Russia, Azerbaijan Intensify Work To Complete International North-South Transport Corridor

Russia and Azerbaijan have intensified work on the development of different segments of the International North-South Transport Corridor (INSTC), according to Alexander Sitov, the First Deputy Chairman of the Committee on Industrial Policy, Innovation and Trade of St. Petersburg, speaking in Baku.

“There are several segments of cooperation with Azerbaijan regarding the activation of the North-South international transport corridor. The corridor originates in the Baltic Sea, near St. Petersburg, and its branches end in Iran and India. Part of the route goes through Azerbaijan along land (roads and railways) and along the Caspian Sea, and we have agreed to work out cooperation zones” Sitov noted.

According to Sitov, Russia is currently modernising its Caspian port of Olya (year-round shipping) to increase cargo turnover along the route. This includes a new 250 hectare cargo area: the 1st stage involves the construction of six berths by 2027 for a cargo turnover of up to 6 million tonnes, the 2nd stage the development of capacities up to 12 million tonnes, the 3rd up to 50 million tonnes.

The construction of highways, transport interchanges, bridges and engineering structures is also being intensified. “I think Azerbaijan will be interested in the new initiatives of Russia on the INSTC” Sitov emphasised.

In the railway segment of the INSTC, the Rasht (Iran)-Astara (Iran-Azerbaijan border) section will be created, for which VTB Bank (RF) has loaned Iran over €1 billion. The section has proven something of a bottleneck in terms of INSTC connectivity, but this has now been resolved and should be completed by the year end. It will further enhance Azeri and Turkish trade connectivity with the Persian Gulf and South Asia.

Russia is already using the route, although not to capacity at present. It has been exploring its potential to reach other markets and sent a train direct through to Iran last year with the cargo then shipped to Saudi Arabia, and has done the same for goods destined for India.