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Easing Iranian2 Sanctions Benefits the Air Cargo Industry

As Iranian Sanctions get removed, the industry of logistics is preparing to take benefits. But the uncertainties are substantial, says a logistics consultant. Practice leader of Transport Intelligence, Thomas Cullen, in one of his research notes, said that as some Iranian sanction plan’s aspects were removed, a business flood emerged, most of which required logistics infrastructure.

According to Cullen, Iran importantly requires implementation of more than the present aircraft in order to substitute its fleet worn-out. However, he added, any kind of new fleet requires maintenance and a logistics systems of replacement and its condition are unclear.

Air Cargo News said on Monday that Iran is ready to the long rebuilding process for its fleet of civil aviation, after the removal of sanctions. The nation’s government will mostly sign a decision this week for around 114 aircraft of Airbus in Paris, which will let Iran Air state carrier, as well as other operators, begin the aircraft replacing process which dates to sometime before the 1979 Islamic Revolution.

European airlines also hope to increase services for the nation which has been supported by British Airways and Alitalia Airways of Italy. Cullen also said that many other sectors also stood for benefits coming from the sanction removal while air cargo industry seemed to contribute to these growths.

He marked automotive production as the other prominent area by saying that not much time ago Iran was an important destination for thousands of vehicles completely in the form of a knock-down kit, majorly brought in from France.

Renault and Peugeot-Citroen are up for resuming this activity of business. However, it also requires logistics in the terms of assembly operations and transport. These are usually supplied by other companies local to Iran, but most likely these will also need major redesigning and re-equipping.

The best investment area is the gas and oil sector. There is a belief that the sector’s hydrocarbon production is stressed due to the weak condition of fields of oil and supporting infrastructure. It is assumed that Iranians will invest aggressively for an increase in the output. Specifically, they will most likely require significant new terminals of gas liquefaction.

According to Cullen, it will be easier for people in the country to buy goods from foreign countries, creating opportunities more than the present ones. But of course, an entry into the market has many associated risks.

He also mentioned that there are substantial uncertainties in the market of Iran. There is a chronically unstable political situation and a permanent removal of sanctions is not assured. But its upside potential can alter the forces of the market of logistics over the Mid-East.