First Two-way Train between Iran and China Promises Further Boost in Trade

Alwaght- The first phase of the China-Iran-Europe railway has just gone operational. On Sunday, the first Iran-China container train was inaugurated by the head of the Islamic Republic of Iran Railways (IRIR) and the Vice President of Commerce and Operation of the company Morteza Jafari announced that in the first phase, Iran-China railway is launched and last week China-Iran railway set off towards Iran. 

Facts about Iran-China rail corridor 

Launching the Iran-China railway is a sign of close economic and trade ties between Tehran and Beijing. This route has also a series of considerable features:

Cutting the transportation time to one-third: According to the CEO of IRIR, the railway between Iran and China has been launched with the goal of traveling one train in a week, but the ultimate goal of this rail line is seven trains travels a week. This means that the ultimate goal of this route is to move one train every day between Iran and China, and this can cut the time of freight transit between Iran and China by a third.

Expansion of Iran's neighborly bonds: It should be kept in mind that this railway between Iran and China will pass through friendly and neighboring countries and will strengthen Iran's neighborly ties in the region. In addition to China and Iran, this rail corridor passes through Kazakhstan and Turkmenistan as well, and this is an opportunity to improve the bonds of countries along the railway. 

Cost-effectiveness: Given the growing maritime transportation costs, using railways for Iran and China trade can cut the end transportation costs both ways, and this provides a remarkable advantage for the Iranian and Chinese businesspeople. 

First two-way Iran-China train: Another advantage of this corridor is its being two-way. From China, such goods as car parts are transported to Iran and from Iran, mineral raw material are sent to China. These conditions can facilitate good trade between Iran and China. According to the officials of the IRIR, the yearly capacity of 1 million tons of cargo has been targeted for this rail route and with the continuation of train movement and investments, the capacity can increase. 

Iran-China trade in figures 

Over the past years, China has always been top on the list of Iran's trade partners. We can refer to official reports by China and Iran for their trade volume: 

Over $30 billion: The volume of current trade between the two partners, according to Iran's Chamber of Commerce

Up to $50 billion: The two countries have the potential to increase the trade to $50 billion. 

37 percent growth: This is the growth rate of their trade in the first two months of 2024.

$2.88 billion: Their trade volume in the first two months of 2024

$2.98 billion: Their trade volume in the first two months of 2023

Over $2.05 billion: Chinese exports to Iran in first quarter of 2024

45 percent growth: The rate of increase of Chinese exports to Iran in first quarter of 2024

$1.41 billion: Chinese exports to Iran in 2023

20 percent increase: Chinese official imports from Iran earlier in 2024

$829 million: China's official imports from Iran earlier in 2024( without Iranian oil bought by Chinese refineries) 

$688 million: Chinese imports from Iran earlier in 2023

Iran's trade place in Chinese market 

Top trade partner: Untill two decades ago, Iran was the top trade partner of China in the region. 

Fifth trade partner: Iran lost its past place in Chinese market and has become the fifth trade partner of China. 

China: the destination of largest amount of Iranian exports this spring 

$3.54 billion: Largest amount of Iranian exports to China this spring