Iran’s IKA awards contract for large air cargo logistics site

Iran’s largest airport has awarded a contract for an air cargo logistics site amid efforts to turn the airport into a major air freight hub in the West Asia region.

The Imam Khomeini Airport (IKA) issued a statement on Wednesday saying that it had signed a $300-million contract with a private investor to launch a multi-level cargo terminal and logistics center at the airport.

IKA’s CEO Saeed Chalandari said that the cargo logistics site will be the largest in Iran and will significantly increase the country's air freight capacity.

Chalandari said Iran’s flag carrier airline Iran Air will contribute to the project, adding that the cargo terminal will start its operation at half capacity in 2028.

He said the project will create nearly 1,000 permanent jobs and will help Iran’s efforts to become a major air freight hub in the West Asia region.

IKA is Iran’s largest airport and is located some 25 kilometers to the southwest of the capital, Tehran. The airport offers services to dozens of international airlines flying to more than 50 destinations around the world.

The Iranian transportation ministry has planned major expansion projects for IKA in recent years despite US sanctions that restrict the country's access to international investment.

Authorities said in August 2023 that they had awarded a $2.7 billion contract to a Chinese company to build out the airport’s second phase, a project which they said would be executed across 410,000 hectares of lands located to the south of the airport.

Iran has gained considerable revenues from international cargo transit in recent years under plans to diversify its economy away from crude oil exports.

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