From the North–South corridor to the Eurasian Transport System

"The transport and logistics infrastructure of Eurasia is viewed through the perspective of international transport corridors," stated Oleg Belozerov, General Director and Chairman of the Management Board of Russian Railways, during the 83rd meeting of the Council on Railway Transport of the Commonwealth States in Baku. Special attention is focused on the North-South International Transport Corridor (ITC). This article will explore the current developments along this route and evaluate the future prospects of the project.

The North-South International Transport Corridor is traditionally defined as the route connecting St. Petersburg with the Indian port of Mumbai through the port of Bandar Abbas in Iran. The ITC encompasses the regions of Central Russia, the Volga region, and the Urals in the north, as well as the countries of East Africa, Southeast Asia, and the Arabian Peninsula in the south. Spanning 7,200 kilometers, the corridor is divided into three main routes: the western route that traverses Azerbaijan, the eastern route that goes through Kazakhstan and Turkmenistan, and the trans-Caspian corridor involving maritime transport between Russian and Iranian ports across the Caspian Sea. The corridor's inception dates back to 2000, when it was jointly launched by Russia, Iran, and India, and now involves 14 countries as signatories to the agreement.

A PROCESS IN MOTION

According to Oleg Belozerov, the head of Russian Railways, significant progress has been made in the North-South Railway project by 2025. "The diligent efforts of railway workers from Russia, Azerbaijan, Kazakhstan, Turkmenistan, and Iran have slashed the average transit time from Moscow to the port of Bandar Abbas from 27 to just 16 days within two years. Container transportation along this corridor, connecting with Iran and beyond, is growing along both the western and eastern routes," said Oleg Belozerov.

The main task of rolling out the North-South ITC has been entrusted to JSC Russian Railways Logistics, which is appointed as the logistics operator by Russian Railways. In an interview with Gudok, Dmitry Kryukov, First Deputy General Director of the company, stated that the current freight movement primarily consists of timber products, metals, foodstuffs, and chemicals, along with a growing array of imported goods.

SIGNIFICANT INTEREST

"When we analyze the positive trends in North-South freight traffic, it’s vital to recognize that this goes beyond mere statistics; it reflects the intricate process of establishing a robust logistics alternative to traditional maritime routes connecting Russia with Belarus, the Middle East, India, and African nations," emphasized Dmitry Kryukov.

Currently, Iran plays a critical role as the corridor's hub. Notably, the connection of the Iranian dry port of Aprin, situated near Tehran at the intersection of national east-west and north-south rail lines, has garnered attention. In November, the first export train carrying 62 forty-foot containers arrived at this location, with a transit time of just 13 days, operated by JSC Russian Railways Logistics.

The balanced tariff policy implemented by member countries of the corridor makes it appealing for exporters and importers linked to India and the Gulf States, according to Kryukov. Efforts to enhance competitiveness and improve service quality towards India, the United Arab Emirates, and Saudi Arabia are ongoing. Additionally, new routes to Africa show significant promise: successful test shipments have been conducted to South Africa, including a test delivery of paper that reached the port of Durban via a multimodal transport scheme.

"We are witnessing increasing interest in routes to East Africa, particularly to ports such as Djibouti and Mombasa, among others. For our customers, this logistics solution provides an alternative to lengthy sea routes through the Suez Canal, often making delivery timing a critical factor," pointed out the senior manager of Russian Railways Logistics.

Efforts are also underway to expand the network of routes into Central Asia and Afghanistan. For example, containers carrying cargo were transported from a staging area of the Northern Railway to Kabul in just 22 days.

THE INVOLVEMENT ZONE

Despite these advancements, Alexander Karavaev, an expert at the Caspian Institute for Strategic Studies, notes that the primary cargo base of the corridor still comprises goods traded between Russia and the Caspian littoral states, particularly Iran. "Were it not for the risk of a complete closure of European borders, the corridor’s potential as a transit route would be more pronounced than it is currently," the analyst asserts.

When the North-South ITC was established in 2000, it was envisioned primarily as a transit link between Asia and Europe, recalls Karavaev. However, the overall strategy has shifted dramatically in recent years.

