Chabahar Port in Iran is emerging as one the best business destinations in the country. Situated at a strategic geographical location, this port is now one of the best industrial zones to setup a venture. Given the kind of encouragement and support the Iranian Government is willing to offer, the port is expected to become a bustling business hub over the next few years.
The main aim of promoting Chabahar Port by the government and declaring it as a free trade zone is to foster economic development of the country. The idea is to develop this port into an attractive spot that will attract major foreign investment. Going by the latest news, several Chinese, European, South Korean and Indian companies have already started making investments in the area. Some of the top business houses have announced major investment plans for the port.
The foundation for Chabahar Port was laid way back in 1973 but execution only took place in 1981. Post-completion, this port played a crucial role during the Iran-Iraq war. The government also realized that due to its geographical location, it can be used to channelize imports and exports of the country. A sizable investment was soon made thereafter to establish it as a hub that facilitates both national and international businesses.
The port and the free trade zone offer some plausible advantages to investors looking to expand their international footprint. Some advantages include:
Important and Secure Route
Chabahar Port due to its location acts a strong connection link between South Asian and Central Asian countries. It is therefore easy to import or export raw materials, machinery and finished goods. This route is touted to be the shortest and one of the most secure channels for sending and receiving goods.
No Limit on the Amount of Capital Investment
The most striking feature of the free trade zone is that there is no upper limit on investment size. The government offers legal guarantee to all investments made in Chabahar. Besides this, investors get a discount on their taxes on all revenue earned and assets used in the setup of their premises.
Get Best Freight Services
The port has professional freight service providers. These companies work in a manner similar to project management firms that offer complete solutions across the entire revenue cycle. They offer import and export solutions, planning supply chain networks, legal support and ease in securing trade clearances. Investors can get a wide and diverse range of logistic assistance. These include road, air, ocean and rail freight services along with project cargo solutions. They also help in sourcing raw materials from other countries as well as from local suppliers.
Iran is a developing and expanding market and this makes it an ideal place to invest in. The future growth is assured since the scope of businesses is going to expand, especially after the US trade pact. Business houses will be able to serve local and international customers from one. central hub. It is best to kick start the venture from Iran and reap long terms benefits from the decision.
About the author:
Javanese Motaghi is the business development manager of White Rose Business Group established in 1992 to offer businesses and organizations, whether SME or large corporate enterprise, a unique cost-effective Import and Export solution covering the width and breadth of Iran, through having branches in four different locations of Iran; Tehran, Chabahar, Bandar Abbas and Sari.