TEHRAN - Iran's Ports and Maritime Organization (PMO)'s Deputy Head for Ports and Economic Affairs Farhad Montaser Kouhsari says his organization plans to modify the financial framework of its operatory contracts, the PMO portal reported on Sunday.

Given that the framework of PMO contracts has been drafted in the past, there is a need to quickly review and update existing contracts to address the recent challenges posed by sanctions and rising exchange rates, Kouhsari said.

“The private sector has been investing in ports in the face of sanctions and the outbreak of the Covid 19 pandemic, and it is therefore necessary to pay serious attention to their problems and issues,” the official added.

He emphasized that one of the programs of the Ports and Maritime Organization is to change and upgrade the existing contracts of the current port operators at Shahid Rajaei port from short-term management contracts to long-term investment and BOT contracts that would be proportional to the amount of investment.

"If the contract is short-term, port operators will not have a proper security margin," he said.

According to the official, the operators of the mentioned port have contracts that expire in the Iranian calendar year 1402 (begins in March 2023) and PMO expects them to renew their contracts.

He also noted that the general goods terminal in Khorramshahr port has been merged with the port’s container terminal in the operatory contracts, and the same approach will be followed for Bushehr port.

“By modifying and reviewing port contracts and optimal management of them, monitoring the implementation of investment companies’ obligations, especially in providing non-strategic equipment and supplying equipment shortages in ports will be eliminated,” Montaser Kouhsari said.

Iran, which has adopted the strategy of boosting its non-oil export to counter the U.S. sanctions on its economy, has many programs underway for the development of its ports, regarding the significant role of the ports in the promotion of exports.

In this regard, the country has the attraction of investment to the ports on agenda, and despite the restrictions and limitations created by the outbreak of the coronavirus, Iranian ports managed to attract significant investment by the domestic private sector.

EF/MA