Port of Salalah inks deal with Iranian ports

14 March 2016

Outlines plans to jointly promote waterways and train workforces

Port of Salalah has signed a memorandum of understanding with the Port and Maritime Authority of Iran to cooperate with two Iranian ports.

The understanding outlines plans to promote an all-water route between Salalah, Shahid Rajaee Port at Bandar Abbas and the south-eastern port of Chabahar, as they investigate opportunities to develop trade between the two countries centred on these ports and their surrounding markets.

Under the agreement, Port of Salalah will also provide guidance on infrastructure development and the modernisation of the two Iranian ports, as well as workforce training.

Shahid Rajee Port is the largest port in Iran and currently handles close to half of the country’s seaborne trade.

“This agreement provides an opportunity for the three ports to complement and significantly enhance each other’s value proposition by providing the industries in their hinterlands gateways for wider markets by leveraging on the location of the partner ports,” said David Gledhill, chief executive officer of the Port of Salalah, which is 30 per cent owned by APM Terminals.

Last month, Prime Minister of India Narendra Modi chaired a cabinet meeting that confirmed the provision and operationalisation of $150m for the development of Iran’s Chabahar Port.

India is investing in the development of Chabahar Port in part to gain a foothold for its companies in Iran, and partly because it provides access to Afghanistan without the need to pass through Pakistan.

 

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