The contract was signed between Arak Machine Manufacturing Company (Machin-Sazi Arak) from Iran and Jinggang Company, which is the biggest name in the Chinese iron industry.
According to Amir Hossein Rezaie, who is the manager of Arak, the value of the contract stood at $550m. The deal aims at establishing a strategic point as an oil reservoir and for oil products. At the first stage of the project, 10m barrels of oil will be stored.
The selection of Qeshm Island for the implementation of the project is due to the island’s special geographical situation, as it is close to the port city of Bandar Abbas in south of the country. The port is a very favourable spot for loading and unloading oil tankers and cargo ships.