Weak Rail and Logistics Infrastructure: Key Challenge for Traders in Inche Borun

Gorgan - Weak rail and logistics infrastructure, a shortage of wagons, and delays in unloading and loading have raised the cost of trade transactions, despite the Inche Borun border's role in exports and the supply of essential goods.

Ambassador of Arjan - Provinces Group - Mahin Nourafroz: The decrease in imports and the closure of many southern bases of the country in the recent war days, caused the northern corridors of the country, including the Inche Brun free trade zone, to be welcomed as one of the safe corridors for the exchange of goods.

But what has confused traders during this period and with the high volume of traffic and rail freight is the weakness in the infrastructure of the Inche-Brun border, which, despite its frequent mention, is still standing, and many traders and merchants complain about the long delays for unloading wagons and the lack of rail infrastructure, as well as the durability of trucks to receive (dose of Balag) from the country of Kazakhstan.

Meanwhile, the private sector has announced its readiness to participate in the development of rail infrastructure and increase the transportation capacity of this region, but according to economic activists, this capacity has not yet been used optimally, and the continuation of this situation can affect Inchebron's business opportunities and reduce its attractiveness for investors and transportation companies.

Weak business development in Inche Barun due to lack of infrastructure

The head of the Gorgan Chamber of Commerce Export Development Commission emphasized the strategic importance of Inchebron border in the development of foreign trade and said: In the past years, extensive measures have been taken to introduce this border as one of the important trade routes of the country, but the lack of infrastructure has taken away the possibility of commercial development.

Saeed Safavi added: Weak transport infrastructure, logistics and problems related to the transfer and unloading of goods can reduce the attractiveness of this route for traders and transport companies. In such a situation, reducing the flow of goods entering and leaving the Inchebrun border will not only affect the economic activities of the region, but may also destroy valuable opportunities for export development, job creation, investment attraction and expansion of commercial cooperation with neighboring countries.

He added: Despite the efforts made by the Northeast Railway, it is necessary to remove the infrastructure barriers and increase the capacity of moving goods to maintain the competitive advantage of this border and exploit the capacities of the free zone.

Pointing to the accumulation of containers and the slowness of cargo movement at the Inchebron border, Safavi emphasized: The problems on the rail route have doubled the need to take urgent measures to increase operational capacity and accelerate the transfer of goods.

According to him, the stoppage of a large number of containers and the need for special arrangements for the transfer of some cargoes indicate the limitation of facilities and the necessity of a more coherent management of transportation processes.

Safavi also considered the lengthening of the time of moving containers in the rail network as a sign of the lack of capacity and operational facilities and emphasized the need to remove the existing obstacles.

According to him, speeding up unloading and loading, providing sufficient wagons and equipment and improving the management of rail transport can prevent the long stoppage of cargoes and help to maintain the flow of trade and reduce the costs of traders and exporters.

Emphasizing that the most important obstacle to the development of business activities in the Inchebron border is the weakness of transportation and logistics infrastructure, Safavi said: solving these problems is not possible with limited regional measures and requires macro decisions, allocation of resources and planning at the national level.

Safavi added: One of the significant issues in the field of Inchebron rail transport is the departure of a part of the wagons empty after unloading. In a situation where the wagon unloads its cargo after entering the country, but there is no suitable cargo inside the country for the return route, the wagon returns to the countries of origin or other destinations without cargo. Continuation of this situation could mean not using a part of the transport capacity on the return route.

Lack of a clear picture of Incheban's business performance

One of the importers from the north of the country, criticizing the indecision of investors and the lack of a clear picture of the business performance of the Inchebron border, emphasized the need to provide accurate statistics on the volume of imports of basic goods from this route.

Referring to the consequences of the war between Russia and Ukraine on the trade routes of the Black Sea region, Mohammad Hassan Soleimani said: "With the beginning of this war, some transport routes and port activities faced restrictions, and this issue increased the necessity of using alternative routes for the transfer of goods."

Traffic quota of "Duzbalag" in Kazakhstan and suspension of trucks in Kazakhstan

Referring to the increase in the volume of trucks arriving from Kazakhstan to Inchebrun border, the head of the transport commission of the Gorgan Chamber of Commerce announced the end of the quota of Iranian truck traffic permits (Duzblag) and demanded an urgent diplomatic consultation to increase these quotas.

