Iran wants to intensify its shipping activities in West and South West Africa. At the same time, the merchant fleet is to be expanded.
This decision was made by the Task Force for Africa Policy, headed by First Vice President Mohammad Reza Aref, according to a senior trade official.
Iranian shipping lines currently operate between Iran and East and North Africa. The ships regularly dock in the ports of Tanzania, Kenya and Libya and sail to North and East Africa on a monthly or bi-monthly basis, depending on cargo volumes and logistical coordination. According to Mohammadreza Safari, Acting Director General for Africa at the Trade Promotion Organization of Iran (TPO), the maritime connections are to be expanded.
At the same time, the Iranian merchant fleet is to be modernized. Many of the 200 commercial cargo ships and 130 offshore service vessels are considered outdated and incur high operating costs. To modernize its merchant fleet, the country needs to invest $4 billion (€3.7 billion) over a period of ten years.
Iran faces difficulties acquiring or financing new ships
However, no government funding has yet been made available. Currently, only 30% of ship components come from Iran; for smaller ships, the figure is up to 60%. The proportion is set to rise to 70-90% for certain components and 50% for propulsion systems. The country generally wants to expand its cargo ship capacities and regain lost market share in international shipping.
However, due to international sanctions imposed by the USA and the EU, Iran is finding it difficult to acquire or finance new ships. The country is therefore relying on a shadow fleet, letterbox companies, bartering and the use of alternative insurance solutions for Iranian ships, according to reports.
Iran mainly imports minerals, agricultural products and precious stones from Africa, while it exports petrochemical products, industrial equipment and machinery. Bitumen and urea are currently the most important Iranian exports to Africa. The Islamic Republic has also launched an offshore farming program to secure agricultural inputs despite foreign exchange restrictions. (rup)
