Azerbaijan could earn up to $300 mln annually from North-South Corridor transit - Tehran

BAKU. May 27 (Interfax) - Azerbaijan may receive $250-$300 million annually for transiting goods from India and Southeast Asia through its territory via the International North-South Transport Corridor, former Iranian Ambassador to Romania and current expert at the Iranian Embassy in Azerbaijan Hamidreza Arshadi said.

Speaking at an international roundtable in Baku titled "Shaping Eurasia's Transport Framework and Azerbaijan's Pivotal Role" on Tuesday, Arshadi said that the North-South Corridor serves as the shortest and most efficient transit route between Europe and Asia.

"Its development not only enhances regional connectivity but also promotes economic diversification and growth in international trade. Goods from India and Southeast Asia will be delivered through Iran's Bandar Abbas port and Azerbaijani territory. The route's potential capacity reaches 15 million tonnes of cargo annually. This creates significant transit revenue potential for Azerbaijan - approximately $250-$300 million annually," Arshadi was quoted by Azerbaijan's Report news agency as saying.

Transport cooperation between Iran and Azerbaijan represents a key bilateral priority, with the North-South Corridor's development holding particular significance, he said.

Shipping costs via this route are 10%-15% cheaper than alternative options, Arshadi said. "The distance is reduced by 800 km compared to the Suez Canal route, with delivery times shortened by 20 days. Moreover, this corridor ensures higher delivery reliability," he said.

According to preliminary estimates, savings could exceed $2,500 per 15 tonnes of transported cargo, he said. "In this context, the corridor's western route - through Russia's Astrakhan and Makhachkala, then across Azerbaijan from Samur to Astara, and further along Iran's Astara-Rasht-Qazvin railway, which is under construction - holds strategic importance for the region and especially for Azerbaijan," he said.