Azerbaijani-Russian JV to create its own wagon fleet

  20 October 2017    Read: 488
Azerbaijani-Russian JV to create its own wagon fleet

Azrustrans CJSC, a joint venture of Azerbaijan Railways CJSC and Rusagrotrans CJSC, plans to create its own wagon fleet in the future, Azrustrans said in a message.

During one year of activities, the company transported 415,000 tons of grain and 1,173 carriages with lumber, reads the message.

“The creation of Azrustrans is primarily aimed at strengthening the country's transit potential and increasing transit supplies. Transportation is actively carried out not only between Azerbaijan and Russia; supplies to Georgia and Iran were also set up, and after the Baku-Tbilisi-Kars (BTK) railway’s launch scheduled for late October, the flow of goods to Turkey will be ensured,” Azrustrans said.

The company noted that work is currently underway on a grain terminal project in Astara.

The terminal will directly deliver grain from Russia to Iran through Azerbaijan with a significant reduction in costs, said the message.

“An alternative way is the Caspian Sea – through the ports of Astrakhan and Makhachkala, where up to 1.6 million tons are annually shipped. These goods can be transported through Azerbaijan, which will significantly strengthen the country's transit potential.”

Azrustrans also cooperates with Russia’s TransLes LLC. The company currently transports lumber both to Azerbaijan and through Azerbaijan to Iran and Georgia.

To ensure supplies to Georgia, Azrustrans cooperated with Bunge Limited (the US) and Glencore International AG (Switzerland).

“Due to the fact that Bunge Limited suspended operations in Russia, Azrustrans is currently in talks with new potential partners to resume supplies in this direction, which became profitable after Azerbaijan Railways provided reduced tariffs.”

The message says that Azrustrans CJSC currently leases railcars from Azerbaijan Railways, and having a partner in Russia, the company became the main supplier of grain to Azerbaijan.

“In the future, the company plans to buy its own wagon fleet which will add profitability to the business and allow gaining a foothold in the domestic market of import goods,” Azrustrans said.

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