November 28, 2022
Logistics industry in Iran requires a complete change
2018/03/03 | 08:51
A member of board of directors in parts-makers association:

Logistics industry in Iran requires a complete change

This change should be done as soon as possible to see the growth of industries specially parts-making and automotive industry in our country.

According to the PersianKhodro report,Transport is one of the main necessities of a developing economy and it could be considered an industry. Domestic and international transport industry could be the reason for prosperity in economy of a country because it is possible to have inexpensive import and export with a proper transport system. Of course we cannot ignore transport and logistics easily for providing requirements of productive companies and huge industries like automotive industry.
Peyman Yazdanbakhsh, the member of board of directors in parts-maker association and automakers had an interview with us about the importance of logistics in industry and investment in this part. In the following we can read the result of the interview.

- First of all thank you for your time. How and where does logistics in the country begin?
It is better to start with this sentence: logistics industry has two functions for automotive industry. First, carrying materials to parts-makers and then sending the produced part to automakers. In both categories, distributing materials and final products are very highly important. Unfortunately logistics has not been considered well by now. In the territory of materials government should plan certain ways so that materials are distributed easily for lower industries. It should be planned in a way that materials spread equally in the whole country. Unfortunately, in some industries, one of the reasons of concentrating is the weakness of logistics.

- What do the parts-makers concentrate at the moment in the whole country?
In sheet territory we have concentration in the center of Iran and we can distribute alloyed sheet to the whole country from that part. At the moment 360 parts-makers are actively providing the required parts for automakers and 60% of them are concentrated in Tehran and the reason is easy logistics and proximity to automaker. In logistics of petrochemical material and upper industries we can see a proper division in the country.

- What are the effective things in logistics of automotive parts?
The price of energy is the first effective is the first effective element the length of the route for carrying materials set the price of energy. The price of energy has also an influence on the price of the final product. One of the important reasons for concentration of parts-makers in Tehran is the price of the fuel for transport as well.

- Our country has advantages for transport, do these advantages influence on absorbing foreign investors?
Sure, 100%. Iranian railway is very effective in transporting materials and final products and we have an improving marine and aerial transport in our country and we can profit all these only by completing and resolving defects. But for becoming better and progressing, we need to invest for road transport because this part of transport is more effective in parts-making and automotive industry and unfortunately, there are still important weak points.

- Have automakers done anything to develop logistics yet?
Fortunately, at the moment one of the big automakers has started a distribution network so that all the transmitted parts in different cities loaded on truck in the road and they are carried to the destination. This can make the parts-makers invest in the whole country without being worried for on time transmission of products to automakers. In china, they used the transport of the army freely to improve their own industrial progress so transport of materials was with the same price in the whole country. This action of Chinese government helped parts-maker develop around the country equally.

- If well-known brands were going to invest in our logistics, what advantage of our country would be more attractive?
First point is low price of fuel in Iran. The price of gasoline in Iran is a tenth of our neighbors and this is a great advantage. If infrastructures of roads in the country became suitable, the routes to the world could be an advantage for Iran. Of course we cannot ignore the presence of different and vast industries because we have the industries in Iran which are dependent on logistics and transport. It means investing in transport system would be profitable and in future we could see big logistics companies of the world invest in Iran by solving problems and defects.

- What are the approaches for a better investment?
This is so important and necessary to transfer a good knowledge about our country and its advantages to foreigners. If our big industries start to move forward to modern management we will certainly have the presence of great brands in Iran. But the best way is to use the experiences of successful companies in the world in logistics industry and upgrade our knowledge and technology about transport. We need to upgrade the soft-wares and hard-wares to enter the new world of transport. This change should be done as soon as possible to see the growth of industries specially parts-making and automotive industry in our country.