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

Analysis Materials 18 July 2016 14:49 (UTC +04:00)

Some 749.2 million passengers were transported in Azerbaijan in January-May 2016 or by 1.8 percent more than in the same period of 2015, according to the Azerbaijani State Statistics Committee’s report as of January-May 2016 said.

The Azerbaijani transport sector carried 85.6 million tons of cargo or by 3 percent less than in January-May 2015. According to the report, the volume of non-oil cargo increased by 1.2 percent for the year, reaching 62.4 million tons in January-May 2016.

Around 81.8 percent of the total volume of goods transported accounted for the private sector during this period.

Some 61.8 percent of all cargo were transported by vehicles, 28.9 percent - by pipelines, 6.7 percent - by railway, 2.5 percent - by ships, 0.1 percent - planes.

Some 749.2 million people used passenger transport in January-May 2016, which is 1.8 percent more than in the same period of 2015. Most of the passengers were transported by vehicles (87.6 percent) and metro (12.2 percent).

Automobile transport takes the lion share in the transport field of the country. Some 52.9 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 reached 656.1 million people (a 2.5 percent growth compared to Jan.-May 2015). Some 96 percent of the passengers were transported by buses and 4 percent - by cars.

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

Some 5.8 million tons of cargo were transported by railway in January-May or by 23.5 percent less than in January-May 2015.

On average, the number of loaded carriages made up 417 and unloaded - 394. Average daily load of carriages in the northern direction is 17,300 tons and in western direction 4,600 tons and southern direction – 1,600 tons.

Around 2.16 million tons of cargo were transported by ships during this period or by 31 percent less than in January-May 2015. Some 43.6 percent of the transported goods accounted for oil cargo. The volume of goods handled in Azerbaijani ports amounted to 3.67 million tons in January-May.

The volume of international transit cargo handled in the country’s ports reached 93.1 percent. As of June 1, 2016, around 36,600 tons of import cargo left in the ports for transportation.

Some 18.4 million tons of oil were transported via main oil pipelines in January-May. Some 80.1 percent or 14.75 million tons of oil accounted for BTC.

Some 2 million tons of transit oil were transported via the BTC in January-May.

Gas transportation via main gas pipelines made up 8.77 billion cubic meters in January-May 2016 or by 10.1 percent less than in January-May 2015. Some 34.5 percent of the transported gas fell to the South Caucasus Pipeline. Some 3.03 billion cubic meters of gas were transported via this pipeline.

Some 627,000 passengers were transported by air transport in January-May which is 0.1 percent less than in January-May 2015. Some 0.2 percent of shipment by this kind of transport accounted for the private sector.

Some 91.7 million people were transported by metro decreasing by 2.7 percent compared to the same period of 2015.

Some 15.71 million tons of cargo were transported through the Eurasian transport corridor TRACECA (Europe-Caucasus-Asia) in January-April 2016 or by 12.3 percent less than in the same period of 2015, the Azerbaijani State Statistics Committee said.

The main reason for reducing the total volume of cargo transportation is a decrease in the freight transportation by rail and sea by 24.6 percent and 43.9 percent respectively. The volume of cargo transportation by vehicles during the period increased by 2.7 percent.

Around 64.2 percent (10.09 million tons) of the total volume of transported cargo accounted for vehicles, 27 percent (4.23 million tons) – railway, 8.8 percent (1.38 million tons) – ships.

Some 109.7 million passengers were transported via TRACECA through the territory of Azerbaijan in January-April, which is 2.2 percent more than in 2015.

Among the main events in May are:

Azerbaijan has signed a protocol on the Azerbaijan Railways' joining the international railway project 'Viking'.

The companies participating in the 'Viking' project met in Baku on May 12-13.

Representatives of the Azerbaijan Railways, ADY Express Ltd., railway agencies of Lithuania, Ukraine, Moldova and Georgia, as well as the rail freight transporters of Bulgaria and Romania, and other operators of the project took part in the meeting.

"An agreement was reached during the meeting to prepare an action plan to increase the cargo transportation," said Azmammadov. "The meeting participants considered an appeal by the Azerbaijan Railways and gave their consent to the company's joining the project, and after that the parties signed a corresponding protocol."

The piggyback 'Viking' train project was launched in 2003. The project's participants are Ukraine, Belarus, Lithuania, Latvia and Bulgaria.

Azerbaijan imported 2,233 vehicles in January-May 2016 compared to 15,495 cars imported in the same period of 2015, according to the report. Some 1,939 vehicles out of the total volume of cars imported in January-May accounted for cars and motor vehicles. Azerbaijan imported 13,912 cars and motor vehicles in January-May 2015. Moreover, some 204 trucks were imported to Azerbaijan in January-May 2016 (952 in January-May 2015). The rest part accounted for other types of vehicles.

"Ganja Automobile Plant" Production Association started to assemble the first buses. The urban buses will be produced. The buses can be used in Baku and districts of Azerbaijan. The supplier has not been determined yet.

Azerbaijan Railways CJSC and Germany's DHL company have agreed to create a large logistics hub in Azerbaijan.

The agreement was reached during a meeting of the delegations from the two sides in Turkey's Istanbul city.

Following the meeting, the parties signed a protocol of intentions.

The new competitive rates have entered into force for the Trans-Caspian international transport route since June 1, 2016. The decision was made at a meeting of the Coordination Committee of the Trans-Caspian international transport route in Tbilisi, Georgia May 17.

The Trans-Caspian international transport route runs through China, Kazakhstan, Azerbaijan, Georgia and then through Turkey and Ukraine - to Europe.

- Azerbaijani President Ilham Aliyev signed a decree on changes to the Tax Code, which envisage the exemption of trucks and vehicles with trailers and semi-trailers registered abroad from a road tax for three years.

According to the decree, the trucks and vehicles with trailers and semi-trailers registered abroad have been exempt from a road tax in Azerbaijan since June 1, 2016 for three years in the following cases:

- If the goods at the last railway station in the territory of Azerbaijan are uploaded to a truck or a vehicle with a trailer or semi-trailer registered abroad and transported to other country via the nearest customs border checkpoint;

- If the goods are imported at the first railway station in the territory of Azerbaijan by trucks and vehicles with trailers and semi-trailers registered abroad through the nearest border checkpoint.

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