RZD Logistics, a subsidiary of Russian Railways and Azerbaijan Railways will cooperate for the development of the International North–South Transport Corridor, connecting India, Iran, Azerbaijan and Russia. The partners agreed on a pass-through rate aiming to attract more freight traffic to the multimodal route.
Currently, all the freight flows from India and Iran to EU are concentrated in sea-based routes. An average transit time from Nava Sheva (Mumbai) to Moscow by sea is 40 days. The alternative new multimodal route including sea, rail and road transport allows to reduce transit times by half – to 19 days. Another service advantage is favorable tariff which is $3146 for a 40 ft container.
According to Pavel Sokolov, CEO of RZD Logistics, the service is launched as an alternative to sea transportation. RZD Logistics is successfully developing similar project in Asia offering regular container services from China to EU and back through Russian territory.