ArmInfo."South Caucasus Railway" CJSC (SCR) has presented at the "Armenia EXPO 2016" the prospects of using Armenia's transit potential for conducting multimodal transportation from Iran to the countries of Europe and back using railway. To note, the expo was held in Tehran between October 5 and 8.
According to the company's press-service using this corridor will allow to conduct transportation until Armenia-Iran railway is put into operation and to establish ties between goods suppliers and receivers. The SCR is already working on this issue, particularly as a result of discussions with Georgian railway a decision was made to reduce tariff rate on this direction.
To note, within the expo detailed information was presented about the main activities of SCR, development prospects of goods transportation, development programs of Armenia's railway transport, geography of railway passenger travel, tourism products provided by SCR, as well as the project of new customs container terminal, which will be put into operation in Yerevan soon.
Armenia's Ambassador to Iran Artashes Tumanyan, Deputy Minister of Economic Development and Investments Hovhannes Hovhannisyan, Deputy Minister of Industries, Mines and Trade of Iran Hossein Esfahbodi made speeches at the opening ceremony. They emphasized the importance of holding the expo in post-sanction period for development of bilateral trade-economic relations. Armenia's favorable investment conditions and foreign trade regimes (EEU, GSP, GSP) were also stressed.
Armenia's Ambassador to Iran Tumanyan noted that currently our countries plan to launch multimodal transportation corridor using highway and railway transport. According to the diplomat implementation of project is feasible. The Ambassador stressed that it is not the first visit by SCR CJSC delegation to the country on this issue. "I can inform that within the current visit useful negotiations were held. Delegation of International Transport Companies Association of Iran (holds 60% share in Iran's goods transportation market) is going to visit Yerevan and discuss this issue with relevant agencies. I am also optimistic about this issue", Tumanyan said.
CEO of SCR CJSC Sergey Valko noted that the alternative route of transportation to Europe and back offered by the company to the Iranian side has raised big interest. "When I have proposed this route, I did not even know that this is a historic route for Iran: they called it "Spice Route", like the Chinese "Silk Road". We proposed to the Iranian side an alternative to the existing road to Europe through Turkey and the proposed route is safer and more beneficial", Valko noted. Within the frameworks of the expo Sergey Valko held negotiations with Deputy Minister of Industries, Mines and Trade of Iran Hossein Esfahbodi.
During the meeting between SCR representatives and International Transport Companies Association of Iran prospects of bilateral mutually beneficial cooperation were discussed. Within the frameworks of the expo a meeting was held with the representatives of Iran's railway and customs service headship, heads of large transport companies of the country. The proposed projects on organizing multimodal transportation from European countries to Iran and back using Armenia's railway transport were presented in details during the meetings.
To note, more than 100 Armenian companies from various sectors participated in "Armenia EXPO 2016".
To note, within the project of multimodal transportation it is planned to organze delivery of Iranian goods by highway transport to Armenia (Yeraskh), from where the goods will further be transported by railway to Georgian harbors in Black Sea and further to Europe. By the Armenian President's decree a prompt political decision was made on construction of Agarak-Sisian asphalt automobile road instead of concrete one aimed at the rapid construction of that part of the road. This section is the most difficult, it will allow to cut the road by 70 km and the time by 2.5 hours. It is planned to finish construction within maximum three years. In this case it will be managed to achieve maximum activity on this direction, as Armenia can offer opportunity of railway connection unlike other countries. Modernization of the road from Sisian to Yeraskh will create the opportunity of using railway. The station in Yeraskh will be equipped with large terminals, in which Iranian businessmen are already interested. Delivery of goods to Yeraskh and further by railway station to Georgian Black Sea will be cheaper by 500 USD for 1 ton of cargo compared to the route offered by Azerbaijan.
To note, construction of Agarak-Sisian road is part of the North-South road corridor. North-South 556km motorway will be laid via the Armenian towns of Meghri-Kapan-Goris-Yerevan- Ashtarak-Gyumri-Bavra and enter the territory of Georgia on Akhaltsikhe-Batumi section, which will settle some transport problems of Armenia. This will be a four-lane motorway of reinforced concrete extending from the Armenian border and Iran to the Georgian port Batumi. The road corridor will facilitate improving the road connection with the two neighbors of Armenia: Iran and Georgia, providing access to international trade routes and markets. Armenia raised $500mln loan from the Asian Development Bank for the project that is estimated at $1 billion. Eurasian Development Bank is ready to provide $150 million. Armenia raised $60 million from the European investment Bank. Due to the project, the overland communication Europe-Caucasus-Asia will be improved. The project will be completed by 2019. It will allow Armenia to soften the consequences of the blockade by Azerbaijan and Turkey and to join the Black Sea ring highway.