Lotfabad border terminal is placed in Khorasan Razavi province and in common border between Iran and Turkmenistan. The terminal is 280 km away from Mashhad and 90 km from EshghAbad. As over 75 percent foreign roadway fleet to Turkmenistan and other central Asian republics and visa versa is carried out through Lotfabad border terminal thus its importance is quite obvious.

After Soviet fragmentation and central Asian republics independency and building political and economic relations among Iran and these countries such as Turkmenistan, constructing this terminal became important as one of the main goods transit and passenger traffic points.