Understanding the Potential of Shalamcheh border
Iraq has a strong need for a variety of goods and services, which have created an exceptional opportunity for neighboring countries, including Iran. An opportunity which is not properly planned for, the bitter experience of losing opportunities in the Commonwealth of Independent States and Afghanistan will be repeated. This management, with the aim of identifying current status of Iranian exports to Iraq, identifying obstacles and problems, analyzing and evaluating, has defined these projects in the short term, the results are as follows:
55 Hectares Zone
With the establishment of infrastructures and equipment for servicing hundreds of transit and export trucks, Arvand Free Zone Organization has provided a suitable platform for the growth and development of foreign trade in the region. It is expected that with the growth of the existing investment and the appropriate placement that is being created in Shalamcheh by Arvand Free Zone Organization, there will be a significant shift towards the goals and policies of foreign trade in the region, province and the country.
Shalamcheh Logistics Park
The concept of the logistics park is directly linked to the intercontinental terminals through railways. In these terminals, the containers are moved in the same way as if they were moving in the sea ports. The results show that the concept of a logistic park can help identify ways of transferring product volumes from roads to transport methods more efficiently in terms of energy consumption that lessen the environmental impact of the workload in sea ports to reduce shipping costs, work on solutions and provide better logistics for shipping vessels in the offshore areas of sea ports.
Shalamcheh border in Arvand Free Zone as one of the country’s gates for business and transit operations, due to its unique geographical location and the possibility of using road, rail, marine and air transportation, can be easily and quickly operated. With Iraq, the Gulf states, countries of Central Asia, Caucasus and the Mediterranean, a 700-hectare plot of land for the construction of “logistics park” in Shalamcheh has been created and is being hand over to qualified investors in the form of parts for logistics, transportation, transit and so on.
The most important goals for launching Shalamcheh Logistics Park can be summarized as follows:
- Increasing port services inside the country
- Reducing the demand for coastal lands use
- Increasing transportation efficiency
- Improving transportation situation related to infrastructure
- Improving financial and economic conditions
- Increasing foreign direct investment
- Accelerating economic development and logistical integration of the internal regions of the country
- Reducing environmental [negative] impacts
The trade infrastructure (export) in Shalamcheh
1- Development of Shalamcheh site
Due to export increase at the borderland and the encouragement of merchants to export from the border, providing them with a variety of services, it was necessary to increase the space of the site in order to increase the capacity of evacuation and loading of export goods, which the organization pursued continuously and constant efforts was put in place to achieve this goal. The site space was increased from 3 hectares to 10 hectares in 1388. It is worth noting that this year construction of a 13-hectare site was launched.
2 – Construction of Commercial-Administrative Complex
The project is being completed in a space of over 4,000 square meters, with private investment in order to establish commercial offices with 140 stands for the provision of services, facilities and supply of export goods to traders at 55 hectares site.
Due to the policies of Arvand Free Zone Organization to encourage and stimulate merchants to export from this border, the organization has started to build a commercial complex for deployment and placement of pavilions to businessmen in the commercial area. Currently, 120 trade stands are located on the border of Shalamcheh.
Depositing and deploying 24 service booths in the service area (trading terminal of Shalamcheh) in order to provide services to merchants, Iraqi and Iranian merchants and drainage and loading workers. (Service and Food Stands: Sandwich bars, Bakeries, Restaurants, Pastries, an ice-cream parlor, Zam Zam soft drink products, stands of Razavi Bread and …)
3- The construction of an indoor warehouse
Due to growing increase in the volume of various types of exported goods to Iraq from international border of Shalamcheh, Arvand Free Zone Organization started ceding a warehouse with a total area of 6400 meters on the 55 hectare site to Golf Agency Company. Warehouse construction project in Arvand Free Zone Organization to cover activities such as: ordering from different markets, keeping and storing various types of goods, supporting traders and merchants and storing various types of goods in order to reduce inventory shortage.
4- Construction of cold storage
A cold storage with a capacity of 100 and 10000 tons is designed and anticipated with private sector investment in order to store and preserve perishable goods. In this regard, the construction of a cold storage space on the border of Shalamcheh while meeting the needs of traders and active traders in this area, also benefits the investor.
