Construction of rail link between Armenia and Iran is not an end in itself, prime minister says
17.01.2018,
18:23
Construction of a rail link between Armenia and Iran is not an end in itself, Armenian prime minister Karen Karapetyan said today during a Q&A parliamentary session. According to him, the need for a railway to Iran depends on the volume of commodity that can be transported by it.

YEREVAN, January 17. /ARKA/. Construction of a rail link between Armenia and Iran is not an end in itself, Armenian prime minister Karen Karapetyan said today during a Q&A parliamentary session. According to him, the need for a railway to Iran depends on the volume of commodity that can be transported by it.
"I believe that today construction of a railway to Iran is not an end in itself, because if built it might not be used to transport as much of commodity as to become commercially viable," Karapetyan said.
Karapetyan claimed also that the government may revive this project only after the trade turnover between the two countries grows dramatically. He stressed that the trade between Iran and Armenia in the first ten months of 2017 (without energy) was worth only $62.5 million, which is a very low indicator considering the huge Iranian market and its population.
"The trade growth rate between our countries is one of the most insignificant in comparison with other countries, only 9-10%. So our Iranian partners and we believe that we will have much to do, and there is a great potential for a sharp growth in trade, "Karapetyan said.
He said the free economic zone built in the southern Armenian town of Meghri on the border with Iran is able to play a role in increasing trade between the countries.
The agreement on the construction of the rail link was approved by Armenian and Iranian governments in 2009. In 2012, the Dubai-based Rasia FZE Investment Company was granted a 50-year concession by the Armenian government to build and manage the 305-kilometer railway from Armenia to Iran, to be named the Southern Armenian Railway (SAR).
By late 2013 Rasia FZE developed a feasibility study for the project, estimated to cost $3.5 billion. The high cost is explained by mountainous terrain through which it is supposed to pass. Specifically, the 305 km-long railway was to have 19.6 km-long 64 bridges and 60 tunnels of 102.3 kilometers.
The Armenian government said that the railway was to run from Gagarin station in Armenia’s Gegharkunik province to Agarak in southern Syunik and may transport up to 25 million cargo a year. It was also said to provide for the shortest transportation route from the ports of the Black Sea to the ports of the Persian Gulf and establish a major commodities transit corridor between Europe and the Persian Gulf region.” .-0-
"I believe that today construction of a railway to Iran is not an end in itself, because if built it might not be used to transport as much of commodity as to become commercially viable," Karapetyan said.
Karapetyan claimed also that the government may revive this project only after the trade turnover between the two countries grows dramatically. He stressed that the trade between Iran and Armenia in the first ten months of 2017 (without energy) was worth only $62.5 million, which is a very low indicator considering the huge Iranian market and its population.
"The trade growth rate between our countries is one of the most insignificant in comparison with other countries, only 9-10%. So our Iranian partners and we believe that we will have much to do, and there is a great potential for a sharp growth in trade, "Karapetyan said.
He said the free economic zone built in the southern Armenian town of Meghri on the border with Iran is able to play a role in increasing trade between the countries.
The agreement on the construction of the rail link was approved by Armenian and Iranian governments in 2009. In 2012, the Dubai-based Rasia FZE Investment Company was granted a 50-year concession by the Armenian government to build and manage the 305-kilometer railway from Armenia to Iran, to be named the Southern Armenian Railway (SAR).
By late 2013 Rasia FZE developed a feasibility study for the project, estimated to cost $3.5 billion. The high cost is explained by mountainous terrain through which it is supposed to pass. Specifically, the 305 km-long railway was to have 19.6 km-long 64 bridges and 60 tunnels of 102.3 kilometers.
The Armenian government said that the railway was to run from Gagarin station in Armenia’s Gegharkunik province to Agarak in southern Syunik and may transport up to 25 million cargo a year. It was also said to provide for the shortest transportation route from the ports of the Black Sea to the ports of the Persian Gulf and establish a major commodities transit corridor between Europe and the Persian Gulf region.” .-0-