Global Competition for Investment in Iraq’s Faw Port; Is Iran Losing Its Golden Opportunities?
According to Sea News, Iraq has selected 11 international maritime transport companies to compete in the tender for operating the large Faw Port, with the final results of the tender set to be announced in January 2025. According to the Director General of the Iraqi General Company for Ports, the companies participating in this tender include China Merchants Port Group from China, Evergreen from Taiwan, CMA CGM from France, MSC from Switzerland, Adani from India, ICTSI from the Philippines, Cosco from China, and ABM Global Shipping from the UAE.
South Korea’s Daewoo Engineering & Construction has also completed the construction of five docks at this port, which were handed over to Iraqi officials in a ceremony on Thursday.
Faw Port is designed as one of the key projects to create a new transit corridor between the Middle East and Europe. This port is expected to have a capacity of handling 3.5 million containers by 2028.
Iraq has also launched a $17 billion project to connect Faw Port to the Turkish border via a rail and road network, aiming to become a regional transit hub and reduce dependence on the Suez Canal.
According to Farhan Al-Fartousi, Director General of the Iraqi Ports Company, this plan could significantly reduce transport time between Asia and Europe and strengthen Iraq’s position as an alternative route in global trade.
Iran’s Role at Risk
While Iran, due to its strategic location, could have been a central hub for East-West and North-South international corridors, recent developments show that Iraq is rapidly becoming an attractive alternative for regional transit routes.
Infrastructure and budget issues, including the lack of investment in the development of maritime, rail, and road lines, are some of the main obstacles to increasing Iran’s share in global transportation. Additionally, international sanctions and restrictions have harmed the creation of new business opportunities for Iran on a global scale. In this context, Iraq, particularly with its major projects and focus on developing ports and infrastructure, is increasingly attracting global investment and attention.
In fact, competition between Faw Port and Chabahar is clearly taking shape, and if Iran cannot quickly develop its infrastructure, it may miss out on golden opportunities to capitalize on its geographical position. Iraq is moving more rapidly in executing critical projects that will enhance its strategic position in transit corridors.
The Future of Chabahar Amid New Threats
In this situation, Chabahar should, as a key port, leverage its strengths, such as trade and transit relations with India and other Central Asian countries, and strengthen its capacities through foreign partnerships and the development of modern technologies. Further investment in Chabahar’s infrastructure could help the port remain one of Iran’s main connection points to global markets, while the new competition from Iraq, particularly in the field of transit and transportation, should serve as a warning to accelerate optimization efforts.
If we fail to quickly take steps to improve infrastructure and attract the necessary investments, we might lose our golden opportunities in the near future and relinquish our position in global transportation.
