Reopening of Transit Routes via Iran: Prospects for Economic Integration of the Region

Recently, it was announced that a UAE-Iran-Turkey transit corridor was officially launched with the first shipment from the UAE port of Sharjah heading for the Turkish port of Mersin docking at the Iranian Shahid Rajaei port. This route reduces the transit time between UAE and Turkey by two-thirds compared to the sea route between the two nations. The announcement comes after a recent thaw in UAE’s relations with Iran and Turkey. In recent years UAE’s foreign relations with these two regional powers was strained; but recently, the Persian Gulf nation has shown some eagerness for rewarming with Iran and Turkey, in its trade relations in particular.

The news also comes after a recent announcement that authorities in Iran, Turkey and Pakistan are keen on reopening of a rail transit route between Islamabad-Tehran-Istanbul. The road transport in this route has been already relaunched when a few road containers left Islamabad for Istanbul via Iran. On the other hand, the prospects of a peace deal in south Caucasus between Azerbaijan and Armenia, has raised the hopes that the old rail route between Iran and Russia would be relaunched in near future. The route was abandoned after the collapse of the Soviet Union when regional wars erupted in Caucasus.

Of course, reopening of these routes will further the economic integration of the region and will raise the country’s economic prospects.