The Incheh Borun railway, located in Golestan Province, connects Iran’s railway network with Turkmenistan’s railway network, linking Iran’s railway to the railways of Uzbekistan, Kazakhstan, and Russia. This railway, situated in the North-South Corridor, primarily connects Russia to international warm waters through Iran and subsequently facilitates access for CIS countries to open waters.
The Incheh Borun railway is significant for expanding the commercial and economic relations between the Islamic Republic of Iran and the Russian Federation. Firstly, this railway is connected to the national railway network, allowing for the export and import of goods from various parts of Iran to CIS countries and Russia. What makes the Incheh Borun railway unique is its ability to access and transport goods to the eastern and central regions of Russia. These regions, particularly eastern and central Moscow, have untapped markets that many countries cannot reach, providing Iran with opportunities to export various goods to these areas.
Currently, products such as dates, raisins, stones, tiles and ceramics, various citrus fruits, apples, and more are exported from the Incheh Borun railway to CIS countries and Russia. It is important to note that due to the severe cold in central and eastern Russia, the export of fresh products must be carried out under suitable standard temperature conditions to prevent food from freezing. This requires the use of refrigerated containers to maintain and transport products at a constant temperature. Fortunately, it is currently possible to export both regular and refrigerated containers via the Incheh Borun railway.
In terms of time and transportation costs, it should be noted that to export goods with the lowest freight rates and in the shortest possible time from this route, certain mechanisms and requirements must be considered. If at least 10 wagons can be loaded for delivery to a specific destination at the Russian border or one of its cities, the shipment can be custom transported to the Russian borders within a week. Additionally, if exports are carried out in bulk and on a large scale, the rail transportation cost from the Incheh Borun route will be at least 30% lower than road transportation.
There are issues regarding the use of different types of wagons on the Incheh Borun railway and their ownership by the origin or destination countries. Some wagons from Russia and the CIS region cannot enter Iran due to their large dimensions, as the height of some railway tunnels in Iran is low, preventing the passage of certain wagons from other countries.
Another point regarding the rail exchanges between the two countries is the inability of Iranian wagons to enter CIS countries. The railways of Iran and the former Soviet Union countries have different standards. Additionally, the railways of Russia and the CIS are members of a council called the “CIS Rail Transport Council,” which requires wagons intending to travel on their railway networks to have a certificate called the SMGS certificate. Currently, Iranian wagons do not have this certificate, and Iran’s rail export cargoes to CIS countries are transported by wagons from those countries.
This issue necessitates the import of wagons from these countries into Iran for most shipments to CIS countries and Russia, which are then reloaded and sent to the destination country. This process incurs additional costs and time wastage.
Another advantage of the Incheh Borun railway is the transit of goods from Southeast Asian countries, especially India, to CIS countries and Russia. It is even possible to export various products such as Pakistani tangerines and mangoes to the cold regions of Russia via this railway and through Iranian traders. Additionally, the eastern regions of Russia are the center of the country’s heavy industries, such as wood, paper, steel, and coal, with significant exports from this region to other countries. For example, about 7 million tons of coal are exported annually from these regions of Russia to India. If part of this transportation can be carried out via this route, it will bring significant development and prosperity to the North-South Corridor.
Another advantage of the Incheh Borun railway is the transit of goods from Southeast Asian countries, especially India, to CIS countries and Russia. It is even possible to export various products such as Pakistani tangerines and mangoes to the cold regions of Russia via this railway and through Iranian traders. Additionally, the eastern regions of Russia are the center of the country’s heavy industries, such as wood, paper, steel, and coal, with significant exports from this region to other countries. For example, about 7 million tons of coal are exported annually from these regions of Russia to India. If part of this transportation can be carried out via this route, it will bring significant development and prosperity to the North-South Corridor.
Ultimately, for the stronger establishment of the Incheh Borun railway and to increase the traffic volume of rail transportation from this route, it is essential for large production and export companies in the country to enter this field with governmental support. This will not only help make this route more economical by investing in transportation infrastructure such as wagons but also ensure the provision of high-volume export shipments, enabling trains to move with full wagon capacity. This will allow goods to be sent to destination countries in the landlocked CIS region and eastern Russia more quickly and with greater competitive advantages.
Amin Azami, Expert at Tehran Economic Policy Think Tank