COUNTRY PROFILE OF IRAN

INFRASTRUCTURE : ROADS, PORTS, AIRPORTS, RAILWAYS, POWER & TELECOM

Railways: total:  6,130 km 

broad gauge:  94 km 1.676-m gauge 

standard gauge:  6,036 km 1.435-m gauge (187 km electrified) 

note:  broad-gauge track is employed at the borders with Azerbaijan and Turkmenistan which have broad-gauge rail systems; 41 km of the standard-gauge, electrified track is in suburban service at Tehran (2001) 

Highways:
total: 140,200 km 

paved: 49,440 km (including 470 km of expressways) 

unpaved: 90,760 km (1998 est.) 

Waterways: 904 km; the Shatt al Arab is usually navigable by maritime traffic for about 130 km; channel has been dredged to 3 m and is in use 

Pipelines: crude oil 5,900 km; petroleum products 3,900 km; natural gas 4,550 km 

Ports and harbors: Abadan (largely destroyed in fighting during 1980-88 war), Ahvaz, Bandar 'Abbas, Bandar-e Anzali, Bushehr, Bandar-e Emam Khomeyni, Bandar-e Lengeh, Bandar-e Mahshahr, Bandar-e Torkaman, Chabahar (Bandar Beheshti), Jazireh-ye Khark, Jazireh-ye Lavan, Jazireh-ye Sirri, Khorramshahr (limited operation since November 1992), Now Shahr 

Merchant marine:
total:  152 ships (1,000 GRT or over) totaling 4,097,977 GRT/7,131,688 DWT 

ships by type:  bulk 49, cargo 38, chemical tanker 4, combination bulk 1, container 10, liquefied gas 1, multi-functional large-load carrier 6, petroleum tanker 32, refrigerated cargo 1, roll on/roll off 9, short-sea passenger 1 

note:  includes some foreign-owned ships registered here as a flag of convenience: Singapore 1 (2000 est.) 
 

Airports 

317 (2000 est.)  
Airports - with paved runways: total:  117 

over 3,047 m:  38 

2,438 to 3,047 m:  23 

1,524 to 2,437 m:  25 

914 to 1,523 m:  24 

under 914 m:  7 (2000 est.)  
Airports - with unpaved runways: total:  200 

over 3,047 m:  2 

2,438 to 3,047 m:  3 

1,524 to 2,437 m:  13 

914 to 1,523 m:  122 

under 914 m:  60 (2000 est.)  
Heliports: 11 (2000 est.)  

 

6,500 kilometers of roads are being built in various parts of the country. Presently, there are 150,000 kilometers of main roads, detours and highways across the country. Moreover, construction of the terminal and runway of Arak airport has been finished and it is ready to come on stream. Also, the total cargoes carried by the road, marine and air fleets in 1998 reached 60 billion tons/kilometers. In the same year, the Islamic Republic Shipping Lines (IRSL), managed to transport 11.5 million tons/rent of cargoes. The organization also succeeded to reduce the age of 22 out of its 78 ships from 17 years to five years. The transportation capacity of 82 ocean going ships of IRSL stands at 2,420,000 tons. 
 
 

ROAD TRANSPORTATION

Presently, there are 150,000 kilometers of main roads, detours and highways throughout the country, of which 10,000 kilometers such as Salafchekan axis are considered "special communication artery". 

"The roads and transport minister added: "with regards to the fact that these main roads are considered the main communication routes in the country, widening and renovation of them is among the major programs of the Ministry of Roads and Transport." 

Of 10,000 kilometers of roads considered main communication routes, 5,000 kilometers have been widened and plans are under way to widen the rest.

Construction work on the premises and runway of the Arak airport has been completed and the airport was inaugurated by President Mohammad Khatami.

Terming the Tehran terminal as one of the important projects implemented by the Ministry of Roads and Transport, he said: "the project which came to stream in the presence of President Mohammad Khatami concurrently with the Government Week plays a key role in solving environmental problems and easing the public's traffic." 

On the Variant-Rahjerd and the fourth phase of Arak-Salafchekan axis, the roads and transport minister said that 22 billion rials has been spent on the implementation of the fourth phase of the project which is 30 kilometer long. 

