Polmeh: Over 60% of Iran’s Maritime Transport is Conducted by the Private Sector

Sea News – Dr. Masoud Polmeh, Secretary General of the Iranian Association of Shipping and Related Services, addressed various issues concerning the country’s maritime fleet in an exclusive interview with the IRIB news agency. Topics included aging vessels, fleet renewal, financing challenges, and the impact of sanctions.

This comprehensive discussion highlights the state of Iran’s maritime transport sector and covers various aspects of this crucial industry, from the effects of sanctions to private sector investments. It also presents solutions for sustainable development and strengthening Iran’s position in global trade.

Question: How many vessels are there in the maritime fleet, what percentage are outdated, and what steps are being taken for fleet renewal?

Dr. Polmeh emphasized the importance of distinguishing between public and private fleet statistics:
“The government does not own vessels except for military ones. However, if we consider the National Iranian Tanker Company (NITC) and the Islamic Republic of Iran Shipping Lines (IRISL) as state-owned due to their broad missions, around 250 vessels can be categorized as ‘state-owned.’ Nevertheless, I stress that these companies are not truly state-owned.”

He added:
“There are over 7,000 private and non-governmental vessels operating with diverse sizes and tonnages. In the Caspian Sea region, about 60 ships are active, more than 80% of which are considered outdated, with over 25 years of service. Fortunately, in the past two years, the private sector has introduced 20 new vessels through purchases and construction, replacing some operations previously carried out by older ships.”

Regarding the southern waters, Dr. Polmeh stated:
“The situation is slightly better, with approximately 90% of vessels under 20 years old and greater diversity in ship types. These include bulk carriers, tankers, support vessels for oil rigs, and cargo/container ships.”

Question: Has there been any specific progress in fleet renewal within the private sector?

Dr. Pelmoh mentioned ongoing negotiations with Russian, Indian, and Chinese partners, saying:
“Fortunately, initial agreements with Russian counterparts have been achieved this year, and a memorandum of understanding has been signed. We’ve also negotiated with Chinese companies for ship purchases or construction, including pursuing the construction of a 4,000 TEU vessel. Currently, we are securing financing to commence construction.”

Question: Are domestic shipbuilding facilities being utilized?

“One of our main objectives is to place orders domestically,” Dr. Polmeh explained.
“However, numerous challenges, particularly in banking and financing, hinder this effort. Unfortunately, banks fail to provide adequate financial support. Additionally, sanctions have created obstacles in obtaining necessary equipment. We hope the government pays special attention to this issue, enabling us to simultaneously manage shipbuilding and purchasing to expand the fleet under the Iranian flag, enhancing our global standing.”

Question: How much private sector investment has been made in fleet renewal?

Dr. Polmeh emphasized the need to support private investors operating in the southern ports of the Persian Gulf:
“These individuals were traditionally owners of wooden vessels known as lenj. Fortunately, with support from the Ports and Maritime Organization in the 2000s, they transitioned to modern metal vessels. Expanding this trend can increase the private sector’s capability to provide services in both northern and southern ports, creating sustainable employment and foreign exchange revenue.”

He added:
“For bulk carriers, we need at least 100 bulk vessels with capacities between 50,000 to 100,000 tons to better manage bulk goods, especially essential commodities.”

Question: Have sanctions been a barrier to your operations?

“Sanctions have undoubtedly caused delays and increased costs,” Dr. Polmeh acknowledged.
“However, thanks to divine providence and the tireless efforts of the private sector and dedicated managers, we have maintained the transportation of goods to and from Iranian ports globally. This mission will continue.”

Question: Is there any data to support this?

“Approximately 60% of cargo transport to and from Iranian ports is managed and executed by the private sector,” he stated.

Question: How much investment has been made in fleet renewal?

“Unfortunately, there is no precise figure available, but it’s estimated that tens of millions of dollars have been utilized, primarily from foreign resources,” Dr. Polmeh explained.
“Over 85% of our investments have been sourced internationally, demonstrating strong global capabilities. However, less than 15% of resources have come from domestic sources, which is a weakness that requires greater government support.”

Question: Are repairs conducted by the private or public sector?

“Over 80% of fleet repairs are conducted in domestic shipyards,” Dr. Polmeh noted.
“Currently, more than 50 vessels of various types and sizes are undergoing maintenance and upgrades in local factories.”