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Feb 16, 2016

Russian Railways and Azerbaijan Railways agree to through rate on the North-South International Transport Corridor

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The RZD Holding and CJSC Azerbaijan Railways have agreed to cooperate to attract freight flows to Azerbaijan Railways and Russian Railways by organising goods transport from India - Iran - Azerbaijan - Russia and vice versa. The cooperation agreement is within the framework of the development of the North - South International Transport Corridor (ITC).

The project's logistics operators will be RZD Logistics and ADY Express. The first shipments along these routes are scheduled to take place before the end of March 2016.

Currently, cargo from India to the European part of the Russian Federation is shipped by maritime transport (Route A), with an estimated travel time of about 40 days from the port of Jawaharlal Nehru Port (Mumbai) to Moscow. The new multi-modal Route B will include the use of marine, rail and road transport and will halve transportation time, with a long term plan to optimise the journey at just 14 days.

As part of the negotiations, the parties agreed on competitive rates: the tariff for transporting a 40-foot container from Mumbai - Moscow will not exceed 3,000 US dollars.

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