According to Hojati, Arak-Salafchekan axis is one of the most frequented communication routes in the country and with implementation of the project, road accidents will sharply decrease and vehicle traffic will gain momentum. 

It took nine months to implement the plan (the fourth phase of Arak-Salafchekan route). The total budget allocated to widening Arak-Salafchekan axis is 80 billion rials.

23,000 vehicles traveled on the road per day and before being widened many road accidents used to happen on the route. 
 

Tehran-North Free Way, the Largest Road Building Project in the History of Iran

The plan to build a free way linking Tehran to northern Iran, which had initially been proposed by Daftari-Taleqani Engineering Group in 1974, was put into force with establishment of the Company for Construction and Exploitation of Tehran-North Free Way. The free way that runs through the Central Alborz protected zone that is one of the main quake-prone regions in Iran, has four km of overpasses and 60 km of tunnels. Such problems as a maximum six percent slope in the route of the free way and construction of townships along the free way have aroused some concern about the implementation of the project. 

History of the free way

The idea of building a free way connecting Tehran to the Caspian region in northern Iran was first raised in the last years of the Pahlavi regime. The petrodollars earned through oil exports had preoccupied minds of the then Iranian statesmen with the implementation of ambitious projects. 

After making necessary arrangements, the Daftari-Taleqani Engineering Group offered three projects for construction of Tehran-North free way but for some reasons, including the large number of projects offered and due to the slump in oil revenues, those projects were temporarily archived. The occurrence of the Islamic Revolution in Iran was another reason for halting implementation of the project at that time. In 1993, the said project was first brought up and discussed by the cabinet ministers and later by the then Plan and Budget Organization (PBO). 

However, when the PBO voiced its opposition to the project, the government disproved it as well. The plan later found its way in the Mostazafan and Janbazan Foundation (Foundation of the Oppressed and Disabled) and the eventual contract for its implementation was signed between Mohsen Rafiq-Doust, the former head of the foundation and Akbar Torkan, the then minister of roads and transportation in the government of Akbar Hashemi Rafsanjani. A company was established later for building the free way. 

With the establishment of the Company for Construction and Exploitation of Tehran-North Free Way, not only did the idea of implementing the project come true, but details of the project, its financial sources and management were also made known. According to the company's articles of association, using capitals of those wishing to invest in the project and issuing public bonds for carrying out development, public services, trade and production activities, trading in and taking possession of lands situated along the route of Tehran-North free way were among financial sources of the project. 

The managers of the project were named as Mohsen Rafiq-Doust, chairman of the board of directors of the company, Mohammad Saeedi-Kya (ex-minister of roads and transportation) vice chairman of the board of directors, Mostafa Miri, managing director, and Mohammad Alizadeh and Mohammad Reza Mazji members of the board of directors). 

The initial capital of the company was 25 billion rials divided into 250,000 shares each worth 100,000 rials. The legal address of the company was announced as: Mostazafan and Janbazan Foundation, Arjantin (Argentine) Square, opposite Beihaqi ride and park facilities. Three routes had been proposed for the Tehran-North free way of which Tehran-Chaloos route via Kan, Souleqan, Do-Ab, Pol Zanguleh, Marzanabad and Chaloos was chosen. 

At the beginning point, Tehran-North free way is connected to Hemmat highway through an uneven crossing and after running for 121 km, it reaches Chaloos through another flat crossing. Besides, four other uneven crossings can connect Marzanabad to Kelardasht and Nazir plain or link Do-AB to Shahrestanak and Ahaar or Pol-e Zanguleh to Yush, Baladeh and Siah Bisheh. 

To justify the project, many reasons were cited by proponents of the free way. For instance, it was said at that time that the free way could be built in less than five years at a total cost of 100 million dollars. The justification for the return of the capital investment was that according to 1992 statistics some 4,200 vehicles traveled on Tehran-Chaloos road per day, and since the new free way would cut the time of travel from Tehran to northern Iran by two and a half hours, once completed, it could attract 80 percent of cars traveling on Tehran-Chaloos road, 40 percent of those traveling on Rud-e Hen-Amol road and 25 percent of small and large vehicles traveling on Qazvin-Rasht road, thus raising the number of cars making trips through the newly established free way to 9,700 per day. 

