Summary: Despite US sanctions and blockades, Iran is accelerating the use of the rail corridor connecting it with China, prioritizing it over maritime routes. Roshanbakhsh Kanbari stated that goods transported via the Iran-China rail route take about 15 days instead of 45 to 50 days. However, each train carries roughly 1,000 tons and requires container transfers at border points, limiting capacity and increasing costs. Iran has formed an emergency committee to prioritize imports of food, medicine, medical equipment, and raw materials. Kathmandu, October 11.
Facing severe challenges caused by US sanctions and tensions, Iran has expedited the development of an alternative trade route through its northern borders. Following US naval blockades and reduced maritime traffic through the Strait of Hormuz, Iran has given precedence to overland and rail corridors linking it with China. According to Roshanbakhsh Kanbari, Deputy Head of Iran’s Trade Promotion Organization, the Iran-China rail corridor has been operating continuously for several months despite sanctions and obstacles. Speaking to Tasnim News Agency on September 25, Kanbari explained, “Maritime transport between Iran and China used to take 45 to 50 days, but the rail route has reduced this to around 15 days. This 35-day time saving is a significant advantage for trade.”
This rail route begins at the Pishgaman dry port in Yazd province in central Iran, passing through Isfahan, Turkmenistan, and Kazakhstan before reaching the Yiwu inland port in China. While faster in terms of transit time, authorities have pointed out that the rail route’s cargo capacity remains far lower than maritime shipping. Kanbari noted that one train can carry about 1,000 tons, compared to much larger loads on ocean vessels. Due to this limited capacity, traders often have to wait to send goods. Another challenge is the different rail gauges in Turkmenistan and Kazakhstan, requiring containers to be transferred from one train to another, which adds time. To reduce costs, Iran has set up arrangements for cargo handling on both sides of the border. Previously, all empty containers returned from China, but now Iranian exporters have begun shipping goods in those containers. Nevertheless, shipping by rail is still more expensive than by sea. Kanbari emphasized, “Iran should not rely on a single route. A coordinated approach involving rail, road, and maritime transport is essential to develop new trade corridors.”
US sanctions have caused a sharp drop in Iran’s oil exports. According to US energy data, daily oil flow through the Strait of Hormuz was 21 million barrels in 2025 but decreased to just 4.9 million barrels by the second quarter of 2026. To prioritize essential imports, Iran has established an emergency committee. Currently, only imports of food, medicines, medical devices, and raw materials (under roughly 2,500 to 2,800 tariff codes) are permitted. Maintaining trade with China and facilitating the supply of critical goods, this rail corridor offers substantial relief for Iran. However, due to limited cargo capacity, technical complexities at border areas, and higher shipping costs, analysts remain uncertain if the rail route can fully replace maritime trade. It remains to be seen how significantly this development will strengthen the Iranian economy over the long term.
