaugural ceremony of the first phase.

Second phase of the refinery is scheduled to be complete by the end of the current Iranian calendar year (March 20, 2018) adding 12 million liters of Euro 5 gasoline to Iran’s capacity of the product, Alireza Sadeq-Abadi, the managing director of National Iranian Oil Refining and Distribution Company (NIORDC), announced in the inaugural ceremony of the distillation unit of the second phase on February 14.

In mid-December last year, Oil Minister Bijan Namdar Zanganeh said Iran will reach a stable status in gasoline production once the second phase of Persian Gulf Star Refinery comes on stream.

Bringing self-sufficiency for the country in terms of gasoline production, once fully operational, the Middle East’s largest processing facility for gas condensate will also play a big role to turn Iran into an exporter of gasoline.

The big job has already started as the first shipment of Euro 5 gasoline produced by Persian Gulf Star Refinery was delivered to Shahid Rajaee port in south of the country in early December last year.

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Iran’s South Pars’ sour gas output to increase 56 mcmd https://iranthisway.com/2018/03/08/irans-south-pars-sour-gas-output-increase-56-mcmd/ https://iranthisway.com/2018/03/08/irans-south-pars-sour-gas-output-increase-56-mcmd/#respond Thu, 08 Mar 2018 11:01:52 +0000 http://iranthisway.com/?p=10600 Iran‘s rich sour gas production in the supergiant South Pars Gas Field in the southern Iranian province of Bushehr will increase 56 million cubic meters per day in the year to March 2019, said the managing director of Pars Oil and Gas Company (POGC). Mohammad Meshkinfam noted that Iran extracted an average of 550 million...

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Iran‘s rich sour gas production in the supergiant South Pars Gas Field in the southern Iranian province of Bushehr will increase 56 million cubic meters per day in the year to March 2019, said the managing director of Pars Oil and Gas Company (POGC).

Mohammad Meshkinfam noted that Iran extracted an average of 550 million cubic meters of natural gas from the field, which is shared with Qatar, during this winter, adding by late March, gas recovery from Platform A of Phase 14 of the gas field will reach 14.2 million cubic meters per day, Shana reported.

Speaking during a visit to onshore refinery facilities of the South Pars gas field in the Persian Gulf, the POGC chief said that Platform C of the same phase will begin operation within three months following the inauguration of the first platform.

Platforms of phases 13, 22, 23 and 24 of the giant gas field, each with a gas extraction capacity of 14.2 million cubic meters, will go on stream in the year to mid-March 2019.

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The top 10 things to see in Qeshm https://iranthisway.com/2017/08/19/top-10-things-see-qeshm/ https://iranthisway.com/2017/08/19/top-10-things-see-qeshm/#respond Sat, 19 Aug 2017 08:23:27 +0000 http://iranthisway.com/?p=10036 Pontia Fallahi: When most people think about travel in Iran, they think of Shiraz and Isfahan, the big brothers of Iranian history and civilization. Few think of Iran as an island destination when, in fact, there are two major islands: Kish and Qeshm. Both islands are free-trade zones, and foreign tourists require no visa for...

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Pontia Fallahi: When most people think about travel in Iran, they think of Shiraz and Isfahan, the big brothers of Iranian history and civilization. Few think of Iran as an island destination when, in fact, there are two major islands: Kish and Qeshm. Both islands are free-trade zones, and foreign tourists require no visa for up to 14 days. These islands are not your ‘typical’ islands in the sense that you should not expect palm tree-lined beaches and bikini-clad women, but they are rich in terms of ecotourism and geotourism.

Qeshm, the largest, dolphin-shaped Persian Gulf island has a plethora of natural attractions, from pristine islands to forests, valleys to caves, and all the wildlife and cultural heritage in between. The Culture Trip explores the top ten things to do and see on Qeshm Island.


Naz Island

Naz Island is situated on the southern coast of Qeshm. At low tide, you can stroll on the soft sand full of colorful seashells and coral. During the ebb, this stretch of land is also the preferred spot for cars and trucks to race. Once high tide rolls in, however, it is hard to imagine that all of this was completely dry just a few hours earlier. The high and low tides of Naz Island were made famous by the popular Iranian TV series, Paytakht, in an episode in which a family, unaware of this phenomenon, parks their car out on the island during the low tide and gets stuck, their car and belongings slowly becoming flooded by the waters of the high tide.


