GeneralExplosion at Iran's Largest Commercial Port and Its Impact...

Explosion at Iran’s Largest Commercial Port and Its Impact on the Economy

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With the explosion on April 26, 2025, at Rajaei Port and the subsequent halt of operations there, approximately 57 percent of Iran’s nominal cargo handling capacity has been taken out of service. This port does not play a major role in the trade of essential goods but holds a special position in the oil products sector.

The Marine Affairs Department of the Ports and Maritime Organization of Hormozgan Province, located in southern Iran, announced after the explosion that maritime and port operations at Rajaei Wharf in Bandar Abbas have been temporarily suspended.

Despite claims by the Iranian regime’s Minister of Roads and Urban Development and some regime-aligned media outlets about the resumption of operations at Rajaei Port, the port is still burning.

At Least 40 Killed in Explosion of Extremely Dangerous Cargo at Rajaei Port in Southern Iran

This port, one of Iran’s most important economic terminals, has been burning since noon on Saturday, and the extent of the damage caused by three explosions and more than 36 hours of burning cannot be fully assessed until the fire is completely extinguished.

It is estimated that each day of the port’s closure inflicts approximately 25 million dollars in losses on Iran’s economy.

Data from the Ports and Maritime Organization of the Iranian regime shows that 57 percent of the country’s nominal commercial port capacity is concentrated at Rajaei Port. This port has a capacity of 160 million tons. The second largest, Khomeini Port, has a nominal capacity of only 60 million tons. The next one, Anzali Port, with a capacity of 13.6 million tons, is located in the north of the country and, due to its geographic position, plays a limited role in international trade. Bushehr Port also has only a nominal capacity of 13.4 million tons.

In the container sector, out of the 11 active ports in Iran, 77 percent of the country’s nominal container handling capacity—equivalent to 6,650,000 TEU (Twenty-foot Equivalent Unit, a standard measure where one 20-foot container equals one TEU)—is concentrated at Rajaei Port. The next port in this sector is Bushehr, with a registered capacity of only 550,000 TEU.

From March 21, 2024, to March 21, 2025, out of a total of 158,455,624 tons of goods transported through 21 ports across Iran, about 51 percent—equal to 81,020,482 tons—were either loaded or unloaded through Rajaei Port.

Approximately 52 percent of all oil products imported or exported through Iran’s 21 ports passed through Rajaei Port. From March 21, 2024, to March 21, 2025, out of a total of 52,542,000 tons of oil products, 27,149,000 tons were either loaded or unloaded at this port.

Share in Foreign Trade

Out of Iran’s total foreign trade worth 130 billion dollars from March 21, 2024, to March 21, 2025, based on customs data from the Iranian regime, 29.197 billion dollars were conducted through the “Special Economic Zone of Rajaei Port,” indicating that this zone accounts for twenty-two percent of the country’s total foreign trade.

In imports, out of a total of 72 billion dollars in goods brought into the country, 20.254 billion dollars were imported through this zone, reflecting a 21 percent share. In exports, out of 58 billion dollars’ worth of goods exported, 8.944 billion dollars were shipped through this zone, indicating a fifteen percent share.

Estimating the Impact of Port Activity Suspension

In May 2024, about half of the country’s total cargo handling, equivalent to 6,844,265 tons, was carried out through Rajaei Port. Eighty-seven percent of containerized goods during the same month, equivalent to 1,886,536 tons, were loaded or unloaded at this port.

Based on this, it can be estimated that each day of halted activity at this port would equate to a stoppage of approximately 221,000 tons of various goods and 61,000 tons of containerized goods. Additionally, in May of last year, about half of the country’s oil products—equivalent to 2,309,000 tons—were transported through this port, meaning that each day of suspension would result in the delay of approximately 75,000 tons of oil products.

 

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