Architects of the project reached the conclusion that if the number of trips on the free way increased by five percent annually, the number of vehicles traveling on the free way would exceed 14,330 by the year 2000. It was also said at the time that given the advantages of the free way for trips to seaside and other Caspian Sea cities, if the number of such trips increased by 20 percent annually and trips to and from the newly independent republics of the former Soviet Union increased by five percent, the number of vehicles traveling on this route would rise to more than 18,000 per day by 2000. They also proposed that cars traveling on the free way pay different tolls depending on their type and size. Other proposals were also made in this connection, suggesting that motorcars pay 30,000 rials as tolls for using this free way. Based on such estimates, the proponents of the project hoped that they could return the initial capital investment in less than 15 years. 

Those involved in the project offered other statistics in a bid to obtain the approval of the experts. They put the annual growth of traffic on the road at 10 percent, of the tolls and other duties at 10 percent and of the banking interests at 18 percent. Furthermore, they proposed that five hectares of land along the free way be set aside for construction of five townships in exchange for reducing duties on traveling cars by 35 percent. 

Other specifications of Tehran-North free way

The maximum slope of the route is six percent. There are 40 twin tunnels (80 tunnels) with lengths ranging from 100 meters to 6.6 kilometers. The total length of the tunnels is 57-60 kilometers. There are also four kilometers of overpasses and seven uneven crossings. The maximum height of the road from the sea level is 2,490 meters. The average speed of cars traveling on the road is 88 kilometers an hour and it takes light motorcars 1.32 hours on the average to reach Chaloos from Tehran via this road while the figure for heavy duty vehicles is three hours. The road is over 36 meters wide and has two main lines for traveling from and to Tehran and a sideline (at sloping points) for low speed vehicles. The number of cars traveling on the road every day has been estimated at 25,000 and it is expected that the project will be implemented in a seven-year period, starting 1997. The investor and executor of the project is the Tehran-North Free Way Company affiliated to the Mostazafan and Janbazan Foundation. According to the plan, 30 percent of the expenses will be obtained from the tolls while the remaining 70 percent will be met by the government as subsidies. However, because the government failed to pay the said amount, it promised to grant plots of land along the route of the road but studies conducted later showed that there existed no suitable lands with economical or environmental justifications along the route. Subsequently, the government has undertaken to grant 50 million square meters of land in north Tehran between Karaj and Lavasanat regions and in the northern provinces of Gilan and Mazandaran with a value equivalent to the amount of subsidies it was supposed to pay to the Tehran-North Free Way Company. The company in turn has been allowed to exploit the road for 15 years from the date of its completion and then hand it over to the Ministry of Roads and Transportation after carrying out renovation and repair works. 

Supplementary plans of the Tehran-North free way

These projects include converting the Astara-Gonbad road along the Caspian Sea coastline into a four line road, Construction of Gajereh-Dizin and Aahar-Shahrestanak axes and their connection to the Tehran-North free way through an uneven crossing, and carrying out township building projects. 

Features of Tehran-North free way

These features include cutting of the distance between Tehran and Chaloos from 200 km to 121 km, ensuring safe trips to Caspian Sea coastal towns, expanding south-north axis, providing speedy access to Central Asia, reducing air pollution by cutting the time of trips from the capital city to the northern parts of the country, raising the quality of the road, bringing economic and cultural development to the Caspian Sea region, creating tourist attractions as well as job opportunities, reducing the risk of damage to life and property and cutting the time of travel from five hours to 1.5 hours. On the other hand, this free way has been defined as north-south axis in the country's free way networks and is to be extended from Chaloos to Tehran, Saveh, Arak, Andimeshk, Imam Khomeini port and eventually to Bandar Abbas. 

Environmental issues

A major part of Tehran-North free way passes through central Alborz protected zones. This region has been protected firmly despite limitations for the past 35 years. Construction of the free way may result in the disconnection of wildlife habitats, outbreak of animal diseases in the region, release of a great deal of pollutant substances in the air and increasing the vulnerability of durable ecosystems surrounding the townships that are to be built. This protected region stretches in an area of 339,000 hectares that is entirely under the protection of the Department of Environment in Tehran. 