Hara Forest

Located just behind Qeshm’s northern ‘fin,’ this forest is an 8,000-hectare biosphere reserve of mangroves, or hara as they are known locally. The mangroves, roots, and sludgy beds surface during the low tide, but this forest disappears during the high tide. The mangroves are rooted in the salt water of the Persian Gulf, but the filtration system of the bark extracts the salt, allowing sweet water to reach the leaves. This forest is mainly used for fishing, tourist boats, and a small amount of leaf-cutting for livestock feed. Sea turtles, crabs, shrimp, snakes, herons, cranes, and pelicans are among the animals that call this forest home.

Dolphins

Located south of Qeshm is Hengam Island, where the tourist boats stop to see the dolphins play in the early morning. There is also a variety of tropical fish and stingrays in the natural ‘aquarium’ of the Persian Gulf. Gazelles inhabit the island, and it is said that they obtain fresh water by pressing their hooves into the ground. Hengam Island itself is full of fascinating rock formations and glistening black sand sprinkled over beige sand.

Hengam Island, Qeshm, Iran


Valley of the Stars

Locals believe that a star once fell on this area thereby creating the rocky shapes that make it seem as if from another planet. In fact, it is the result of years of erosion by heavy precipitation. The valley is composed of marl and sandstone, and the rock formations vary from tall pillars, creating canyon-like paths, to hollowed-out spaces and smooth, round stones. With a little imagination, the eye can make out the shapes of faces, hands, animals, and even the map of Iran. A short hike to the top and you can see the layered mountain rock embedded with seashells. Local legend has it that the Valley of the Stars is full of ruh [spirits].

 

Bandar Laft

Bandar Laft is situated on Qeshm’s ‘fin’ next to Hara Forest. Even though Yazd is most often thought of as the city of badgir (windcatchers), an ancient Persian architectural structure used to create natural ventilation, a glance at the panoramic skyline of this historical port is proof of a rivalry. Few abanbar (ancient water reservoirs) also exist and are still used by locals today. This fishing town is also home to the Talla Wells, which store clean water and were created by cutting holes into layers of stone. Though in the past the number of wells was equal to the number of days in a leap year, it has dwindled to less than 100, each one with a unique name.

Lenj Shipyard

Close to Bandar Laft is a ship-building yard. Lenj, as they are known locally, are mainly used for fishing. Upon entering, you will notice lenj in different stages of building, from those in the beginning phases that are reminiscent of Noah’s Ark to those setting out into the water on their maiden voyage.


Namakdan Salt Cave

At 6,850 meters long, Namakdan, literally salt shaker, is the longest cave in the world. Situated in the southwestern part of the island, the cave is a result of sea water accumulating in the faults. The long corridors lead to the breathtaking dome decorated with white, salty chandeliers and stalactites.


Khorbas Cave

Overlooking the Persian Gulf, Khorbas Cave is part natural, part man-made. The caves are connected from the inside by a series of tunnels said to have been carved out by ancient Iranians. It is said that this cave may have been used as a look-out system to warn against impending attacks.


Chahkooh Pass

The striking natural beauty of Chahkooh, literally mountain of wells, has been named as such because of the wells at the beginning of the pass. The pass starts out wide but becomes more narrow, the walls nearly touching at some parts. Similar to the Valley of the Stars, Chahkooh is the result of erosion from rainwater on sedimentary stone.

 


Portuguese Fortress

This fortress was built by the Portuguese in the 16th century when they seized Qeshm in a strategic effort to maintain control over the Strait of Hormuz. The fortress was used for over a century, and today, four watchtowers, a number of cannons, and two cisterns still exist.

