After the lift of sanctions against Iran, the country makes efforts to return to the ranks of maritime nations. While Iranian shipping companies are still among the big players, maritime technology companies aim to participate in the open market, too
At this year’s SMM trade show in Hamburg, the Iranian pavilion was quite frequented by interested visitors from different nations[ds_preview]. More than 20 Iranian companies presented themselves to the global maritime world, that gathered in Germany for the fair. Mohammad Saeed Seif, President of the Iranian Association of Naval Architecture and Marine Engineering IRNAME, explains to HANSA: »We have to show what we can do, start to define and enter into joint ventures.«
According to the Maritime Industries and Technology Development Council, before the revolution in 1979, many of the maritime industries were limited to importing equipment from abroad and assigning large projects to foreign companies. The constraints and increasing economic isolation through international sanctions in the following decades had made things difficult. But this situation had also led Iran to self-sufficiency in marine based industries.
The backbone of many achievements in maritime technology are experimental facilities, that have been developed and supported in the past years. »In terms of number of publications released in the field of maritime science we rank at position nine in the world. We have good universities,« Seif says. »Iran has 5,800km of coastline and is close to strategic waterways. We are a maritime country and have a lot of different activities and know-how.«
One area, where Seif sees great potential, is of course oil and gas. »We have a lot of oil and gas related activities in Iran, exploration, production, transportation. Due to the fact that many of the oil and gas resources are offshore, the marine industry is particularly important for the country.« While Iranian technology companies and shipyards can now offer their capabilities to a wider market, the need for development and willingness to cooperate bear chances also for foreign players. Besides oil and gas, the fisheries department plays an important role, as well as the market for coastguard vessels, Seif explains.
The return of Iran to the global maritime business also brings potential for the shipping sector. On the one hand, the country has a significant national economy with a population of more than 77 million. Shortly after sanctions were lifted, international carriers called Iranian ports again. European ports and terminal operators such as German Eurogate are keen to participate in the developing market. Eurogate together with Iran’s largets port operator Sina Port & Marine Company (SPMCO) is applying for the development of a Terminal at the country’s main port in Bandar Abbas and projects in Bushehr – about 90% of imports into Iran come via maritime routes. An MoU has been signed a year ago, but Eurogate says it is still too early to talk about detailed plans.
On the other hand Iran has a significant merchant fleet. Tanker operator NITC operates one of the world’s largest fleets of oil tankers, containership operator IRISL currently ranks at position 21 in the Top 100 list of market intelligence platform Alphaliner. The company reportedly has reached preliminary agreements with Korean shipyard Hyundai Heavy Industries (HHI) on the construction of several product tankers and handysize bulkers. Another projects under negotiation concerns six 14,500TEU vessels for IRISL. Besides HHI and Daewoo Shipbuilding and Marine Engineering (DSME) also Chinese yards such as Dalian Shipbuilding Industry Co. are said to be in the competition. Financing has yet to be secured but the economic potential of the Iranian market and state-owned shipping companies could make the expansion of Iranian fleets attractive for financing banks – contrary to newbuildings for European or Asian carriers.
Iran’s own shipyards have to catch up with the development and modernize and enlarge facilities, and is thus cooperating with Korea. The Iranian government has entered into a business agreement with DSME earlier this year for the collaboration with Iran Shipbuilding & Offshore Industries Complex (ISOICO) for consignment management and technology sharing.
»We do not have everything in Iran but it is the government’s policy to build up a strong maritime industry, Seif says. »By now, there are no specific subsidy programmes, but interested companies are always welcome and will get help. We already have some collaborations going on with neighbour countries as well as the necessary infrastructure and human resources.«
