Kaveh Industrial City and Special Economic Zone, located approximately 100 km from Tehran, the capital of Iran, stands as one of Iran’s pioneering new city projects with a clear focus on local investments in various industries.
The Industrial City of Kaveh Special Economic Zone has envisioned the generation of 200 new jobs. Future plans include the inauguration of three logistics and industrial infrastructure development projects. These projects encompass a water supply plan with a capacity of 250 liters per second, the construction of public warehouses covering 80,000 square meters, and the establishment of a special railway station spanning 20,000 square meters for dock platforms. Additionally, landscaping for heavy machinery installation covering 40,000 square meters and two covered warehouses of 12,000 square meters each are among the slated projects.
Proximity and Climate at Kaveh Industrial City and Special Economic Zone
Situated just a 20-minute drive from the town of Saveh, the city benefits from its proximity to this region. Saveh, nestled in the north of the Markazi province, boasts a warm and semi-arid climate to the east, thanks to its desert vicinity, and a colder climate in its mountainous western region. The area’s agricultural richness thrives due to its fertile soil, the presence of the Ghare Chay River, and the Alghadir dom.
Saveh’s economy revolves around industries, mines, animal husbandry, and agricultural products, including pomegranates, dried figs, and melons. The city is also known for its handicrafts, such as earthenware jugs and carpets, as well as numerous historical monuments and tourist attractions. The population predominantly speaks Farsi in the Savehi dialect, while the Shahsavan tribe is the sole Turki-speaking tribe in Saveh. Notably, Saveh is home to a significant Shia population.
Genesis of Kaveh Industrial City and Special Economic Zone
Kaveh Industrial City’s establishment in 1352, spanning over 2,500 hectares, aligns with the country’s macroeconomic interests. This strategic location, with its close proximity to Tehran, access to key transportation routes, including north-south and west-east connections, and its adjacency to important consumption markets, has solidified Kaveh as Iran’s largest industrial city and a vital industrial hub.
Kaveh Industrial City’s transition to a Special Economic Zone (SEZ) was driven by economic goals, including enhancing international trade relations, creating economic mobility, increasing industrial productivity, promoting a competitive economy, facilitating technology transfer, boosting non-oil exports, and attracting domestic and foreign investors. This transition was formalized through Resolution No. 125700/46519 on June 22, 1390.
Operational Activities
The operational phase commenced in the second half of 2012 after the establishment of necessary infrastructures, customs offices, and customs procedures. Kaveh Special Economic Zone provides comprehensive customs services, supporting industries, commerce, manufacturing, and trade.
With an emphasis on attracting capital, Kaveh Special Economic Zone has invested in improving services and facilities, including expanding covered and open warehouses, cold storage, and infrastructure. These efforts aim to enhance the appeal of the region for investors and producers at the regional level.
Kaveh Special Economic Zone’s geo-strategic location offers several advantages, such as proximity to Tehran, accessibility to seven provinces with a population exceeding 28 million, and a concentration of producers within a 150 km radius. It has also secured advantages like railway connectivity, customs services, and Special Economic Zone benefits. These factors, combined with the intersection of major North-South and West-East highway corridors, make Kaveh Industrial City an attractive logistics hub.
Logistic Know-How and Investment
Recognizing the opportunities presented by Kaveh Industrial City, the International Transport Companies Association of Iran decided to invest in logistic centers to reduce transaction costs and provide value-added services for customers, principals, and forwarders. This investment includes logistic expertise and cargo handling equipment to support efficient logistics operations.
The initial phase includes equipment such as forklifts, reach stackers, trailers, and terminal tractors, all designed to optimize cargo handling. Additional phases will see continuous improvement in equipment, including more forklifts and cranes.
Kaveh Special Economic Zone aims to offer logistics services that enhance supply chain efficiency, door-to-door operations for industries within a 150 km radius, and increased railway transportation. The zone also focuses on improving human efficiency in logistics services, establishing an empty container depot, and minimizing energy consumption through efficient equipment management. Ultimately, Kaveh Special Economic Zone aims to shorten cargo access times, reduce storage costs, and support forwarders and traders.
Customs Services
Kaveh Special Economic Zone boasts two well-equipped branches of the Customs of the Islamic Republic of Iran, including Saveh Customs and the Customs of the Special Economic Zone. These customs offices offer services to commercial, production, and service companies, ensuring efficient clearance of goods and smooth operations for industries in the region.
