17 March 2017

Azerbaijan, Kazakhstan, Georgia agree on cargo transit terms

Azerbaijan, Kazakhstan and Georgia, the three countries through which runs the Trans-Caspian Transport Route, have agreed conditions of the goods transit by rail and ferries in Alat-Aktau-Alat and Alat- Kuryk-Alat directions.

The Trans-Caspian International Transport Route, which is designed to provide transport connections between the East and West of Eurasia, runs through China, Kazakhstan, Azerbaijan, Georgia and then to Europe via Turkey and Ukraine. The route was launched with the establishment of its Coordinating Committee in October 2013. The first test container train from China arrived at the Baku International Sea Trade Port on August 3, 2015.

In January, 2016, Azerbaijan, Kazakhstan, Georgia and Ukraine decided to apply the competitive feed-in tariffs for cargo transportation via the TITR. Single competitive rate was introduced in the framework of the route starting from June 1, 2016 with the view to reduce the costs of international cargo transportation.

About 300,000-400,000 containers are expected to be transported via the Trans-Caspian international transport route by 2020, bringing huge financial profits to Azerbaijan. Growing interest in the transport infrastructures passing through Azerbaijan’s territory is expected to make the country a major transport hub in the region.

Source: http://www.railwaypro.com