Portuguese Fortress, Hormuz, Qeshm, Iran

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Iran’s South Pars Gas Output Crosses 2.5m Barrels https://iranthisway.com/2017/08/19/irans-south-pars-gas-output-crosses-2-5m-barrels/ https://iranthisway.com/2017/08/19/irans-south-pars-gas-output-crosses-2-5m-barrels/#respond Sat, 19 Aug 2017 07:36:00 +0000 http://iranthisway.com/?p=10034 Iran’s production of crude oil from the oil layer of the supergiant South Pars Gas Field (SPOL) has exceeded 2.5 million barrels. The country is planning to send the layer’s 5th oil consignment in the coming days, said Fardin Asadi, operator of SPOL’s development project. He said a 500,000-barrel crude oil consignment is being loaded...

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Iran’s production of crude oil from the oil layer of the supergiant South Pars Gas Field (SPOL) has exceeded 2.5 million barrels.

The country is planning to send the layer’s 5th oil consignment in the coming days, said Fardin Asadi, operator of SPOL’s development project.

He said a 500,000-barrel crude oil consignment is being loaded for export in the current week.

He said production from the layer’s 7 wells has been planned to maximize production life of the reserves while maximizing production.

Asadi further said that injection operations will begin by March 2018 in order to stabilize reservoir pressure of the layer.

The layer is estimated to roughly hold over 6 billion barrels of oil with over 10% recovery rate that can be enhanced to beyond 35% by adopting EOR and IOR techniques.

More exact estimation of the layer needs spudding more exploration wells, he said.

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Iran to boost oil production in joint oilfield with Saudi Arabia https://iranthisway.com/2017/05/04/iran-boost-oil-production-joint-oilfield-saudi-arabia/ https://iranthisway.com/2017/05/04/iran-boost-oil-production-joint-oilfield-saudi-arabia/#respond Thu, 04 May 2017 10:52:49 +0000 http://iranthisway.com/?p=9427 Executive Director of Iranian Offshore Oil Company Hamid Bovard announced that the oil extraction from the joint Iran-Saudi Arabia oilfield will be increased by at least 12,000 barrels per day. “The Iranian Offshore Oil company, other than its role to produce crude oil, establishes the presence of the Islamic Republic of Iran in the Persian...

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Executive Director of Iranian Offshore Oil Company Hamid Bovard announced that the oil extraction from the joint Iran-Saudi Arabia oilfield will be increased by at least 12,000 barrels per day.

“The Iranian Offshore Oil company, other than its role to produce crude oil, establishes the presence of the Islamic Republic of Iran in the Persian Gulf,” Bovard said, IRNA reported.

Foroozan oilfield, a joint field between Iran and Saudi Arabia, is located about 100 kilometers southwest of the Kharg Island and the Arabian part of this oilfield is called ‘Marjan’.

This oilfield, with a reserve of around 2.3 billion barrels of crude oil, is mostly placed in Saudi Arabia’s waters and according to the accepted borderline between Iran and Saudi Arabia Iran’s share to obtain oil from this field is 11 percent.

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Iran inaugurates mega gas projects worth $20b+Photo https://iranthisway.com/2017/04/17/iran-inaugurated-south-pars-gas/ https://iranthisway.com/2017/04/17/iran-inaugurated-south-pars-gas/#respond Mon, 17 Apr 2017 06:57:45 +0000 http://iranthisway.com/?p=9272 Iran’s President Hassan Rouhani inaugurated five new phases of the South Pars Gas Field on Sunday which were completed at a cost of $20 billion, local media reported. The inauguration of phases 17-21 paves the way for Iran to overtake neighboring Qatar in production from the offshore gas field which it shares with Iran, Iranian...

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Iran’s President Hassan Rouhani inaugurated five new phases of the South Pars Gas Field on Sunday which were completed at a cost of $20 billion, local media reported.

The inauguration of phases 17-21 paves the way for Iran to overtake neighboring Qatar in production from the offshore gas field which it shares with Iran, Iranian officials said, reported AFP.

Iran has so far developed 12 phases in the field – phases 1, 2&3, 4&5, 6-8, 9&10, 15&16.  The remaining phases are 11, 12, 13, 14 and 22-24.

“Our production has reached 575 million cubic meters per day,” said Rouhani at the ceremony.

Iran’s total gas production is 885 million cubic meters per day.

It is estimated that production from every two phases of South Pars would generate $3.5-$4 billion for Iran. Reports further said that the total investments in phases that were inaugurated today would be reimbursed within less than two years.

