By Sabina Alizade
Russia, Azerbaijan, and Iran have entered a new phase of cooperation aimed at developing one of the region's key transport projects — the North-South International Transport Corridor (ITC) . This initiative underscores the strategic importance of cooperation in transport infrastructure and trade between Europe and Asia.At the latest trilateral meeting of experts held in Azerbaijan, the parties agreed to establish a working group to coordinate efforts to remove obstacles at borders along the North-South Transport Corridor. This initiative aims to increase the efficiency of freight transportation and reduce border crossing times.
Experts from Russia, Azerbaijan, and Iran inspected the operation of key customs posts and discussed the digitalization of services provided at the borders. Special attention was given to the issues of border crossing times and the obstacles faced by drivers transporting goods by road.
The North-South ITC is a multimodal route connecting St. Petersburg with the Indian port of Mumbai. The route spans 7,200 kilometers and encompasses the Trans-Caspian route as well as western and eastern land routes, utilizing rail and port transport systems.
In May 2023, Russia and Iran completed the construction of the last necessary section of the western North-South route — the Rasht-Astara railwayin Iran. The total cost of the project is $1.6 billion, highlighting its scale and strategic importance for the development of the region's transport infrastructure.
In an interview with News.Az, Doctor of Economics and Professor Elshad Mammadov noted that the North-South Corridor is one of the most promising transport and logistics corridors. "The economic development gap between the East and the West is growing, business activity is rapidly shifting from the West to the East, especially to Southeast Asia. Southeast Asian countries are becoming the main drivers of global economic growth, which dictates the need to consider the transport and logistics corridor between the North and the South as a greater priority compared to traditional East-West routes," he said.
The expert emphasized that the North traditionally serves as one of the main sources of natural resources. "For many years, the basis of the West's economic growth was the accessible acquisition of the North's natural resources. In the context of strained relations between Russia and the West, the priority is to reorient these resources to the South, and Southeast Asian countries are becoming a priority in Russia's foreign economic policy. In this context, the relevance of the North-South Corridor for Russia increases many times over," he added.
Mammadov highlighted the importance of access to Russian resources for Southeast Asian countries, noting that the relevance of the North-South Corridor for these countries is significantly increasing. "Given that the segment of the North-South Corridor passing through Azerbaijan is optimal in many parameters, I believe that this corridor has great prospects. At the same time, this corridor should have a positive impact on strengthening and developing relations between Russia, Iran, and Azerbaijan. In fact, this is a corridor that can contribute to strengthening economic ties with India, one of the fastest-growing economies in the world. All this suggests that this corridor has great potential," he pointed out.
The expert noted that for the effective operation of the corridor, it is necessary to eliminate the relevant bureaucratic barriers. In this context, it is important to ensure the transparency, efficiency, and speed of customs posts. "It is known that positive decisions have already been made in this direction between Azerbaijan and Russia. Their practical implementation is already underway. It is especially important to note that the simplification, efficiency, and transparency of all these procedures should contribute to increasing the competitiveness of the corridor and expanding the opportunities of our country. Since the North-South Corridor has other alternative routes, we must ensure the effectiveness of customs procedures for the implementation of freight transportation through our country, and significant work has been done in this direction in recent months," he added.
Discussing regional economic development issues, the expert noted that in the context of current processes in the global economy, regional economic development and integration are becoming a priority. "In this context, the North-South Corridor should be considered not only as a transit route but also as a means of transporting our own goods. This can open new promising and large markets for the non-oil sector of our economy, which is very important for its development," he added.
Economic expert Natig Jafarli, commenting on this topic, noted that the state is taking the right steps to turn Azerbaijan into a logistics center. "The North-South project is one of these steps. This will allow for delivering goods from the Persian Gulf and the Suez Canal to the Baltic Sea two to three times faster. That is, goods can be delivered from the Persian Gulf to the Baltic Sea in 14-16 days. This project has great prospects, and Baku has announced its readiness to cooperate in this direction with both Tehran and Moscow. However, the problem is that both Iran and Russia are under sanctions. For this route to have significant international importance, it is necessary to involve Northern European countries, such as the Baltic and Scandinavian countries. The involvement of these countries in the project in the future can bring significant dividends. However, current sanctions against Iran and Russia create certain problems on this route," the expert pointed out.
Jafarli noted that sanctions against Iran and Russia may be revised in a few years, and then the importance of this route will increase. "Also, solving infrastructure problems in Iran will require at least three years. These processes may be completed by 2027-28. It is necessary to build the Rasht-Astara railway. Russia has undertaken to invest in this project, and work there will continue for another three or four years. During this time, certain geopolitical changes may occur in the world, and if this happens, the importance of this route will increase many times over," he said.
Thus, the development of the North-South International Transport Corridor continues to promote the integration of the three countries' transport systems, improving transport accessibility and accelerating transport between Europe and Asia, thereby promoting economic growth. The creation of a working group and a coordination mechanism will be an important step towards deepening cooperation in transport infrastructure between Russia, Azerbaijan, and Iran. It is expected that the elimination of administrative and technical barriers will significantly increase cargo flows and improve conditions for business and trade in the region.
P.S. The implementation of the North-South ITC project will serve as a powerful stimulus for economic development not only for the participating countries but for the entire region. It is essential to recognize that the integration of transport systems and the removal of bureaucratic barriers will open new opportunities for international business and investment. This, in turn, will create favorable conditions for improving living standards, enhancing infrastructure, and increasing employment. The participating countries will be able to leverage improved logistics to promote their goods on international markets, positively impacting their economic growth. The North-South ITC has the potential to become a key element in fostering trade between Europe and Asia, facilitating the creation of new economic ties and strengthening existing ones.
