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Iran accelerates launch of North-South corridor

By Sabina Alizade

A significant step has been taken towards the commissioning of a new railway section to the Caspian port. This project is regarded as a central element of the international North-South transport corridor and will strengthen Iran's trade ties with the Middle East and Europe.

According to Iranian press reports, the Rasht-Caspian railway projectis the final phase within the framework of agreements signed between Iran and Russia in May 2023, worth 1.6 billion euros. The project was funded by Iranian resources as well as 1.3 billion euros provided by the Russian Federation.

The Rasht-Caspian railway is one of the most important and priority projects for completing the North-South transport corridor. The new infrastructure will connect the southern and northern ports of Iran, enhancing the link between the Caspian Sea and the Persian and Oman Gulfs. This will help increase the speed and efficiency of trade routes passing through the region.

The opening ceremony was attended by Iran's acting president Mohammad Mokhber and the Minister of Roads and Urban Development Mehrdad Bazarpash, highlighting the strategic and political importance of the project. It ensures close cooperation with regional participants such as Russia and Azerbaijan. The transport corridor will be connected with Trans-Caspian, western, and eastern routes in various ways.

Iran's railway infrastructure includes the first phase of the Rasht-Astara railway project, which is already operational and connects the city of Rasht with the Caspian port. This 37-kilometer section was built through the joint efforts of Russia and Iran to strengthen transport links between the Northern and Southern Caspian.

The total cost of the project is estimated at about 35 trillion rials (approximately 730 million euros), of which about 30 trillion Iranian rials (approximately 630 million euros) have already been spent. The funding came from both Iran and Russia, emphasizing
the strategic importance of the project for both countries.

The main goal of the new railway is to connect the internal parts of the North-South transport corridor, contributing to the economic efficiency of the Trans-Caspian route . Experts believe that the completion of the entire line by 2027-2028 will significantly speed up and reduce the cost of transit transportation, creating an alternative to sea routes, including the Suez Canal. This is especially important for trade between Russia and the Persian Gulf, as well as for the supply of goods through Iran to Europe.



Russian political scientist Darya Grevtsova, in an interview for news.az, noted that the North-South transport corridor has several routes: western, eastern, and Trans-Caspian, and transportation is carried out by both rail and sea. She emphasized that the recently opened Rasht-Caspian railway is part of the Trans-Caspian route of the North-South corridor.

"The currently under construction Rasht-Astara section is on the western direction of the corridor. These routes are very close to each other. The commissioning of the Rasht-Caspian railway, connecting Iran's southern ports with its northern ports, means significant expansion," Grevtsova said.

The political scientist also noted that Amirabad port, with a cargo turnover of 1 million tons per year, was too small for the global North-South transport corridor. "Now the opened section, although small, just 37 kilometers, is located in the Anzali Free Economic Zone and improves competitiveness compared to alternative routes, eliminating the need for road transport, which reduces delivery times and improves logistics."

Grevtsova added that the Rasht-Astara line will provide rail traffic on the western branch of the North-South transport corridor and reduce the number of necessary transportations, making it more convenient and competitive compared to other routes.
"Currently, the contribution to the construction of the road is coming from Russia. A significant part of the construction falls on Russia. Iran is also investing, but the project seems to be getting more expensive. The completion of construction is planned for 2028. In general, it is clear that Azerbaijan is becoming a transit country through which many routes and corridors will pass. This will significantly increase Azerbaijan's attractiveness and give a powerful boost to its economy. After all, we know that countries that are transport hubs are very competitive and economically developed.
This is, of course, very beneficial for Azerbaijan. But it is also beneficial for Russia. In the context of Western sanctions, exits are important for Russia."

The political scientist emphasized that it is the North-South transport corridor that allows directing Russian exports to the countries of the global south. She noted that this route passes through friendly countries to Russia, such as Azerbaijan and Iran, and allows goods to be delivered through Iran to India, and from there to Arab and African countries.

"These countries are quite large, and exporting to them is very profitable. Therefore, now both Russia and Azerbaijan are paying great attention to the transport corridor. The leaders of our countries see great prospects in opening these corridors. These projects will reduce time and improve the convenience of transportation. Accordingly, we understand that now all attention will be focused on the construction of these paths, and our competitors will closely monitor the process."

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