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MP: Azerbaijan’s connection to North-South project to increase its importance

24 January 2018 15:26 (UTC+04:00)
MP: Azerbaijan’s connection to North-South project to increase its importance

By Sara Israfilbayova

Iran and Azerbaijan intend to jointly finance part of the Rasht-Astara railway in northern Iran.

Iran’s Deputy Minister of Roads and Urban Development Asghar Kashan said that each of the two countries will provide 50 percent of the necessary investment for the construction of the railway, adding that investments of the Azerbaijani side will amount to $500 million.

The Deputy Minister stressed that the railway is expected to be commissioned within the next three months.

MP Rufat Guliyev told Day.az that that the agreement of the representatives of the Central Bank, the Ministry of Economy and Finance of the Islamic Republic of Iran, and the “Iranian Railways” was reached during the meeting in October last year in Baku.

He went on to say that the parties agreed on the terms of financing the construction of the section of the Rasht-Astara railway within the framework of the project of the International Transport Corridor “North-South.”

“The North-South transport project is one of the most ambitious, and the connection of Azerbaijan to it undoubtedly increases the importance of our country in the region and the world, and I believe that the route should be effective from the point of view of increasing the trade turnover between the participating countries,” the MP pointed out.

Last year Azerbaijan built its railroad to the border with Iran, a railway bridge 82 meters long over the Astara River was commissioned.

Guliyev stressed that the Rasht-Astara railway is an important step in the implementation of the North-South International Transport Corridor, which not only unites Iran and Azerbaijan, but also links the coasts of the Indian Ocean and the Baltic Sea, Southeast Asia and Northern Europe.

Earlier, Nurullah Biravand, Deputy Head of the Iranian Railways Department said that Iran and Azerbaijan next month will sign an agreement on joint financing of the Rasht-Astara railway.

“After signing the contract, a tender will be held and a trade agreement will be signed, and the implementation of the project will begin in 2-3 months,” Biravand mentioned.

The Rasht-Astara railway is envisaged to be ready in three years. Its construction will begin in the first half of 2018. The opening of the 164-kilometer section is planned for 2020.

This railway is an important part of the International North-South Transport Corridor, which is meant to connect Northern Europe with Southeast Asia. The corridor will serve as a link connecting the railways of Azerbaijan, Iran and Russia.

At the initial stage, it is planned to transport six million tons of cargo per year through the corridor and 15-20 million tons of cargo in future.

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