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Review of transport sector in Azerbaijan (Jan-Sept. 2014)

Analysis Materials 11 November 2014 15:51 (UTC +04:00)

Some interesting events occurred in the transport sector in Azerbaijan in September 2014:

The ADB final report is expected to be prepared in December 2014 as part of the investment program for sustainable urban transport in Baku. This statement was made at the meeting of the ADB group of consultants led by specialist for urban planning David Margonsztern with representatives of the Azerbaijani Ministry of Transport. A preliminary version of the final report was also submitted at the meeting. The sides discussed a public transport improvement strategy in Baku, the development of intra-rail transport, the creation of the bus rapid transit systems, reconstruction of the city bus system, bus stop management, capital road network improvement and major interchanges.

The World Bank (WB) is launching a new evaluation of the Regional roads project in Azerbaijan, on the implementation of which the bank plans to allocate up to $250 million.In accordance with the concept, the total cost of the project is $ 368.33 million, some $250 million of which will be allocated by the International Bank for Reconstruction and Development (IBRD, part of the WB).These funds will be used for the reconstruction of two regional road sections and the adjoining local roads with a total length of up to 100 kilometers. Shirvan - Nokhudlu - Salyan (41 kilometers) and Salyan - Nefchala (43 kilometers) are the two main sites, that credit resources will be allocated to, for the reconstruction. Consultations on technical supervision will also be considered within the frame of the project.

Azerbaijan Caspian Shipping Company CJSC acquired new towing- supply and dry cargo vessels. The technical capabilities of the towing-supply vessel built under the supervision of Singapore Pacc Offshore Services Holding Ltd, will attract it for the works stipulated in the major offshore oil and gas projects in the Azerbaijani sector of the Caspian Sea. Deadweight of the Russian produced dry cargo vessel is 5,490 metric tons. The vessel is 108.3 meters long and 16.5 meters wide. The vessel will be used for shipping in the Black Sea, the Mediterranean and others.

Azeryolservis JSC of Azerbaijan's Transport Ministry will complete the construction of a bridge across the Lankaranchay River on the Alat-Astara-Iran border highway. Azeryolservis JSC is responsible for the road and transport infrastructure. The length of the bridge, consisting of six passages, is 205.5 meters and its width is equal to 28.5 meters. Moreover, around 800 meters long driveways, as well as local roads have been constructed to ensure the traffic between villages, according to the company.

Azerbaijan Railways has commissioned a new base "Train Emergencies LLC". The base located in Bilajari is intended for disaster and emergency situations on the railways. The total area of ​​the new base is 25,296 square meters. The base consists of an administrative building, repair shops and other facilities. Work on the creation of the base has been carried out within the framework of the "State program for the development of the railway system of Azerbaijan for 2010-2014" approved by the president on July 6, 2010.

A shipyard in Azerbaijan received the first three orders worth $ 450 million.
The first order for the pontoon construction worth $40 million was obtained from SOCAR (State Oil Company of Azerbaijan) and Caspian Drilling Company. The second major project is implemented upon BP order, which envisages the construction of the vessel for subsea operations. The construction of the vessel with a length of 155 meters and a width of 32 meters has already started. The project cost is $378 million. The third project is implemented upon the order of the Azerbaijan Caspian Shipping Company, which envisages the construction of three passenger ships, designed to carry 80 passengers each. Each steamer is estimated at about 8.5 million AZN.

The ferry terminal was opened as part of the first stage of a new complex of the Baku international sea trade port.

Etihad Airways, the national airline of the United Arab Emirates, have announced the launch of a four times per week service linking Abu Dhabi to Baku, according to airline's press release. The flights will be operated using an Airbus A320 aircraft. "The launch of Etihad Airways' flights to Baku's Heydar Aliyev International Airport is consistent with our strategy of targeting areas of strong growth in the fast-growing Caucasus region," James Hogan, Etihad Airways' President and Chief Executive Officer, said.

The Azerbaijani transport sector transported 165 million tons of cargo in January-September 2014 or by 2.1 percent more than in the same period of 2013, according to the Azerbaijani State Statistics Committee's report.

According to a report, the volume of non-oil cargo increased by 3.3 percent, reaching 117.5 million tons in January-September.

Around 76.5 percent of the total volume of goods transported in January-September fell to the private sector.

Some 57.9 percent of all cargo were transported by vehicles, 28 percent - by pipelines, 9.7 percent - by railway and 4.4 percent - by ships.

Around 218 million tons of cargo were transported by the Azerbaijani transport sector in 2013, which is 3.4 percent more than in 2012.

Some 1.3 billion people used passenger transport in January-September, which is 5 percent more than in the same period of 2013. Most of the passengers were transported by vehicles (88 percent) and metro (11.7 percent).

Automobile transport takes the lion share in the transport field of the country. Some 95.3 million tons of cargo were transported by vehicles, which is 2.7 percent more than in January-September 2013. The volume of passenger transportation hit 1.2 billion people (a 5.1 percent growth). Some 96.3 percent of the passengers were transported by buses and 3.7 percent - by cars.

Freight turnover by vehicles increased by 2.8 percent during the reporting period, while passenger turnover - by 5.8 percent.

Some 16 million tons of cargo were transported by railway in January-September compared to 17 million tons in the same period of 2013.

The number of loaded carriages made up 598, in average per day and unloaded - 611. Average daily load of carriages in the northern direction is 21,600 tons and in western direction 7,000 tons and southern direction - 5,900 tons. Around 7.3 million tons of cargo were transported by ships in January-September compared to 8.8 million tons in January-September 2013. All cargo accounted for international operations. The volume of goods handled in Azerbaijani ports amounted to 8.9 million tons in January-September.

Some 56.3 percent of cargo shipping fell to oil and oil products, while 43.7 percent on dry cargo. The volume of international transit cargo handled in the ports hit 86.1 percent. As of Oct. 1, around 130,400 tons of cargo left in the ports for import.

Some 34.8 million tons of oil (a 7.2 percent increase) were transported via main oil pipelines in January-September. During this period, 75 percent or 26.3 million tons of oil were transported via the BTC (data provided by the State Statistics Committee). Sangachal terminal transported 4 million tons of Turkmen oil via BTC in January-September.

Gas transportation via main gas pipelines made up 16 billion cubic meters (a 9.6 percent growth) in January-September. Some 29.2 percent of the transported gas fell to the South Caucasus Pipeline. Some 4.7 billion cubic meters of gas were transported via this pipeline.

Some 1.4 million passengers were transported by air transport in January-September which is 8.7 percent more than in the same period of 2013. Some 0.3 percent of shipment by this kind of transport fell to private sector.

Some 156.5 million people were transported by metro (a 4.1 percent growth) compared to January-September 2013.

Some 38.9 million tons of cargo were transported through the Eurasian transport corridor TRACECA (Europe-Caucasus-Asia) through the territory of Azerbaijan in January-August 2014 compared to 39.5 million tons in January-August 2013, the Azerbaijani State Statistics Committee said. Around 50.4 percent of the total volume of transported cargo fell to vehicles, 34 percent - railway and 15.6 percent - ships.

Some 208.4 million people were transported through the corridor in January-August, which is 7.7 percent more than in the same period of 2013.

Around 59 million tons of cargo were transported through the Azerbaijani segment of the corridor in 2013, which is 3.8 percent more than in 2012. Around 285.2 million people were transported as part of the corridor in 2013 or by 9.3 percent more than in 2012.

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