Geological issues

The region located between Tehran and Chaloos is one of the main earthquake-prone areas in Iran. There are other dangers too, such as land slope. Therefore, there are concerns about vulnerability of the free way as tunnels are to be built along the route. 
 
 

RAILWAY

Dr. Rahman Dadman, Deputy Minister of Roads and Transport and Managing Director of the State Railway Company gave an account of the performance of the Railway Company over the past two years under President Mohammad Khatami's Administration as follows: 

"The total of goods transited via railway last year reached 1.52 billion tons/kilometers, showing a 20 percent increase. (In 1997, the Railway Company carried 1.13 billion tons/kilometer of cargoes from Iranian ports to the Central Asian countries and Europe.) 

The export of these goods increased following the incentive policies enforced by the government to promote export of non-oil commodities. Some 1,071,225 tons of goods were exported abroad by railway from March to August 1999, registering a 550 percent increase compared to the corresponding period in 1998. He said over 70 percent of goods transported by railway last year were non-oil commodities. In 1997, the Railway Company of the Islamic Republic of Iran transited 1,000 tons of cotton and the figure has risen to 400,000 tons, indicating diversity of cargo transport, use of new routes for transport of commodities and attraction of new customers.

The volume of goods transported by the State Railway Company in the first month of the current Iranian year (beginning March 1999) increased by 15 percent and the figure is expected to further grow by the end of the year due to the incentive policies implemented by the government to promote non-oil exports and to new contracts signed (for transport of goods). 

The managing director of the State Railway Company put the total of goods transported by road, marine and air fleets last year at 60 billion tons/kilometer and said the share of the railway was 13.5 billion tons/kilometer. 

Last year, the deputy roads and transportation minister said, the Railway Company managed to register a 10 percent growth in this sector by replacing 250 again wagons with 316 new ones. He said that 9.7 passengers were transferred by railway last year, of whom 40 to fifty percent traveled on Tehran-Mashhad route. He added that the Railway Company of the Islamic Republic of Iran put into operation 290 kilometers of Chadormalu-Ardakan rail tracks, one lane of the two lane track between Tehran and Qom and the Jajrom lane at a total cost of 400 billion rials. 

Dadman predicted that by the end of the current Iranian year 400 kilometers of railroad tracks including the second Tehran-Qom line, and 250 kilometers of Tehran-Mashhad double line track would be inaugurated at a total cost of 500 billion rials from public and domestic railway industries funds. 

According to Dadman, the average construction of new railroad tracks which stood at 150 kilometers during the first and second five year development plans has reached 400 kilometers this year. 

The managing director of the State Railway Company added that in order to increase efficiency of railroad networks, ensure traffic safety and accelerate train trips, work has already started to install safety electronic signs along various routes including the one between Tehran and Mashhad. Some 12 stations along this route are to be equipped with electronic safety signs by German experts, 13 stations by domestic experts and 27 stations mainly located between Shahroud and Mashhad by Indian experts. 

He predicted that altogether 15 stations along the Tehran-Mashhad route will have been equipped with electronic signs by the end of the current calendar year. 

He stated that domestic experts have acquired necessary technological know-how for equipping railway stations with electronic signs. 

He said that the State Railway Company is now capable of exporting technical and engineering services to foreign countries and the company experts have now participated in international enders announced by Libya and Syria. 

He said that the State Railway Company would try to confine technological know-how needed for equipping railway stations with electronic signs to the purchase of parts and systems. 

The deputy minister of roads and transportation said that over the past two years, 65 locomotives have been renovated by domestic experts, 186 locomotives have undergone basic repair works, 7,000 cargo cars been overhauled, 13,000 undergone annual repair and 850 cargo cars been renovated. 

In the same period, Dadman said, 461 kilometers of nationwide railroad network have been improved and 191 kilometers renovated. 

He said that such repair work done by domestic experts saved the country an average of 30 million dollars in foreign exchange per year. 

At present, due to the technological progress of Iranian industries, 995 percent of parts used in cargo cars, 50 percent of most frequently used parts of locomotives and many other railway related equipment were now being manufactured domestically. 

