Transport, Communications and Infrastructure

Transport, Communications, Infrastructure and Tourism  

Transport and communications are regarded as the main infrastructures for the production, distribution and sale of goods and services, trade, travel and tourism. Using new modes of transportation and its qualitative as well as quantitative development would help different economic sectors flourish. Further improvement in the transport and communications facilitates and accelerates the movement of goods, helps tourism industry foster, increases the volume and thus value of exports and imports, and eventually raises a country’s GDP. Due to such reasons, the impact of road, rail, air and water transport in the Iranian economy will be reviewed in this part. 

In the new millennium, known as the communication age, the role of modern technologies and their influence in economic development cannot be underestimated. In recent years, the Internet, mobile phones, and virtual networks have had a leading role in the advertisement, marketing, and sale of goods and services. Relevant statistical data are duly provided. 

Road Transportation  

Iran plays a very strategic role in connecting the northern countries of Europe and Russia on the one side, to the Persian Gulf and south-east Asian countries on the other. Goods are transported with maximum speed and minimum distance via Iran. The country’s access to international waters provides the quickest and shortest route between the East and the West. The international North–South Transport Corridor connects Mumbai in India to Bandar Abbas, Tehran and Bandar Anzali located in quite different corners in Iran. It also connects the Caspian Sea to the Astarakhan, Moscow, Saint Petersburg, and Helsinki, and shortens the connecting route between Europe and Asia to five thousand kilometers. Goods transported through the North-South Transport Corridor are at least 30 per cent cheaper than the ones shipped through the Suez Canal. The population in this vast area is highly significant and comprises nearly one fourth of the world’s population. 

Furthermore, considering cheap labor force and more economical fuel prices, the conveyance of goods costs considerably less in Iran.  Due to subsidies endowed by the government, fuel prices are remarkably low in Iran compared to many other countries.  

The total number of passengers carried by road for the period 1996-2012 has been shown in the chart below. As it can be seen, the number of passengers has had an upward trend since 2004. The trend has reversed since 2012 though. 

Iran’s rail transport is a pioneer in the Middle East and on the basis of statistics released by the World Economic Forum, Iran has won the first rank for the quality of rail infrastructure in the Middle East. The total number of passengers carried by rail for the period 1996-2013 has been illustrated in the following chart. As it can be seen, there has been a rising trend until 2011, but the trend reversed for years afterwards.  

The total quantity of goods conveyed by road for the period 1997-2013 has been illustrated in the following chart. As it can be seen, there has been a rising linear trend during the period.  

The total quantity of goods shipped by rail in Iran has been illustrated in the next chart. As it can be seen, there has been a rising trend for the period 1999-2007. However, for years afterwards, there have been fluctuations; meaning that it has had rises every other year; as well as falls with a similar time interval.

In 2015, over 34 million tons of goods were transported by rail. The figure shows a 6.79% increase over the previous year. The comparison of charts 2 and 4 demonstrates that the freight transportation has been higher than that of passengers in 2015.  

Water Transport  

The Persian Gulf, the Strait of Hormuz, and other waterways that connect Iran to international waters are absolutely vital for the country. Oil tankers sail across the country’s southern waters. Imports and exports of the Persian Gulf states are also only possible through the strategic waterways just mentioned. Further, the Caspian Sea, the world’s largest lake, provides marine access to the surrounding countries from the north.  

Water shipping is a more economical and secure way to convey large quantities of oil and petroleum compared to rail or road transport. Ports and Maritime Organization of Iran reported that during 2013-2014, more than 88% of export and import tonnage of the country were shipped via different waterways.

The chart below illustrates the total quantity of goods transported by water for the period 2000-2013.  As shown in chart 5, the total quantity of goods transported by water has increased with a gentle slope for the last two years.

Data 2014 extracted from the Ministry of Housing and Urban Development website.

The next chart displays the total number of passengers transported by water for the period 2000-2013. As shown below, there has been an unprecedented growth in water transport of passengers during 2013-2014.  