“At the height of sanctions, with the help of Iranian engineers and workers, we succeeded in developing 11 phases of South Pars,” noted Oil Minister Bijan Namadar Zanganeh.

South Pars is the largest known gas reserves in the world. Iran has the largest gas reserves in the world, and the fourth-largest oil reserves.

Each of the new projects produces 28 million cubic meters per day, Zanganeh told reporters late Saturday.

Qatar announced earlier this month that it was ending a 12-year ban on new projects at its section of the shared field. Qataris call their part of the deposit the North Field, which together with South Pars forms the world’s largest reserves of non-associated gas. Iran has no plans to impede Qatar over its activities at North Field, Zanganeh said. “They can carry out their development projects as we do ours,” he said.

 Iranian President Hassan Rouhani inaugurated Phase 19 development project of the South Pars gas field (SP. 19).

 

Iran is targeting the export of 50 million cubic meters of gas per day to neighboring Iraq once that country can arrange for a letter of credit to finance the purchase, Zanganeh said.

Since the nuclear deal went into effect in January 2016, Iran has increased oil production from 2.6 million barrels per day (mbd) to 3.9 mbd, while more than doubling its oil exports.

Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear program.

Iran needs foreign investment for repairs and upgrading of its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.

In November 2016, France’s Total became the first oil major to sign a big deal with Tehran since the lifting of sanctions and agreed to help it develop the world’s largest gas field, South Pars.

Shell signed a provisional deal in December to develop Iranian oil and gas fields of South Azadegan, Yadavaran and Kish.

Iran has named 29 companies from more than a dozen countries as being eligible to bid for oil and gas projects using the new, less restrictive contract model.

The firms include Shell, France’s Total, Italy’s Eni, Malaysia’s Petronas and Russia’s Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries.

Russia’s Zarubezhneft signed an MoU for a feasibility study on two joint fields in the west of the country.

Norway’s International Aker Solutions Company signed an MoU to modernize Iran’s oil industry.

Last May, Austria’s OMV signed an MoU for projects in the Zagros area in western Iran and the Fars field in the south.

South Korean Daewoo Engineering and Construction (Daewoo E&C) signed an MoU to construct an oil refinery in Bandar Jask, on the southern coast of Iran.

Italy’s Saipem signed MoUs to cooperate on pipeline projects, upgrading of refineries and development of Tous gas field in the northeastern province of Khorasan Razavi.

Norwegian oil and gas company DNO said it was the second Western energy company after Total to sign a deal with Iran under which it agreed to study the development of the Changuleh oilfield in western Iran.

Lukoil, Russia’s second biggest oil producer, hopes to reach a decision on developing two new oilfields in Iran.

Germany’s Siemens AG signed an MoU in May to overhaul equipment and facilities at Iran’s oil operations and refineries.

BASF’s Wintershall oil and gas exploration subsidiary signed an MoU with the National Iranian Oil Company in April 2016.

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Special Report: Investment potential of shipping industry in Iran https://iranthisway.com/2017/04/06/investment-shipping-industry-iran/ https://iranthisway.com/2017/04/06/investment-shipping-industry-iran/#respond Thu, 06 Apr 2017 08:55:56 +0000 http://iranthisway.com/?p=9062 International port and shipping sector is looking to Iran as one of the most interesting growth opportunities in years and volume growth is imminent. The January 2016 lifting of the nuclear-related sanctions provided a boost to Iran’s economy, but for the recovery to be sustained, longstanding structural reforms are required. Container and bulk volumes above...

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International port and shipping sector is looking to Iran as one of the most interesting growth opportunities in years and volume growth is imminent.

The January 2016 lifting of the nuclear-related sanctions provided a boost to Iran’s economy, but for the recovery to be sustained, longstanding structural reforms are required.

Container and bulk volumes above and beyond pre-sanction levels are probable if global political developments turn out in Iran’s favor. However, port infrastructure in Iran has not seen upgrades for many years and with the cascading of larger vessels on to regional trades, significant investment is clearly essential.

Risk perception of Iran has reduced in the global investment community, although recent developments associated with the Trump administration may have significant influence on the overall investment climate in Iran.

