BAKU, Azerbaijan, April 20. Cargo traffic along with all three directions of the International North-South Transport Corridor (INSTC) through the Caspian Sea, Turkey, and Azerbaijan can be expected to grow due to the closure of European borders [within anti-Russian sanctions], the press service of the Russian RZD Logistics company told Trend.
According to the press service, there are good prospects for the development of this area of logistics.
"The logistics capacity of air and road deliveries will gradually decrease due to increase of the cost of spare parts, maintenance and the impossibility of fleet renewal,” the company said. “Due to a reduction in supply and an increase in demand for air and road shipments, the price will grow, whilst, rail transport, which has a relatively young fleet of rolling stock with a high degree of production localization in Russia, is able to meet the increased demand.”
The company noted that given the above, the North-South transport corridor acquires special importance.
"Goods from Iran, India and the UAE can be transported along this corridor. They can be transported both through the Suez Canal, which significantly increases the time and cost of transportation, and by rail through the territory of Azerbaijan. The latter route is faster and more profitable one," the press service stressed.
The company also noted that RZD Logistics has recently been actively engaged in the development of cargo transportation with Kazakhstan and the Eurasian Economic Union countries.
“Last year, we opened a branch of RZD Logistics in Nur-Sultan, and created a joint venture in Uzbekistan. Thus, we have already integrated into newly created logistics chains and are ready to offer customers a modern logistics service based on new routes, including through Azerbaijan,” the company further said.
“Due to the gradual expansion of fleet of our own self-contained refrigerated containers, we can offer our customers the transportation of goods requiring special temperature conditions,” the press service said. “The goods include not only vegetables, fruits, frozen products, but also pharmacological products: raw materials, individual components and finished drugs,".
The pace of development of the North-South corridor and interaction with the countries of Central Asia and the Caucasus will depend on the level of development of intergovernmental agreements, but interest in the further development of cooperation is very high, added the company.