Azernews.Az

By Nigar Orujova

Azerbaijan's Coordination Council for Transit Cargo Transportation has approved the upper limit of tariffs for transiting oil and oil products by rail, as well as their transshipment through sea terminals.

The decision said the forwarding expenses for services to transit and transship oil and oil products are calculated through a two-percent increment to the approved tariffs.

The cost of contracts shall not exceed the approved tariffs and forwarding costs.

The tariffs include the cost of all kinds of services while transiting and transshipment of oil and oil products.

“The entities rendering the corresponding services, may apply discounts of up to 30 percent,” said the Council.

The upper limit was adopted taking into account the proposals o Azerbaijan Railways, Azerbaijan Caspian Shipping Company, and the country’s sea terminals, the Council said reported December 8.

The new tariffs came into force from December 3, 2015.

Earlier, Azerbaijan applied attractive transportation fees for cargo transportation in an effort to become a major transport hub of the region.

The country made a nearly 40-percent reduction in the transit cost of cargo transportations by large trucks to the Aktau and Turkmenbashi ports.

Cost reduction for foreign carriers was made after simplification of transit procedures and reduction of tariffs for cargo transport, functioning to Kazakhstan’s Aktau port and Turkmenistan’s Turkmenbashi port.

Moreover, the Coordinating Council also plans in the near future to reduce the period for cargo transit, simplify procedures and ensure transparency of rules and procedures for cargo transportation.

Upper limit of tariffs for transit of oil, fuels and lubricants via the railway through Azerbaijan’s territory:

Upper limit of tariffs for transit transportation of oil and oil products via ships flying the flag of Azerbaijan, as well as the ships flying foreign flags operated by residents of Azerbaijan and non-residents, with offices and representations in the country:

Upper limit of tariffs for cargo transshipment services rendered by sea terminals in connection with the transit of oil and oil products: