Armenia has a vital role in the development of new infrastructures and transport corridors, of projects connecting the Caspian Sea and the Black Sea Region through or from Southern Caucasus. A series of past political conflicts with Turkey and especially the military ones in the Nagorno – Karabah region with Azerbaijan led to the isolation of Armenia’s transport links. The only active links are the ones with Georgia and Iran. It was only in 2006 that Armenia was included in the Eastern Partnership and can thus benefit from assistance of the European Union and from the support of the European Investment Bank for the execution of infrastructure projects.
Armenia’s internal transport is as follows: car, railway, air-borne, urban transports, the most accessible one being the railway transport. The fact that Armenia became in 2011 a member of COTIF is an important step for the connection of Caucasus region with Europe.
Last year, South Caucasus Railway, the branch of the Russian Railways which assigned Armenia’s railway transport services for 30 years, announced an increase by 18% of the passenger transport to Georgia. The volume of transports to Iran did not record higher rates because at present the only railway connection between Armenia and Iran is made through the territory of the Autonomous Republic Nakhchivan (editor’s note: Azerbaijani exclave), but the border between the two states is closed. Therefore, the line starting in Erevan is interrupted in Yerask.
Good news for Armenia came by the signature at the end of January of a Memorandum of Understanding for a railway connection with Iran.
The Armenian and Iranian governments have officially approved the railway project in 2009, but there was need for the identification of concrete financing sources for the 470 km-long line which will mostly cross Armenia’s territory.
After several searches of certain viable funding sources, searches which also aimed at companies from Russia or China as potential investors, the agreement was signed with an Arabic company, with the office in Dubai (UAE).
According to the information of gulfnews.com, Rasia FZE, a company with the office in Dubai, has signed with Armenia and Iran a tripartite agreement for the purpose of constructing the Southern Armenia Railway. The Memorandum of Understanding signed between the three parties includes another project, the development of a high-speed road connection, the costs for both projects, the railway and the road ones, totalling USD 3 Billion. The project will be developed as a private-public partnership, and the new line will be operated by South Caucasus Railway.
It is estimated that the railway, Southern Armenia Railway, will be 316-km long, electrified single track railway. It will make the railway connection between the Gavar, near Sevan Lake and Meghri, in the south, located at the border with Iran. The line will be operated by South Caucasus Railway CJSC and will be integrated in Armenia’s central railway system and the connection to the operation system in Iran will also be executed, which is mostly standard of 1435 mm.
Southern Armenia Railway will be a significant part of the North-South Corridor, connecting the Persian Gulf to the Black Sea.
“China and Russia will cooperate with Armenia to develop this important railway section”, specifies the announcement made by Armenia’s Minister of Transports on the occasion of signing the Memorandum.
“One of the most important objective of the company South Caucasus Railway is the integration in the transport system on the Europe-Asia axis, and this will be executed through the company’s development at the national level, the implementation of infrastructure projects both at national and international level, as well as the efficiency and the increase of the quality of transport services”, mentioned Victor Rebets, general manager of South Caucasus Railways, on the occasion of his participation in the Railway Investment Summit in the Wider Black Sea Area 2012-Railway Days, organised by Club Feroviar and AIF in October 2012.
The implementation of the new project denotes Armenia’s decision of leaving the isolation which has been practically imposed to it but also Iran’s ambition of developing a series of railway projects on its territory and of having access to adjacent markets.
Share on:
