Makhachkala, Russia (Ports Europe) October 25, 2022 – Iran to help dredging Makhachkala, a key Russian Caspian Sea port on the International North-South Transport Corridor (INSTC).
“Iran has the ability to carry out dredging of the marine part of the water area of Dagestan. We have the necessary investments, equipment and qualified specialists,” Khalad Yahya, Chairman of the Board of the Council of Iranian Entrepreneurs. He said this during a meeting with Deputy Chairman of the Government of the Republic of Dagestan Rizvan Gazimagomedov. Makhachkala is located in the region of Dagestan. The focus of the meeting was the INSTC, seen as a key transport link by the two most sanctioned countries in the world – Russia and Iran.
The INSTC, which passes through Dagestan, is becoming more relevant. It connects Russia with friendly countries like China, Iran, India, Egypt, states that did not join western sanctions against Moscow. The main directions of cargo transshipment through Makhachkala are the ports of Iran, Kazakhstan, Turkmenistan and Azerbaijan. Makhachkala is one of the main components of a major transport hub in southern Russia.
Makhachkala Commercial Seaport (MMTP)
The dry cargo harbor of the port includes a transshipment complex with a capacity of 3.1 million tonnes and an oil loading harbor with a capacity of 7.9 million tonne per year. The main railway lines adjacent to the port territory have a capacity of up to 10 million tonnes per year.
The Makhachkala Port accepts vessels up to 150 m long and with a draft of up to 4.5 m. The port is a link in the transport system of southern Russia with the states of Central Asia, Iran, the Caucasus and other countries of the region. The port infrastructure includes also berths for general, bulk cargo and containers with a capacity of 1.2 million tonnes per year, a railway and car ferry terminal with a capacity of 1.3 million tonnes, a grain terminal with a capacity of 0.5 million tonnes per year.
Makhachkala Port shipping company
Earleir this month, Makhachkala Port, forced by the western sanctions against Russia, created its own shipping company. It plans to start a feeder line with two Iranian ports later this month. The dry cargo fleet consists of three vessels – Makhachkala, Rybinsk and Peter I.
According to Rustam Kerimov, Acting General Director of MMTP, “the port’s shipping company has already passed all the necessary procedures for registration, received licenses and permits and is ready to work. Now the port is also a shipping company”.
Kerimov added that the ships will be used for the transportation of bulk, general and dry cargoes along the North-South international transport corridor. “We consider the development of trade relations with Iran to be a very promising direction, the potential of trade between Russia and Iran has so far been realised by a maximum of 10%.
More Ports Europe news about the Port of Makhachkala
Makhachkala Port – trade with Iran
The volume of grain exports to Iran in January-August 2022 through the Makhachkala Port (MMTP) during the first eight months of 2022 increased by 60% compared to the same period of 2021, reaching 142,000 tonnes. Transshipment of all types of dry cargo increased by 90% compared to the results for the eight months of 2021 to 285,000 tonnes, including cement, grain, clinker, tiles, flour and salt.
Since the beginning of 2022, MMTP has processed more than 108,000 tonnes of Iranian cement, double the amount of 2021.
The volume of trade between Russia and Iran in the first eight months of 2022 increased by 45% thanks to the pilot project “Simplified Customs Corridor” that started in June 2022. It concerns food and agricultural products – the traditional basis of trade between Russia and Iran (90% of Russian exports and 75% of imports). In the future, it is planned to expand the “simplified corridor” to other goods.
A significant share of imports from Iran are products of the chemical industry and pharmaceuticals which helps Russia to prevent shortages in the sanctions hit domestic market. Similar projects are operating with the customs services of Turkey, China and Azerbaijan. Negotiations are also underway to conclude an agreement on the recognition of an authorised economic operator (AEO) with Turkey, Uzbekistan and India.
These facts and Iran helping with dredging Makhachkala demonstrate the growing relationship with Russia.
Copyright (C) Ports Europe. All Rights Reserved. 2022.