BAKU, Azerbaijan, July 14. A number of important events took place in Azerbaijan's transport sector in the first half of 2023, Trend reports.
Trans-Caspian International Transport Route (TITR)
In January this year, Chairman of Azerbaijan's State Customs Committee, Lieutenant General Shahin Baghirov held meeting with the Director of the Capacity Building Directorate under World Customs Organization Taeil Kang.
During the meeting, Baghirov said that digital technologies will simplify the transit of freight traffic along the Trans-Caspian International Transport Route (TITR, or Middle Corridor).
He noted that international cooperation in the field of customs affairs plays an important role in solving modern problems, due to which it's necessary to strengthen cooperation in the field of transit facilitation through digital technologies in cargo transportation along the Middle Corridor, as well as in the field of conducting training for Azerbaijani customs officers and other tasks at customs.
In addition, work has been conducted to increase the throughput capacity of the Middle Corridor to 10 million tons by 2025 in accordance with the road maps signed between Azerbaijan, Türkiye and Georgia. About two million tons of cargo are expected to be transported along the Middle Corridor in 2023.
It was also reported that Singapore, Bulgaria, Lithuania, Austria, Hungary and Germany are expected to join TITR, and French freight forwarders are very actively interested in the route.
Moreover, it was noted that in the next five years, about five billion euro will be invested in infrastructure and improving the efficiency of processes on the TITR playing an important role in the integration of producers in Central Asia with global markets in the direction of Türkiye, North Africa and Southern Europe.
Plans were also revealed to create the TITR digitalization concept. Work has been conducted to detail the corridor and those countries (Singapore, Bulgaria, and Lithuania) which will join the corridor will be also included in the concept.
It was noted that the work on digitalization of TITR will be carried out with leading Singaporean companies. This concept is expected to contribute to improving the exchange of data between the participants, as well as speeding up border crossings.
Baku-Tbilisi-Kars (BTK)
It was noted that Azerbaijani Parliament will ratify the agreement "On the preliminary exchange of information between the Government of the Republic of Azerbaijan, the Government of Georgia and the Government of the Republic of Türkiye to simplify transit customs procedures within the framework of the BTK railway project.
The relevant bill was considered at an online meeting of the parliamentary committee on economic policy, industry and entrepreneurship. After discussion, it was recommended for consideration at the plenary session of parliament.
Besides, necessary measures have been taken to accelerate the pace of construction on the BTK railway in order to increase the potential of cargo transportation. The Azerbaijani Railways CJSC has attracted new contractors to accelerate renovation and construction work to complete the project as soon as possible on the BTK section passing through Georgia, with a length of 183 km and with a complex geographical terrain.
The ongoing work will play an important role in the delivery of even more cargo from China and Central Asia to Europe. The fast delivery of goods from Asia to Europe with just one transshipment operation through Azerbaijan significantly distinguishes the BTK in the regional transport network.
In addition, currently the railway lines are fully electrified, the construction of the railway line is mostly completed, and work is being carried out at 12 stations on power supply, installation of communication and alarm equipment.
A total of 2.4 million tons of cargo have been transported via the BTK railway route since it first was commissioned. Cargo transportation by the route amounted to 691,000 tons in 2022 alone. The first Baku-Tbilisi-Kars railway line was commissioned in 2017. Currently, the length of this route is 850 kilometers.
INSTC
During the St. Petersburg International Economic Forum (SPIEF'23) it was noted that major international East-West and North-South corridors intersect in Azerbaijan, and in this regard, the opening of the Zangazur corridor will speed up cargo transportation via the International North-South Transport Corridor (INSTC).
It was also noted that the agreement on the construction of the railway section between Rasht and Astara will open a new chapter in the development of the INSTC. The agreement on the construction of this railway section between Rasht and Astara, which passes through Azerbaijan, was signed on May 17 in the presence of the Presidents of Russia and Iran, Vladimir Putin and Ebrahim Raisi.