He said, "Before 1996, 150 million dollars in foreign exchange was allocated for the Railway Company every year but in the years 1997 and 1998 the company received a total of 80 million dollars. Despite the fact that some equipment needed by the company is made domestically, there exist foreign exchange shortages in this sector and we hope that the company's needs for hard currencies would be met." 

He said, "A 300 million dollar contract has been signed with France to purchase 100 new locomotives in order to equip the country's railway transportation sector. The locomotives are to be delivered to Iran four years after the contract goes into effect." 

Dadman said that under the contract 25 of the 100 locomotives would be imported to the country and the rest would be manufactured inside the country after transfer of necessary technological know-how. 

MARINE

The Islamic Republic Shipping Lines carried 11.5 million tons/rent of goods last year, of which 10.4 million ton/rent were transported by Iranian ships and 1.1. Million tons/rent by chartered ships. The figure showed a decrease of 21.8 million tons compared to the similar period in 1997. Of these cargoes, 8.4 million tons were imported goods, 0.7 million tons/rent exported goods and 2.4 million tons were transport of international commodities. 

The transport of exported and international goods last year registered a 91.2 and 230.8 percent increase respectively compared to the year 1997. The total of goods (non-oil) imported to the country last year weighed 15,232 tons of which 14,690 tons arrived at Iranian ports. Of the total imported goods, 8,370,000 tons were transported by the Islamic Republic Shipping Lines and its subsidiary companies. The shipping company also managed to reduce the average age of 22 out of its 78 ships to five years from 17 years. The company also inked a contract for purchase of a number of ships and for renovation of some others. To this end, it purchased four 72,000 ton Panamax ships from South Korea, five 22,000 ton multipurpose ships from China and four container ships from South Korea which will be delivered to Iran by the end of 2000. 

The Islamic Republic Shipping Lines has signed a contract with an Iranian shipbuilding company to buy six 22,000 ton multipurpose ships. It is to be noted that the total displacement capacity of 82 ocean going ships belonging to the Islamic Republic Shipping Lines stands at 2,420,000 tons. 

The history of entertainment trips in Iran dates back to ancient times and has its roots in religion and national traditions. As for transportation of passengers by ships, there are eight ferry boats in the southern waters of Iran which carry 150,000 passengers between Iranian ports and foreign countries. The number of passengers traveling by ships between Iranian ports and Islands in the Persian Gulf amounts to one million a year. The Islamic Republic Shipping Line with 120 ocean going ships is capable of carrying 2.5 million tons of container and bulk cargoes annually. 

The history of entertainment trips in Iran dates back to ancient times and has its roots in the religion and national traditions. The existence of unique sights on the coasts and islands of the Caspian Sea, Persian Gulf and the Gulf of Oman have paved the way for trips by ship. Despite this, in 1997, the super modern ship `Mirza Kuchak Khan' displaced only 20,000 passenger. At present, eight ferry boats are carrying passengers and cargoes in the southern waters of the country. It is to be noted that traditional motor launches used to carry passengers between Iranian ports and islands until 1986 but later ferry boats with capacities of 200 passengers and 300 to 500 tons of cargoes were used for voyages between Bushehr port, Kharg Island, Bandar Abbas port and Dubai (in the United Arab Emirates). In 1993, vessels with a speed three times as many as that of previous ships started operation between the southern Iranian port city of Khorramshahr and Kuwait. In 1996, two speed ferry boats capable of carrying 10 vehicles, joined this fleet. 

The statistics available show that about 150,000 passengers travel by ship between Iranian port cities and foreign countries annually. This number amounts to one million a year during trips between Iranian port cities and islands in the Persian Gulf. 

According to experts marine transportation accounts only for three percent of transportation sector in the country. The amount of cargoes carried by Iranian commercial fleet in the first half of 1378 (1999) stood around 1.164 million tons. 

Engineer Ahad Mohammadi, managing director of the Islamic Republic Shipping Line says: "This company with 120 ocean going ships and capacity of transporting 2.5 million tons of container and bulk cargoes per year, has acquired valuable experiences in transporting cargoes to and from Islamic states. By purchasing new ships, the company intends to increase it cargo displacement capacity to three million tons a year soon. 

The share of our country in the international marine transportation industry is very meager and for this reason the idea of increasing the capacity of Iranian marine fleet should be taken into consideration. 
 