For now, however, it appears that Western investors are holding their horses, ready to move if local and global political developments turn out favorably.

Nevertheless, the government is looking at increasing foreign involvement to facilitate growth and bring state-of-the-art operational knowledge and expertise.

In Iran’s current national five-year development plan, Makran Port is noted as a top regional greenfield development in the port sector. Iranian authorities plan to open up this project to foreign investors in order to attract sponsorship for a project that combines an industrial park, petrochemical facility plant, transit cargo and a bunkering facility.

Rajaei int. port, Persian Gulf

An advantage of establishing the industrial park within the proposed free trade zone is its proximity to available energy resources. Reportedly, the Iranian authorities are expected to offer an interesting investment climate with attractive incentives such as the possibility to invest jointly with an Iranian partner or independently. Tax exemption, sovereign guarantees and free repatriation of capital and profit will also likely be included.

Iran is also ideally located to play an ever more important role for transit cargos. Through the Caspian Sea, it has access to Russia, Kazakhstan, Turkmenistan and Azerbaijan, as well as the adjacent countries. It also neighbors Iraq, Turkey, Armenia, Pakistan and Afghanistan.

Currently, the majority of the transit cargo is routed through Shahid Rajaei Port. This provides access to a North-South Transit Corridor, connecting to the former Soviet Republics and offering a competitive alternative to the Black Sea route via Georgia.

Chabahar investment

The East transit corridor provides access to Afghanistan and Central Asia through the Chabahar-Milak Corridor. Here, Chabahar port is open for significant investment, collectively amounting to $565 million.

The port is located on the southernmost tip of Iran on the Gulf of Oman. It lies near the border of the Indian Ocean and the Sea of Oman and is currently the only Iranian port with direct access to the ocean.

Chabahar Port, Iran

Located 72km west of Pakistan’s Gwadar Port, Chabahar holds immense strategic and economic significance for India, which has committed to $150 million of finance and a build-operate-transfer scheme worth $85 million through government-backed India Ports Global Private Ltd. Once completed, the port would enable India to send its goods from Chabahar to Central Asia and Afghanistan in particular, without passing through Pakistan.

Chabahar is also crucial for landlocked Afghanistan, as the deal also includes a north-south railroad that could help Afghanistan exploit its untapped mineral wealth and reduce its reliance on foreign aid.

The project will also lessen Iran’s vulnerability to possible disruptions in the Strait of Hormuz.

If the Strait, which is a shipping bottleneck at the mouth of Persian Gulf, were to be blocked due to regional hostilities, Chabahar would be the single point connecting Iran to high seas.

 

Amirabad promise

Iran’s other investment opportunity is at Amirabad Port — a port on the Caspian coast. It includes a rail-ferry terminal on the North-South Corridor and is a major grain handling facility.

It is currently the largest port facility in north Iran and the third-largest port in the country. Plans include a modern rail ferry terminal, a ro-ro facility and increased grain handling facilities to boost the volumes from 7½ million tons to 18 million tons by 2030.

amirabad port, Caspian Sea

To achieve this, the grain silo capacity will be enlarged from 170,000 tons to 500,000 tons. Further, its oil storage capacity will be expanded from 16,000 cubic meters to 70,000 cubic meters in order to support fuel transit activities.

Another major cargo flow is anticipated for container and vehicle transit with the member countries of the Commonwealth of Independent States (CIS).

During the sanctions, container volumes dropped by 30 percent and are currently 2.5 million TEU.

Looking at overall container volumes, 86 percent are transported through Shahid Rajaei Port in Hormuzgan Province, with smaller volumes through Bushehr, Iman Khomeini and Khorramshahr ports. All four ports have room and desire to grow above and beyond the pre-sanction volumes.

Maersk, MSC, CMA-CGM, UASC, HMM, Messina, PIL, Wan Hai and Evergreen are all now back in Iran, post sanctions.

The majority of services are either feeder services via Jebel Ali/Salalah or short-sea between the Far and Middle East.

In the meantime, vessels have increased in size and are set to increase further in 2017 with new alliance services.

