...

Review of transport sector in Azerbaijan (January-March 2016)

Analysis Materials 13 May 2016 14:30 (UTC +04:00)

The most important task for the Azerbaijani economy, as a whole and for the transport sector in particular, is the development and expansion of regional and continental transport corridors passing through the country. The matter rests in the Trans-Caspian international transport route and the North-South corridor, where Azerbaijan is one of the transit countries. It is necessary to improve the competitiveness of these routes to maximally attract cargo flows (i.e. obtain the maximum profit). This is possible in case of a flexible and transparent tariff policy, simplified customs procedures and the implementation of other measures reducing the cost of cargo transportation and the travel time.

The work was carried out in this direction in January-March:

- Azerbaijan intends to set a single tariff for cargo transportation with the countries through which the Trans-Caspian transport corridor runs, Azerbaijan's Deputy Economy Minister Sahil Babayev said.

He noted that the country has already reached a preliminary agreement with Georgia on the issue.

The single tariff negotiations are also underway with Kazakhstan, Turkmenistan and Turkey, said Babayev, adding that if these plans are fulfilled, the Trans-Caspian transport corridor's competitiveness will rise significantly.

The Trans-Caspian International Transport Route runs through China, Kazakhstan, Azerbaijan, Georgia, Turkey and goes to Europe.

Azerbaijan, Kazakhstan, Georgia and Ukraine signed a protocol Jan. 14 to set competitive preferential tariffs for cargo transportation on the Trans-Caspian International Transport Route.

- Azerbaijan and Turkmenistan consider opening a new route on the Caspian Sea, said Javid Gurbanov, head of Azerbaijan Railways CJSC.

He made remarks at an international scientific conference titled "The role of Turkmenistan and Azerbaijan on the way of recreation a new "Silk Road" between Europe and Asia".

The protocol on cooperation in this field has recently been signed during the visit of the Azerbaijani delegation to Turkmenistan, said Gurbanov.

"We think that if we define the tariffs, then we will be able to provide access of goods to Europe via a new route, originating in Afghanistan and passing through the territory of Turkmenistan and Azerbaijan," he noted.

"According to our preliminary estimates, 14-16 million tons accounted only for the cargo turnover of Uzbekistan," he said.

"Due to the lack of favorable tariffs, goods from Turkey, Azerbaijan and Georgia are mainly transported through other Central Asian countries," said Gurbanov adding that if Turkmenistan reconsiders to reduce tariffs, goods can be transported through its territory.

Today, major part of cargos is transported through Russia and Kazakhstan to the Black Sea bypassing Turkmenistan, said Gurbanov.

The volume of freight traffic between Europe and China is about 100 million tons, or about $600-650 billion, according to him.

The Azerbaijan Caspian Shipping Company CJSC has reduced the tariffs for the transportation of trucks via the Baku-Turkmenbashi-Baku route by 20 percent since March 31. This decision is a continuation of measures to enhance the competitiveness and efficiency of transit transport corridors passing through the territory of Azerbaijan, to attract additional cargo flow via these corridors. "Thus, the tariff for transportation of one standard truck with a 16.5 meter-trailer in one direction (Baku-Turkmenbashi and Turkmenbashi-Baku) will cost $1,072. If a driver buys a round trip ticket, the tariff will hit $1,716, rather than $2,144. This amount includes a driver's ticket too. The tariff for the transportation of wheeled vehicles longer or shorter than 16.5 meters will be calculated in proportion to its length.

The Azerbaijan Caspian Shipping Company CJSC reduced the tariffs for transportation of cars up to 20 percent via the Baku-Aktau-Baku route in December 2015.

Among other news:

- Ganja Automobile Plant production association and Ural Automobile Works JSC signed an official agreement on the assembly and sale of Ural cars in Azerbaijan and the third countries. Azerbaijan will fully assemble the cars. The contract envisages assembling of 500 vehicles per year, which will be sold domestically, as well as in the third countries.

