TEHRAN – A memorandum of understanding (MOU) was signed between Iran’s Free Zones High Council and the High Council of Marine Industries to advance maritime economy initiatives.

Reza Masrour, secretary of the Free Zones High Council, highlighted the significance of the maritime economy during the signing ceremony, IRIB reported.

He noted that the sector has been neglected despite the emphasis by the Leader of the Islamic Revolution on prioritizing serious efforts in this domain.

The official further stated that many critical and unaddressed issues remain in this area, including the underutilization of ports for cargo handling and the incomplete development of port value chains.

He emphasized the establishment of the Logistics Council within the High Council of Free and Special Economic Zones, stating that efficient management involves the intelligent utilization of available capacities. He added that promoting the maritime economy would significantly contribute to national GDP growth, and the Logistics Council was created to support this goal.

Iran’s Ports and Maritime Organization (PMO), in a report released in early October 2024, underlined the importance of the country’s maritime capacities and the role that the sector can play in developing the country’s economy.

According to the report, maritime sector in Iran has very high capacity in various fields including trade, ports and shipping due to the country’s strategic location, long coastal strip in the north and south and access to open waters, and can bring economic prosperity to the country.

“About a third of the country's borders are water borders, so we cannot ignore port and shipping activities because for a country that has long water borders and access to open waters, the prosperity of shipping and maritime trade is essential. Therefore, the government should pay full attention to the strengths and weaknesses of this sector and make the best use of the current capacities with proper planning,” the report read.

Increasing the share of the maritime sector in the country’s gross domestic product (GDP) under the framework of the newly proposed maritime-oriented policy should be one of the most important concerns of the government, which can be achieved with proper planning, the PMO said.

The share of the sea in the gross domestic product in advanced coastal countries such as the European Union is 50 percent, but the figure is not significant in Iran despite having more than 5,800 kilometers of coastal strip, and this is despite the fact that there are huge capacities for the transit of goods from Central Asian countries.

On December 29, President Masoud Pezeshkian said that a detailed strategy and private sector’s contribution is necessary for transformation in the maritime-oriented economy.

Making the remarks in a session on the development of maritime-oriented economy, the president, while emphasizing the development of a detailed strategy in this field, addressed the necessity of the presence of the private sector in the industries related to the sea and stated: “For the presence of the private sector, it is necessary to prepare and compile the economic frameworks and commercial annexes of the development plans of the sea economy.”

He further put emphasis on the high importance of sea-oriented industries, especially the shipbuilding industry, and said the 14th government pays special attention to sea-related industries and is doing its best to comprehensively examine the issues, problems and opportunities facing the country in this field.

President Pezeshkian has referred to the government's prioritization of the maritime-oriented economy and the importance of the prosperity of this sector on the country's growth, development and prosperity, and stated that the government is determined to implement maritime-oriented development plans.

In late September, 2024, Vice President Mohammad Reza Aref said the 14th government is determined to formulate and implement additional and more comprehensive plans and programs in the field of maritime-oriented development.

EF/MA