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Central Asia Turkmenistan Iran trade Investment

Iran sees transport investment as key to Central Asia trade

BAKU, Azerbaijan, October 5. Investment in transport infrastructure could help reduce the time and financial costs of regional trade with Turkmenistan and Central Asia, Iranian Deputy Minister of Economy and Finance Mehdi Heydari said.

Heydari made the remarks at the Turkmenistan Investment Forum TIF 2026 in Ashgabat, according to a press release published by the Turkmen government press service yesterday.

"Targeted investment in the modernization of railways and roads, bridges, border terminals and logistics centers on the Caspian Sea will make it possible to significantly reduce the time and financial costs of regional trade," Heydari said.

Meanwhile, Iran and Turkmenistan have been working to increase the use of rail links connecting Central Asia with Iran and the Persian Gulf. In September 2025, the two countries discussed increasing transit cargo volumes and activating the China-Kazakhstan-Turkmenistan-Iran railway, as well as the Ashgabat Agreement corridor linking Uzbekistan, Turkmenistan and Iran with Oman. They also discussed the Armenia-Iran-Turkmenistan-Kazakhstan route.

The Uzbekistan-Turkmenistan-Iran route is another focus of regional cooperation. In June 2025, the three countries signed a protocol to develop a multimodal corridor connecting Central Asia with Europe, with measures aimed at increasing freight volumes, streamlining procedures and removing logistics barriers.

Turkmenistan's location gives Central Asian countries access to both the Caspian Sea and Iranian routes toward the Persian Gulf. Uzbekistan, for example, has been increasing the use of Turkmenistan's rail and port infrastructure, while Iran provides a southern route toward Persian Gulf markets. The development of these connections is part of wider efforts to make regional supply chains more competitive and diversify transport routes.

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