World meat industry news

The traffic jam in the Suez Canal that threatened to further shatter global trade has shown the importance of alternative routes, like the one linking Russia and India via Iran, Russian Foreign Minister Sergey Lavrov has said.

The multinational trade link, officially known as the North–South International Transport Corridor (ITC), is one of the major infrastructure projects in the region, the Russian diplomat said in a recent interview to IRNA news agency. He added that the route could be a “basis for the creation of a single ‘seamless’ transport, logistics, and economic space” between Iran and Russia, which will host most of the corridor’s land route.

“Addressing such a task appears especially relevant at the moment when the recent incident with the blocking of the Suez Canal has highlighted the need for reliable land transport routes,” Lavrov said. 

In March, the narrow but vital waterway along Egypt, which accounts for about 15% of global shipping traffic, remained blocked for six days after a massive container ship got stuck there. The blockage of the shipping artery resulted in losses for shippers and forced some to reroute their vessels. It also put more pressure on supply chains, which were previously crippled by the coronavirus pandemic. 

Both Russia and Iran have been investing in infrastructure projects that are necessary for the implementation of the North–South ITC. According to Lavrov, Russia launched relevant plans and programs, including for the Caspian Sea region. Meanwhile, Tehran is building approaches to the Anzali Free Trade Zone, which has maritime links with ports in the Caspian Sea basin.

“This will substantially boost the competitiveness of the North–South ITC and its attractiveness for shippers,” the foreign minister noted. 

The 7,200-kilometer-long trade route is set to connect Russia, India, Iran and Azerbaijan. Trade via the North–South ITC is expected to benefit companies, allowing them to lower shipping times and cut transportation costs.