Azerbaijan's freight air carrier Silk Way West Airlines signed an agreement with Malaysia Airlines Cargo.

The agreement envisages the mutual use of the aircraft fleet and the expansion of aviation route networks in different regions of the world.

Meanwhile, the agreement envisages flights from/to Kuala Lumpur and Amsterdam twice a week with a stopover at Azerbaijan's Heydar Aliyev International Airport.

Silk Way West Airlines offers regular flights to various regions of the world - Asia, Europe, the Middle East and North America, using the Heydar Aliyev International Airport as a transit hub.

Some 437.3 million passengers were transported in Azerbaijan in January-March 2016 or by 1.7 percent more than in the same period of 2015, the Azerbaijani State Statistics Committee's report as of January-March 2016 said.

The Azerbaijani transport sector carried 48.1 million tons of cargo or by 4.6 percent less than in January-March 2015.

According to a report, the volume of non-oil cargo decreased by 1 percent, reaching 34 million tons.

Around 80.4 percent of the total volume of transported goods accounted for the private sector during this period.

Some 58.5 percent of all cargo were transported by vehicles, 31.8 percent - by pipelines, 7 percent - by railway, 2.6 percent - by ships.

Some 437.3 million people used passenger transport in January-March 2016, which is 1.7 percent more than in the same period of 2015. Most of the passengers were transported by vehicles (87.9 percent) and metro (11.9 percent).

Automobile transport takes the lion share in the transport field of the country. Some 28.2 million tons of cargo were transported by vehicles, which is 2.8 percent more than in the same period of 2015.

The volume of passenger transportation hit 384.3 million people (a 2.5 percent growth compared to Jan.-March 2015). Some 96.1 percent of the passengers were transported by buses and 3.9 percent - by cars.

Freight turnover by vehicles increased by 2.8 percent during the reporting period, while passenger turnover - by 2.5 percent.

Some 3.4 million tons of cargo were transported by railway in January-March compared to 4.8 million tons in January-March 2015.

On average, the number of loaded carriages made up 413 and unloaded - 380. Average daily load of carriages in the northern direction is 17,800 tons and in western direction 4,100 tons and southern direction - 1,300 tons.

Around 1.26 million tons of cargo were transported by ships during this period compared to 2 million tons in January-March 2015. Some 41.2 percent of the transported goods accounted for oil cargo. The volume of goods handled in Azerbaijani ports amounted to 2.16 million tons.

The volume of international transit cargo handled in the ports hit 93.7 percent. As of April 1, 2016, around 23,700 tons of import cargo left in the ports for transportation.

Some 11.16 million tons of oil were transported via main oil pipelines in January-March. Some 79.4 percent or 8.86 million tons of oil accounted for BTC.

Some 1.2 million tons of transit oil were transported via the BTC in January-March.

Gas transportation via main gas pipelines made up 5.76 billion cubic meters in January-March 2016 or by 8.4 percent less than in January-March 2015. Some 33.4 percent of the transported gas fell to the South Caucasus Pipeline. Some 1.92 billion cubic meters of gas were transported via this pipeline.

Some 350,700 passengers were transported by air transport in January-March which is 6.2 percent less than in January-March 2015. Some 0.1 percent of shipment by this kind of transport accounted for the private sector.

Some 52.2 million people were transported by metro decreasing by 3.4 percent compared to the same period of 2015.

Some 7.83 million metric tons of cargo were transported through the Eurasian transport corridor TRACECA (Europe-Caucasus-Asia) in January-February 2016 - by 13.8 percent less than in the same period of 2015, the Azerbaijani State Statistics Committee said.

Around 64.4 percent of the total volume of transported cargo fell to vehicles, 26.4 percent - railway, 9.2 percent - ships.

Some 54.9 million passengers were transported through the territory of Azerbaijan in January-February 2016, which is 2.2 percent more than in January-February 2015.

Latest

Latest