Azerbaijan Wins in the Contest to Become a Transit State
Armenia is ahead of regional developments. After Iran was unsanctioned, lots of officials of Armenia were assuredly stating that Iran’s main partner, window to EEU and Europe will be Armenia. However, intensive development of Armenia-Iran relations isn’t observed yet. Meanwhile, Azerbaijan is actively taking steps for development of Russia-Iran North-South transport channel through its territory. Recently another trilateral Iran-Azerbaijan-Russia document has been signed on it. It’s anticipated to launch regular freight transfer from Bandar Abbas port to Moscow.
Gagik Aghajanyan, founder and director of Apaven International Freight Forwarding Company, and head of Armenian Automobile Federation, told “168 Hours” that in April International Transport Forum was launched in Moscow, where the new route for freight forwarding from India to Moscow was introduced, which should also pass through the territory of Azerbaijan by the railway. “However, not everything starts and ends with railway, there are other means of transport as well, which should work,” G.Aghajanyan said.
In his words, formerly to have Persian automobiles in Russia, they even preferred to move to Turkish ports, and form there move to Novorossiysk by ferries and continue the route to Moscow. Simple observation of the map shows that the shortest route from Iran to Russia is through the territory of Azerbaijan. According to the transporter after exploitation of the railway stretching from the western coast of the Caspian Sea to Dagestan, Makhachkala, and North-South transit railway route is already a reality.
However, why did Iranian transporters prefer Turkey? According to G.Aghajanyan, the biggest complexity was with customs and traffic police officers, “The customs officer seeing that an expensive TV is being transported, may demand USD 1000 to let it pass. That is, it was almost impossible to anticipate what the transfer will cost to the transporter. They could stop the freight for days. However, upon our reliable sources, the situation throughout the last 1-1.5 year has sharply changed. Moreover, in the period of recent months Azerbaijan even removed the road tax for Iranian cars in case of transit. Presently Azerbaijan does everything possible to make the country attractive for transit. Of course, we don’t sit with hands folded, the Armenian side also attempts to undertake some actions. We have some quantity and variety of certain freight, demand for which is available, and they should pass through the territory of Armenia. Thus, even under these conditions, we are becoming competitive,” G.Aghajanyan said.
In his conviction, one shouldn’t wait for activities by Iran, Armenia should initiate and participate in transfers, “The ostrich policy by our field of transport is impermissible. We should initiate it for ourselves and the transporting enterprises should have incomes and pay taxes. Why should products come from China and Georgia or Turkey may earn money for that? In near future economic ties between Iran and Russia will increase step by step, moreover, due to Western sanctions Russia is more concentrated to the West. Its biggest partner was Turkey. Presently partners equal to Russia are Iran, China and India. After lifting sanctions from Iran finances returning to that country will be invested in economy, however, Europe is not waiting for Iranian production, they can’t be competitive there. Iranian production won’t be directed to Arabian countries, China or the USA as well. Russia is the best nearby market for Iran. Economic interest attracts these two countries like a magnet, and Armenia is among them.”
G.Aghajanyan also informed that during the Forum they presented, that Armenia, functioning in the directions of Yerevan-Moscow and Yerevan-Tehran, may become a real junction between Moscow and Tehran, “It’s a know-how, we should make use of who objectively dictates the situation and do it.”
G.Aghajanyan stated that within EEU its legislation on transits is exercised in Armenia as well, which is well developed and provides the opportunity to work. EEU didn’t have other influence regarding freight transportation, tariffs and formulations remained the same. As a serious obstacle to Iran-Russia transportation through the territory of Armenia G.Aghajanyan mentioned the road tax, “An Iranian car pays tax more than USD 300 while passing through the territory of Armenia, as well as upon return. Thus, a question raises here—why? What do we provide? Perfect roads or substructures with good service? All this lacks and we defined such a road tax, which is not attractive. One direction in Georgia costs USD 80.How can we compete? And we, out of all the circumstances, make calculations only on local and Russian cars. Iranian cars won’t drive to Armenia. If you see any Iranian car here, it’s simply for freight transportation.”
Iran-Armenia-Russia railway transportations are even not touched upon. G.Aghajanyan stated, that from Armenia freight is directed only to Georgian ports—Poti and Batumi, and transportation of wagons by ferries from there makes us uncompetitive.
By Gayane Khachatryan
