Western North–South route: logistics project reaches new level

Good news from the MTK North-South route. To clarify, from the western route of this international transport corridor. Some time ago, when the eastern route through Kazakhstan and Turkmenistan was launched, media outlets that were not sympathetic to Azerbaijan began writing about Russia's alleged refusal to transit through Azerbaijani territory. By the way, the CIS website also suggested possible risks on the western route if relations between Baku and Moscow deteriorate again, and from this it was concluded that the development of the eastern branch was important.

Although the eastern branch has been under consideration since the launch of the project, Russia and Iran have always focused on Azerbaijani transit. This was done not out of any special feelings for our country, but because this route is probably more profitable and more convenient for the project participants. Even though there is no significant part of the MTK railway segment in Iran. Perhaps the complication of bilateral relations since the end of last year has made someone think about the likelihood of problems with the transit of Russian goods through Azerbaijan, but it is hard to believe, because Baku never arranges demarches against interstate agreements. Our country takes a very responsible approach to its transit role and will never jeopardize it.

The 83rd meeting of the CIS Railway Transport Council was held in Baku on Wednesday. In a sense, all the dots were raised at the meeting. During the meeting, the heads of the railway departments of Azerbaijan, Russia and Iran signed a Memorandum of Understanding. The document was signed by Oleg Belozerov, CEO and Chairman of the Board of Russian Railways, Rovshan Rustamov, Chairman of the Board of Azerbaijan Railways CJSC, and Jabar Ali Zagiri, Deputy Minister of Roads and Urban Development of Iran, Chairman of the Board and CEO of Iranian Railways.

The memorandum provides for the coordination of tariff approaches, the formation of a single integrated tariff, the launch of regular block trains and the improvement of transportation procedures. The implementation of these mechanisms will create a more predictable, fast and cost-effective logistics chain between Russia, Azerbaijan and Iran.

The western branch of the MTK is still a multimodal route, as due to long-term delays in the construction of the Rasht-Astara section at the border, cargo has to be reloaded onto vehicles. Nevertheless, traffic on this route is growing. At a meeting in Baku, Belozerov said that 6,558 containers have been transported along the western branch at the moment, which is more than one and a half times higher than last year's figure.

A trilateral agreement on the North-South corridor between Russia, Azerbaijan and Iran is currently being developed, providing for uniform through tariffs. According to the head of Russian Railways, this approach ensures transparency of conditions and cost stability for a certain period, creating a more comfortable and predictable environment for shippers.

Azerbaijan is not waiting for what steps the partners in the north and south will take, it continues to work on the route using its own capabilities. Minister of Digital Development and Transport of Azerbaijan Rashad Nabiyev spoke about the calculations made by the Azerbaijani side during the 83rd meeting of the Council. Thus, from January 1, 2028, it is planned to increase the turnover level along this route to 5 million tons. In the future, these volumes can be increased to 15 million tons per year.

These are quite real figures. To achieve this perspective, Azerbaijan is doing all the work that falls to it as a transit country. The infrastructure on the Azerbaijani section of the route is being updated, and the reconstruction of the Sumgayit-Yalama railway line is planned to be completed by the end of this year.

But the growth of cargo transportation, of course, depends not only on Azerbaijan. Much will depend on the efforts of the Russian side, which has undertaken to build the ill-fated Rasht-Astara section, which Iran has been dragging on for many years. The case did not move forward until Russia decided to take over the issue. In May 2023, the Russian Federation and Iran signed an intergovernmental agreement on cooperation in financing the design, construction and supply of goods and services for the creation of this section of the railway.

The head of the Iranian Railways, Jabar Ali Zakeri, told reporters on the sidelines of the current meeting in Baku that construction work will begin in the second half of March 2026. The process of land purchase from the population should be completed by Novruz. 3 kilometers are bought every week. 95 of the 161 kilometers have already been purchased. While this process is underway, Russian engineers are working on site to conduct geotechnical tests and design work.

After the Rasht-Astara North-South railway is commissioned, it will receive a through railway line from the north of Russia to the Persian Gulf. The total cost of the project is 1.6 billion. euro. The work will be carried out on the basis of joint financing.

Earlier, the Ministry of Transport of the Russian Federation talked about the possibility of starting an active construction phase by the end of 2025. It was not possible to speed up the process, but it is noticeable that the Russian side is in a hurry.

By the end of March, work on the improvement of the Astara railway terminal will be completed in Astara, Iran. The terminal is being upgraded by Azerbaijan Railways CJSC. The territory of the terminal has been leased to the Azerbaijan Railway Authority for 25 years. As of today, about 93 percent of the design work and more than 78 percent of the construction and installation work at the terminal have already been completed. The project provides for the construction of 7 bridges.

Construction of the terminal began in 2017 on the basis of an intergovernmental agreement. In 2023, the terminal handled 692 thousand tons of cargo, and in 2024 it has already handled about 800 thousand tons. After the construction works are fully completed, the terminal's annual capacity will reach 3.5-4 million tons.

All these possibilities will make the western route of the North-South MTK indispensable. By the way, according to experts, the terminal in Astara, Iran, is important not only for the western, but also for the central sea route of the corridor passing through the territorial waters of Azerbaijan from Russian to Iranian ports.

Thus, some were in a hurry to "bury" the western route of the North-South corridor. All project participants need this route. The trilateral memorandum signed in Baku speaks about this better than any words.