Amirabad port, North–South Transport Corridor (INSTC)

Natural resources

There is significant potential to grow still further, and it is expected that 10,000 TEU ships will become a regular sight in Iran later this year.

Increased traffic compared with previous years is already being observed. As an example, Maersk recently added a call at Bushehr with a 3,300 TEU vessel via Jebel Ali.

While there are undoubtedly a lot of uncertainties that can potentially influence further volume growth, economic expansion is expected to drive onboard container volumes to pre-sanction levels relatively quickly, despite these uncertainties.

Apart from the oil and gas industry, Iran’s mineral reserves were valued at more than $770 billion in 2014.

Although the oil industry provides the majority of economic revenues, roughly 75 percent of all mining sector employees work in mines that produce minerals other than oil and natural gas.

Iran’s mineral reserves include coal, iron ore, copper, lead, zinc, chromium, barite, salt, gypsum, molybdenum, strontium, silica, uranium and gold.

The mines at Sarcheshmeh in Kerman Province contain the world’s second-largest lode of copper ore at five percent of the world’s total. Further, large iron ore deposits exist in central Iran, near Bafq, Yazd and Kerman.

As such, it is expected that the mining sector could eventually contribute to more than a third of Iran’s non-oil and gas exports.

Policy moves

The dependence of the government’s future on economic growth suggests that the efforts to implement investor related reforms are genuine.

Foreign investment is required to reinvigorate the economy. Iran’s economy is marked by internal market activity and significant agricultural, industrial and service sectors and reliance on oil and gas exports.

Recent reforms have increased the positive outlook, but there are also structural issues that weigh down the economy, undermining the potential for private-sector-led growth.

There is a general positive expectation towards economic improvement and greater international engagement. This could all lead to the reintegration of the Iranian economy on the global platform.

Due to the lifting of the sanctions and a more business-oriented environment, real GDP growth is projected to reach 4.8 percent in 2017.

amirabad port, Caspian Sea

Strong capital inflows, including FDI and the repatriation of part of the frozen assets, could put upward pressure on the Iranian rial which will help contain imported inflation.

Iran’s current account position is expected to turn into a surplus in 2017, also primarily driven by rising oil exports.

The government’s five-year development plan covering 2017–2021 aims for an annual growth rate of eight percent and a reform agenda built on a gradual but sustained transformation of the economy.

The plan envisages the implementation of reforms of state-owned enterprises, the financial and banking emphasis on the allocation and management of oil revenues to productive investments. None of this can happen without a significant level of investment in a modernized port sector.

Container volumes are on the rise, containerization is increasing and pre-sanction levels are on the horizon.

Whether or not Iranian ports will be able to capitalize on that potential will largely depend on global and local political developments.

All the right ingredients are there and the world is anxiously watching. Iran could very well be the shipping world’s next rough diamond.

*Roy van Eijsden is a senior director at WSP Parsons Brinckerhoff and looks after the global Maritime Advisory and Transaction Services portfolio.

 

By Roy van Eijsde, This article originally appeared in portstrategy.com.

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Photo: Laft port of Qeshm island https://iranthisway.com/2017/01/05/photo-laft-port-qeshm-island/ https://iranthisway.com/2017/01/05/photo-laft-port-qeshm-island/#respond Thu, 05 Jan 2017 11:05:26 +0000 http://iranthisway.com/?p=7711 Bandar Laft or Laft village  is situated on Qeshm’s ‘fin’ next to Hara Forest. Even though Yazd is most often thought of as the city of badgir (windcatchers), an ancient Persian architectural structure used to create natural ventilation, a glance at the panoramic skyline of this historical port is proof of a rivalry. Few abanbar...

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Bandar Laft or Laft village  is situated on Qeshm’s ‘fin’ next to Hara Forest. Even though Yazd is most often thought of as the city of badgir (windcatchers), an ancient Persian architectural structure used to create natural ventilation, a glance at the panoramic skyline of this historical port is proof of a rivalry.

Few abanbar (ancient water reservoirs) also exist and are still used by locals today. This fishing town is also home to the Talla Wells, which store clean water and were created by cutting holes into layers of stone. Though in the past the number of wells was equal to the number of days in a leap year, it has dwindled to less than 100, each one with a unique name.

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