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«South Caucasus Railway» CJSC 1 The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

«South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

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Page 1: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

«South Caucasus Railway» CJSC

1

The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

Page 2: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

The Company was found in 2008 under the concession agreement between the Republic of Armenia and “Russian Railways” JSC.The Company is 100% subsidiary of “Russian Railways” JSC.

2General description of main features of “SCR” CJSC

Overall investments will constitute

Standard concession

agreement building operating and return agreement capital repairing

“SCR” concession

$572 млн been invested: already $240 mln

$173,2 mln

$65,8 mln In infrastructure

in rolling stock

Efficiency increase of railway transport; security;competitiveness;safety: transport accidents decreased for 10 times

operating and return

Page 3: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

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3

Average weight of train:

Speed of transportation:

General dynamics of “SCR” CJSC development in local and regional transportation between 2008 and 2014

The share of SCR on the freight transportation market in the

Republic of Armenia

The share of railway transport on the freight transportation market on average in Europe (according to Eurostat)

22%

+36,5%

+53%

SINCE THE CONCESSION AGREEMENT WAS SIGNED:

30%

The volume of cargo

transportation has been

increased for 15% since 2008

3

constitutes 33,5 km/haverage in Europe – 26 km/h;In Asia – 21 km/h (CCPMM method research)

Page 4: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

New Zealand

The geography of international transportation of CJSC “SCR”

КаTurkey

Georgia

Kazakhstan

Uzbekistan

Kyrgyzstan

Europe LatviaLithuaniaEstoniaGreat BritainGermanyFinlandItalySpainDenmark…

CISRussia UkraineBelarus…

AsiaChinaКoreaJapanUAESingaporeIndia…

АmericaThe United StatesCanada BrasilArgentinaChile…

Australia

ЮКЖД

SCR

Import

Export

2

2013 Export: 458 th.t, 10 006 vag.,

9 080 cont.Import: 1 254 th.t,

21 710 vag., 9 461 cont.

5

More thanCountriesacross the world

75

Page 5: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

Railway line projected

Operated railway line

Merand

Georgia - ports

Azerbaijan

Tur

key

Iran

Russia

Azerbaijan Kapan

Megri Operated automob line

Eraskh

Ukraine, EU states

International logistic center “Akhouryan”

Integration in the international corridors

Cargo traffic of Iran through the railway line

Iran-Armenia

Iran - Armenia ports Georgia – EU states, RF,

Ukraine

Iran Micro Trains Logistics «Аrmash»/station Eraskh, station Ayrum

Before opening railway between Armenia and Iran

IRAN

Automob. transport

Turkey

Cargo traffic of Russia through Armenia into Turkey

Caucasus-Poti – Sadakhlo- Ayrum – Gyumri -

Int.Log.Center Akhouryan -Turkey

“Meteksim” terminal

“Armash” terminal

“Apaven”

terminal

6

Page 6: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

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The project of “South Armenian Railway” in a global context is: an impetus for economic and social development of the regions and nearby territories where the rail line will be built; diversification of routes; minimization of geopolitical risks

Expected period of construction

Projected length of the road

The Railway Project Between Armenia and Iran

$3,2 bln The overall volume of necessary investments for the realization of “South Armenian Railway” connecting Armenia with Iran

6 years

304,71 км

Page 7: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

Promising directions of served cargo traffic Iran-Armenia

Freight traffic from/to Turkey, Iran.

Organization of transport traffic from the Persian gulf to the direction of member-

states of Black Sea Economic Cooperation.

Establishment of the shortest way of transit root Iran-Armenia-EU states.

Attraction of the transit cargo via international transit corridor, including

the TRASECA root.

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Eraskh

Meghri

Ayrum

Possibility to connect Iranian Bender-Abbas and Georgian Poti through Armenia within the framework of Caucasian link of North South

Transport Corridor project.

17 mln t/yearExpected volume of transportation on the Iran-Armenia-Black Sea ports-EU states route

The project will strengthen economic ties between the countries of Black Sea region and the Persian Gulf, between Central and Eastern Asia and China.

Page 8: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

Associated membership (2010).

Cooperation and interaction within the framework of the Global Team of Experts (GTE).

Increasing the personnel potential of employees.

Recently, CJSC SCR proposed to create a universal information base

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INTERNATIONAL COOPERATION

Affiliated enterprise (2012).

Scientific-technological cooperation on the level of inter-state organizations and

railways (MTP, SMGS, SMPS).

The programs of increasing competitiveness compared to the other

types of transport.

Full membership (2011).

Cooperation within the framework of COTIFJoined the standardized scheme of legal relations among the participants of the market of railway transportation.Conformity with the international standards of legal relationship, with the rules of freight and passenger. 9

Page 9: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

Our suggestions

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Betterment of information and technical cooperationbased on coordinated flow of documentation between EEU and Europe in the realm of transport service; establishment of a single “Bank of Information”

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Building and development of “Rail Road Map” for the countries geographically lying in the intersection of European and Eurasian Unions aimed at accelerating and easing the process of freight and passengers transportation .

both initiatives can be viewed under GIS

Expansion and sophistication of the Caucasian root in the framework of International North-South Transport Corridor in light of the railway project between Armenia and Iran.

Page 10: «South Caucasus Railway» CJSC The perspectives of Armenia’s and South Caucasus Railway Integration into the Eurasian Transport System

Thank you for your

kind attention!