Increase of I.R. of Iran Shipping Lines' share in
International Markets

Exclusive Interview with Board Chairman and
Managing Director of I.R. of Iran Shipping Lines,
Mr. Afkhami

Viewpoint: Significant developments of I.R. of Iran Shipping Lines (IRISL) encouraged Iran-British Chamber of Commerce, Industries and Mines (IBCCIM) to interview IRISL Board Chairman and Managing Director, Mr. Afkhami on the company' s programs, as well as stand in Iran's foreign trade and thus, national economy. Afkhami is also one of long-lasting active members of the Chamber.

T o get the readers of Iran - British Chamber quarterly bulletin acquainted with IRISL, Mr. Afkhami was requested to elucidate undertakings and future plans of the company. The excerpt is as follows:

Having transported 20 million tons of cargo in 2003, IRISL set an unprecedented record, achieving 12% growth compared to that of 2002.

It is deemed necessary to mention that the total amount of transported cargo comprised 9.7 million-ton imports, 2.4 million ton exports and 8 million tons of cargo at international level.

Having touched upon the decrease of import in 2003 as a result of increase in annual precipitation and mass production of wheat, Afkhami stated, the organization has undoubtedly compensated the decrease by transportation of exporting goods and cargo at international level. It was in a way that exports transportation reached from 1.5 million tons in 2002 to 2.4 million tons in 2003, indicating 59% growth. It was the most successful achievement of the company in international cargo transportation, amounting to more than 8 million tons, showing 32% growth compared to that of the year before. It is noteworthy that the volume was 1 million tons in 1999,2 million in 2000,4.6 million in 2001 and 6.5 million in 2002.

He also added the volume of international cargo transportation indicates the company' s marketing competence, as well as move towards global market, resulting in further hard currency for Iran.

Regarding container transportation undertakings of IRISL, Afkhami said, despite the company's taking of the job for about 5 years, it succeeded to rank number one among internationally well known transport companies for achieving the greatest share in Far East - Persian Gulf container transportation.

Our share in container transport has increased from 70000 in 2002 to 113000 containers in 2003 in Europe. With 49 percent growth in the volume in 2004, IRISL has transported 566000 containers, outnumbering the targets set.

On the back of national and international interest in IRISL services, it had to add new shipping lanes to the company's navigation system including South East Asia - Persian Gulf, Persian Gulf -Australia & New Zealand, India - Persian Gulf, Malta, North African countries and South Europe.

Enumerating the company' s services, he further said, due contract on maintenance of Khoramshahr port and terminals has been concluded by one of the affiliated companies. Another agreement has been signed regarding container terminal of Imam Khomeini Port requiring US 18 to 20 million of investment.

According to statistics issued in January 2004, IRISL was ranked 25th active container shipping company.

Owing to 16 outdated cargo ships, the company concluded several contracts with local and foreign ship - building companies, placing orders for eight Panamax ships, which have already been delivered. IRISL has also placed an order for four Chinese ships to be handed in in 2006. Other six ships have been ordered to ISOICO (Iran Ship - building & Off- shore Industries Co.), which is under investigation due to global raise in steel prices. Building of six container ships is underway, the first of which has been built in Germany to be delivered in near future and the rest shall be built in Bandar Abbas port. Another ten 52000- ton bulk - order ships are forecast to be built by Sadra Co.

The volume of in-the-process contracts amounts to US $ 616 million, US$ 342 million of which is at national level and US$ 247 million has been signed with foreign companies. Including the contract to be concluded with Sadra Co. the total amount reaches US$ 800 million.

He also touched upon the productivity of the company increasing from 65 percent to 83 percent, as well as measures taken in abiding by international standards and obtaining security certificates.

Regarding the company's penetration of market for transport of chemicals and investment in the very sector, Afkhami elaborated on the necessity to transport, as well as invest in chemical and petrochemical sectors. It should be noted that pertinent petrochemical projects are implemented in Imam Khomeini and Asalouyeh ports and investments are made in Qatar , Saudi Arabia and U .A.E. to develop petrochemicals, transport. In order to meet the needs, the company has established a new foundation for the purpose with cooperation of Iranian National Oil Tanker Co. and Petrochemical Commercial Co. and necessary measures shall be adopted in this regard.

Taking into consideration the constant ups and downs of the shipping world, IRISL has exerted every effort to reach stability in the market, as well as maintain, renovate and increase navigation capacity presently standing at 3.3 million DWT. Thus, IRISL has risen through the ranks among the best shipping lines of the world. The company has improved its ranking from 44 th to 28th since the beginning of its container shipment, and is forecast to be ranked 20t within four years. Other shipping companies follow the same example and they are far ahead placing orders for 8000-TEU ships, whereas IRISL is looking for 3300 TEU ships, which shall increase the capacity the year after.

Iran Shipping Lines has based its marketing outside Tehran with linkage to international network. More than 120 IRISL representatives market, as well as render pertinent services all over the world, through which the company has entered global network, and organized its activities inexpensively.

One of countries lying in IRISL scope of activity is UK, which is provided with IRISL regular services in Liverpool Port, Northwest of UK, at Mersey River. Main cargo is being transported to Iran via this port comprises machinery, generators and steel. IRISL transports cargo and containers to / from ................. Port every two weeks, to be increased to every week. Transported cargo comprises machinery, spare parts and steel sheets.

 




Copyright © 2003 Irano-British Chamber of Commerce, Industries and Mines. All rights reserved.
Revised: 1 August, 2004.