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Trade Shock

Monday, April 28, 2025
Donyay Eqtesad Newspaper: The devastating explosion that occurred on Saturday, May 26, at Shahid Rajaee Port dealt a severe blow to Iran's foreign trade. The oil, mining, construction, and chemical sectors are the most important sectors of the Iranian economy, whose trade has been heavily influenced by Shahid Rajaee Port. According to the Port and Maritime Organization, this port, consisting of 23 berths with a depth of 15 meters, accounts for 53% of the country's total port loading and unloading operations. Meanwhile, approximately 88% of the country's containerized cargo is unloaded or loaded there.
Shahid Rajaee Port also accounts for a significant share of trade in petroleum products, metals, and minerals. The financial losses it will incur will therefore certainly have a negative impact on Iran's foreign trade. According to published reports on this incident, only one berth sustained heavy damage as a result of the explosion. However, the intensity of the explosion was such that it temporarily halted loading and unloading operations for several hours. This incident is notable for several reasons.

First, given the importance of Shahid Rajaee Port for trade in goods, it has been emphasized that any disruption to its operations could lead to the cessation of imports of essential and consumer goods, as well as machinery, etc., from this port. According to customs statistics, this port's share of essential goods imports is estimated at 8%. Meanwhile, more than 58% of essential goods imports into the country pass through the customs at Imam Khomeini Port. Furthermore, nearly 13% of essential goods imports are destined for the Port of Amirabad in Mazandaran Province. The customs offices of Nowshahr, Chabahar, and Anzali Port also rank second. Given the significant role of Shahid Rajaee Port in the import of essential goods, as well as in the trade of metal products, machinery, petroleum products, etc., there can be no expectation of a disruption in trade from this region.
Secondly, the question arises: regardless of the primary reasons for this incident, is the storage of such a volume of incendiary materials in sensitive areas of the port justified? Failure to comply with regulations governing the movement and use of incendiary materials undoubtedly exacerbated the damage. It is therefore necessary to assess the cases and safety standards in order to identify those primarily responsible for such a serious incident. Port's Share in Commodity Trade
According to statistics published by the Port and Maritime Organization, Shahid Rajaee Port accounted for 53% of the country's total port loading and unloading operations in 1402. The share of Shahid Rajaee Port's loading and unloading operations compared to all ports in the country was 4% for commodities, 82% for metal products, 60% for construction and mineral products, 11% for machinery and tools, 22% for fertilizers and chemicals, 19% for textiles, leather, clothing, etc., 88% for containers, and 54% for petroleum products. Statistics provided by those informed on this subject also attest to the importance and impact of this port on the country's economy. According to statistics presented by Hossein Abbasnejad, Director General of Ports and Maritime Affairs, the nominal container capacity of Shahid Rajaee Port is equivalent to 8 million TEUs and its nominal non-container capacity is 150 million tons. The volume of oil and non-oil operations at Hormozgan ports during the past year amounted to 114 million 539,000 tons, the volume of container operations at Hormozgan ports during the aforementioned period was 2 million 720,000 TEUs, and the volume of oil and non-oil operations at Shahid Rajaee Port during the past year was 84 million 383,000 tons, and the volume of container operations at this port during the past year was 2 million 424,000 TEUs. According to statistics published by the Port and Maritime Organization, the cargo handling capacity of this port was 150 million tons in 1402. The total port equipment is estimated at 97 units. Cargo loading and unloading services at this port include: petroleum products, edible oils, minerals, grains, general cargo and containers. The performance summary of Shahid Rajaee Port in 1402 adds: the total number of ships The number of vessels entering this port is estimated at 5,010. The total number of vessels leaving this port is estimated at 5,053. Shahid Rajaee Port is the largest port in the country, with the highest cargo handling capacity. Its capacity is estimated at 150 million tons. The second and third largest ports in the country are: Imam Khomeini Port, with a capacity of 60 million tons of cargo, and Anzali Port, with a capacity of 13.6 million tons. From the suspension to the resumption of customs activities
Following the incident at Shahid Rajaee Port, a first customs directive was issued. Following this, all customs offices were informed to refrain from sending export and transit cargo to Shahid Rajaee Customs Office in Bandar Abbas until further notice. Continuing relief and rescue operations in the area, the Interior Minister announced that the main customs systems had not been damaged. Eskandar Momeni added: "The situation has stabilized in the main areas, and fortunately, the port and customs systems have not been damaged. Therefore, we announced the resumption of loading, clearance, and customs operations." The day after the incident, permission was granted to dock the first ship after the explosion at Shahid Rajaee Port. Faroud Askari, Director General of Iranian Customs, also emphasized: "We have begun customs clearance operations as of today. Customs procedures are currently underway in the domestic and foreign transit sector, as well as in the export and clearance of essential goods sector."
Thirty-six hours after the devastating explosion at Shahid Rajaee Port, efforts to extinguish the fire continue. / Photo: Rasoul Moradi - AFP
Slow resumption of trade
Vahab Hossein Khani, Director of the OPEX terminal

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