New Market Research Report: Iran Freight Transport Report Q2 2011

PRLog (Press Release)– Apr 03, 2011– Global freight transport levels have continued their recovery from the economic downturn and are increasing across the world. The Middle East is a particular growth area for air freight. We continue to see risks to all three core shipping sec acura tors (container and dry and liquid bulk), with overcapacity and a drop in demand continually threatening to push down rates and impinge on lines' profits. As austerity measures take hold in Europe and the US continues to have high unemployment and recover from the downturn sluggishly, shipping levels may slow their growth considerably.

Having posted growth during the downturn of 2009, Bandar Abbas has proven to be a resilient port in the face of adversity, and continued double-digit growth in 2010. However, our outlook for the medium term is not so optimistic. The effect of the sanctions will be felt in the Iranian economy, and this will surely trickle down into the Islamic republic's shipping sector. The development of a railway network should enable Iran to increase its freight transport links with its neighbours.

Headline Industry Data

* 2011 Port of Bandar Abbas throughput growth forecast is 1.4%. Growth is expected to average 2.71% a year to 2015.  * 2011 rail freight in tonnes growth forecast is 0.77%. It is expected to average 1.66% a year to 2015.  * 2011 ai rc helicopter and car market place r freight in tonnes growth forecast is 0.49%. It is expected to average 0.73% a year to 2015.  * 2011 total trade real growth forecast is 0.29%.

Key Industry Trends

Iranian Shipping Sector Stays Afloat Despite US Sanctions

As the US continues to target the Iranian shipping sector with stringent sanctions in a bid to halt the Islamic Republic's alleged nuclear-weapons development programme, the nation's shipping companies are finding it increasingly difficult to operate. BMI notes, however, that the sanctions have not brought the nation's carriers to a complete standstill and that the government is looking for ways to increase throughput at Iranian ports.

Heavy Investment In Railway Development

Like the countries of the Arabian Peninsula, Iran is investing heavily in developing its rail infrastructure and is hoping to attract US$25bn-worth of investment in the coming years.

Pressure Mounts On IRISL

Two further blows were dealt to Islamic Republic of Iran Shipping Lines (IRISL) in January. The setbacks for IRISL are serious ones for the company. South Korean shipyard Hyundai Mipo Dockyard announced that it is to stop constructing seven vessels that were ordered by the Iranian shipping company in June 2008. The 33,770 deadweight tonne (DWT) bulkers were signed for by IRISL for US$292mn. However, it seems the company is now no longer able to pay for the work. US sanctions against IRISL, which the US claims is instrumental in supporting Iran's alleged nuclear weapons programme through providing transportation and logistics, prohibit providing any sort of financing to the shipping company.

Key Risks To Outlook

The sanctions imposed on Iran provide considerable risk to our forecasts. With the nuclear-energy development programme, which the Iranians insist is not for the development of weapons, elevated to the status of a national cause, it seems unlikely that it will be dropped anytime soon. Equally determined are the US and its allies; as such the uncertainty brought about by the sanctions is likely to continue for some time.

Equally, as Iran is so reliant on the export of its oil to feed its economy, any fluctuation in the price of fossil fuels could provide risk to our projections.

For more information or to purchase this report, go