Stopping 3,000 trucks at the Pakistan border; What is the reason for stopping for a month?
While Iran and Pakistan have targeted an annual trade of 10 billion dollars, the stopping of 3,000 trucks at the border of Rimdan and the barriers to using Pakistani ports have faced serious challenges in the development of this trade route.
While Iran and Pakistan have targeted an annual trade of 10 billion dollars, the stopping of 3,000 trucks at the border of Rimdan and the barriers to using Pakistani ports have faced serious challenges in the development of this trade route.
According to Ambassador Arjan, Iran and Pakistan are emphasizing on increasing trade exchanges up to 10 billion dollars annually in a situation where operational restrictions on the border of Rimdan and the challenges of using Pakistan's ports to supply the goods needed by Iran still prevent the full utilization of the transport capacities of the two countries.
New decision to manage borders; The stopping time of trucks was reduced to a minimum
The border of Rimdan in the southeast of Sistan-Balochistan has become the most trafficked route for the exchange of goods between Iran and Pakistan in recent months. However, reports indicate that some Iranian trucks have been stopped for 20 to 30 days. Currently, about 3,000 trucks are lined up behind this border.
Such a situation, in addition to increasing the cost of transportation, disrupts the circulation of the fleet and reduces the real capacity of this passage, which disrupts the increase in trade between the two countries.
Multiplicity of procedures and limited infrastructure
One of the main challenges on the Pakistani side of the border is the multiplicity of institutions involved in border processes and the difficulty of coordinating between them. Pakistan Customs, security forces and logistics company NLC are involved in parts of the operation.
The limitation of weighing capacity, multiple procedures and the need to unload cargo from a truck and transfer it to the other party's fleet also add to the transit time of the goods. This process, called "transshipment", requires additional unloading and loading operations and can increase truck queues and logistics costs.
On the other hand, the gradual implementation of the direct transportation of trucks using the capacity of transport agreements and the carnetier mechanism (TIR), if the two countries agree and the implementation requirements are available, can help to reduce the stops.
In addition to improving the procedures, it is also necessary to develop truck parking, increase the capacity of weighing scales, create a warehouse and cold storage, and provide the services needed by drivers at the border of Rimdan. Especially if this border is supposed to play a wider role in the commercial exchanges of the two countries.
Importance of access to Pakistani ports for alternative routes
Besides the border problems, the use of Pakistani ports to supply Iran's imported goods also faces challenges. According to Mohammad Malekzadeh, the head of the International Transport Companies Association of Iran, during the recent developments and disruption of sea routes, a number of cargoes were unloaded in Pakistani ports, including Karachi, Gwadar and Bandar Qasim, or remained awaiting assignment.
According to this union official, Pakistan can play a role in moving some goods such as rice and tea, but turning it into a stable corridor to meet Iran's needs requires operational agreements and the provision of necessary infrastructure.
Negotiations with related parties in Pakistan have continued since April, but so far no comprehensive operational solution has been achieved for the widespread use of this capacity.
From the political agreement to the operational corridor of Iran and Pakistan
The technical limitations of the fleets of the two countries, the difference in the loading capacity of trucks and the safety requirements for transporting some cargoes, including liquid gas, are other obstacles in this route. The increase in gas transportation fare from around $90 to $350 can also affect the decision of companies to use this route.
Achieving the goal of $10 billion trade between Iran and Pakistan does not depend on the mere increase in the number of trucks or temporary use of the country's ports. Reduction of dwell time at Rimdan, development of border infrastructure, facilitation of direct shipment and assignment of remaining cargoes at Pakistani ports should be pursued simultaneously.
Also, in order to increase the resilience of Iran's supply chain, the use of the Pakistan route should be developed along with other crossings and alternative routes, rather than becoming a new bottleneck for the entry of goods.