Legal Problems Impeding the Activities of Private Marine Transportation Companies

At present, the private sector is not able to buy ships, register them in Iran or move them under the Iranian flag. This is why, an investor interested in activities in marine transportation industry has to buy ships without access to banking facilities or foreign exchange at the rate determined at the Stock Foreign Exchange, and to fly the flag of a foreign country like Panama on the ship and use it within the Iranian territorial waters as a foreign one. Even the Mostazafan and Janbazan Foundation (Foundation for the Oppressed and the Disabled) which is active in this field has not yet been able to use Iranian flag on its own ships. 

The private sector as one of the three legal sectors of the country should be able to make use of the existing facilities and to engage in healthy competition with the public sector. 
 
 
 

AIRPORTS

The number of operational airports increased to 227 in 1996 with a total capacity of 16 million passengers. Iran's international airports are Tehran's Mehrabad International Airport and airports in Esfahan, Mashhad, Shiraz, Tabriz and Bandar Abbas.

Iran's airlines carried 5,820 million passengers both in domestic and international flights in 1995. The international Imam Khomeini airport, now under construction in southern Tehran, is expected to be inaugurated in the near future. The airport will carry 4.5 million passengers and transport 115,000 tonnes of goods.

Iran's first airline, the national Iranian Airline (HOMA), was established in 1994. After the 1979 Islamic Revolution, the airline's name was changed into "Airline of the Islamic Republic of Iran" (Iran Air). Asseman Airline was established in 1980 tooperate domestic flights. Iran Air Tour, Kish Air, Saha, Seha and Safiran were all established in 1992. Most foreign airlines have their bureaus in Iran.
 
 

PRIVATISATION AND STRUCTURE OF IRAN'S TRANSPORTATION SYSTEM

Iran's land transportation fleet with 236,000 vehicles is in charge of carrying 76 percent of the cargo and 24 percent of the passenger loads in the country. The railroad network is also equipped with 500 locomotives, 15,000 cargo and 850 passenger wagons. Meanwhile, air transportation is carried out through 28 domestic airports working round the clock, 7 international airports and 6 exclusive bases belonging to the National Iranian Oil Company. Some 5.8 million passengers within and 1.4 outside the country are using the Iranian air transportation facilities. A total of 65 international flights are being made to 23 destinations throughout the world weekly. Of the total activities in the transportation sector, marine transportation has a share of 85 percent while those of the road, railway and air transportation are 13, 1.7 and 0.3 percent respectively. 

President Structure of Iran's Transportation System

The Ministry of Road and Transportation is responsible for building roads, railway tracks, airports and ports in the country and in charge of the road, air and marine transportation (except for the shipping line which falls within the category of the Commerce Ministry). The ministry is also in charge of making plans for expansion of facilities in various transportation areas based on defensive priorities and economic and social development schemes. The average share of various areas of transportation in Iran's foreign trade is as follows: 
 

Marine transportation 
85 percent
Land transportation 
13 percent
Railroad transportation 
1.7 percent
Air transportation
0.3 percent

Transaction Process and Status Quo
 

Region 
Average weight transaction with 15% coefficient
Eastern Europe 
1.6 million tons
Commonwealth of Independent States 
0.9 million tons
Afghanistan and Pakistan 
0.15 million tons
Far East 
1.8 million tons
Southeast Asia 
2.6 million tons
Pacific 
0.9 million tons
Africa 
0.4 million tons
Persian Gulf littoral states 
1.5 million tons
South America 
2.9 million tons
North America 
2.7 million tons

Administration of Land Transportation Network

The Organization for Transportation and State Terminals is in charge of the land transportation. In addition to its headquarters in Tehran, the organization has a representative office in every province that supervises over transportation related affairs. The maintenance of free ways is also among the responsibilities of the organization. 

Iran's international land borders are currently as follows: 

Bazargan, Sero, Astara, Bile Savar, Inche-Boroun, Bajgiran, Lotfabad, Sarakhs, Khosravi, Jolfa, Noordooz, Mirjaveh and Taybad. 

The land transportation fleet is equipped with some 236,000 vehicles that carry the 76 percent of the cargo and 24 percent of the passenger loads in the country. 

