Supply chain sustainability depends on alternative corridors development

TEHRAN- The Director General of the Readiness and Support Office of the Trade Promotion Organization of Iran, while emphasizing the shift in international trade priorities following geopolitical developments and global crises, stated that the continuity and sustainability of goods transit routes under any circumstances is one of the main requirements of international trade.

According to the Public Relations Department of the Trade Promotion Organization of Iran, Seyed Ali Emami, referring to recent developments in the global economy and trade, said: "In the past, the main focus of countries was on increasing competitiveness and enhancing the ability of goods to be present in international markets. However, the occurrence of crises such as the coronavirus pandemic and international wars has changed the priorities and approaches of global trade."

This official at the Trade Promotion Organization of Iran, emphasizing that the competitiveness of a commodity in the target market is not sufficient, clarified: "Ensuring the movement of goods and cargo under any circumstances—in other words, sustainable transfer to the destination market—has become a priority. Therefore, the global economy has been moving towards creating and strengthening alternative routes, corridors, and diverse transport networks."

According to Emami, in the event of a disruption in one of the transport routes, especially maritime routes, the possibility of using alternative land and road routes must be available so that the flow of goods transfer does not stop and products reach target markets on time.

The Director General of the Readiness and Support Office of the Trade Promotion Organization of Iran, referring to the high share of maritime transport in the movement of goods in global trade, stated: "A significant portion of cargo transfer in international trade is done via sea, and land and road routes account for a smaller share. However, recent developments have shown that the development of alternative routes and strengthening transport corridors can play an important role in increasing supply chain resilience and trade sustainability."

He emphasized the necessity of reducing road transport costs and creating the necessary incentives to increase the use of these routes, and said: "We are currently in the stage of testing and examining various routes, and efforts are being made to provide the groundwork for alternative routes to become more active by creating facilities and adopting necessary measures."

Emami also referred to the country's export performance and stated: "The country's exports in this sector have experienced significant growth, although we have faced declines in the area of transit and goods outflow, which requires examination and adoption of appropriate solutions to remove obstacles and strengthen this sector."

In conclusion, the Director General of the Readiness and Support Office of the Trade Promotion Organization of Iran considered the development of transport infrastructure, diversification of goods transfer routes, and strengthening of alternative corridors as fundamental requirements for ensuring the continuity of foreign trade and increasing the resilience of the country's supply chain in the changing conditions of the global economy.

EF/MA