
Iran is increasing the use of Iran-China Rail Corridor to transport goods to China after increasing pressure on sea trade routes due to US sanctions, which has reduced the transportation time from 45-50 days to 15 days, but due to limited capacity of the rail route, different rail gauges and border bottlenecks, it has not become a full alternative to sea transportation.
AI-generated summary
Due to US sanctions, pressure on Iran's maritime trade routes has increased, leading to a sharp decline in oil exports and also affecting oil supplies to China, while China is Iran's largest oil buyer.
America's sanctions on Iran have increased its difficulties considerably.
But now he is trying to find a solution to it.
Iran, caught in the war with America, is now increasing the use of alternative trade routes passing through its northern borders.
Difficulties in transporting goods through sea routes have increased the pressure on Iran's traditional trade routes.
A senior official of Iran's Trade Promotion Organization has said that the time taken for goods to reach China through a corridor has significantly reduced.
But amid America's tight naval blockade, the capacity of this rail route is much less than the shipping route.
Apart from this, problems also arise due to border barriers and different rail gauges.
Meanwhile, Iran has given priority to food items, medicines, medical equipment and essential goods used in production.
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This raises the question whether these alternative routes being built through land can reduce Iran's dependence on sea trade.
How does this rail route work?
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Roshanbakhsh Qanbari, deputy head of international trade development at Iran's Trade Promotion Organization, said the Iran-China rail corridor has been running for several months despite difficulties and obstacles. Traders from both directions are sending goods through this route.
In an interview given to Tasnim News Agency on September 25, Qanbari said that it can take 45 to 50 days for goods to reach between Iran and China by sea, while by rail this time reduces to about 15 days.
According to him, this saving of about 35 days is a big benefit for the business and with this the goods can be delivered faster.
This rail route starts from Pishgaman Dry Port located in Yazd province of central Iran.
After this, it passes through the dry port of Isfahan, passes through Turkmenistan and Kazakhstan and reaches Yiwu Inland Port of China.
According to Qanbari, one reason for choosing this route was that Iran's business processes were already linked to Shanghai. Therefore, businessmen did not need to make major changes in the existing system.
However, he admitted that the capacity of rail route cannot be as much as sea transport.
According to him, a train carries about 1,000 tonnes of goods, whereas ships can carry much more goods.
He said that due to limited capacity of the railway route, one has to wait for the goods to be sent.
What are the advantages and disadvantages
Another big problem facing this railway route is the difference in gauge of railway tracks at different places.
Qanbari said that while passing through Turkmenistan and Kazakhstan, at some places containers have to be transferred from one train to another.
This causes delay. Iranian officials are trying to solve this problem.
Iran has also emphasized on the arrangement of sending goods in both directions to reduce the cost of transportation.
Earlier, after delivering goods to Iran, containers often returned empty, which increased the costs for traders.
Qanbari said that after efforts of the last seven-eight months, Iranian exporters are now able to send goods in containers even on the return journey.
This has reduced costs to some extent, although rail transport is still more expensive than sea transport.
Qanbari stressed, "Iran should not depend on any one route. It should use rail, road and sea transportation together, so that new trade routes can be created."
How is Iran maintaining the supply of essential goods?
The emphasis on alternative routes has increased at a time when conflict and the US blockade have created major obstacles to Iran's maritime trade.
According to a Reuters report in early September, Iran's oil exports have declined sharply due to US sanctions.
These sanctions have also affected the oil supply to China, whereas China is the largest buyer of Iran's oil.
Normally about 20 million barrels of oil and petroleum products pass through the Strait of Hormuz every day.
But there has also been a huge decline in commercial traffic from here.
According to the US Energy Information Administration, the oil flow from here decreased to 49 lakh barrels per day in the second quarter of 2026, whereas in 2025 it was about 21 million barrels per day.
After this, Iran has increased emphasis on transporting goods by land through Central Asia and its other northern neighboring countries.
However, the capacity of these routes is much less as compared to sea transportation.
Qanbari said that after the recent developments, an emergency committee has been formed to give priority to essential imports.
Food items, medicines, medical equipment and goods necessary for production are being given priority.
He said that at present importers are allowed to import goods with about 2,500 to 2,800 tariff codes. Goods outside this list cannot be imported.
Will this rail route strengthen Iran?
Iran is using many alternative routes, including this rail corridor, to continue trade with China and ensure the supply of essential goods amid pressure on sea routes.
The biggest advantage of the rail route is its short transit time. But its limitations are also not less.
Questions like low capacity to transport goods, border problems, ongoing sanctions and the benefits and costs for China of trade with Iran are major challenges facing this plan.
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AI outlook — possibilities, not facts
Iran may increase investment in infrastructure to increase rail route capacity
Possible · Within months
Iran will pay more attention to the combined use of rail, road and sea transportation
Likely · Within weeks
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