The Ministry of Economy expects an increase in cargo traffic along the North-South corridor by 35% this year

Freight traffic along the North-South International Transport Corridor (ITC) will increase by 35% in 2023 compared to last year, Dmitry Volvach, Deputy Head of the Russian Ministry of Economic Development, said at the Caucasus Investment Exhibition.

“According to the forecast of the Ministry of Economic Development of Russia, in 2023 the growth of cargo traffic along the ITC North-South will increase by 35% compared to 2022, to 19.5 million tons, and by 2030 it will increase to 31.7 million tons,” – leads his words TASS.

Volvach also said that more than 100 projects worth $38 billion are envisaged for the infrastructure development of the transport corridor, which involve the construction of additional railway sections, second tracks and electrification of railway lines.

ITC “North – South” connects the northwestern part of the EAEU and the countries of Scandinavia with the states of Central Asia, the Persian Gulf and the Indian Ocean. The trans-Caspian branch of the ITC provides for the transportation of goods across the Caspian Sea through the ports of Astrakhan, Olya and to the Iranian ports of Enzali, Amirabad, Nowshahr, etc., the western one – through Azerbaijan, the eastern one – by rail from Russia through Kazakhstan, Turkmenistan with access to the railway network Iran.

As Vedomosti wrote earlier, Russian ports cannot cope with the growing cargo traffic along the North-South ITC due to a lack of berths, terminals, cranes and other infrastructure in Astrakhan, a small number of ships on Iran-Russia flights, congestion in the shallow Volgo- Donskoy channel. During the year, the companies increased cargo traffic from South-West Asia and the Middle East.

In particular, at STS Logistics, the volume of delivery from India, Iran, Azerbaijan in January-February 2023 increased by 60% in annual terms. PEK increased cargo traffic from India and Azerbaijan by 27%. Rusiranexpo’s shipments from India, Iran and Azerbaijan increased by 100%, and Prime Shipping Agency LLC increased by 20%. Because of this, the terms of transportation along the trans-Caspian branch of the corridor increased in March year on year to 60 days, and the price doubled to $7,000 for a 20-foot container (TEU).