In order to reduce dependence on maritime routes, especially under sanctions, Iran has turned to activating its land and northern corridors. The Minister of Economy, Ali Madani Zadeh, emphasized the necessity of developing trade through the northern borders of the country during his visit to Moscow and stated that a significant share of imports and exports should be shifted from southern maritime routes to the northern borders.
Existing Capacities in Land Corridors
Iran, having seven land neighbors and access to the Caspian Sea, has several routes to Russia, Central Asia, Turkey, Iraq, Pakistan, and the Caucasus. According to reports, the annual capacity of Iran's northern ports is over 30 million tons, of which less than one-third is currently utilized. This indicates the high potential of these ports for transporting grains, foodstuffs, and general cargo via the Caspian Sea.
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Turkey is also considered one of the trade routes to Europe. Rail transport between Iran and Turkey is particularly dependent on the Lake Van ferry boats, which transported about 477 thousand tons of cargo in 2024.
Challenges and Obstacles in Land Routes
Jeffrey Ghaderi, a member of the Economic Commission of the Islamic Consultative Assembly, stated regarding the existing challenges that 83% of Iran's 210 million tons of imports are traditionally conducted through southern maritime borders. He also pointed out the high costs of transporting goods via roads, stating that the cost of transporting a container from China to Iran through southern ports is about $3,000, while the cost of moving the same container overland is nearly $12,000.
With about 2 million incoming containers from the south each year, Ghaderi estimates that a long-term shift to land routes could add about $18 billion to Iran's trade costs.
On the other hand, Amoud Shokri, an energy strategist, pointed out that Iran is currently considering two types of alternatives for its trade: one is alternative navigation routes around the Strait of Hormuz, and the other is shifting trade towards Pakistan, Iraq, Turkey, and the Caspian region.
Shokri added that none of these routes can fully replace energy exports from the south. A large oil tanker can transport about 1.5 to 2 million barrels of oil, and repeating this volume via road requires thousands of trucks.
Overall, land corridors can help Iran maintain essential economic activities, but these routes face higher costs and limited capacities. With continued investment, this blockade may create opportunities to accelerate infrastructure projects that were previously considered long-term opportunities.
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