TEHRAN- The Deputy for International Affairs of the Federation of Transport and Logistics, referring to the target of $10 billion in trade between Iran and Brazil, said: “In recent years, the volume of trade exchanges between the two countries has been on an upward trend, and Brazil’s economic capacities, especially in supplying basic goods and agricultural products, have provided a suitable basis for expanding trade cooperation.”
According to an IRNA report, Abazar Barari said on Monday at a meeting on Iran-Brazil trade cooperation: “We need to examine the challenges and remove obstacles in order to develop sustainable relations between the two countries.”
Stating that one of the fundamental challenges after the war has been the issue of supplying goods and continuity of the supply chain, he added: “The issue of logistics has today become one of the important challenges of global trade, and this issue has become more important in Iran-Brazil trade due to geographical distance and the high volume of trade cargoes.”
Referring to the dependence of a significant part of the two countries’ exchanges on bulky and basic goods, including sugar, corn, and grains, Barari noted: “Maritime transport of such goods using large ships is not comparable to land transport in economic and operational terms, and replacing sea routes with road transport imposes considerable costs and complexities on trade.”
Explaining the change in Iran-Brazil maritime transport routes, he said: “Due to the imposed war, traditional shipping routes have faced restrictions, and in the current situation, part of the exchanges is carried out through alternative routes and using intermediary ports, including the Turkey route. However, passing through alternative routes also comes with security, time, and economic considerations.”
The Deputy for International Affairs of the Federation of Transport and Logistics, referring to the significant increase in transport costs, stressed: “The cost of transporting a 40-foot container, which was previously estimated at about $3,000, has now reached at least $8,000. Also, the cost of land transport of cargoes through alternative routes has increased significantly.”
He said: “Other ports of the country have important capacity for developing trade routes and reducing dependence on limited maritime routes.”
Referring to the need to review the country’s infrastructure and logistics planning, Barari stated: “Even if the wartime conditions end, a rapid return to normal conditions on maritime routes and the removal of possible restrictions will require time. Therefore, planning must begin now to develop alternative capacities, especially Chabahar Port.”
EF/MA
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