Decline in Iran’s Transit Importance for Turkey

TEHRAN (Iran News) She added that Central Insurance, being a government entity, has been removed from the process of issuing Green Card insurance for Iranian drivers. Instead, the reinsurance company now acts as the representative of COB. However, as this is still in the trial phase, it is not issuing insurance policies yet.

Ghanbarpour explained the reasons for halts in the movement of Iranian and Turkish trucks at the border between the two countries:

“The Transport Commission of the Iranian Chamber of Commerce had previously warned, in a meeting with the Anti-Smuggling Task Force, about the repercussions of imposing fuel taxes on Turkish trucks transiting through Iran. Such measures would lead to reciprocal actions by Turkish authorities.”

She emphasized: “Our officials fail to recognize that Iran is surrounded by corridors, faces sanctions, and lacks Green Card insurance. Despite this, when taxes were collected from Turkish trucks and deposited into the treasury, authorities welcomed the revenue without considering that the cost of losing Turkey’s transit trade exceeds the revenue gained from selling fuel at the differential price charged to foreign and even Iranian trucks. The Ministry of Foreign Affairs has also failed to respond to the Chamber’s letters on this matter.”

Ghanbarpour highlighted that Turkey, with its access to corridors, developments in Syria, and access to the Red Sea, is gradually reducing its reliance on Iran’s transit routes. She added:

“Corridors such as Basra and Zangezur are being established. Currently, Turkish trucks transit through Iran to deliver goods to Qatar and the UAE. However, once the Basra Development Road becomes operational, Iran’s role in trade between Europe, Turkey, and Gulf nations will diminish. These corridors will replace Iran’s rugged roads as the preferred transit route for Turkish and European goods. These challenges have weakened Iran’s bargaining power in negotiations with Turkey.”