History

Agreement on North-South International Transport Corridor was signed in St Petersburg on September 12, 2000 by Russia, Iran and India.

The main goal of the Agreement is lifting fruitfulness of transport ties in organization of cargo and passenger transportations, contributing to access of member countries to international market of railway, motor, sea, river and air transport services, helping increase international transportations, assuring security of vehicular traffic, implementation of the agreed transport policy.

The Agreement concerns all transport types: transport infrastructure and vehicles assuring transportations via railway, motor, sea, river and air transport. Only India is exception, its participation will be realized by sea routes only.

After domestic procedures in the states given the Agreement came into force on May 21, 2002. The same day, protocol on establishment of Coordination Board was signed in the meeting of transport minister of member countries of the Agreement in St Petersburg. Secretariat of this corridor is located in Tehran.

A lot of countries took interest in the North-South International Transport Corridor. Belarus, Armenia, Kazakhstan, Tajikistan, Kyrgyzstan, Oman and Syria joined this agreement later. On December 21, 2001 the Republic of Azerbaijan delivered an official note to join the Agreement and received an affirmative reply in 2005. By Law 984-IIQ of September 20, 2005 the Republic of Azerbaijan joined the Agreement on North-South International Transport Corridor. After completing the domestic procedures arisen from the Agreement the Republic of Azerbaijan informed last October 5 the Islamic Republic of Iran, the depositary of the Agreement. This agreement came into effect in the 30th day since the respective document was submitted to the Republic of Azerbaijan.

The project offers 2 versions of railway connection between Voronezh City of the Russian Federation and Tehran City of the Islamic Republic of Iran and then Bendar-Abbas Port:

- Western coast of Caspian Sea and then over territory of Azerbaijan;

- Railway via Russia, Caspian ports of Russia, in particular from Olya Port built near Astrakhan to Iran’s Bendar-Anzali and Emirabad, Nousheher, Bendar-Abbas ports that are being enlarged, and from there by the route.

There is another alternative route to transportation within North-South Corridor via Azerbaijan: to Serakhs City of Turkmenistan through Central Asian countries (Kazakhstan, Uzbekistan, Turkmenistan), then Iran, afterwards by the route.

Volume of transportations in these routes will finally depend on most reasonable technical, exploitation, tariff and other terms.

In any case, realization of North-South Corridor via Azerbaijan’s territory seems more attractive. Short distance, less time in transportations, existing transport infrastructure and factor of a transit country play main role here.

Participation of the Republic of Azerbaijan in North-South International Transport Corridor

Taking into consideration importance of Azerbaijan’s participation in this project, geographic and potential transit opportunities of our country, works are underway to restore and develop existing transport infrastructure.

Transportation of vast majority of cargos via North-South Corridor over Azerbaijan’s territory envisages railway and main factor here is that more freights are transported by one transport quickly and farther. Transportations via the corridor demands wider involvement of road-transport complex of Azerbaijan, specially motor transport and Caspian Sea Shipping.

Railway

Length of railway section of the corridor passing through Azerbaijan is 511km. Railway in Baku-Yalama area that is available for 60 couples of trains daily is 2-line, electrified and well-equipped with automatic communication and sign giving system. The 140-km sector of Baku-Astara railway area till Osmanly Station, available for 53 couples of train daily, is 2-line, electrified and well-equipped with automatic sign giving system. The 188-km sector of Baku-Astara railway area from Osmanly Station to Astara Station, available for 20 couples of train daily, is single-line, non-electrified and well-equipped with automatic sign giving system.

According to studies, the volume of transportation expected in the Azerbaijan section of the corridor will increase up to 2 million ton for the first 3 years, in the second phase 5-6 million ton, and in the third phase, i.e. after the direct railway connection is created up to 15 million ton. To assure it completely and guarantee security some technical measures must be taken. Works in this course are underway since 2001.

96-km railway in Baku-Yalama area of the railway and 60-km railway in Baku-Astara area must capitally be repaired, 36-km bank consolidation works done. Works done in this direction include technical actions such recovery of station roads in the area given, improvement of power supply, expansion of locomotive depot.

Construction of Astara (Azerbaijan) – Astara (Iran) railway and railway bridge over Astarachay is scheduled to link Azerbaijan and Iran railway net. Azerbaijan will implement construction of the 8,4-km railway and 4 station roads, each 1050m. Land for construction has been allotted. 2 of 4 roads will be built in the first phase.

Iran has designed construction of the 85-m railway bridge over Astarachay and coordinated with Azerbaijan. Parties will partake here by 50% share. Iran is to carry out construction of railway from the bridge given to Astara (Iran).

350-km Gezvin-Resht-Anzali-Astara railway must be built in Iran to unite Iran-Azerbaijan-Russia railway net. Construction of this new railway in Iran has been included in the railway system development plan of Iran and first technical assessment works done.

These works to be done in the first phase in Yalama-Astara area of Azerbaijan State Railway require 98,0 billion AZN, 20,0 billion of which will be covered by domestic resources of railway.

Motorway

Following actions will be carried out to rehabilitate motorways of North-South International Transport Corridor crossing the territory of Azerbaijan:

- Baku-Guba-Russia frontier – 208 km (67 km 4-strip, 141 km 2-strip), total cost 280 million USD: 100 million USD by EBRD, 180 million USD by Czech Export Bank. Credit deal is expected to be signed with EBRD and has been signed with Czech Export Bank on June 10, 2005.

- Baku bypass - 21,5 km, total cost 43 million USD, supposed to be built due to funds of Kuwait Foundation and Abu Dhabi Foundation. Credit deal was signed on March 22, 2004. Pan-Arab Consulting (Kuwait) won the tender to supervise construction.

- Construction of 47-km sector of Baku-Elet road is underway. It costs 15 million USD. Of that 356 million USD is credit, 60 million USD share of Azerbaijan. In accordance with agreement signed between Azerbaijan and Iran January 5, 2005, Iran allocated 2 million USD grant to make working projects of this road. Passilo, the winner of tender held among Iranian firms to prepare working project, started projecting works.

- Construction of Shahtakhty-Poldesht and Julfa bridges over Araz River will be funded by Azerbaijan (50%) and Iran (50%). Shahtakhty-Poldesht motorway bridge costs 3 million USD. Iran has allocated 1 million USD grant to this construction as share of Azerbaijan.

- Another direction of motorways linking Azerbaijan and Iran is the 19,5-km Bilasuvar-Iran frontier motorway, which will be built due to funds of Azerbaijan. Construction-completion works are underway for construction of the motorway.

Connection of Azerbaijan to North-South International Transport Corridor and its active participation in cargo and passenger transportations via the corridor meets economic interests of our republic and will contribute to wider involvement of shipments, including transit ones, rise of cargo volume and revenues, development of transport infrastructure, opening of new workplaces, settlement of a lot of social problems.