The development of the “North - South” international transport corridor

Organizer: Government of the Russian Federation

Venue: the city of Kazan, IEC KAZAN EXPO, Halls 6-7

Time: May 18, 10:00–11:20

Moderator: Misharin Aleksander Sergeevich, President of the Russian Academy of Transport

Speakers:

Khusnullin Marat Shakirzyanovich, Deputy Prime Minister of the Russian Federation;

Levitin Igor Evgenyevich, Assistant to the President of the Russian Federation;

Minnikhanov Rustam Nurgalievich, Rais of the Republic of Tatarstan, Chairman of the Strategic Vision Group “Russia-Islamic World”;

Mammetkhan Chakiev, General Director of the Transport and Communications Agency under the Cabinet of Ministers of Turkmenistan;

Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade;

Alireza Peymanpak, First Deputy Minister of Agriculture of the Islamic Republic of Iran;

Said Ben Hamoud Al Maawali, Minister of Transport, Communications and Information Technology of the Sultanate of Oman;

Babushkin Igor Yuryevich, Governor of the Astrakhan region.

Shishkarev Sergey Nikolaevich, Chairman of the Board of Directors of Delo Group of Companies.

The market for foreign economic activity and logistics services is currently undergoing a cardinal transformation. The unresolved problems accumulated during the pandemic were doubled by the unprecedented sanctions imposed on Russia. Restrictions for the movement of goods have led to a global restructuring of delivery routes. In light of the current geopolitical shutdown, the North-South International Transport Corridor (ITC North-South) claims to become perhaps the main trade artery for Russia; whereas the experts note not only the economic necessity, but also its strategic importance.

The main objective of the project is to connect the Indian Ocean and the Persian Gulf with the Caspian Sea through Iran so that the route to the Northern European countries could run through Russia. Three main branches have been distinguished within the framework of the transport corridor: the Western one - through the Republic of Dagestan by road and rail transport to Azerbaijan and Iran, the Trans-Caspian one - through the Caspian Sea by sea and river transport from the ports of Astrakhan, Aliya and Makhachkala along the Volga to Iranian and Turkmen ports, and the Eastern one - through the Republic of Kazakhstan and Turkmenistan by road and rail transport.   

The moderator Aleksander Misharin, President of the Russian Academy of Transport, opening the session, said that the day before, Russia and Iran signed an Agreement on cooperation in financing of the project development, construction and supply of goods and services for the construction of the Rasht-Astara railway in Iran territory for the development of transportation along the international transport corridor “North- South”. The construction of the last railway section of the corridor is a milestone event for the development of the project. Providing conditions for accelerated delivery of goods through the modernization of the transport and logistics infrastructure, the creation of a seamless transportation technology will enable in the future to achieve the annual throughput capacity of the corridor of more than 100 million tons of cargo.

Marat Khusnullin, Deputy Prime Minister of the Russian Federation, noted that the development directions of the Caspian region, South and Southeast Asia and the Persian Gulf countries are a priority for the Russian Federation. “We believe that by 2025 the cargo turnover here shall double to become at least 30 million tons; and by 2030 - 35 million tons, which makes 155% as compared to 2021,” the Vice -Premier noted.

The implementation of the roadmap for the development of transport infrastructure of the North-South corridor in the period from 2022 to 2030 assumes a total investment of 280 billion rubles. Currently, the Kavkaz highway is being repaired, the ports of the Caspian basin in the Astrakhan region and the Republic of Dagestan are being modernized, the Derbent railway checkpoint is being constructed, Verkhniy Lars and Yarag-Kazmalyar checkpoints are being reconstructed, dredging is carried out in the water area of the Volga - Caspian sea shipping canal; activities are planned to ensure conditions for the ships with a draft of at least 4.5 m to pass along the entire length of the Volga River.

Marat Khusnullin called measures to ensure “seamless logistics” one of the most important tasks of the day. Such work of reviewing the formalities and documentation requirements for transportation of import, export and transit cargo is being carried out with foreign partners.

Marat Khusnullin also informed about the development of the ITC West-East with access to Kazakhstan, Mongolia and China. Within 5 years, the M-12 Moscow - Kazan - Tyumen highway will be finished, which will become part of the transnational route St. Petersburg - Vladivostok.

Igor Levitin, Assistant to the President of Russia, noted the peculiarity of the North-South transport corridor, which, unlike other international routes, is multimodal, where all types of transport are involved in the transportation process. An important task for the development of the corridor is the use of technology ensuring the rapid passage of cargo across the border.

Rustam Minnikhanov, Rais of the Republic of Tatarstan, assessed the importance of the North-South transport corridor as a key element of the transportation framework of Eurasia. “The transport corridor is of particular importance for the Eurasian Economic Union as an important alternative economic development corridor, and as a response to the economic and political impact of the European Union,” he stressed. The development of the North-South ITC, apart from the expanding trade, stimulates the construction of technological parks, special economic zones, facilitates the production of goods and services, and contributes to the creation of new supply chains between countries.

Mammetkhan Chakiev, General Director of the Agency for Transport and Communications under the Cabinet of Ministers of Turkmenistan, emphasized the potential of Turkmenistan in the logistics of transit flows, taking into account the commissioned transnational steel highway Kazakhstan - Turkmenistan - Iran, which has become an important link in North-South transportation opportunities. He also noted that work is currently underway on procedures related to the accession of Turkmenistan to the Agreement on the North-South International Transport Corridor.

Thani bin Ahmed Al-Zeyudi, UAE Minister of Foreign Trade, noted that the North-South ITC provides new opportunities for the development of the largest ports in the Persian Gulf; it will open possibility for building logistics not only with Russia, but also with the countries of Central Europe and Central Asia, and combine many existing routes. He also stressed the importance of the transport corridor not only in increasing the trade turnover of countries and restoring pre-pandemic indicators, but in strengthening cooperation between countries in Eurasia.

Alireza Peymanpak, First Deputy Minister of Agriculture of Iran noted that prior to the completion of the Rasht-Astara railway construction, it is important to use the sea route along the Caspian Sea. To this end, Iran plans to purchase 20 ships.

Saeed Ben Hamoud Al Maawali, Minister of Transport, Communications and Information Technology of Oman, stressed that the country has supported the North-South Transport Corridor project from the very beginning. Oman has a well-developed port infrastructure which is able to handle a large volume of cargo. In addition, the country has a well-developed road and logistics infrastructure.

Governor of the Astrakhan region Igor Babushkin noted that the Astrakhan region is one of the main transport and logistics hubs of the transport corridor, the transshipment capacity of which will equal to 16 million tons. The construction of the Eastern bypass of the city of Astrakhan has already been started to improve the efficiency of the ITC; and it will be completed in 2024. The Northern bypass will be built in 2025-2029. A comprehensive reconstruction of the shipping canal is underway, which will be completed by 2027. Renewal of the fleet is required, for this purpose a project of launching 25 dry cargo container ships will be implemented; the construction of four of which has already begun.