Published: February 04, 2011

Research and Markets: Iran Freight Transport Report Q1 2011

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DUBLIN - (BUSINESS WIRE) - Research and Markets (http://www.researchandmarkets.com/research/e3198d/iran_freight_trans) has announced the addition of the "Iran Freight Transport Report Q1 2011" report to their offering.

Iran Freight Transport Report provides industry professionals and strategists, corporate analysts, freight transportation associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Iran's freight transportation industry.

The main event in the second half of the year was the tightening of the US-led sanctions against the state-run Islamic Republic of Iran Shipping Lines (IRISL) which the US accuses of advanced illegal weapons of mass destruction and transporting military cargoes. This was aimed at stopping the side stepping of the sanctions through the use of vessel name changes and shell companies. Japan and South Korea have also joined their Western allies in observing the sanctions. So far the effect of the sanctions has been to push Iran towards a closer relationship with countries that are less susceptible to US pressure such as Vietnam, Venezuela and China.

Although container throughput at Iran's main container port is up, Western sanctions and renewed US warnings against dealing with Iran's shipping sector mean that BMI sees downside potential to its year-end forecast. The tightening of the sanctions and Iran's threats of tit-for-tat measures, increases the possibility of a naval clash, possibly on the main oil routes.

Shipping liquid natural gas (LNG) is proving to be the next big business opportunity. Iran's shipping sector was reported to be preparing itself for the development of LNG production in the country with the National Iranian Tanker Company (NITC) set to receive a fleet of vessels to cater for Iran's planned LNG exports. The NITC is due to take on its fleet of six LNG carriers in phases between 2014 and 2015, worth US$200-220mn.

The company is expanding other areas of its fleet further Reuters reported that the company's fleet of 46 vessels was set to increase to 74 ships in 2013. The six LNG carriers will be the first of their type in the NITC's fleet. NITC currently operates a fleet of 28 very large crude carriers (VLCCs), 14 tankers, three chemical carriers and one LPG vessel. BMI notes that the NITC's decision to add LNG vessels to its fleet is in line with Iran's LNG development strategy. The country is expected to export its first LNG in 2013.

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