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Iran Railway Report Pdf 1.19 MB Download OFFICIAL PROGRAM PARTNER NZ Group IRAN RAILWAY REPORT AN INTRODUCTION TO THE IRANIAN RAILWAY INDUSTRY Date: January 2016 Language: English Number of pages: 29 Author: NZ Group Other sectorial Reports: Are you interested in other Reports for other sectors and countries? Please find more Reports here: s-ge.com/reports DISCLAIMER The information in this report were gathered and researched from sources believed to be reliable and are written in good faith. Switzerland Global Enterprise and its network partners cannot be held liable for data, which might not be complete, accurate or up-to-date; nor for data which are from internet pages/sources on which Switzerland Global Enterprise or its network partners do not have any influence. The information in this report do not have a legal or juridical character, unless specifically noted. Contents 8.1.2. Pride ______________________________ 21 1. FOREWORD____________________________ 5 8.1.3. Sights _____________________________ 21 2. MARKET OVERVIEW ____________________ 6 8.1.4. Clothes ____________________________ 21 2.1. Role of the Rail Sector in Iran ______________ 6 8.1.5. Food ______________________________ 21 2.1.1. Current Status ________________________ 8 8.1.6. Taarof _____________________________ 21 2.2. Transport Policy ______________________ 10 8.1.7. Help ______________________________ 22 2.2.1. Government Policy ____________________ 10 8.2. General Dos and Don’ts _________________ 22 2.2.2. Future Orientation / Vision 2025 ___________ 10 8.2.1. The Dos ____________________________ 22 2.2.3. Strategy and Communication ______________ 11 8.2.2. The Don’ts __________________________ 22 2.2.4. Budget ______________________________ 11 8.3. Cultural Background ___________________ 22 8.4. How To (Greet, Dress, etc.) _______________ 23 3. DECISION MAKING PROCESS ___________ 12 8.4.1. Meeting and Greeting __________________ 23 3.1. Who is Who & Decision Makers ____________ 12 8.4.2. Dress ______________________________ 23 3.1.1. Decision Making Process ________________ 12 8.4.3. Meetings ___________________________ 23 4. PROJECTS____________________________ 13 8.4.4. Negotiations _________________________ 24 4.1. Project List __________________________ 13 8.4.5. Women in Corporate Iran ________________ 24 4.2. Project Access ________________________ 13 8.4.6. Bribery and Nepotism __________________ 24 4.2.1. RAI Procurement Policy _________________ 13 8.4.7. Gifts ______________________________ 24 4.2.2. Foreign Investment Promotion and Protection Act 8.4.8. Alcohol ____________________________ 25 (FIPPA) ____________________________ 13 9. CONCLUSION AND SUGGESTIONS _______ 26 5. MARKET ENTRY BARRIERS _____________ 15 10. SOURCES AND REFERENCES ___________ 27 5.1. General Situation _____________________ 15 5.2. Obstacles and Challenges ________________ 15 11. ATTACHMENTS _______________________ 28 11.1. Appendix 1: Investment Opportunities _______ 28 6. MARKET PLAYERS_____________________ 16 11.2. Appendix 2: FIPPA ____________________ 28 6.1. Overview Competitive Landscape __________ 16 11.3. Appendix 3: Wagon Pictures ______________ 28 6.2. Supplier Landscape (Local vs. Global Players) __ 16 7. IRAN AFTER THE SANCTIONS ___________ 19 7.1. Iran in the World Today _________________ 19 7.2. Government of Iran’s Vision and Reform Agenda 19 7.3. Recent Economic Developments ___________ 19 7.4. Political Developments __________________ 19 7.5. Economic Outlook _____________________ 20 8. DOING BUSINESS IN IRAN ______________ 21 8.1. General Information to Consider ___________ 21 8.1.1. People _____________________________ 21 List of Figures Figure 1: Rail Passenger Rolling Stock Age in Iran .............................................................................................................................. 7 Figure 2: Wagon Types in 2013 ............................................................................................................................................................ 7 Figure 3: Passenger Transport in current Iran ................................................................................................................................... 8 Figure 4: Cargo Transport in current Iran .......................................................................................................................................... 8 Figure 5: Iran Railway Network .......................................................................................................................................................... 9 Figure 6: Existing Network .................................................................................................................................................................. 