5- Construction of weighbridge
Considering the goals of Arvand Free Zone Organization to develop and advance its trade objectives at Shalamcheh export frontier, organization has started the construction of 4 weighbridges on the 55 hectares site of Shalamcheh in order to expedite and facilitate exports and reduce the cost of exporting goods to Iraq.
It is worth noting that in addition to 4 weighbridges, two other weighbridges belonging to the private sector and co-operative customs company for the import and export of trucks are also in operation.
6- Installation of CCTV system
CCTV cameras on 55 hectares site of Shalamcheh has been installed by Arvand Free Zone to enhance the security of Shalamcheh Commercial site.
7- Deployment of Saderat and Melli Banks
In order to protect, attract merchants and businessmen, keep them present in the border of Shalamcheh, solve the liquidity problem due to the existence of banking problems such as the opening of a L / C account by Iranian and Iraqi businessmen, Saderat and Melli banks were established in the service area (trading terminal of the Shalamcheh).
8- Deployment of Emergency Services 115
In order to provide medical services to the pilgrims of Atabatat, traders, businessmen, administrative personnel, various organizations and workers of loading and unloading company in urgent cases, the organization has replaced and deployed an emergency services (115) instead of the Red Crescent’s in order to provide services to individuals.
It should be noted that Arvand Free Zone Organization has provided all the amenities and equipment they need to deploy on the 55 hectare site.
9- Etihad Shalamcheh Arvand Cooperative Company
Etihad Shalamcheh Arvand Cooperative Company is composed of 23 companies and provides employment [opportunities] for 1,800 workers for loading and unloading goods, two crane and 5 forklift trucks in Shalamcheh site, in order to provide better services to businessmen.
10- Construction of the logistics terminal by Andisheh Khalagh Bandar
The logistics terminal was constructed by private sector (Andisheh Khalagh Bandar) with the capital amounting to 80,000,000,000,000 IR Rials. It provides employment opportunities for 80 workers and for the purpose of performing operations of loading and unloading goods through railways and transit of goods. It was built on the border of Shalamcheh with a total area of 5 hectares which was launched in 2012. It should be noted that with the development of the company’s activities and the increase of exports from the border of Shalamcheh, Arvand Free Zone Organization has allocated 5 hectares to invest in the Andisheh Khalagh Bandar for the construction of indoor warehouses and Hangar (total of 10 hectares).
11- Construction of Industrial, Commercial and Welfare Complex by Mehvar Talaei Co.
Industrial, Commercial and Welfare Complex was constructed by private sector (Golden Axis) with capital amounting to 4.9 billion IR Rials 000,000,000,000 providing employment opportunities for 100 workers in areas of 8 and 22 hectares for operations of loading and unloading of goods through the railway and the transit of goods at the Shalamcheh border. On the border of Shalamcheh, indoor warehouses, hangar, as well as a cold storage facility based on feasibility studies and potential capabilities of the region, including countries such as Iraq and the United Arab Emirates were constructed.
12- Construction of a Logistics Terminal by Hamadi Trading Co.
The logistics terminal was constructed by private sector (Hamadi Trading Co.) with capital amounting to 50,000,000,000,000 IR Rials providing employment opportunities for 30 people in area of 2 hectare for loading and unloading goods and exporting goods at Shalamcheh border. On the border, indoor warehouses, hangar, as well as a cold storage facility based on feasibility studies and potential capabilities of the region, including countries such as Iraq and the United Arab Emirates were constructed.
13- Construction of the welfare and service complex of Toloe Zibaie Arvand Company
The above-mentioned complex was developed by private sector (Toloe Zibaie Arvand company) with the capital amounting to 80,000,000,000,000 IR Rials and provided employment to 53 persons directly and 200 people indirectly in the area of 13 hectares and during a 15-year rent contract for the following purposes: light and heavy vehicles parking lot, green space and a children’s park with public services and praying room, a residence for drivers and passengers (hotel or motel), gas station, souvenir market, restaurant, coffee shop, fast food, traditional cafeteria and coffee shops, car repair shop, automatic car wash, Taxi service, Clinics, Post office and Internet services.
