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Review of Transport sector in Azerbaijan (january-july 2015)

Analysis Materials 9 September 2015 16:04 (UTC +04:00)

There are some events connected with Azerbaijan's transport sector during the reporting period:

Azerbaijani President Ilham Aliyev signed a decree on additional measures for the construction of the Tovuz-Khunanlar-Garahanli-Duz-Jirdahan in the Tovuz district. Some 4.5 million manat envisaged for the construction and reconstruction of inter-settlement roads were allocated from the state budget-2015 to continue the construction of the highway connecting 13 settlements with a population of 32,000 people.

Azerbaijan produced 182 trucks in January-July 2015, which is 14.5 percent more than in January-July 2014, the Azerbaijani State Statistics Committee's report as of January-July 2015 said. Some 325 motor cars were produced in the reporting period or by 78.5 percent less than in the same period of 2014.

If Azerbaijan offers additional discount, Turkey can increase the cargo transportation with ro-ro vessels from Azerbaijan to Turkmenistan bypassing Iran, Fatih Sener, executive director of Turkey's International Transporters Association said.

He said that if the Azerbaijani side offers an additional discount, at least 50 percent of cargo transportation to Turkmenistan can be carried out through Azerbaijan, via the Caspian Sea.

Sener didn't rule out that Turkey can increase the cargo flow through Azerbaijan to Turkmenistan to 25,000 trucks per year.

Sener added that Turkey and China have agreed on joint use of highways, adding that the sides will sign an agreement on this issue in February 2016.

"What remains is to choose the final route for delivering goods to Turkey and Azerbaijan has a great potential to become a transit country," he said.

The Civil Aviation Organizations of Azerbaijan, Georgia, Turkey and Ukraine signed a Memorandum of Understanding. The document envisages the cooperation among the State Civil Aviation Administration of Azerbaijan, the General Directorate of Civil Aviation of Turkey, the Civil Aviation Agency of Georgia and the State Aviation Administration of Ukraine.

Azerbaijan imported 19,476 vehicles in January-July 2015 compared to 38,338 vehicles in the same period of 2014, the Azerbaijani State Customs Committee said in its statistics report.

The report said that cars and motor vehicles accounted for 17,345 of the total number of vehicles imported to the country in the first seven months of 2015. Azerbaijan imported 34,618 cars and motor vehicles in January-July 2014.

Moreover, Azerbaijan imported 1,275 trucks in January-July 2015 (3,263 trucks for seven months of 2014). The remaining part of the import accounted for other types of vehicles.

Istanbul hosted the seventh meeting of the working group for the development of transport as part of the Cooperation Council of the Turkic-speaking countries, where Azerbaijan, Kazakhstan, Kyrgyzstan and Turkey agreed on the initial text of the document on the combined cargo transportation between the two countries.

Iran intends to open a car assembly plant in Azerbaijan, Hashim Yeke Zare, director of Iranian large auto company İran Khodro (IKCO) said.

"At present, Iran Khodro exports cars to Azerbaijan, but at the same time the company plans to open a Complete Knock Down in the country," he said.

"The talks are being held with the Azerbaijani businessmen in this direction," he said.

"Iran intends to get a license of the Azerbaijani relevant authorities to build the plant." The company head said it is planned to manufacture 10,000 cars per year at the plant to be constructed in Azerbaijan, adding that part of these cars will be exported.

The Azerbaijani transport sector transported 126.4 million tons of cargo in January-July 2015 or by 1.2 percent more than in the same period of 2014, according to the Azerbaijani State Statistics Committee's report as of January-July 2015 said.

According to a report, the volume of non-oil cargo increased by 2.3 percent, reaching 89.6 million metric tons in January-July.

Around 79 percent of the total volume of goods transported accounted for the private sector during this period.

Some 59.4 percent of all cargo were transported by vehicles, 29.1 percent - by pipelines, 8.1 percent - by railway, 3.3 percent - by ships, 0.1 percent - by planes.

Some 1.042 billion people used passenger transport in January-July, which is 3.7 percent more than in the same period of 2014. Most of the passengers were transported by vehicles (87.4 percent) and metro (12.4 percent).

Automobile transport takes the lion share in the transport field of the country. Some 75.1 million tons of cargo were transported by vehicles, which is 7 percent more than in the same period of 2014.

The volume of passenger transportation hit 910.9 million people (a 3.7 percent growth). Some 96.1 percent of the passengers were transported by buses and 3.9 percent - by cars.

Freight turnover by vehicles increased by 7 percent during the reporting period, while passenger turnover - by 3.8 percent.

Some 10.3 million tons of cargo were transported by railway in January-July 2015 compared to 12.2 million tons in the same period of 2014.

On average, the number of loaded carriages made up 470 and unloaded - 448. Average daily load of carriages in the northern direction is 19,200 tons and in western direction 5,300 tons and southern direction - 2,500 tons.

Around 4.1 million tons of cargo were transported by ships during this period compared to 5.7 million tons in the same period of 2014. All cargo accounted for international operations. The volume of goods handled in Azerbaijani ports amounted to 5.4 million tons in January-July.

Some 70 percent of cargo shipping fell to oil and oil products, while 30 percent on dry cargo. The volume of international transit cargo handled in the ports hit 94.9 percent. As of September 1, 2015, around 77,200 tons of import cargo left in the ports for transportation.

Some 27.5 million tons of oil were transported via main oil pipelines in January-July. Some 75.9 percent or 20.8 million tons of oil accounted for BTC.

Some 3.7 million tons of Turkmen oil were transported via the BTC in January-July.

Gas transportation via main gas pipelines made up 13 billion cubic meters in January-July. Some 32.5 percent of the transported gas fell to the South Caucasus Pipeline. Some 4.2 billion cubic meters of gas were transported via this pipeline.

Some 1 million passengers were transported by air transport in January-July which is 2.8 percent more than in the same period of 2014. Some 0.4 percent of shipment by this kind of transport fell to private sector.

Some 128.7 million people were transported by metro (a 3.7 percent growth) compared to the same period of 2014.

Some 161.1 million passengers were transported through the Eurasian transport corridor TRACECA (Europe-Caucasus-Asia) through the territory of Azerbaijan in January-June 2015 or by 7.8 percent more than in the same period of 2014, the Azerbaijani State Statistics Committee said.

Some 26.3 million metric tons of cargo were transported through the corridor in January-June compared to 28.1 million metric tons in the same period of 2014. Around 56.3 percent of the total volume of transported cargo fell to vehicles, 30.7 percent - railway and 13 percent - ships.

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