Railroad Network

The State Railways Company of the Islamic Republic of Iran is in charge of the operation and maintenance of the railroads in the country. It has a staff of about 30,000 people who work in the central headquarters and 13 other operational zones. The State Railways Company operates under the supervision of the Road and Transportation Ministry. 

Iran has a total network of 6,500 km of railroads of which 140 km is electrified. Jolfa, Razi, Bandar Imam and Bandar Abbas are border points where commodities are being carried through railroads. 

Iran's railway network is equipped with about 500 locomotives of which 140 are operational, with 15,000 cargo and about 850 passenger wagons. About 23 million tons of cargo and 10,000 passengers are being transported by railroads annually. 

Iran is connected through railroad to the Republic of Azarbaijan via Jolfa, to Turkmenistan through Sarakhs, to Turkey via Razi and to Pakistan through Mirjaveh. Extension of Iran's railroad network to Bandar Imam, Bandar Abbas and Khorramshahr port city connects the state railways network to the international shipping lines. 

Administration of Air Transportation Network

There are over 28 domestic airports in the country that are operating round the clock with 7 international airports and 6 exclusive bases of the National Iranian Oil Company. These is also another airport in Tehran's suburbs (Payam Airport), which is affiliated to the Ministry of Post, Telephone and Telegraph. Airports in Tehran, Isfahan, Shiraz, Mashhad, Tabriz, Bandar Abbas and Ahvaz are open to international traffic. A number of 8 million passengers inside and 1.7 million outside the country use the air transportation facilities annually. 

Iran's most expanded and the sole flag carrier is Iran Air (Homa) whose share in transportation of passengers in the Iranian calendar year 1377 (1998-99) was 5.8 million within and 1.4 million outside the country. Iran Air makes 65 international flights to 23 destinations in the world weekly. Major international fights are being made from Tehran airport as well as Isfahan, Shiraz, Mashhad, Tabriz, Bandar Abbas and Ahvaz airports. 

Administration of Marine Transportation Network

The Lake Urmia is the main sea route for transportation of cargo and passenger in the East and West Azarbaijan provinces. However, the tourist attractions of the lake are much more important than its role in the sea transportation. 

There are two major shipping lines in the Caspian Sea; the Baltic Sea-Volga-Caspian and the Black Sea-Volga-Caspian. 

The Volga-Baltic Canal is open for five months in the hot season while Volgaden Canal is open to navigation for 7 months. The Caspian Sea plays a share of about 2 percent in the total international transportation of goods in the country. 

Persian Gulf and Gulf of Oman

The main routes are Bandar Abbas and Bandar Imam to Europe, Asia, America; Bandar Abbas to Dubai; Khorramshahr to Kuwait and Bushehr to Qatar. 

Iran is also connected to Western Europe, the Mediterranean and Central Asia through combined land and sea transportation facilities. 

Ports and Shipping Organisation

The Ports and Shipping Organization operates under the supervision of Road and Transportation Ministry and is in charge of the administration of trade ports in the country. The head of the organization is a deputy road and transportation minister. The organization has a personnel of 6,000 who are operating in the organization's branch offices in Bandar Imam, Bushehr, Bandar Abbas, Chabahar, Khorramshahr, Abadan, Anzali, Nowshahr, Urmia and its headquarters. 

Administration of ports and marine installations, building and management of ports facilities, formulation of ports and marine regulations, administration of loading and unloading operations, installation of navigation devices and inspection of ships are among various responsibilities of the organization. 

Specifications of Transportation Services

  • Transportation services play a significant role in meeting demands of people and their travel both inside and outside the country. Those transportation services that embody the entire population are of government nature. 
  • Transportation services highly influence the country's economy, as they should meet public demands and help in distribution of industrial products. 
  • Establishments such as airports, ports, railroads and international terminals for foreign trade are vitally important for the preservation of relations with foreign countries and are being assessed as important means in the foreign policy of every country. 
  • Some transportation services demand heavy costs and are in need of constant updating on the basis of modern technology. 
  • Transportation services are being rendered through various mediums such as ports, shipping, airlines, airports, railroads, forwarding companies, warehouses companies, buses and taxis. 
Government's Necessary Controls (Roads and Transportation Ministry)

