Baku, Tehran forge stronger ties through rail, road, and trade initiatives

Azerbaijan and Iran have signed key agreements aimed at advancing transport and trade cooperation, accelerating the completion of the strategically significant North-South Transport Corridor.

These agreements were finalized during the 16th session of the Joint Economic Commission of Azerbaijan and Iran, Caliber.Az reports via Iranian media.

Speaking at the session, Iranian Minister of Roads and Urban Development, Farzana Sadiq, emphasized the corridor’s importance as a major transit route, particularly highlighting the Resht-Astara section as a critical component.

Sadiq underscored Azerbaijan’s strategic position between Russia and Iran, which makes it a vital hub for freight transportation among the three nations. She noted that mutual understanding between Azerbaijan and Iran is essential for the successful development and completion of the corridor project.

During the session, held after a three-year hiatus, both sides signed agreements on preferential trade, road and rail transport, and increasing flights between the two countries. It was stated that once completed, the North-South Corridor would have the capacity to handle 15 million tonnes of transit cargo annually.

One of the significant outcomes of the session was the signing of an agreement between the railway authorities of Iran and Azerbaijan to finalise the construction of a railway terminal in Astara. This terminal is expected to play a crucial role in enhancing trade and transit along the corridor.

Additionally, the Iranian Minister announced that a meeting involving the transport ministers of Azerbaijan, Iran, and Russia is scheduled to take place in Moscow on January 28. Sadiq expressed optimism that the three nations would reach agreements to further boost transit activities within the framework of the North-South Corridor.

The Minister highlighted the growing trade relations between Azerbaijan and Iran, noting a 20% increase in trade turnover last year, which totalled $580 million.

Sadiq also provided updates on infrastructure projects, including the construction of a road bridge across the Araz River on the Azerbaijan-Iran border, which is expected to be completed this spring. She further mentioned a road project starting from the Aghband settlement in Azerbaijan’s Zangilan district, passing through Iranian territory to Julfa.

The Astara terminal, she added, continues to facilitate the intensive development of trade between Azerbaijan and Iran, strengthening economic ties and advancing the North-South Corridor initiative.

By Tamilla Hasanova