AZ

Future prospects: Azerbaijan's role in expanding the North-South corridor

By Sabina Alizade

The North-South Transport Corridor, running through Russia, Azerbaijan, and Iran, is becoming increasingly significant for international freight transportation, linking regions from the Baltic Sea to the Persian Gulf. Compared to traditional routes through the Mediterranean Sea and the Suez Canal, this corridor not only reduces delivery times by two to three times but also provides more reliable and secure transit conditions.

A key element in the development of the corridor is the connection of the railway networks of Azerbaijan and Iran. A railway has already been built from Astara in Azerbaijan to Astara in Iran, and there are plans to extend the network to the city of Rasht in Iran. Once all work is completed, the railways of the regional countries will be united into a single network, ensuring uninterrupted rail transport from the north to the Persian Gulf.



Natalya Zadonskaya, chief expert of the international cooperation department at the Autonomous Non-profit Organization Directorate of International Transport Corridors (ANO DITC) , stated in an interview with News.Az that the operational part of the railway extends from the Caspian port in Iran to Rasht. This section primarily contributes to the development of the Trans-Caspian route of the North-South ITC.

"At the same time, it facilitates the development of direct communication between Russia and Iran via the Caspian Sea and is beneficial for all Caspian states. Undoubtedly, this is a very positive event. It should be noted that not only is this section of the international transport corridor important, but the Caspian port itself, which Iran has put into operation as part of the development of the North-South corridor, is also significant. Iran completed this project independently, so it is incorrect to say that Iran invests less in the North-South ITC compared to other countries. For example, along the entire route in Iran, there are numerous special economic zones with simplified tax conditions for foreign participants. Additionally, the roads are in very good condition," the expert emphasized.

Zadonskaya noted that the Agreement on the North-South International Transport Corridor provides for the creation of a coordination mechanism for managing the corridor. "Now, as our countries interact with each other, it becomes clear that such a mechanism is needed. It will allow us, first of all, to obtain reliable information about the state of the infrastructure and the need for its modernization, to compile a so-called 'project bank' for possible investments, and secondly, to coordinate the work of our customs and other control authorities," she said.

Natalya Zadonskaya also added that authorized bodies are exploring the possibilities of using unified digital services to support our transport and logistics companies. "The expectations from the corridor's operation are reflected in the Baku Declaration signed by our countries in 2022. I believe that our efforts are directed towards significantly simplifying the conditions for transportation along the North-South ITC. Of course, there is still much work to be done. The route is multimodal and certainly not easy. Despite some difficulties, I would like to thank our carriers who continue to use the North-South ITC routes. The task of our countries is to help them and eliminate all existing obstacles," she concluded.

The main advantages of the North-South corridor include reducing delivery times and transit distances, making it more competitive compared to alternative routes. Traditional sea transport through the Suez Canal and the Mediterranean Sea takes 45-60 days, while through the North-South corridor, it takes only 20-25 days, which is especially important for the fast and reliable delivery of goods requiring minimal transit time.

An important step in the development of the corridor was the agreement to align the capabilities of the checkpoints, simplify customs procedures, and expand the application of the Convention on International Carriage by Road (TIR) with the creation of a joint working group. This helps improve conditions for carriers and reduce bureaucratic barriers, stimulating the flow of new goods and increasing the efficiency of the transport process.

The recently signed memorandum of understanding between Azerbaijan Railways and the railways of Uzbekistan and Tajikistan underscores the participants' commitment to developing the Middle Corridor. This cooperation aims to increase cargo transportation along the Central Asia-Europe and China-Europe routes, opening new perspectives for economic growth and integration at regional and global levels.

The International North-South Multimodal Transport Corridor (INSTC) is becoming a key factor in developing freight transportation between Asia and Europe through the South Caucasus, offering various routes. Countries such as Azerbaijan and Armenia actively compete for the right to become the main transit hub within the framework of the corridor's western direction.



Transport expert Rauf Agamirzayev noted in an interview with News.Az that Azerbaijan Railways is making the right decisions in diversifying corridors and routes. "Various projects are planned in Central Asia, including the construction of the Tajikistan-Afghanistan-Turkmenistan railway. Also recently announced was the China-Kyrgyzstan-Uzbekistan railway project, both of which will lead to the Turkmenbashi port and further to Azerbaijan, creating a new flow of goods. In this context, we can mention projects being implemented in Karabakh as part of diversification."

"At present, 56% of the main freight flow through the three active routes of the North-South corridor passes through the territory of Azerbaijan. Multimodal functionality has now been ensured – there is a railway to Iranian Astara and Rasht. The Rasht-Astara section is planned for implementation based on financial assistance announced by Russia last year. Work continues, and the opening of new communications will contribute to the growth of freight traffic," the expert emphasized.

Regarding Armenia's ambitions on the western route of the corridor, Rauf Agamirzayev noted that Armenia could claim participation only if the borders with Azerbaijan are opened. "As long as the borders are closed, Armenia's participation in the project is highly questionable. The so-called peace corridor is currently just a theoretical concept. If the borders with Azerbaijan and Turkey are closed, Armenia can only rely on limited infrastructure capabilities for north-south communication through the South Caucasus.

News.Az 

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