Baku, Tehran to finance Astara-Astara railway construction
By Sara Rajabova
Azerbaijan and Iran have expressed interest in facilitating cooperation in railway construction.
Baku and Tehran have decided to accelerate the construction of the Astara (Iran)-Astara (Azerbaijan) railway line, which would connect the railway networks of both countries.
The two countries have agreed to finance the construction of the railway line and connector as part of the North-South international transport corridor.
Abbas Nazari, the head of the international transport department of Iranian State Railway, told Trend that financing would be one of the most important tasks of the working group on railway construction.
He said it is necessary to build a road-rail bridge on the border between the two countries to connect the rail networks and roads of the two countries.
The length of the proposed railway is 10 kilometers. Some 8 kilometers will pass through Azerbaijani territory and two kilometers through Iranian territory.
Nazari added that while the countries will finance construction of their respective sections, the bridge will be jointly financed.
However, the exact amount of investments is unknown. Nazari noted that by international experience, about $2 million are spent per kilometer and a project of this magnitude will require an investment amount of about $20 million.
Furthermore, delegations from Azerbaijan and Iran will familiarize themselves with the construction of the Astara-Astara railway line on October 9-10 as part of negotiations on the International North-South Transport Corridor.
The meetings of delegations, headed by the co-chairs of an Azerbaijani-Iranian intergovernmental commission on cooperation in the economic, trade and humanitarian spheres, will be held in Lankaran, Azerbaijani Astara and Iranian Astara.
Iran earlier voiced interest in the rapid construction of the Qazvin-Rasht-Astara railway, which would be part of the North-South Transport Corridor.
This railway will facilitate transit from Central Asia and Europe to the Persian Gulf and connect Iran with these regions, as well as the Caucasus by rail. Previously, Iranian President Hassan Rouhani set the proposed completion date for 2016.
Total investments for the construction of the Qazvin-Rasht-Astara railway are estimated at $400 million. At its initial stage, it would transport roughly 6 million metric tons per year and could reach 15-20 million metric tons per year in the future.
Azerbaijan and Iran have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991 and diplomatic relations between the two countries were reestablished in 1992.
Currently, the two countries are focused on expanding economic ties in various fields, including industry, agriculture, energy, alternative energy, and transportation.
Iran's export to Azerbaijan during the first half of 2015 decreased 55.36 percent to $42.52 million year-on-year. Azerbaijan's export to Iran also decreased 67.11 percent to $11.16 million during that period.
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Sara Rajabova is AzerNews’ staff journalist, follow her on
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