Leading international freight forwarding company Davies Turner claims that prospects for business in Iran are looking better than at any time since the 1970s.
"Currency reserves are strong, trade barriers are being dismantled and there has been an influx of international companies setting up offices in the country," said Philip Stephenson, joint managing director. "People in the country want to get back to business again and with a new, more trade-minded government, prospects are particularly bright."
Davies Turner has been involved in Iran for the past 40 years, 31 of them with its own registered office, although it also works with a local partner, Rahbanan Co Ltd. It has handled the Tehran International Book Fair contract for the past dozen years and regularly handles shipments from as far afield as Canada.
Davies Turner operates regular overland trailers from Europe, with transit times of 13-14 days in summer, and 16-18 days in winter. A large proportion of its fleet is fitted with satellite tracking. "The route is much more straightforward than in the past, and it is possible to guarantee transit times to a much greater extent than we could previously," adds Stephenson.
"As one of the oldest established forwarders in Iran, we have an inbuilt advantage over less experienced operators. We understand the local culture, and the methods of doing business."
Trade with the UK is currently around 70 per cent up on last year's level. Most of the inbound flow consists of raw materials and industrial goods, including spares for the petrochemical industry. This could be followed by an increase in consumer imports as incomes rise.
There is considerable potential for export business, particularly locally assembled cars and buses, which are already sold to neighbouring countries and also as far afield as Africa. The government is seeking to encourage non-oil exports and is cutting out red tape, as well as relaxing rules on repatriating foreign exchange earnings.
Imports are being freed up too. In particular the ending of the requirement that importers find 100 per cent of the cost of all purchases up-front has helped. In some cases, the percentage is now only 10-12 per cent.
Iran is already a major regional transhipment hub, and this role may grow further as regional infrastructure and services are upgraded. Traffic between India and Dubai moves via Bandar Abbas or Bandar Khomeni using the overland rail or truck route, while India, Iran and the CIS countries have set up a north-south corridor via the ports of Bandar Anzali in Iran and Astrakhan in Russia.
Two rail routes were available in the past, but this option is now rarely used. Civil unrest has rendered the route via the CIS countries unusable, while the service via Turkey is currently available only for passengers and it is likely to be some time before a freight service is reinstated.
