Feasibility Study of Establishing Cold Storage Complex for Delivering Services to Export Market
Cold Storage is normally formed from installments and constructions which prevent foods,
agro products and other materials that can be corrupted to get rotten.
Utilization of above-zero-degrees refrigerators prevents physical, chemical and microbial
corruption of products and chemical interaction in fruits and vegetables. In fact, temperature
reduction hinders fruit juice from fast evaporation and physical corruption.
Because of the high rate of export in dairy products, fruits, vegetables, etc. to Iraq ($2.5
billion in 2017) and a great potential to double this amount, there is a good opportunity for
investors in Arvand free zone.
With expansion of factories and food Inc. nonoccurrence of time and location for consumers
and the domestic production, import and exports and providing sufficient strategic services to
supply economical demands, foreign and domestic exchange features indicate the importance
of cold storage complexes in our economy.
Advantages of establishing a cold storage complex in Arvand Free Zone:
One of the biggest projects in hand in Iran is establishing the biggest fruit garden of the
country in Qasre-Shirin with 4 thousand hectares which includes 3 thousand hectares of
tropical trees such as dates, grapes and citrus. Establishing a cold storage close to this garden
can have a great influence on food, fruit and vegetable industry and boosting the economy.
High production rate of agricultural products in this garden and market demand to supply and
distribute have created the idea of establishing cold storages and packing lines for products.
Arvand Free Zone is an appropriate place for accessing roads and transiting different kinds of
products such as oil and food. Strategic location and rich water resources of this free zone
place it among the best investment options.
Considering the free zone strategic location, it is possible to transport goods from CIS,
Caucasus, eastern Asia and Persian Gulf countries. Since the demand in Iraq’s market to
import goods from the neighbor countries is high and it is very close to Arvand free Zone,
there is an attitude that Arvand can be very effective in enhancing business and transporting
goods to Caucasus and Persian Gulf countries.
Special geographical condition of Arvand free zone due to transit and strategic channels in
business routes, easy access to international waterways and proximity to Basra (second
largest province of Iraq) has captivated international attention as an especial location for
commercial and business development.
Besides, 20-year tax exemption according to free zones law, exemption from customs duties
for importing machinery and raw materials and exporting goods, special facilities for the
transfer of goods produced in the region to the mainland, easy and unrestricted currency
exchange, and proper situation for joint ventures have made an intriguing situation for
investment in Arvand free zone.
Combined transportation, biggest fruit garden in the country, lack of cold storages in the
region, being close to Iraq’s market, and increase on the fruit and vegetables exportation to
other countries have made a great potential for a cold storage investment.
Arvand Free Zone is one of the biggest commercial terminals by enjoying proximity to Iraq.
Moreover, being the top oil product producer and possessed of 8 mini refineries and Offshore
Engineering And Construction Companies have made great potentials for intensive expansion
in this region.
According to development plans and bilateral trades’ enhancement with Iraq, there are good
opportunities for improving Offshore Engineering services, and developing oil, gas and
petrochemical industry. Abadan and Khorramshahr have joined Free Zones in order to
enhance their economic situation.
The purpose of this study is to establish a cold storage complex to provide inventory services
for export market with the capacity of 8000 tons in Arvand Free Zone.
According to published reports by ministry of mining and trade, there are 671 cold storages in
the country with 1830-thousand-ton capacity; approximately only 20 thousand tons (1%) of
which belongs to Khuzestan province. On the other hand, the rate of exported products to
Iraq that need to be kept in cold storages is 3110 thousand tons that indicates a 16% increase.
Advantages of investment in Arvand free zone:
- Skilled workforce
- inexpensive energy costs
- Exemption from customs duties to import machinery and products
- inexpensive land
- Value added price law
- 20-year tax exemption
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