Azerbaijan Railways (51%) and Russian grain and agribulk rail freight operator Rusagrotrans (49%) have established a joint venture company in order to provide rail freight services between Russia, Azerbaijan, Iran, Georgia and Turkey. Baku-based AzRusTrans offers rail freight transport services for grain and other bulk agricultural products, timber, fertilizers, construction materials, containers and bulk cargo.
The rail freight operator aims to double the volume of rail traffic in the region and plans to transport up to 2 million tons of cargo each year by 2020.
“This unique location provides endless possibilities in the development of transit potential of Azerbaijan Railways. We plan the volume of transit at the level of 3-4 million tons per year. Our main task today is to create an infrastructure, which enables to secure cargo with all necessary technological conditions, first of all, a terminal on the border between Azerbaijan and Iran. We count on the investment program of the joint venture, in the coming 3-4 years, investments in the development of the border infrastructure will amount $15-20 million,” said Konstantin Zasov, AzRusTrans chairman of the board.
The partners plan to build on the border between Azerbaijan and Iran in the grain terminal to 30 thousand. Tons per year with the possibility of extension. Grain AzRusTrans terminal will be able to work as a staging post for the largest Iranian port Bandarabas where Russian grain will go to Saudi Arabia, Dubai, Egypt, and others. The project cost is estimated at $ 20-30 million.
The parties plan to invest USD 30 million in the construction of a new grail rail freight terminal at the border between Azerbaijan and Iran. The new terminal will have a capacity of 30 thousand tons/year and will feed into Iran’s larges port Bandar Abbas.