Shipping Fleet  

On the basis of UN statistics in 2013, Iran ranked 23rd among 35 countries with the largest owned shipping fleets. According to the same statistics, Greece controlled an estimated 15.17% of world’s deadweight tonnage^[2] and won the first rank. Moreover, Iran and Thailand, with an estimated 0.95% and 0.38% of the world’s deadweight tonnage, held the 23rd and 35th ranks respectively. Table 1 shows the number of vessels and capacity of deadweight tonnage for Iran’s shipping fleet.

In the chart below, merchant shipping capacity of Iran, including ships with 100 gross tons and over has been shown for the period 2009-2014. Deadweight and gross tonnage on selected registers were equal to 4.5 and 3 million tons respectively in 2014.

The Iranian shipping fleet profile in 2013 among 48 developing countries or countries with open economies enjoying independent possession of ships is demonstrated in the following chart.  

Chart 8 shows that all general cargo and container ships sail under the national flag of Iran, but a large number of oil tankers and bulk carriers sail under an international flag. The International flagged ships are hired for international trade.

In the following table, merchant fleet profile of Iran has been shown in terms of types of ships and gross tonnage (GT). As it can be seen, among four types of carriers, i.e., oil tankers, bulk carriers, general cargo and container ships, container ships are the heaviest and bulk containers are the lightest.  

In the next table, merchant fleet profile of Iran has been demonstrated by type and number of vessels. As it can be seen, among four types of carriers, the maximum and minimum number of ships are related to general cargo ships and bulk carriers respectively.

Air Transport  

Air transportation industry is considered an important player in the development of countries in the long run.

Air Fleet 

Iran has 16 airline companies. Homa (Iran Air) and Mahan airline companies are the largest airlines in Iran. In the following table, related data on Iran’s airlines, including fleet size, average fleet age and status of airplanes have been depicted. As it can be seen, Mahan and Homa airlines make up a total of 40.51% of the whole active fleet. The most stored (nonactive) airplanes also belong to Mahan and Homa, contributing to a total of 80.56% of the current stored fleet.  

According to table 4, the country’s air fleet is old and unsafe. The oldest air fleet is related to Saha Air with an average fleet age of 38 years. On average, the useful life of Iranian airplanes is about 21 years, while the figure is very low in other countries. For instance, the average fleet age for Emirates Airline is 6.3 years. International sanctions have been imposed upon the country’s strategic industries in general and air fleet and transportation in particular to prevent Iran from purchasing spare parts and new planes. The international sanctions have been an important factor for the aforementioned difficulties in Iran air fleet. What is more, in 

spite of the fact that Homa and Mahan enjoy being the top airlines in terms of the fleet size, their average fleet age is quite high.  

Airports 

The first Iranian airport also the first one in the Middle East was founded in 1898 in Masjed Soleyman, an oil-rich town in south west of Iran. The establishment of Masjed Soleyman Airport was simultaneous with oil discovery in Iran. Other airports were later founded in the country. The early-built airports are shown in blue in the following figure. It shows Iran’s airports by class and city/town. The historical, cultural, economic, administrative and political importance of a city/town leads to construction of different types of airports. There are three classes of airports- international, middle-sized and small-sized domestic ones.   

Iranian Airports at First Glance  

International airports 

Middle-sized domestic airports 

Small-sized domestic airports  

The early-built airports  

Airports being studied 

Airports formerly active

Middle-sized and small sized airports constitute the majority of the country’s airports- about 71.43% of the total. Middle-sized and small-sized domestic airports have been constructed in 25 and 23 cities/towns respectively. Table 5 shows different classes of airports. In 2007, most international flights from Mehrabad International Airport were transferred to Imam Khomeini International Airport, because Mehrabad Airport is located within inner city boundaries and brings about a wide range of environmental and traffic problems for neighboring residential areas. Imam Khomeini International Airport is situated 30 kilometers southwest of Tehran and does not cause difficulties of that kind.

Transportation of Passengers and Goods 

Air transport is deemed an optimum way for passenger conveyance. For a more precise analysis, the number of passengers transported by air for the period 1996-2013 has been shown in the following chart. As it is shown, the number of passengers in 2013-2014 has gone up with a gentle slope . 

Chart 10 shows the total quantity of goods transported by air for the period 1996-2013. As it can be seen in the chart, after a sharp decline of 66.67% in 2012-2013, there has been a growth in 2013-2014.