Transportation services are mainly handled by the private sector in many economically developed countries. Although interference of the public sector is necessary for offering better constant services, however, government's supervision should be conducted in the following areas: 

  • Compilation of the general transportation policies of the state 
  • Guaranteeing reliable constant services 
  • Keeping prices at suitable level 
  • Guaranteeing security and quality of transportation services 
  • Coordination of transportation services 
  • Technological progress in transportation area 
  • Compilation of transportation regulations 
  • Supervision and promotion of transportation jobs 
  • Pooling transportation data and information 
  • Caring for international transportation relations 
  • Formulation of technical standards in transportation field
POWER

Electric Power

Iran has installed power generation capacity of about 27 gigawatts (GW), with around 64% of thermal plants natural gas-fired. With power demand growing rapidly, Iran is adding significant generation capacity -- both thermal and hydroelectric. The largest hydro project is the 2,000-MW Godar-e Landar dam. 

A number of new power plants have come online recently in recent years in Iran, including the Mitsubishi-built, 2,000-MW Shahid Rai thermal power station in Qazvin, a 1,290-MW combined-cycle plant in Rasht, and a doubling of the Tabriz power plant's capacity to 1,500 MW. Iran continues to add power generating capacity at a rapid pace. According to Minister of Energy Habibollah Bitaraf, Iran's annual power consumption is growing and Iran's power generation sector will require billions of dollars in foreign investment over the next few years. Iran has received offers for investment in the form of loans and build-operate-and-transfer-contracts (BOT). BOT contracts allow the investing company to build and operate the generating facility for a period of 15-20 years, after which time the plant is turned over to the Energy Ministry. Negotiations have taken place with international energy firms on expansion plans for power plants at Bandar Abbas, Shaid Rajai, Alborz, Ramin, and Kerman.

Nuclear

Currently, Iran has five small nuclear reactors, one in Tehran and four in Isfahan. Iran claims that its nuclear power is for peaceful purposes and that it will help free up oil and gas resources for export, thus generating additional hard-currency revenues. The U.S. State Department frequently has stated US opposition to Iran's nuclear program. The United States has argued that Iran has sufficient oil and gas reserves for power generation, and that nuclear reactors are expensive, unnecessary, and could be used for military purposes. Iran is a signatory to the Nuclear Nonproliferation Treaty.

Work on Bushehr had begun in 1974, but was halted (80% complete) following the 1979 Islamic Revolution. In January 1995, progress on Bushehr resumed when Russia signed a $780-million contract to complete the facility. The Russian deal calls for completion of the two 1,300-MW pressurized-light water units as well as the supply of two modern VVER-440 units. The United States strongly opposes the project and has in the past provided Russia with information pointing to the existence of an Iranian nuclear weapons program. Despite this, the Russians have proceeded, although slowly, with work on Bushehr. A final completion date currently remains uncertain. 
 

TELECOMMUNICATIONS

Telephones - main lines in use: 7 million (1998 est.) 

Telephones - mobile cellular: 265,000 (August 1998) 

Telephone system: inadequate but currently being modernized and expanded with the goal of not only improving the efficiency and increasing the volume of the urban service but also bringing telephone service to several thousand villages, not presently connected domestic: as a result of heavy investing in the telephone system since 1994, the number of long distance channels in the microwave radio relay trunk has grown substantially;many villages have been brought into the net; the number of main lines in the urban systems have approximately doubled; and thousands of mobile cellular subscribers are being served; moreover, the technical level of the system has been raised by the installation of thousands of digital switches international: HF radio and microwave radio relay to Turkey, Azerbaijan, Pakistan, Afghanistan, Turkmenistan, Syria, Kuwait, Tajikistan, and Uzbekistan; submarine fiber-optic cable to UAE with access to Fiber-Optic Link Around the Globe (FLAG); Trans Asia Europe (TAE) fiber-optic line runs from Azerbaijan through the northern portion of Iran to Turkmenistan with expansion to Georgia and Azerbaijan; satellite earth stations - 9 Intelsat and 4 Inmarsat;Internet service available but limited to electronic mail to promote Iranian culture.

 
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