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Government to Consider Regulations for Freight Transportation Tariffs

The Coordinating Council for cargo transportation has submitted a project of regulations to the government of Azerbaijan for determining tariffs for providing transit cargo transportation services.

This was announced by Sahil Babayev, Deputy Economy and Industry Minister during the presentation of the electronic portal of the Coordinating Council.

He said that the project of regulations for determining the tariffs for providing transit cargo transportation services and discounts to these tariffs is under the consideration of the government and it is expected to be approved soon.

"These regulations will ensure transparency and creation of profitable opportunities for cargo transportation," Babayev added.

Last year, the Coordinating Council adopted the upper limit of tariffs for the services of oil and petroleum products transit by railway and handling via sea terminals.

Under the decision of the Coordinating Council, expenditures for services on transit and transshipment of oil and petroleum products are calculated by two percent surcharge to the approved tariffs.

The cost of contracts should not exceed the approved tariffs and transit and transshipment expenditures. New tariffs entered into force since December 3, 2015.

Babayev noted that as a result of setting upper limit of tariffs for transportation of oil and oil products, the effectiveness of cargo transportation through Azerbaijan has increased and the transportation of these products in the country has grown.

He said over 1,500 trucks were sent to Central Asia from Turkey through Azerbaijan in January-February 2016, or 7.3 times more than in the same period of 2015.

He also said that 215 freight wagons were sent via the Baku-Aktau-Baku route in January-February 2015.

Single tariffs for cargo transportation via Trans-Caspian route

Touching upon the Trans-Caspian international route, Babayev said that Azerbaijan intends to set single tariffs for cargo transportation with the countries that the Trans-Caspian route runs through.

The country has already reached a preliminary agreement with Georgia on this issue.

"Negotiations on the single tariff are underway with Kazakhstan, Turkmenistan and Turkey. If these plans are realized, the competitiveness of the Trans-Caspian corridor will increase significantly," Babayev believes.

The Trans-Caspian route connects China with Europe via the territory of Kazakhstan, Azerbaijan and Georgia. This is a multimodal corridor which uses railway, maritime and road transport for transportation of goods.

The Trans-Caspian route enjoys an opportunity to become attractive and profitable for consignors from European countries. This route will transport approximately 300,000-400,000 containers by 2020.

Three test container trains have already been sent from China to Europe via this corridor. This project, being very profitable, has involved even Ukraine, the territory of which will make the delivery of goods to customers even faster.

Azerbaijan, Kazakhstan, Georgia and Ukraine have signed a protocol on setting preferential tariffs for cargo transportation via this route. Signing of this document will likely lead to full commercial operation of the Trans-Caspian route in the near future.

Azerbaijan, Kazakhstan and Ukraine have agreed to establish an international railway consortium to organize and develop regular container traffic through the Trans-Caspian route. This consortium will include KTZ Express (a subsidiary of Kazakhstan Railways), the Azerbaijan Caspian Shipping Company, Azerbaijani Karvan Logistics and Trans Caucasus Terminals (a subsidiary of Georgian Railway).

Source: AzerNews

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