Moreover, Karavaev highlights that shippers and manufacturers within the corridor's economic zone are gradually becoming engaged in the ITC. Therefore, the presence and concentration of industrial facilities in free economic zones or industrial parks along the corridor will significantly impact the growth of the North-South transport hub.

KEY PRIORITIES

Throughout its existence, the North-South ITC has always held considerable transit potential; however, it is in the past two years that the corridor's rollout has emerged as a priority concern for Eurasia’s transport and logistics landscape, asserts Marat Zembatov, director of the Center for Interdisciplinary Studies at the National Research University Higher School of Economics.

In light of western direction restrictions and heightened non-economic risks associated with routes through the Red Sea and Suez Canal, Russian firms increasingly rely on shipments via Iran to engage in trade with Gulf nations, India, and South Asia. Zembatov notes that the effects of previously accumulated infrastructure solutions are now becoming evident.

The eastern branch of the North-South ITC, which connects Russia and Iran through Kazakhstan and Turkmenistan, was fully operationalized in 2023. It is constructed on a consistent 1,520 mm gauge track up to the Iranian border, enabling trains to traverse without changing bogies and minimizing delays at infrastructure junctions. Expert estimates suggest that the eastern branch has a carrying capacity of approximately 10 million tons per year.

According to Marat Zembatov, positive growth in freight traffic along the North-South International Transport Corridor is anticipated over the next three years, with container transportation expected to play a significant role in this increase. If we maintain the current discounts and further unify regulatory, technical, and customs practices, achieving double-digit growth rates in container traffic appears realistic," he adds. To support equally rapid growth in bulk cargo volumes, significant infrastructural upgrades will be necessary, particularly at transshipment facilities in Russian ports on the Caspian Sea and improvements to the corridor's rail links in Iran (such as the commissioning of second tracks, electrification, and so on).

DEVELOPMENT PROJECTIONS

Looking ahead to 2030, the key driver for the corridor may be the development of its western branch, asserts Zembatov. The Rasht–Port Enzeli line in the Caspian Sea has already been commissioned, with a contract for the construction of the Rasht–Astara section expected to be signed soon. Concurrently, the Iranian ports of Bandar Abbas and Chabahar, situated to the east, are undergoing modernization. Should these facilities achieve their planned transshipment volumes by the early 2030s, freight traffic destined for the North-South Transport Hub could soar to between 35 and 40 million tons annually.

Post-2030, the focus on the North-South ITC is expected to expand geospatially. Discussions are underway about integrating Oman as a southern gateway to the corridor. In the public arena since June 2024, Qatar, another Persian Gulf player, has emerged as a potential participant in this initiative. Due to its strategic location at the entrance to the Indian Ocean, the Sultanate of Oman could evolve into a hub facilitating feeder lines to Kenya, Tanzania, and other East African nations.

Meanwhile, options are being considered to extend railway routes through Afghanistan to Pakistan. Central Asian countries and Azerbaijan are strengthening their positions as transit hubs by advancing the North-South corridor alongside other Eurasian routes and boosting their logistics services.

THE KEY TO SUCCESS IS UNIFORMITY

An efficient transport network requires standardized regulations, emphasizes Marat Zembatov. The eastern branch experience shows that a unified reduced tariff significantly boosts the appeal of the route. The next crucial step is implementing a single electronic transportation document recognized by all railways and customs authorities along the corridor, allowing cargo clearance from point of origin to destination. Aspects of this approach are already being tested within initiatives focused on digitalizing Eurasian corridors.

A unified regulatory and technical framework is key for seamless corridor operations, consisting of agreed standards for rolling stock, container handling, inspection procedures, data exchange, and security. This area is seeing continued efforts.

"In summary, the combination of a unified tariff, a standardized electronic transportation document, and a cohesive regulatory framework can turn the current rapid growth into a sustainable and manageable cargo flow, paving the way for a collaborative transport and logistics future in Eurasia," Zembatov concludes.

Dmitry Koptev