Bridge to Iran

DHL Freight is opening up the Iranian export market for German and European companies. Teams of experts are organizing Iran transports from the gateways in Frankfurt and Istanbul. An experienced partner is at hand to ensure everything goes smoothly on location. The end of the sanctions against Iran is reflected in real numbers: Exports to the Islamic Republic increased by 15 percent to EUR 1.1 billion in the first half of 2016. And Michael Tockuss, Managing Director of the German-Iranian Chamber of Commerce is sure that there’s still more to come: “For the whole year we expect a plus of about 20 to 25 percent.” The products that are now increasingly demanded in Iran include machines and equipment as well as chemical primary products, electro-technology and renewable energies such as wind power stations. For the coming year, the Iran expert predicts a further increase in exports. But he also urges patience: “The sanctions were developed over several years”, he says, “and it will now also take a number of years to reverse them all completely and to develop new business relations”. German trade associations find the developments encouraging and are expecting an increase in bilateral trade. However, this will also require functioning logistics and stable delivery chains. DHL Freight enables streamlined access to the Iranian market for European companies. For this purpose the provider of road freight services has installed two competence centers at the gateways in Frankfurt, Germany, and in Istanbul, Turkey, for seamless exports to Iran. DHL Freight supports companies exporting their goods to the region by offering pan-European part- and full-truck loads as well as weekly departures for groupage shipments.

DIHK: German companies very much interested in Iran business “Due to the Joint Comprehensive Plan of Action for the settlement of the atomic controversy in the year 2015, the interest in doing business in Iran has increased noticeably. 43 of the 79 German Chambers of Industry and Commerce noted a general increase in 2015 and 26 even a strong increase of consulting requirements compared to the previous year.“ Source: Federation of German Chambers of Industry and Commerce, Foreign Trade Report 2016

“We are delighted about the new possibilities arising in the Iranian market. The recent political and economic developments present great potential for doing business. With their years of expertise, our competence centers want to support companies in realizing this potential by expanding their trade relations in Iran,” stated Amadou Diallo, Chief Executive Officer, DHL Freight. DHL Freight has defined multiple core services such as weekly departures of groupage shipments to Teheran from the gateway in Frankfurt am Main. The services also cover transportation of dangerous goods, temperature controlled shipments (+2 to +25 degrees Celsius), warehouse logistics, customs clearance and GPS tracking of cargo. In addition, cargo from all over Europe destined for Iran can be handled via the DHL Freight network. DHL Freight has found a competent logistics partner on location in order to ensure the smooth and reliable flow of shipments: Aryamasir International Transport Co. Ltd has many years of experience in road and rail transport and is very familiar with the regional needs. The company operates from Tehran as well as the port city of Bandar Abbas in the south of Iran. “We are the only logistics company in our country that has its own storage capacities in customs clearance – thus our customers save time and administration expense in regard to the import formalities“, explains Chairman Amir Shirazian.

Chairman Amir Shirazian [Photo: Aryamasir International Transport Co. Ltd]
Aryamasir Chairman Amir Shirazian [Photo: Aryamasir International Transport Co. Ltd]

German-Iranian economic relations have evolved historically. About 30 percent of the industrial infrastructure in Iran is made in Germany. With the enforcement of international sanctions, the economic relationship slowed down since 2007 and only started a positive development in 2014 with a trading volume of EUR 2.69 billion. However, in 2015 this amount decreased again by 10 percent. With the Joint Comprehensive Plan of Action, the sanctions on Iran are now being lifted in multiple phases. The second phase will be completed by October 2023 at the latest and the full removal, the so-called Termination Day is supposed to be achieved in 2025.
“For the German economy this provides the chance of receiving orders worth billions“, says the Head of Foreign Trade of the Federation of German Chambers of Industry and Commerce (DIHK), Volker Treier. Iran has the fourth-largest oil reserves and the second-largest gas reserves in the world. In the oil business alone, the state is planning to initiate projects to the amount of roughly EUR 170 billion.

Author: Anne Goergen

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