Review of Transport sector in Azerbaijan (2012)

Success of Azerbaijan's economy in recent years is mainly due to the development of the transport sector in the country, first of all, modernization of the transport infrastructure, and in particular, the construction of new and reconstruction of existing roads throughout the country, which causes an increase in cargo traffic volume and speed of delivery of goods, reducing the cost of demurrage. Thus, the share of the transport sector in Azerbaijan's GDP reached 5.6 percent.

Road transport is the basis of the transport sector in Azerbaijan: in 2012 all transport sector of the country transported 210.6 million tons of cargo, of which 118.1 million tons, or 56 percent of the total volume accounted for motor transport. This is a direct consequence of the modernization of road infrastructure.

Over the past eight years in Azerbaijan about 2,500 kilometers of roads of national significance and 4,000 of local roads were built and reconstructed, more than 170 tunnels, bridges and road junctions were commissioned.

In 2012 process of construction and repair of highways continued. Special attention was paid to the construction of rural roads. According to the Transport Ministry, in 2012 537.2 km roads were repaired, including 134.6 km of roads of national significance, 402.6 km- local roads. Twenty five bridges will be built on the highways. During the year 94 km of highways, avenues and streets were repaired, six underground pedestrian crossings were commissioned.

In 2012, in addition to the modernization of road infrastructure, implementation of the program on the development of rail transport also continued.

Some 163.8 million manat were invested in development of railway transport in Azerbaijan in 2012, of which 1.6 million manat were contributed from equity of Azerbaijan Railways JSC. Some 132.4 kilometers of railway, 25 electric and diesel locomotives, 729 passenger cars, 3603 cargo wagons, 630 containers were repaired during the reporting period. As part of the contract between Azerbaijan Railways JSC and Lithuanian "STREFA" company nine electric VL-10 locomotives were delivered to Azerbaijan in 2012.

CJSC ordered four new E-190 aircraft from Brazilian Embraer SA. The total cost is $180.8 million. The delivery of aircraft will begin in the third quarter of 2013. Azerbaijan Airlines (AZAL) has ordered ten AgustaWestland (Finmeccanica company, Italy) helicopters

56.1 percent of all cargo was transported by motor transport, 27.1 percent - pipelines, 10.9 percent - railway and 5.9 percent - by sea.

The passenger transportation in 2012 totaled 1.6 billion people, which is 8.4 percent more than during the same period of 2011. Passenger transportation by automobile was 87.6 percent, metro - 12.1 percent.

Automobile transport takes the lion share in the transport field of the country. The cargo transported by vehicles made up 118.1 million tons of cargo or 7.6 percent more than the same period of 2011. Passenger transportation comprised 1.4 billion people (a 8.7 percent increase) with 96.4 percent people using buses and 3.6 percent people - vehicles.

Freight turnover by road during the period grew by 7.7 percent compared to 2011, and passenger turnover - by 9.7 percent.

The Azerbaijan State Railway Department (ASRD) transported 22.9 million tons of various cargo compared to 22.1 million tons in 2011.

The number of loaded carriages made up 685, in average per day and unloaded - 559. Average daily load of carriages in the northern direction is 27,000 tons and in western direction 6,500 tons, but in the southern direction - 4,300 tons.

The cargo shipping via sea hit 12.4 million tons compared to 12.5 million tons in 2011. The volume of transported goods fall to the international operations. The volume of cargo processed in Azerbaijani ports was 11.9 million tons in 2012, which is 0.4 percent more than the same period of 2011.

Some 60.5 percent of cargo shipping fell on oil and oil products, while 39.5 percent on dry cargo. Volume of international transit cargos processed in January-December increased by 1.8 percent. As of Jan.1, 2013, 81,600 tons of cargo left in the ports for import, which is 13.3 percent more compared to the same period of last year.

In 2012, the export via oil pipelines made up 43.3 million tons. During this period, 75 percent or 32.9 million tons of oil was transported via the BTC (data provided by the State Statistics Committee). In January-December Sangachal terminal transported 3.1 million tons of Turkmen oil via BTC.

In 2012 transportation via gas pipelines made up 19.3 billion cubic meters or 3.1 percent more compared to 2011. Some 20.8 percent of the transported gas fell on South Caucasus Pipeline. Some 4 billion cubic meters of gas was transported via this pipeline.

Some 1.6 million passengers were transported by air transport in 2012, which is 14.3 percent more than the same period in 2011. Some 1.5 percent of traffic by this kind of transport fell to private sector. The volume of cargo transportation by air increased by 16.8 percent.

Some 195.6 million people were transported by the subway, increasing by 7.1 percent.

Some 51.9 million tons of cargo was transported through the Eurasian transport corridor at the territory of Azerbaijan in January-November 2012, which is 5.6 percent more than the same period of 2011. Some 237.7 million people were transported through the corridor, which is 7.9 percent more than in January-November 2011.

Some 16.71 million tons of cargo was transported by transit through Azerbaijan's territory in 2012, Azerbaijani Customs Committee said.

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