In 2015, South Caucasus Railways fulfilled its investment obligations for 102%, despite the decrease of rail freight traffic (by 19%) and passenger transport. “Subsidies from the budget to cover planning and unprofitable passenger traffic amounted to 580 million drams (USD 1.2 million). Passenger rail transport is unprofitable in many countries,” Armenia’sFirst Deputy Minister of Transport Arthur Arakelyan said, after submitted to the parliament a report on the implementation of the 2015 budget.
During the last seven years of concession South Caucasus Railways, a subsidiary of Russian Railways, has invested 104.45 billion drams (USD 218 million) into Armenia’s rail transport. In 2016, the amount will be arround 2.5 billion drams (USD 5.3 million).
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