1. Wide access to local resources
Iran has huge oil and gas reserves, extensive mines and natural resources, and a four-season climate suitable for agriculture.
2. Competitive final prices
Some production costs, such as energy and labor wages, are relatively lower in Iran.
3. Competitive shipping costs
Iran’s strategic geographical location and access to the high seas result in lower shipping costs.
Wide access to local resources
Iran has one of the largest oil and gas reserves in the world. Typically, the biggest export share of Iran has consisted of oil & gas and their derivatives including petrochemicals. Moreover, there is a vast range of mines (stones and metals) in Iran with huge export potential. Again, thanks to an incredible natural ecosystem diversity, Iran has considerable capacity in producing agricultural products and medicinal plants (about 450 species), which are marketable in almost all seasons of the year. Besides natural diversity, the existence of various ethnicities and cultures in Iran has led to an exceptionally diverse evolution of handicrafts as well.
Competitive final prices
Having huge resources of oil & gas, Iran is considered one of the biggest fuel and energy producers in the world. Consequently, energy costs in Iran are fairly less than in other countries. Moreover, wide access to local raw materials and a low-cost workforce have resulted in reasonably competitive final prices.
Competitive shipping costs
Iran's geographical location on the world map is an important strategic advantage in freight expenses. It would not be an exaggeration to say that geographically Iran is considered a linking point between Asia, Europe, and Africa. Having shorter distances and more diverse ways of access to the countries of these continents, Iran can play a role as an international business hub in its region.
Various shipping methods from Iran are done at more reasonable costs
due to the centrality of this country and relatively shorter distances.
Ocean
The Caspian Sea in the north allows Iran to have easy access to Russian ports, and the Persian Gulf in the south, with several developed commercial ports, is where Iran is connected to the high seas. Sea routes from the southern ports of Iran are practical for destinations like Arab countries, the Far East, and African ones.
Truckload
Road transportation is the most popular shipping method especially to neighboring countries, thanks to Iran's developed road network. Iraq, Turkey, Armenia, and Azerbaijan are Iran's western neighbors, and on the other side, Turkmenistan, Afghanistan, and Pakistan are the eastern countries with a joint land border with Iran. Iran's roads network has several transit gates with all these neighbors, normally chosen according to customer preferences.
Train
Most of Iran's neighboring countries like Turkey, Turkmenistan, Afghanistan, and Pakistan, are already connected to Iran's railway. Having such a railway network, Iran can play a strategic role in rail transit between European countries, Northern European, Middle Asian, and Southeast Asian ones. Rail freight costs are typically cheaper than other methods, and heavy loads such as minerals and construction materials, flammable ones like fuel, oil, and other oil derivatives, as well as non-perishable products like detergents are considered appropriate for rail transportation.
Air
Iran has more than 50 active airports, and most of them are allowed to forward foreign freights. The balanced dispersion of these airports would let us send cargo through the fastest routes and in the shortest times. Iran's main international airports are located in these cities: Tehran, Isfahan, Mashhad, Ahwaz, Yazd, Bandar Abbas, Tabriz, Shiraz, and Zahedan.
Combined Shipping
There are many variables for choosing the best shipping methods, which are more complex for longer distances and sometimes confusing to optimize. Essential timings, conditions of goods, and total costs are normally the main considerations. In many cases, we have to apply 2 or 3 shipping methods in a combined route to deliver our freight on time and with reasonable expenses. Shipping methods optimization is one of the most important parts of supply chains. Have your cases tailored by Karen Lavender to minimize your local sourcing and shipping costs.
