By Mehdi Garshasbi

Parsian, Iran’s potential hub for energy-intensive industries

June 6, 2023 - 9:26

PARSIAN, Hormozgan - In line with the national policy for optimal utilization of the country's resources for economic and social development, the expansion of oil and gas processing units to avoid sales in crude form, and feed energy-intensive industries has been emphasized.

This emphasis is based on the fundamental role of oil and gas resources in supplying the energy needed by different production sectors to generate income for the country.

Energy-intensive industries heavily rely on energy inputs. Examples include aluminum smelting, concrete manufacturing, iron and steel-making, oil and gas, and various other mineral processing operations.

Parsian Port, located in the Parsian Energy-Intensive Special Economic Zone, southern Hormozgan province, is projected to be the main gateway for importing raw materials and exporting products related to mining and petrochemical industries.

Parsian, Iran’s potential hub for energy-intensive industries

The port will be the first and largest port in Iran that will meet the needs for loading and unloading raw materials and products for the four major energy-intensive industries, namely petrochemicals, steel, aluminum, and cement in the region.

According to the market and feasibility studies, the port will have a nominal capacity of about 40 million tons per year.

It will be comprised of 19 berths for commodities, dry bulk, bulk liquids, and container goods. Buoyancy capacity is about 6,000 containers, 70,000 tons of commodities, and 100,000 tons of dry bulk with a maximum draft depth of 17 meters.

The first phase of the port, which includes 1,500 meters of water breaker and four berths with a capacity of loading and unloading of about 9 million tons of goods per year, has been inaugurated. 

The development plan has envisaged building 11 berths for commodities, one berth for bulk liquids, one berth for general cargo/container goods, one container berth, and five berths for dry bulk.

So far, site selection studies and master planning for energy-intensive industries; product market studies; primary design studies; environmental studies; reviewing and analyzing the master plan; feasibility studies for petrochemical plants and non-industrial units; and transportation and traffic management studies have been carried out.

Also, the construction of office buildings, entrance gates, and roads; infrastructure facilities and service sites; a loading terminal; power stations; green spaces; flood control structures; surface water collection systems; and gas pressure reduction and distribution stations are on the agenda.

Regarding infrastructures, more than 58 kilometers of border fence for customs; more than 58 kilometers of main and side roads, including 20 kilometers of road to connect northern and southern sites; some 18 kilometers of power distribution lines; two water storage facilities at the northern and southern sites; a water supply network with a capacity to provide 30 liters of water per second; and green spaces around passageways have been created.

In the field of permissions, necessary approvals from the cabinet of ministers and the Majlis (parliament) have been received. 

Moreover, environmental permissions have been received from the Department of Environment.

The permission for allocating 20 million cubic meters of gas per day has been received from the Oil Ministry.

The permission for importing and exporting goods has been received from the Customs Administration.

The Port is also authorized to fulfill currency exchange for investors and has received permission from the Ministry of Interior for determining marine borders.

Meanwhile, plots of land have been allotted to Parsian Port by the Ministry of Agriculture and the Iranian Mines and Mining Industries Development and Renovation Organization, known as IMIDRO.

Necessary permissions have been received from the Department of Environment for establishing a water desalination plant with a capacity of 280 liters per second.

And finally, the Ports and Maritime Organization has issued permission for launching and commissioning Parsian Port. 

The most important opportunities for investment include the production of petrochemicals, production of steel parts, production of aluminum, and production of alumina.

The investment opportunity is also provided for building combined-cycle power plants, and desalination plants.

Development projects in the downstream sector include creating an industrial park for steel, petrochemical, and aluminum industries; building water storage facilities and reservoirs; constructing rail and road terminals; establishing an industrial park for small industries; building technical service and support units; and constructing hotels and tourist accommodation complexes.

Generally speaking, the main advantages of investment in special zones are the possibility of importing goods that are exempted from customs duties; the exemption of customs duties for supplying goods manufactured in the special zone to the mainland in contrast to the value-added products and the materials used by the domestic market; and the possibility of transiting and re-exporting of goods without any limitations.

From other advantages, it can be referred to the possibility of making investments by both Iranian and foreign entities; tax exemptions; facilitated banking, monetary, and currency exchange affairs; and easy regulations for recruiting foreign nationals.