RF President Vladimir Putin and President of the Islamic Republic of Iran Ebrahim Raisi took part, via videoconference, in a ceremony of signing an agreement between the Government of Russia and the Government of Iran on cooperation in financing the design, construction and supply of goods and services for the Rasht-Astara railway line in Iran, aimed at boosting transportation via the International North-South Transport Corridor, the Kremlin press office reports.
Commenting on the event, the RF President said, “Today we are witnessing the beginning of the implementation of that idea, which was probably formulated for the first time 20 years ago. A 162-kilometre railway line will be built between the cities of Rasht and Astara in Iran. It may look like a short stretch, but its construction will allow us to create direct and uninterrupted railway transportation, which professionals describe as seamless, along the entire length of the North-South route”.
Putin emphasised that the unique North-South transport artery, due to include the Rasht-Astara railway line, will help considerably diversify global transport flows. “Traffic via the new corridor will possess substantial competitive advantages. For example, it will take about 10 days to deliver consignments from St Petersburg to Mumbai. I would like to note, as a comparison, that it takes 30 to 45 days to deliver them using traditional commercial routes. In effect, this makes it possible to slash delivery deadlines and costs. Freight traffic volumes will soar noticeably, our two states will consolidate their transit potential, Russian and Iranian goods will obtain more convenient and diverse access to external markets, in terms of specific routes,” he said.
Putin noted that there are plans to use the new route for delivering foodstuffs and other agro-industrial produce to consumers in Iran, Persian Gulf and African countries. “Consequently, this transport corridor will make a tangible practical contribution to facilitating global food security”.
“This will also result in obvious economic benefits for Russia and Iran. Income, derived from freight deliveries via the North-South corridor, as well as the more intensive operation of our states’ ports, will help establish related businesses and facilitate their growth. It will be necessary to develop major logistics and production clusters,” the President continued. “This means that jobs will be created, and the investment climate in Russian and Iranian regions (through which the new transport routes will run) will improve”.
Putin added that the interaction in the context of establishing the North-South corridor is taking place in close partnership with Azerbaijan. “We are expecting that a cooperation agreement on expanding the railway infrastructure and freight traffic via the North-South route will be finalised in a trilateral format involving the Azerbaijani side as soon as possible. This will make it possible to create the required legal framework for successfully coordinating the actions of our three countries in the future,”. the RF President concluded.
Photo: Kremlin press office