Kazakhstan and Iran expand transit and logistics cooperation

Kazakhstan and Iran are expanding their logistics and transit cooperation to strengthen trade routes between Central Asia, China, and the Persian Gulf. Cargo transit through the International North-South Transport Corridor rose 12% in 2025, reaching 3.5 million metric tons, while direct rail traffic between Kazakhstan and Iran increased by 69% during the same period.

To secure a long-term presence, Kazakhstan signed an agreement in June 2026 to build a dedicated transit and logistics terminal at the Shahid Rajaee port near Bandar Abbas. This 15-hectare project will operate under a build-operate-transfer (BOT) model with a 27-year contract, including 25 years of operation by Kazakh companies.

Additionally, Iran’s transport minister, Farzaneh Sadeq, highlighted the strategic importance of the Incheh Borun logistics hub in Golestan province. The hub is attracting investment from Russian and Kazakh companies to facilitate cargo movement from China and Central Asia toward Europe. Recent legal resolutions have allowed the center to begin utilizing its full capacity, fostering increased private sector activity and strengthening the North-South and northeast-west corridors.