The heads of railway companies of Azerbaijan, Kazakhstan, Turkey and Georgia signed a memorandum of understanding on prospects of development of the Trans-Caspian International Transport Route (TITR).
During a meeting, the sides discussed the prospects of development of TITR, the development of cargo transport on this route and optimization of the tariffs.
The agreement to create the Trans-Caspian International Transportation Consortium was signed in April 2016 in Baku by the railway authorities of Azerbaijan, Georgia and Kazakhstan.
Azerbaijani companies ADY Express and ACSC Logistics, Kazakhstan’s KTZ Express and Georgia’s Trans Caucasus Terminals are the members of the consortium. The Supervisory Board includes one representative from each member company, while Igbal Huseynov, the deputy head of Azerbaijan Railways is the chairman of the board. Later, Ukrzaliznytsya, Ukrferry, companies, as well as Moldovan Translogistic became members of the Coordination Committee.
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.
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.
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