Rahman Qarabash stated: Due to the restrictions on sea transportation through the southern ports of the country following the recent war, the traffic of trucks in the north-south corridor and through the Inchebrun border has increased. This issue, along with the growth of the arrival of trucks from the Kazakhstan side, has led to the early expiration of the quota of traffic permits and has created problems for the activists in the field of transportation.

He added: This year, traffic quotas were received four months ahead of schedule, but the significant increase in truck traffic caused these quotas to end earlier than expected. An issue that has caused delays for drivers and delays for trucks to cross the Incheban border.

The head of the transport commission of the Gorgan Chamber of Commerce emphasized the increase of trade exchanges with Kazakhstan towards the Inchebarun border and the growth of the demand for transporting goods. Therefore, it is expected that the relevant officials will act as soon as possible to receive new quotas by conducting diplomatic consultations and interacting with the Kazakh side in order to prevent the continuation of drivers' delays and disruption of the country's transportation and foreign trade.

He added: the limitation of these licenses also affects the planning of transport companies and exporters; Because when it is not possible for trucks to move according to the volume of the goods, the cargo will be transported slowly and it will be difficult to deliver the goods to foreign customers on time. The continuation of this situation can reduce the available capacities for the development of trade with Kazakhstan and increase the total cost of exports.

Qarabash said: On the other hand, the multiple increase in the quota of Iranian truck traffic permits, in accordance with the growth of the volume of commercial exchanges, should be pursued through negotiations and bilateral coordination with Kazakhstan authorities, and the creation of a specific mechanism for the allocation of permits and the acceleration of their issuance can help reduce the delay of the transport fleet, smoothen the movement of goods, and strengthen commercial relations between the two countries.

Restrictions are not a business interruption factor

The Secretary of the Government-Private Sector Dialogue Council also pointed to the increasing importance of the Inchebron border in commercial exchanges, emphasizing the necessity of infrastructure development and upgrading the level of services in this area in accordance with the volume of economic activities and stated: the existing restrictions in providing services should not become a factor to stop the activities of traders and merchants and it is necessary to develop the operational capacities of this area in accordance with the needs of the day.

Amir Yousefi, emphasizing the need for greater coordination between the responsible institutions, added: Customs, railways, Inchebron Free Zone and other related institutions should speed up the process of doing business and reduce the time the goods stay at the border with more effective cooperation.

According to him, the interaction and coordination between these groups can prevent disruptions in the movement of cargoes and reduce the costs of economic operators.

The head of the Gorgan Chamber of Commerce also considered the capacity of the Inchebrun Free Zone as an important opportunity for the development of foreign trade and the provision of goods needed by the country and stated: the effective use of this capacity requires the strengthening of transportation and logistics infrastructure, the expansion of commercial services and providing a suitable platform for the wider participation of the private sector.

Solving some challenges is beyond the province's powers

In this regard, Golestan Governor's Vice-Chancellor, stating that there is no deposit of goods in Inche Barun, stated: By accepting the certificate of origin and especially the import of food, it will be cleared in the fastest possible time (three to four days or even less).

Abdul Ali Kian Mehr, referring to the improvement of the Inchebron border in the 14th government, said: despite the continuation of some obstacles in the process of transferring goods from this border, the conditions of this region have changed significantly compared to the previous governments. However, there are still some problems of economic activists in the field of import and export, which require more serious follow-up and strengthening of diplomatic interactions with trading partner countries.

He emphasized: Some of the existing challenges are beyond the authority of provincial managers and local executive bodies, and their solution requires the entry of senior officials and negotiations at higher levels.

According to him, more effective diplomatic consultations can help to remove trade barriers, facilitate the movement of transport fleets, improve the process of moving goods and expand economic cooperation with neighboring countries.

Kian Mehr said: Although measures have been taken to improve the commercial situation of Incheban, the continuation of this process and the full use of the border's capacities require coordination between executive bodies, follow-up of private sector problems, and strengthening of economic diplomacy at the national level.