"SCR" CJSC offers Iran to use transit opportunities of Armenia 

ArmInfo."South Caucasus Railway" CJSC (SCR) has presented at the "Armenia EXPO 2016" the prospects of using Armenia's transit potential for conducting multimodal transportation from Iran to the countries of Europe and  back using railway. To note, the expo was held in Tehran between  October 5 and 8.

According to the company's press-service using this corridor will  allow to conduct transportation until Armenia-Iran railway is put  into operation and to establish ties between goods suppliers and  receivers. The SCR is already working on this issue, particularly as  a result of discussions with Georgian railway a decision was made to  reduce tariff rate on this direction. 

To note, within the expo detailed information was presented about the  main activities of SCR, development prospects of goods  transportation, development programs of Armenia's railway transport,  geography of railway passenger travel, tourism products provided by  SCR, as well as the project of new customs container terminal, which  will be put into operation in Yerevan soon. 

Armenia's Ambassador to Iran Artashes Tumanyan, Deputy Minister of  Economic Development and Investments Hovhannes Hovhannisyan, Deputy  Minister of Industries, Mines and Trade of Iran Hossein Esfahbodi  made speeches at the opening ceremony. They emphasized the importance  of holding the expo in post-sanction period for development of  bilateral trade-economic relations. Armenia's favorable investment  conditions and foreign trade regimes (EEU, GSP, GSP) were also  stressed. 

Armenia's Ambassador to Iran Tumanyan noted that currently our  countries plan to launch multimodal transportation corridor using  highway and railway transport. According to the diplomat  implementation of project is feasible. The Ambassador stressed that  it is not the first visit by SCR CJSC delegation to the country on  this issue. "I can inform that within the current visit useful  negotiations were held. Delegation of International Transport  Companies Association of Iran  (holds 60% share in Iran's goods  transportation market) is going to visit Yerevan and discuss this  issue with relevant agencies. I am also optimistic about this issue",  Tumanyan said. 

CEO of SCR CJSC Sergey Valko noted that the alternative route of  transportation to Europe and back offered by the company to the  Iranian side has raised big interest. "When I have proposed this  route, I did not even know that this is a historic route for Iran:  they called it "Spice Route", like the Chinese "Silk Road". We  proposed to the Iranian side an alternative to the existing road to  Europe through Turkey and the proposed route is safer and more  beneficial", Valko noted. Within the frameworks of the expo Sergey  Valko held negotiations with Deputy Minister of Industries, Mines and  Trade of Iran Hossein Esfahbodi.

During the meeting between SCR representatives and International  Transport Companies Association of Iran prospects of bilateral  mutually beneficial cooperation were discussed.  Within the  frameworks of the expo a meeting was held with the representatives of  Iran's railway and customs service headship, heads of large transport  companies of the country. The proposed projects on organizing  multimodal transportation from European countries to Iran and back  using Armenia's railway transport were presented in details during  the meetings. 

To note, more than 100 Armenian companies from various sectors  participated in "Armenia EXPO 2016". 

To note, within the project of multimodal transportation it is  planned to organze delivery of Iranian goods by highway transport to  Armenia (Yeraskh), from where the goods will further be transported  by railway to Georgian harbors in Black Sea and further to Europe. By  the Armenian President's decree a prompt political decision was made  on construction of Agarak-Sisian asphalt automobile road instead of  concrete one aimed at the rapid construction of that part of the  road.  This section is the most difficult, it will allow to cut the  road by 70 km and the time by 2.5 hours. It is planned to finish  construction within maximum three years. In this case it will be  managed to achieve maximum activity on this direction, as Armenia can  offer opportunity of railway connection unlike other countries.  Modernization of the road from Sisian to Yeraskh will create the  opportunity of using railway. The station in Yeraskh will be equipped  with large terminals, in which Iranian businessmen are already  interested. Delivery of goods to Yeraskh and further by railway  station to Georgian Black Sea will be cheaper by 500 USD for 1 ton of  cargo compared to the route offered by Azerbaijan.

To note, construction of Agarak-Sisian road is part of the  North-South road corridor. North-South 556km motorway will be laid  via the Armenian towns of Meghri-Kapan-Goris-Yerevan-  Ashtarak-Gyumri-Bavra and enter the territory of Georgia on  Akhaltsikhe-Batumi section, which will settle some transport problems  of Armenia.  This will be a four-lane motorway of reinforced concrete  extending from the Armenian border and Iran to the Georgian port  Batumi. The road corridor will facilitate improving the road  connection with the two neighbors of Armenia: Iran and Georgia,  providing access to international trade routes and markets.  Armenia  raised $500mln loan from the Asian Development Bank for the project  that is estimated at $1 billion. Eurasian Development Bank is ready  to provide $150 million. Armenia raised $60 million from the European  investment Bank.  Due to the project, the overland communication  Europe-Caucasus-Asia will be improved. The project will be completed  by 2019. It will allow Armenia to soften the consequences of the  blockade by Azerbaijan and Turkey and to join the Black Sea ring  highway.