14- Construction of the Logistics Terminal of Javaher Siah Bandar Co.
This logistics terminal is constructed by private sector (Javaher Siah Bandar Company) with capital amounting to 50,000,000,000,000,000 IR Rials providing job opportunities for 30 employees in the area of 5 hectares and during a 10 year contracts for operations of loading and unloading of goods through the railway and the transit of goods at the Shalamcheh border. On the border, indoor warehouses, hangar, as well as a cold storage facility based on feasibility studies and potential capabilities of the region, including countries such as Iraq and the United Arab Emirates were constructed.
15- Construction of Logistics Terminal of Arvand Cement Export Development Terminal:
This logistics terminal was developed by private sector (Cement Export Development Terminal) with capital amounting to 80,000,000,000,000,000 IR Rials providing employment opportunities for more than 50 workers in a 5 hectare area and a 10 year lease contract in order to carry out the operations of loading and unloading goods and exporting goods at Shalamcheh border. On the border, indoor warehouses, hangar, as well as a cold storage facility based on feasibility studies and potential capabilities of the region, including countries such as Iraq and the United Arab Emirates were constructed.
16- Construction of Aqua Terminal by Mobarak Sanat Karoon Co.
This logistics terminal was constructed by private sector (Mobarak Sanat Karoon Company) with a capital amounting to 75,000,000,000 IR Rials and has provided employment opportunities for more than 40 workers in a 5 hectare area and a ten year lease contract for the construction of an export terminal for aquaculture in Shalamcheh is under construction for dislodging, loading, washing, packaging and so on.
17- Construction of gas station by Omran Sanat Ahwaz Company
This station was constructed by private sector (Omran Sanat Ahwaz Company) with a capital amounting to 10,000,000,000 IR Rials providing job opportunities for more than 4 workers in an area of 100 meters and a five year contract for the construction of a gas station at the zero point border of Shalamcheh to carry out fueling services to Iraqi trucks.
18- Construction of a three-star hotel by Omran va Tosee Omid Zayer Company
The hotel is being constructed by the private sector (Omran va Tosee Omid Zayer Company affiliated to Hajj and Pilgrimage Organization) with the capital amounting to 300,000,000,000,000,000 IR Rials providing employment of more than 100 workers in the area of 3 hectares and over 99-year lease contract is being conducted to build a hotel in Shalamcheh for the purpose of providing services to passengers, pilgrims and tourism development.
19- Services and equipment given to Shalamcheh customs department and other organizations
* Equipping and delivering of several Conexus including: a 72-meter conex for customs department, exit door conex, customs guard sentry booths.
* Serving customs department staff (providing two mini-buses for transportation and meals for 57 personnel).
* Equip customs department with two X_RAY machines and gateway for convenient services to passengers
* Provision of food for delegates – IRGC headquarters – Passport personnel – Presidential office and…
* Applying a water purifier machine at the passenger terminal to provide drinking water for travelers and pilgrims.
20- Khorramshahr Railroad
The project of connecting Khorramshahr railway to Shalamcheh and its continuation to the city of Basra and the link to the national railway of Iraq, with a length of 17 km in Iran, has come to an end and its continuation to the city of Basra in Iraq is under construction. By completing it, the country’s railway will be connected to Iraq and the countries of the Eastern Mediterranean through Khorramshahr, and a major development in the transit and exchange of goods and passengers will take place.
Also, the project of connecting Imam Khomeini port to Khorramshahr is under consideration, which is promising the formation of a suitable transit route through Arvand Free Zone to the destination of Iraq. It should be noted that at the moment Shalamcheh railway, which extends to the zero point of the border is in operation, and regarded as one of the means of transportation of the region, which offers a very favorable facility for the transportation of goods through the rail network of the country and its export in terms of low costs and has created a high level of security.
