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TRACECAâ€™s Azerbaijan National Secretary: Cargos via Baku-Tbilisi-Kars railway will be cheaper than other alternatives

24 July 2008 10:04 (UTC +04:00)

To him, shipment delivered via TRACECA arranges 55% parts of cargos via new railway. â€œCargos , which transported via new railway will be 3 mln ton during first year and it will be 10 mln next five years. Shipment delivered via railway will be increased by 30%,â€ he said.
Mustafayev commenting on Baku-Tbilisi-Kars railway noted that the project is not important only for Azerbaijan, but all regions.
â€œCargos delivered new railway will be cheap in comparison with other corridors. Loading and discharging expenses will be lower than other ones. The â€œbridgeâ€ between Asia and Europe will rouse interest of other countries. New corridor will be 60 km shorter than other alternatives and it will decrease expenses,â€ he said.
Mustafayev stressed productivity of new railway for Russia. To him, official Moscow should take positive stance on the issue, because there is not any railway agreement between Russia and Turkey at present.
â€œThe lines, which existed during the Soviet period, have become out of order as a result of the conflicts in the South Caucasus and are not operational now. Russia will only make a profit of Baku-Tbilisi-Kars. Via this railway cargos will also be delivered from the north to Europe and other markets through Turkey and to the opposite directions,â€ he said.
Mustafayev said that it is planned to construct a railway from Kars to Nakhchivan. He considers that the tariffs in the above-mentioned corridor should also be attractive for other countries. The tariffs will be set before the railway is operational.
Azerbaijan, Georgia and Turkey signed the final document on the construction of Baku-Tbilisi-Kars on February 8, 2007. The construction of the new railway in Georgia started on November 21, 2007, the construction in Turkey starts today.
Azerbaijan extended $200mln. preferential loan for Marabda-Karsi Railway LLC (for 25 years) to construct Georgian part of the railway. At the expense of this loan new 29km-road and wheels changing station will be constructed and the old road will be reconstructed. The total cost of the project is over $600mln.
Azerbaijanâ€™s Azerinshaatservis Company constructs Georgian part of the railway. It is planned to launch the railway by 2011.
New 76km-railway will be constructed in Turkey from Georgia to Kars.