North-South corridor phase 1 to complete by late 2016
By Nigar Orujova
Azerbaijan and Iran have reached an agreement to finalize the first phase of the project to create the North-South railway corridor before late 2016, Azerbaijani Ministry of Economy and Industry told Trend on December 22.
The agreement was reached within the framework of the tenth meeting of the Azerbaijani-Iranian Joint Commission on Economic, Trade and Humanitarian Cooperation in Tehran on December 21-22.
The North-South Corridor, originating in India and stretching to Helsinki, is one of the most important routes for Azerbaijan. The corridor, stretching for about 5,000 km, at the initial stage will be able to transport 6 million tons of cargo per year, while 15-20 million tons of cargo in the future.
The first phase of the project envisages construction of a cross-border railway bridge between Iranian and Azerbaijani Astara and 8-kilometers-long branch on Azerbaijan’s territory, said the ministry.
The construction of Astara-Astara and Rasht-Astara sections of the corridor falls within Iran and Azerbaijan’s responsibility and the two countries are making effort to build the sections. Energy carriers such as oil, gas, and mazut are also among the goods that the railway would be suitable to transfer.
Moreover, a terminal will be built and a broad road will be laid in the territory of Iran. This will simplify the procedure for transporting goods from Iran via Azerbaijan.
The North-South railway will link Northern Europe with South-Eastern Asia. It will serve as a link between the railways of Iran, Azerbaijan and Russia.
Extraordinary opportunity to strengthen relations
The North-South railway corridor is an extraordinary opportunity for involved countries to strengthen their relations, Iraj Nadimi, first deputy chairman of the Iranian Parliament’s Economy Commission told Trend on December 21.
The railway provides a unique opportunity for Central Asian countries and also connects the Indian Ocean to Europe, he added.
The North-South railway corridor will help boost trade by reducing costs and distances, and therefore is welcomed by both official and nonofficial sectors, the chairman noted.
Nadimi stressed Iran’s priority is to engage in trade with neighboring friendly countries. The ground routes exist between Iran and Azerbaijan, which provide the most profitable way of transport.
The railway’s capacity will be 1.4 million passengers and 5-7 million tons of cargo per year, according to the preliminary estimates. Moreover, 22 tunnels and 15 bridges will be built along the railway.
This index between Europe and India is about 25 million tons. Most of the cargo is transported by sea, which takes 45 to 60 days. Therefore, the transshipment through Azerbaijan is more acceptable and this route is the most optimal.