21- Major investments in Shalamcheh
| No. | Company Name | Contract Subject | Contract type | Contract duration | Date and contract number | Land area
(in square meters) |
| 1 | Mohammad Javad Asna Ashari | Establishment of the administrative and commercial complex (SPACE FRAME) and the settlement of businessmen and administrative, service and commercial offices in the complex | Lease | 10 years | 91/8/30 91/2/01/7437 | 3060 |
| 2 | Tolooe Zibaee Arvand | Construction of a welfare service complex | Lease | 15 years | 94/3/11 94/2/01/4386 | 130000 |
| 3 | Javaher Siah Arvand | Construction of logistical terminals (loading and unloading cool storage and warehouse) | Lease | 10 years | 94/10/05 94/2/01/17433 | 6600 |
| 4 | Maritime Mehvar Talaei Shipping | Transit warehouse and other business activities | Sale | Sale | 91/12/23 91/2/01/34749 | 220000 |
| 5 | Maritime Mehvar Talaei Shipping | Construction of transit warehouse and carrying out other business activities | Lease | 5 years | 91/12/23 91/2/01/34746 | 80000 |
| 6 | Heydar Mirzaeean Dehkordi | Weighing Inbound Transportation | Lease | 1 year | 93/12/10 93/2/01/25681 | 300 |
| 7 | Jabar Asadi | Providing weighing services for inbound and outbound transport means to the trading range of Shalamcheh Commercial Terminal | Lease | 1 year | 94/05/07 94/2/01/7232 | 300 |
| 8 | Ericsson Systems & Services Company (Irancell Communications Services Company) | Installation and exploitation of telecommunication equipment and connex | Lease | 3 years | 92/9/17 92/2/01/11672 | 120 |
| 9 | Andisheh Khalagh Bandar | Construction and operation of the export terminal at the trade border | Lease | 15 years | 93/09/05 93/2/01/18762 | 55000 |
| 10 | Andisheh Khalagh Bandar | Construction of the location of all loading and unloading operations, warehousing, logistics and other authorized activities in Shalamcheh | BUT | 25 years | 89/11/10 89/2/01/8632 | 50,000 |
| 11 | Shalamcheh Trading Development Co. | Construction of welfare complex in Shalamcheh | Lease | 1 year | 1391/07/05 | 4500 |
| 12 | Omran Sanat Ahwaz | Construction of gas station | Lease | 5 years | 96/01/21 96/2/01/425 | 100 |
| 13 | Bargiran-E-Sabok Kar International Freight | Issuance of manifesto | Lease | 2 years | 94/05/27 94/2/01/8683 | 72 |
| 14 | Golf Gency Iran | Construction and assignment of double industrial shelter | Lease | 10 years | 93/10/07 93/2/01/21058 | 6400 |
| 15 | Qader Hamadi | loading and unloading operations in the Shalamcheh | Lease | 5 years | 93/12/25 93/2/01/26166 | 8000 |
| 16 | Arvand Cement Export Development Terminal | Construction of an export terminal of cement | Lease | 10 years | 9410/05 94/2/01/15553 | 55000 |
| 17 | Omran va Tovsea Omid Zayer | Hotel Construction | Lease | 99 years | 93/2/5 94/2/01/1149 | 50,000 |
| 18 | Mobarak Sanat Karoon | Construction of an aquaculture export terminal in Shalamcheh | Lease | 10 years | 95/10/06 95/2/61/15444 | 30000 |
- The Advantages of Arvand Free Zone
Arvand Free Zone benefits from a very excellent transit location and is located in a sensitive and geopolitical location in the northwest of the Persian Gulf. It also has a convenient and efficient transportation network and efficient fleet in comparison with neighboring ports.
Arvand Free Zone enjoys a combined transportation facilities with two ports of Abadan and Khorramshahr and its location in the oil-rich regions of the South, including the Darkhwin oilfield, and also access to the national railway that allows the transit of goods to the countries of Central Asia and the Caucasus, can play a very important role.
Arvand Free Zone with the potential of having the entire basic infrastructure, especially transit, warehousing and port, has a large capacity for transportation and transit, especially in Khorramshahr Port, which is considered the second biggest container port of the country, compared with other parts and free zones. In addition, the creation of new capacities in view of the ongoing implementation of quantitative and qualitative development plans for infrastructure, rail transport, road, sea and air transport can be considered as an important step for the prosperity and growth of this region.
