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Review of transport sector in Azerbaijan (January-September 2017)

Analysis Materials 1 December 2017 10:19 (UTC +04:00)

- The Baku-Tbilisi-Kars railway is ready for operation. Azerbaijani, Georgian and Turkish officials reviewed the BTK railway project implementation, which will connect Asia and Europe.

Baku Metro CJSC has started to construct the "green" metro line. The relevant territory has already been allotted and fenced. It is too early to disclose any concrete date of completing the construction. In the future, the "green" line of the Baku Metro is planned to be turned into a ring road. In particular, it is planned to build three stations between Khatai and Hazi Aslanov stations, as well as connect Darnagul and Hazi Aslanov stations. Nine new stations are planned to be built between them. In the long term prospect, Khatai station will be intermediate on a green line when the tunnels between Jafar Jabbarli and Nizami, as well as Y-14, Y-15 and Y-16 stations (between Khatai and Hazi Aslanov) are built.

- The Asian Development Bank (ADB) has approved a business plan on operations in Azerbaijan in 2018-2020.

Azerbaijan is eligible for regular ordinary capital resources (OCR) lending in 2018-2020, says the business plan. The estimated cost of the ADB lending program for three years is $1.6 billion. Total cost of projects, taking into account the share of the Azerbaijani government, is $1.985 billion.

ADB funds will be used for water (infrastructure), transport (road and railways), energy projects and public sector management projects.

Total volume of technical assistance that will be provided by the Asian Development Bank in 2018-2020 is $5 million. The technical assistance funds are meant to be used for improving public and private sector services in order to create infrastructure, preparing an integrated urban development project, improving the efficiency of public sector, supporting sustainable and inclusive energy.

- The work was carried out to expand a 400-meter-long road section on Abdulkhavab Salamzade street in Yasamal district of Baku. Moreover, an additional lane was created. A new two-layer asphalt concrete pavement was laid.

- Turkish Cabin Interior, a subsidiary of Turkish Airlines, will supply and install galleys in 10 new Boeing 737 MAX aircraft ordered by Azerbaijan Airlines (AZAL).

TCI became a contractor for AZAL after fulfilling orders for such airlines as Jet Airways and SpiceJet.

Some 167.5 million tons of cargo were carried by Azerbaijani modes of transport in January-September 2017 or by 1.8 percent more than in January-September 2016, the Azerbaijani State Statistics Committee said in a report.

According to the report, the volume of non-oil cargo increased by 3.8 percent and reached 126.9 million tons for the year.

Some 81.5 percent of the total volume of goods transported accounted for the private sector during the reporting period.

Some 63.9 percent of all cargo were transported by vehicles, 26.1 percent - by pipelines, 6.3 percent - by railway, 3.6 percent - by ships, 0.1 percent – planes.

Some 1.44 billion people were transported in January-September 2017, which is by 2.2 percent more than in January-September 2016. Most of the passengers were transported by vehicles (88.1 percent), metro (11.6 percent) and the rest part – other modes of transport.

Some 10.5 million tons of cargo were transported by railway in January-September 2017 or by 6.7 percent less than in January-September 2016.

On average per day, the number of loaded carriages made up 344 and unloaded - 409.

Average daily load of carriages in the northern direction is 13,100 tons, in western direction - 5,100 tons and in southern direction – 800 tons.

Some 5.96 million tons of cargo were transported by ships in January-September 2017 or by 48.1 percent more than in January-September 2016. Some 49.4 percent of the transported goods accounted for oil cargo. The volume of goods handled in Azerbaijani ports amounted to 7.75 million tons in January-September 2017.

Some 107.2 million tons of cargo were transported by vehicles in January-September 2017, which is by 2.2 percent more than in January-September 2016.

Some 1.27 billion people were transported by vehicles in January-September 2017, which is by 1.7 percent more compared to January-September 2016. Some 96.1 percent of the passengers were transported by buses and 3.9 percent - by cars.

Some 166.7 million people were transported by metro increasing by 5.7 percent in January-September 2017 compared to January-September 2016.

Some 1.85 million passengers were transported by air transport in January-September 2017 which is by 18.4 percent more than in January-September 2016. Some 0.1 percent of shipment by this kind of transport accounted for the private sector.

In January-September 2017, 25.23 million tons of oil was transported via the Baku-Tbilisi-Ceyhan (BTC) pipeline compared to 25.9 million tons in the same period of 2016.

“In January-September 2017, 78.7 percent of oil transported via the country’s main pipelines accounted for the BTC pipeline,” says the report.

According to the report, over 32.07 million tons of oil was transported via the country’s main pipelines in January-September 2017 as compared to 33.48 million tons in the same period of 2016.

Total length of the BТС is 1,768 kilometers, including a 443-kilometer section running through Azerbaijan, a 249-kilometer section in Georgia and a 1,076-kilometer section in Turkey. The construction of the pipeline started in April 2003. It was filled with oil on May 18, 2005.

The report also says that 5.38 billion cubic meters of gas were transported via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum) in January-September 2017, as compared to 5.25 billion cubic meters in the same period of 2016.

The length of the Baku-Tbilisi-Erzurum pipeline is more than 700 kilometers. The pipeline transports gas produced at the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea. The gas is supplied to Georgia and Turkey.

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