BAKU, Azerbaijan, June 8. The development of the International North-South Transport Corridor (INSTC), the Middle Corridor, and air, road, and maritime transportation was in the spotlight this week, Trend reports.
Representatives from Azerbaijan participated in a roundtable in St. Petersburg dedicated to the development of the INSTC on June 6.
The meeting speaker, Russian Minister of Transport Roman Starovoyt emphasized that in 2023, cargo traffic at the border checkpoints of the INSTC on the Russian-Azerbaijani border increased by 25 percent.
He also mentioned that preparations are underway with Azerbaijan for an agreement to develop transportation on the western branch of the INSTC.
Moreover, according to him, joint efforts continue with Iran on the implementation of the intergovernmental agreement for the construction of the Rasht-Astara railway line at the Iran-Azerbaijan border.
The State Customs Committee (SCC) of Azerbaijan has developed a draft framework agreement for the operation of a unified Trans-Caspian customs and transit electronic portal to improve the efficiency of the Middle Corridor and has sent it to the participating countries for approval, SCC representative Laman Khalilova said on June 4.
New Growth Business Unit Director at Ahlers Logistics Johan Elzes said that the company sees potential to further expand its services along the Trans-Caspian International Transport Route (TITR, or Middle Corridor).
Supporting the prospects of the TITR, the TITR Association said this week that the number of container trains traveling from China through the Middle Corridor via Azerbaijan, Georgia, and Turkey to Europe increased ninefold from January through May 2024, while in May alone, more than 30 container trains passed through the TITR - a record for transit.
Furthermore, the TITR Association announced that stable delivery times have been achieved on the main sections of this route, enhancing its appeal to China and the EU.
Specifically, according to the schedule demonstrating stability, the delivery times for goods from the key Kazakh railway hub Altynkol (on the Kazakhstan-China border) to the Baku port of Alat on the Caspian Sea (Azerbaijan, a key transshipment link) take nine days, the association explained.
The Altynkol-Poti/Batumi (Georgia) route takes 12 days, and the entire route from Altynkol-Poti/Batumi to the port of Constanta (Romania) takes 20-22 days, depending on conditions on the Black Sea, according to the TITR Association.
The increase in oil and petrochemical shipments through the Caspian Sea and Azerbaijan highlights the significance of the Middle Corridor, said SOCAR (State Oil Company of Azerbaijan) President’s advisor Zaur Gahramanov during a panel discussion themed "Oil Flows: Cross-Logistics and Infrastructure Development in Azerbaijan" at the Baku Energy Forum on June 6.
According to him, foreign companies now recognize the importance of the Middle Corridor and are ready to finance its development, including companies from the UAE and other investors.
An informed source said that SOCAR is in negotiations with AD Ports Group (UAE) regarding investments in the modernization of Azerbaijan's offshore oil terminals on the Caspian, which will increase the load on the TITR (Trans-Caspian International Transport Route).
Additionally, a source in the Baku Shipyard LLC said that a new oil tanker, called "Zangilan", with an 8,000-ton capacity, will be added to the fleet of CJSC Azerbaijan Caspian Shipping Company (ASCO) in the second half of 2024.
As the source explained, this tanker can be used in SOCAR's trade and transport operations both in the Caspian Sea (via TITR) and in open waters.
Given the growing interest in the TITR, the Azerbaijani transport and logistics company AMEC and the Caspian Energy Club have decided to organize an international forum on the Middle Corridor in Rotterdam on July 2.
Employees from companies in countries participating in the Middle Corridor, representatives of European businesses, and experts have been invited to participate in the forum, and the registration has begun.
Regarding the development of aviation in Azerbaijan, Russian airline Utair announced launch of its flights from Moscow to Lankaran since June 22.
Moreover, Latvia’s national airline, AirBaltic, announced operation of its traditional direct seasonal flights between Riga and Baku from July to November 2024.
This week also saw the start of direct flights between Baku and Bucharest and Sofia.
Azerbaijan aims to improve its bus transportation sector and is in negotiations with the Korean-Indonesian PT Powerspark joint venture about possible purchase of buses.
Earlier, Deputy Minister of Digital Development and Transport Rahman Hummatov said that Baku alone needs more than 2,500 new buses, as the capital’s bus fleet is outdated, and the total requirement for new buses across the country exceeds 3,000 units.
Additionally, Emil Zeynalov, the regional manager of Mastercard in Azerbaijan, mentioned Mastercard’s proposal to develop a card payment system for public transport in Azerbaijan.