9 Figure 7: Existing Fleet ....................................................................................................................................................................... 10 Figure 8: Existing Freight and Passenger Transport ......................................................................................................................... 10 Figure 9: Decision Making Process .................................................................................................................................................... 12 Figure 10: The Four Stages to the FIPPA License .............................................................................................................................. 14 Figure 11: Most Important Iranian Market Players in Railway Industries ....................................................................................... 18 1. Foreword 1. Foreword Today, shipping is one of the largest and most important industries in the world which needs continuous investment in its infrastructure and equipment in order to increase speed and to reduce cost. The most efficient and cheapest method, both in passenger and cargo, is still rail transportation. Developed and developing countries have much progress in this field and a large share of the development of its infrastructure is allocated to this sector. Iran is one of the largest countries in the MENA region which has a railway infrastructure for more than 130 years but in the recent decades, especially after the heavy sanctions hit the country, this industry has not seen significant progress. Today after the implementation of the JCPOA (Joint Comprehensive Plan of Action) and the subsequent lifting of major sanctions (Implementation Day, January 2016) the country is able to renew its railway infrastructure. In this report the current status, future plans and the entrance barriers to the Iranian railway sector is discussed. In the cargo sector the need to transport various goods especially petrochemical products to ports has made the development of this sector a priority for the country. Also major projects are defined to increase the railway passenger capacity. Both, cargo and passenger transport, offer one of the most interesting business opportunities in Iran for foreign companies. The rail transport in Iran can be separated in two areas: railway and subway. The railway is managed by the Ministry of Road and Urban Development (central authority) but the subway is managed by municipalities (decentralized authorities). Railway projects are well defined and communicated by the central authority whereas opportunities in the subway and metro sector are decided by local authorities without nationwide standard procedures applied. It has to be said, that the Chinese competitors have a major share in the subway and metro sectors in Iran. Suheil el Obeid Switzerland Global Enterprise Senior Consultant Africa, Middle East, Iran & Turkey Exportieren Stampfenbachstrasse 85 8006 Zürich [email protected] +41 44 365 54 72 +41 79 398 66 4 s-ge.com 2. Market Overview 2. Market Overview 2.1. ROLE OF THE RAIL SECTOR IN IRAN The transportation strategy for the next decade focuses on expansion of the rail sector. The growing significance of Iran as a transit country between Europe, Asia, and Central Asia has made the development of the rail sector a strategic priority. The relevant areas are maintenance, improvement, and reconstruction of existing rails. In 2013, the Ministry of Road and Urban Development announced that more than 10’000 km in new lines would be commissioned, but performance has not exceeded an average 250 km per year. In 2013, the Iranian railways transported around 25 million passengers, which is very low for a country of 80 million. The privatization of rail services and introduction of express trains have had limited impact on these figures. Cargo transportation capacity was more than 150 million tons in 2013, with 22% of that actually utilized. Some 88% of the cargo wagons were privately owned. The low utilization of existing cargo capacity is due partly to the fact that many companies use their cargo wagons as storage units and partly to the fact that the sector has a serious lack of maintenance services. The overwhelming majority of cargo – 556 million tons per annum – is transported by road, so rail cargo transportation has considerable growth potential. Key opportunities in the rail sector are to be found in: Construction and maintenance Procurement of locomotives Procurement of wagons Offering services to optimally utilize the existing infrastructure and capacity (including door-to-door transport) Finding greater energy efficiencies to make prices more competitive with road transportation In the fashion of the aviation sector, the Iranian
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