Azerbaijani – Iranian Import and Export Efficiency Agreement

9 Dec 2015

Azerbaijani and  has Iranian companies will see a boost to the speed of their international imports and exports logistics flowing through Kazakh Aktau, according to journalist Azad Hasanli.  Azerbaijan recently agreed that Iran can now use their freight logistics centre in that city.

As is often the case with such announcements, it came during a meeting between the Minister of Economy and Industry of Azerbaijan, Shahin Mustafayev and a delegation from Gilan province, headed by Governor of Gilan, Mohammadali Najafi.

This development in trading relations allows for improved North-South transportation logistics and increased trade with Iran.  This can only benefit further from a proposed Azerbaijani - Iranian business forum and exhibition to be held in Azerbaijan in the future.

Shahin Mustafayev said he expected completion of the first phase of this joint rail freight logistics project during the first quarter of 2016, improving prospects for import and export opportunities between the two countries next year. 

To give round the clock logistics support and speed processing, the Minister of Economy and Industry also was keen to stress that border checkpoints at Bilasuvar and Astara will operate 24 hours a day.

Gilan’s Governor, Najafi said that both sides had co-operated to achieve expanded co-operation ties between in a short period of time.  He said that in terms of Iranian companies involved in agricultural exports, Bandar e Anzali and Iran’s Special Economic Zone at this northern port offer great opportunities in Iranian exports to other countries also.

In terms of what closer trade ties between Azerbaijan and Iran mean, it is worth looking at trade figures for the months January-October this year, which stood at $98.8 million.  Products from Iranian contributed over $72 million of this turnover, according to the State Customs Committee (SCC) of Azerbaijan; this was, however a fall of almost 39%.

According to other reports by Vusala Abbasova of Azer News, the Iranian railway official, the Deputy Manager of Islamic Republic of Iran Railways (IRIR), Hossein Ashouri has expressed the desire to expand cooperation between the Commonwealth of Independent States (CIS countries) in passenger and commercial rail freight within the Council for Rail Transport of CIS and Baltic states.  This came out of their 63^rd session in Tashkent.

He said: “Iran and the Central Asian countries will increase their cooperation in the railway spheres.”  The CIS railway networks carried around1.4 billion tons of cargo during the first nine months of 2015, 1.5% more than the commitments made by the member railway administrations.  This was negatively impacted by a global economic slowdown, however.

Ashouri particularly welcomed increasing cooperation on rail freight between Iran and Uzbekistan too, which could see significant rail infrastructure developments next year, helping move Uzbekistan’s agricultural products abroad.

Regional rail transport networks have seen great leaps forward over the past year, with the north-south international railway corridor linking Kazakhstan, Turkmenistan and Iran launching officially last December.  However, developments can be tracked back to 2007, when an agreement about the construction of the Kazakhstan-Turkmenistan-Iran railway was signed; laying tracks and enhancing existing networks began in 2009.

Exporters now have faster and easier access to the Indian Ocean, Persian Gulf and the Caspian Sea.  Northern Europe is increasingly looked to for export markets for Iranian companies via Russia.