Therefore, with regard to the above mentioned issues, transit for the Arvand Free Zone is an undeniable advantage. According to international standards, 10 percent of the value of goods is calculated as the cost of transportation and transit of goods. Therefore, Arvand Free Zone can be turned into one of the most important transit and transit corridors by activating the transit corridors. Apart from the strategic importance of the zone in national and international trade and economic exchanges, this can lead to the acquisition of foreign exchange earnings from transport services, the creation of employment and the activation of transportation services.
- Advantages of transit and export through Arvand Free Zone
Enjoying security and geographical advantage is one of the most important factors that could well be the basis for development of industry in the region. Accordingly, Arvand Free Zone has always considered as a short and suitable transit route for the owners of goods. The cycling effects of this industry are still evident in this area. Other advantages of Arvand free zone are as follows:
- Active ports
- The second biggest container port of the country (Khorramshahr port)
- Connecting the country’s rail network to existing ports and the use of rail transport and transit
- The possibility of simultaneous use of multimodal transport and transit
- Warehouses and operational port area
- Existence of the largest passenger terminal of the southern region of the country
- International Airport of Abadan
- The nearest free zone of the south of Iran to Tehran
- Infrastructure of transportation and transit of goods and passengers
- Neighboring the most important oil and gas resources of the country and the world
- The abundance of oil and hydroelectric energy in the region, as prerequisites for industrial, commercial, tourism development
- The abundance of energy resources and surface water in the region, the establishment of water and energy industries, which enables the cultivation and industry.
- Being at the center of gravity of natural resources, oil and rail industries, and agricultural landscapes and landscapes.
- Having the surrounding area of Arvand Free Zone with abundant and diverse sources of water, soil, oil and mines extracted for industrial production based on natural resources and the formation of industrial clusters based on high hand and downstream oil industries.
- Industrial advantages for the establishment of petroleum and petrochemical related downstream industries, due to the existence of major oil and petrochemical industries in the region.
- Utilization of Arvand Free Zone from Port, Transportation and Commercial Infrastructure in Abadan and Khorramshahr Ports
- Khorramshahr Railways Project – Basra and Khorramshahr Railways – Imam Khomeini Port are under construction, thus providing a worldwide corridor connected to the country’s rail network for industrial development in Arvand Free Zone.
- Enjoy the privileged geographic location for access to open water and to commercial, national and international networks.
- The strategic position of Arvand Free Zone for industrial and commercial exchanges with East Asia and the Gulf region on the one hand and the continent of Europe and the Caucasus on the other.
- In close proximity to Basra’s strategic harbor, the existence of the Shalamcheh exporter as the gateway to the Iraqi market.
- Proper land structure for the establishment of industrial units.
- The second container terminal of the country connected to the national railway network and suitable land roads and international waters.
- Having two international passenger ferry terminals, the passenger terminal of the Persian Gulf as the largest passenger terminal in the south of the country.
- 67 manufacturing and industrial units in different categories have permits to operate in Arvand Free Zone are engaged in industrial activities.
- The best and most suitable country’s free zone in the field of combined transport with the best facilities
- What progress has been made in the Free Zone transit in the different areas of the past?
Arvand Free Zone is engaged in equipping and preparing infrastructures and transportation and transit facilities simultaneously and in parallel with other relevant governmental organizations in order to create the necessary advantages and to some extent has tried to provide the financial resources of the proposed project or directly implements the projects related to the transportation and transit as follows:
- Broadening and Doubling the Shalamcheh Highway
- Broadening and constructing Shalamcheh Bridge
- Construction, equipping and launching of Shalamcheh site
- Enclosure of 55 hectares of land in Shalamcheh to develop a site and regularize the transit of goods and passengers to Iraq
- Installation of luggage, car and truck X-RAY machines, at Shalamcheh passenger terminal
- The attraction of logistics investment companies (unloading, loading, warehousing, packaging, etc.) at the international border of Shalamcheh.
- Employment rate in the commerce sector
Considering the commencement of commercial operations in the Shalamcheh area as well as the commercial operations of the ports of Abadan and Khorramshahr, a considerable employment has been made in Arvand Trade.