On March 17, the Khanoba border checkpoint (on Azerbaijani-Russian border) was launched after reconstruction. It will enable a significant increase in Azerbaijan-Russia trade turnover, and the transit possibilities of Azerbaijan. The checkpoint can ensure the passage of 550 trucks, 30 passenger buses and up to 1,000 cars and passengers per day.
It was also noted that Azerbaijan can become a transit country for annual transportation of up to 15 million tons of goods and cargo by 2030.
In 2023, 17.6 million tons of cargo are expected to be transported through the INSCT against 14.5 million tons in 2022.
It's also planned to transport 5.5 million tons of cargo via the North-South Transport Corridor by road in 2023.
According to forecasts, this figure may grow to 41 million tons by 2030.
Zangazur corridor
The importance of the Zangazur corridor in the context of international cargo transportation has increased. Azerbaijan plays an important role in the transportation of cargo not only from East to West but also in the North-South direction.
It was noted that negotiations are expected to be held between Azerbaijan and Russia regarding the 43-kilometer section of the Armenian part of the line, which will pass through Zangazur.
With the opening of the Zangazur corridor, the cargo flow of the Middle Corridor by rail and highway will increase, which will positively affect the growth of East-West trade turnover.
The 158-kilometer line from Ordubad to the Validag station in the north of Nakhchivan will be overhauled. In addition, the line will be extended by 14 kilometers from Validag to the border with Armenia. Construction work continues on the section of the Zangazur corridor to the border with Armenia, a new railway with a length of 166 kilometers from Horadiz to the Ordubad region of Nakhchivan will be laid.
Further it was noted that the implementation of the Zangazur corridor will unite the Turkic world through land transport. Türkiye and Azerbaijan are carrying out systematic activities regarding the Zangazur corridor. The achievement of a general agreement on the restoration of railway communication between Azerbaijan and Armenia indicates that the possibility of implementing the Zangazur corridor is quite high.
The joint activities of brotherly Azerbaijan and Türkiye, which are strategic allies, can make it possible to restore communications in the region and launch the Zangazur corridor in a shorter time.
Transport Corridor Europe-Caucasus-Asia (TRACECA)
Azerbaijan, Türkiye, Georgia, Kazakhstan and Ukraine may start using the electronic CIM/SMGS (Uniform Rules Concerning the Contract for International Carriage of Goods by Rail/ Agreement on International Goods Transport by Rail) consignment note as early as 2024.
It will initially be possible to test the use of the CIM/SMGS electronic waybill only between railway operators in early 2024, and then, in early 2025, with other stakeholders in multimodal transport and customs authorities.
According to the action plan, the results of the pilot project will be proposals and roadmaps for changing or establishing the legal framework, further development of information infrastructure, establishing effective electronic information exchange between railway structures, as well as better integration of railway IT systems with IT systems of operators of other means of transport, customs and other border authorities.
Besides, TRACECA and the TITR Association have been working to attract additional cargo to this route. In this regard, the memorandum of cooperation was signed by the Secretary General of the PS IGC [Permanent Secretariat of Intergovernmental Commission] TRACECA Asset Assavbayev and Abdikerimov during the 16th annual meeting of the IGC TRACECA in Tbilisi.
In June, pilot transportation of goods in semi-trailer by truck tractors of different countries of registration was carried out along the multimodal route Lithuania - Poland - Slovakia - Hungary - Romania - Bulgaria – the Black Sea - Georgia - Azerbaijan – the Caspian Sea - Kazakhstan and took 16 days.
Initiatives of the PS IGC TRACECA, in particular on digitalization of transport documents, play important role in ensuring efficiency of international cargo transportation and further development of multimodal transportation in 13 TRACECA member countries. The PS expressed readiness to cooperate in the field of transition to the use of electronic transport documents.
In April, it was announced that Turkmenistan will join TRACECA by the end of the year. From a legal point of view, the work has been completed, all TRACECA member countries expressed their readiness to accept this country into the organization.