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News ID: 75530 |
Publish Date: 11:05 - 12 August 2017

JCPOA: Start of a New Era for IRISL

Given the new setting in Iran’s maritime industry and the most recent developments in this industry worldwide, MANA correspondent conducted an interview with IRISL General Manager of International Affair, Captain Abdolreza Valefi. This first part will focus on the first two questions.

JCPOA: Start of a New Era for IRISL
Given that the sanctions on Iran’s national fleet have been lifted, what plans has IRISL made in order to promote its current position and thrive? 
It is well known to all that IRISL as national shipping company of Islamic Republic of Iran has been under , what they recall , crippling sanctions of USA and European Union as well as unilateral sanctions imposed by certain countries. Nonetheless, IRISL could overcome hardship of sanctions and survive that constraining condition. Banking transaction , maintaining agencies network, cargo documentation and issuance of B/L, privileges in using IACS member classification societies as well as international hull and machinery insurance companies and IG group members of P&I clubs and flying flags of convenience in compliance with charterers need are among those constrains which might be pointed out here. Though, despite all these limiting conditions, IRISL could fulfill its obligation and meet the very basic requirements of the country in marine transportation sector to its best. IRISL took the consequences of all those years on its shoulder. Absence of standard spare parts and access today’s technology had its own effects on maintenance of fleet vessels and the relation with charterers and clients were affected in view of impose of those limitations. Lifting sanction, following implementation of JCPOA on January 2016 opened a new era for IRISL to initiate an effort to compensate losses and damages sustained to the company during these eight years and also to pursue its strategic plans in many aspects including fleet expansion and regaining its share from the market, mindful to promote the brand of IRISL among top world carriers. The change in circumstance was drastic. Presence of myriad foreign delegation and shipping corps in IRISL headquarters in an attempt to make a tie in various sectors such as technical cooperation, chartering, new building, finance, insurance and brokerage were the first signs of an atmosphere free from any obstacle and sanction. Many MOUs and Agreements were signed and establishment of many Joint Venture Companies were agreed, demanding an immediate effort to make the plans operational towards the interest of the company, and ultimately the country. Finalizing the old building projects with HHI is perhaps the golden achievement of the company in which the blocked fund of IRISL after eight years was converted to new building contracts of modern vessels to the today’s need of charterers and clients with full conformity with trade patterns and country’s need. The price of the vessels were also modified from the highest in 2008 market to today’s price. The entire project was also subjected to Finance of Korean banks. In any aspect you look to the gained package, you would find a sterling success which in turn implies sincere effort put during the negotiation. See a need to highlight here the extraordinary effort put personally by the chairman and Managing Director of IRISL during these negotiations driving ahead the policies and serving the interests of the company to its best. Also, support of the board of directors members during the meetings is among those factors ensured the success of negotiation, without which, this achievement would not have been possible.
Considering the shipping and maritime industry is moving toward digital smart technologies, what plans do you have to adapt yourself with this new trend?
Digitalizing all the steps required to move a container from one part of the world to another could take a large amount of cost out of supply chain, besides technology provides us with possibilities to do different things that we could not do until few years ago. However, reviewing the history of e-commerce in the container shipping sector clearly shows that none of new initiatives being launched now are truly new. Digitalization will mean a change of behavior by both carriers and shippers But it could go very fast once you have the capability to deliver the customer experience. How it will alter container shipping and whether the impact will be positive or negative, is hard to say. What I do think is that change will come. Even the biggest and most technologically advanced companies realize that they will have to look outside, and beyond the traditional maritime sector, to find the knowhow they need The general believe is that it will bring in new customers and eventually offer better services and save costs. And hence in today’s environment, you cannot afford not to go digital. At the moment, there may be many interactions involving documentation along the supply chain that could be digitalized. Typically, the shipper and consignee may have to deal with tens of different entities, such as customs, terminals, forwarders and carriers, creating a stack of paper required to arrange a shipment. Container lines are buying in skills as they prepare to digitalize the services they offer, without having a clear idea of how their companies are likely to change in the era of Amazon, Uber and Alibaba. Both Maersk and CMA CGM, two of the world’s largest container lines, have spoken frankly about the challenges they now face as the business world and customer behavior continues to evolve at astonishing speed. Maersk is also gearing up for the digitalization of container shipping services which, could happen quite suddenly. This potential rapid change has persuaded Maersk and CMA CGM — and presumably others — that they need to acquire new skillsets quickly could be a provoking concern for IRISL. However, it is very important to note that not everyone is convinced that digitalization is going to transform the container shipping world beyond all recognition.
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