According to a study carried out by a group of experts of South Caucasus Railway, the maximum annual transport volume, if a railway connection Armenia-Iran was built, would amount at 15-18 million tonnes of freight.“In case favourable circumstances appeared, the project on the construction of Armenia-Iran railway could be initiated not later than mid 2015”, declared Victor Rebets, CEO of South Caucasus Railways, a RZD subsidiary that operates on the Armenian railway network.
“ The development of the railway project that links Iran and Azerbaijan does not erase interest in the Iran-Armenia project”, declared Alexander Misharin, First Vice President of Russian Railways, at the end of April. According to him, the railway project linking Iran and Armenia is developed in the more extensive North-South Corridor. “Even after completing the construction of the current railway line between Iran and Azerbaijan, we will still need alternative routes in the North-South direction”, added Misharin.
Russian Railways representative reminded the fact that there is still no business plan for the project of Iran-Armenia railway, but the parties that will initiate the project are expected to start negotiations soon.
“Based on these discussions, we will decide on our participation. We are ready to participate, if the project is launched”, said Misharin.
Companies from Iran, China and Russia have expressed interest in building the Armenian railway section, part of Iran – Armenia cross-border section which will connect Armenia, via Iran, to Middle East and Far East, apart from its current railway connections in Europe.
Such a railway, on the North-South route, will ensure the transport of energy and raw materials from Armenia to the east, facilitating trade growth. Meanwhile, Iran has mo-dernised its railway hubs to permit trains to run from India, China and Central Asia. This will transform Iran in a railway hub of Middle East, for the goods transited to the East. On the other hand, Armenia could significantly benefit from these infrastructure investments. Iran-Armenia railway has been brought to discussion for the first time by Armenia’s National Security Council, on grounds of regional security and has been recently declared priority project. Also, the National Council has recently announced the investment costs ranging between USD 1.7 and 2.8 Billion. Currently, Armenia is discussing the financing with World Bank and Asian Development Bank.
The Government in Tehran announced last year that it was ready to financially support works to the railway segment on Armenia’s territory and that it had already begun works to railways on its own territory. Presently, Armenia only has railway connections with Georgia, but a railway to Iran will provide another alternative to Armenia for the transport of energy resources and other goods.
The fact that Armenia became COTIF member in 2011 is an important step for the connection of Caucasus region with Europe. Moreover, Armenia announced in March 2014 that it could access the Customs Union in 2014, which will increase trade facilities in the region.
Armenia plays a major role in the development of new infrastructures and transport corridors, of projects linking the Caspian Sea and the Black Sea regions through and from South Caucasus. A series of political conflicts with Turkey in the past, and especially, military conflicts in Nagorno – Karabah region with Azerbaijan have isolated Armenia’s transport connections. It was only in 2006 that this South Caucasian republic was included in the Eastern Partnership and can thus benefit from European Union assistance and financial support from the European Investment Bank in the development of infrastructure projects.
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