Russia and Iran to create grain hub

In order to increase bilateral turnover, the countries are going to build a grain hub, using Russia’s advanced experience in the construction of such facilities.

Developing bilateral cooperation, Russia and Iran are going to build a grain hub in the foreseeable future. An agreement on this was signed by the NOVO Development Center, on the Russian side, and the Iranian logistics company IranianEurasia Trading and Logistics.

The signing took place during the second international forum «ROSTKI: Russia and China — Mutually Beneficial Cooperation», which is taking place in Kazan.

The construction of the hub is planned as part of the program for the development of grain distribution infrastructure and logistics «Grain +» in the Iranian special economic zone of Serakhs in the northeast of the country.

Incidentally, a large transit route from Central Asia and the Middle East passes through Serakhs.

This is of great importance given that the grain hub will also serve the purpose of developing the international transport corridor «North — South».

The main goal of the hub construction is to eliminate empty runs of transport by loading containers in both directions.

It is planned that, thanks to the creation of the hub, it will be possible to ensure the acceptance of Russian grain and grain cargo from friendly countries by all types of rail transport.

Then, unloading, storage of grain and its delivery to the Iranian market will take place, as well as deliveries to neighboring countries, for example, Pakistan, Iraq, Afghanistan.

As for transport going to Russia, it is also planned to load it with cargo in specialized containers. At the same time, the range of cargo going in the opposite direction can be quite wide.

It is planned that the capacity of the hub will be 5 million tons of grain per year, or 400 thousand containers.

In general, the construction of such a hub and the implementation of the «Grain +» logistics model should significantly increase Russia’s trade turnover with friendly countries, including those in the BRICS association.

The use of the so-called «land grain fleet» will reduce the load on sea vessels, will allow cargo to be delivered quickly and without large expenses, will reduce dependence on unfriendly countries, will weaken the impact of sanctions, including those imposed on sea vessels and related to freight and insurance.

By the way, at the forum in Kazan an agreement was also reached on cooperation with the Chinese state corporation Jiangsu Zhengchang Grain Machinery, which will have to supply equipment and spare parts for the construction of the hub and other facilities.