(MENAFN- AzerNews)
Nazrin Abdul
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In recent years, Azerbaijan has advanced numerous large-scale
infrastructure projects within the transport sector, complementing
developments across various other sectors. The optimization of the
country's transit potential is a cornerstone of President Ilham
Aliyev's economic diversification strategy. The enhancement of
international and regional transport corridors has notably improved
national economic efficiency. Concurrently, collaborative
initiatives in transport, infrastructure, and logistics are
significantly broadening the state's economic prospects and
bolstering its strategic importance.
Service infrastructures across all areas of the transport sector
are being modernized, projects related to the reconstruction of
road infrastructure are being carried out, and numerous road
crossings, bridges, tunnels, and pedestrian underpasses and
overpasses are being built. A massive infrastructure project is
being realized in the direction of implementing the International
North-South Transport Corridor.
On August 19, Azerbaijani President Ilham Aliyev stated in a
press release with his Russian counterpart Vladimir Putin that the
"North-South" project holds exceptional significance in the
interstate relations between Baku and Moscow.
President Aliyev emphasized that they discussed issues related
to regional transport corridors and transport routes in detail,
which are also of exceptional importance for interstate
relations:
"I must say that both the railway and road segments of the
'North-South' corridor on Azerbaijan's territory have been fully
realized and are functioning successfully. At present, we are
working on modernizing the railway section of this corridor to
increase its throughput capacity. We are talking about the
possibility of transporting 15 million tons or more of cargo per
year."
So, what is the North-South Corridor?
The International North-South Transport Corridor (INSTC) is
primarily designed for transporting cargo from India and the
Persian Gulf region to Russia, Western Europe, the Baltic States,
and Scandinavian countries. The main advantage of the North-South
Transit Corridor compared to other routes is that the transit
distance and time are reduced by two to three times. While maritime
transport through the Persian Gulf, the Indian Ocean, the Suez
Canal, the Mediterranean Sea, and the Baltic Sea to Helsinki takes
45-60 days, the North-South Transit Corridor reduces this period to
20-25 days.
Within the framework of the North-South International Transport
Corridor, work is being done to connect the railways of Azerbaijan
and Iran. The railway from Azerbaijan's Astara station to Iran's
Astara city has already been constructed. In the next phase, the
construction of the missing 167 km-long Astara-Rasht railway will
be realized to fully connect the railways of Iran and Azerbaijan.
Once all the work is completed, the railways of Scandinavian
countries, Russia, Azerbaijan, and Iran will be united in a single
network, forming a continuous railway from the North to the Persian
Gulf.
The agreement on the creation of the North-South International
Transport Corridor was signed between the governments of Russia,
Iran, and India on September 12, 2000. The Republic of Azerbaijan
joined this agreement based on the Law dated September 20,
2005.
Russian President Vladimir Putin, during a meeting with the
heads of global news agencies, expressed confidence that the
North-South Transport Corridor could become a highly demanded
international corridor. He also noted that cargo would be sent from
Russia-through the port of Saint Petersburg-to Azerbaijan and then
to Iran and the Persian Gulf. The Russian leader further added that
this route is about 10 days faster than the Suez Canal route and
that the project's profitability would attract attention.
President Putin said:“We are working on both sides. I know that
President Aliyev supports this project. We have discussed this
issue with him several times. The Iranian leadership also supports
this project. Because this corridor will be very profitable,
foreign investors, including non-regional but nearby countries and
sovereign Arab funds, are also interested in this project. It is
clear because sovereign funds always look for reliable investment
areas. This project is one of the reliable investments because
there is a guarantee and assurance of its profitability.”
Putin emphasized that further studies are needed regarding the
North-South Corridor, including discussions on which areas of
Azerbaijan the transport-logistics system will cover, how it will
be financed, how it will be integrated with westward routes from
Azerbaijan, and how the diversified sections of the route crossing
Iran will be constructed.
It should be noted that the countries that signed the agreement
for creating this transport corridor have set a significant task of
transporting 30 million tons of transit and bilateral cargo by this
infrastructure by 2030. A Joint Working Group has been established
to address issues related to facilitating transport and transit
operations and procedures through their territories in the context
of the corridor's development.
In conclusion, Azerbaijan's strategic investment in large-scale
transport infrastructure projects underscores its commitment to
leveraging transit potential as a key component of its economic
diversification efforts. By advancing international and regional
transport corridors and fostering collaborative projects in
transport, infrastructure, and logistics, Azerbaijan is not only
enhancing its economic efficiency but also significantly expanding
its global economic opportunities and reinforcing its strategic
importance on the world stage.
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