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Ukraine to discuss transportation tariff with Azerbaijan

9 September 2016 13:25 (UTC+04:00)
Ukraine to discuss transportation tariff with Azerbaijan

By Rashid Shirinov

The leadership of the Ukrainian Railways (Ukrzaliznytsia) intends to discuss with colleagues from Georgia and Azerbaijan tariffs for cargo transportation on the territory of these countries in the framework of the Silk Road project. The statement was made by Ukrainian Minister of Infrastructure Volodymyr Omelyan, RIA Novosti reported.

In connection with Russia’s toughening of the requirements of goods transit from Ukraine, Kiev decided to seek alternative routes of cargoes delivery to Asia. In particular, so-called Silk Road has been developed, which involves the delivery of cargo on the route Ukraine–Georgia–Azerbaijan–Kazakhstan–China bypassing Russia through two seas. However, due to high fares, this route is not yet popular.

“The conference will involve a meeting of heads of Ukrainian, Georgian and Azerbaijani Railways, which will include discussion of sectoral issues, in particular through tariff. The main purpose is to attract cargo on the southern Silk Road and in the direction of the Gulf countries,” said Omelyan on September 8 during an international conference.

In January, a pilot container train of 20 wagons went from the port of Ilyichevsk on the route Ukraine–Georgia–Azerbaijan–Kazakhstan–China through the Caspian and Black seas – a new direction of the Silk Road.

Ukraine and Azerbaijan cooperate within the framework of the Trans-Caspian International Transport Route (TITR) which is a part of the Silk Road.

The route which is designed to provide transport connections between the East and West of Eurasia, runs through China, Kazakhstan, Azerbaijan, Georgia and then to Europe via Turkey and Ukraine.

Azerbaijan, Kazakhstan, Georgia and Ukraine decided to apply the competitive feed-in tariffs for cargo transportation via the TITR in January, 2016. Single competitive rate was introduced in the framework of the route starting from June 1, 2016 with the view to reduce the costs of international cargo transportation.

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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov

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