Thursday, July 13 2017 14:23
Naira Badalian

The head of the Ministry of Transport noted the complete lack of progress in the implementation of the program for the construction of the railway "Iran-Armenia"

The head of the Ministry of Transport noted the complete lack of progress in the implementation of the program for the construction of the railway "Iran-Armenia"

ArmInfo. Minister of Transport, Communications and Information Technologies of Armenia Vahan Martirosyan assures that the absence of the government program for 2017- 2022gg. The project of building the Iran-Armenia railway does not mean that the government refused to implement it. "It is impossible to include everything in the government program and, if this is not stated in the document, does not mean that the project will not be implemented," Vahan Martirosyan told ArmInfo on July 13 after the meeting of the government.

According to the minister, despite the fact that the government's program for the next five years specifies in detail the timeframe to ensure a stable, affordable and competitive transport network, a street and road network that meets modern requirements for safety and comfort, and also upon completion of the investment program of the road corridor "North-South", and not a word about the railroad "Iran-Armenia", the Cabinet still hopes for the implementation of the project in the future.  Nevertheless, as Vahan Martirosyan stated, today there is nothing that would be optimistic. "At this stage, there are problems with the implementation of the project, deciding which, we will be able to move forward," - noted the heads of the Ministry of Transport. These problems, as pointed out by Martirosyan, are related both to investors and the implementation of a number of obligations, and to the study of the state of roads.

The Minister admits that Armenia is already lagging behind the earlier deadlines. According to him, there are certain limitations that, before they are eliminated, do not allow talking about progress. Which exactly - Vahan Martirosyan abstained to voice.

The fact that the railway project "Iran-Armenia", recognized according to the assurances of the Ministry of Transport of Armenia, economically justified, ordered to live for a long time, became clear already at the beginning of this year, when the government decree of January 12 eliminated CJSC "Railway Construction Directorate "Under the Ministry of Transport, Communications and Information Technologies of Armenia.  Then the minister of transport, communications and IT of Armenia Vahan Martirosyan tried to calm the media representatives, noting that this will not in any way affect the implementation of the program for the construction of the Iran-Armenia railway. "As part of the Ministry operates" Railway Management, which can perform the relevant functions, "- he said. However, saying that negotiations in the direction of attracting potential investors in construction continue, the minister did not name the names and countries - possible participants in the project. "We are working in this direction, but we all realize that the project is not an easy one and requires individual work with each individual investor," he said.  It is noteworthy that the project, which was announced as early as in 2012, is not completely formed for today. According to the Ministry of Transport, according to a very approximate calculation, the construction cost is estimated at $ 3.2 billion. "But this calculation is very approximate, since there is no final approved project, and we are waiting for the evaluation of future investors," Vahan Martirosyan stated then. "The routes of connection with the operating railway are discussed via the Sevan coast (Sevan station), the other via the Ararat valley (station Eraskh.) At the moment, the route through Sevan is preferable," the minister explained. As he said, all for the same rough estimates, the payback period of the project is estimated at 22 years.

Back in May 2012, the Armenian and Iranian sides signed a concession agreement, which discussed the feasibility study and the main tasks of designing, building and financing this project. Thanks to the cooperation between Armenia and the investment company "RACIA FZE", a feasibility study for the feasibility of the "Southern Railway" project was developed. Based on the facts studied, it is proposed to build a railway for six years. The cost of the project was estimated at $ 3.5 billion. The total length of the road in Armenia is 305 km. It will have 86 bridges, a total length of 19.6 km and 60 tunnels with a total length of 102 km. Construction in accordance with the submitted program, will be completed in 2022. It is assumed that the volume of cargo transportation by rail from Gagarin station (Gegharkunik region) to Agarak (Syunik region) will be 25 million tons per year. This road, which is 44 km shorter than the planned site of Gavar-Agarak, will be connected to the existing railway network. The launch of the projects "Southern Railway of Armenia" and "Southern Highway of Armenia" (Iran-Armenia) was announced in January 2013. At the same time, a trilateral Memorandum of Understanding on regional cooperation aimed at the development of the South Railway of Armenia was signed between the South Caucasus Railway, the Ministry of Transport and Communication of Armenia and the company Racia FZE, registered in the United Arab Emirates by the company. After that, nothing more substantive about the "Racia FZE" and the results of negotiations with it was not announced.

It should be noted that, according to economic analysts of ArmInfo, the economic inefficiencies in the construction of the Iran-Armenia railway are based on three main factors. This is, first of all, the deadlock of the Armenian railway and the impossibility of its direct access to the "Russian expanses"; secondly, even with the hypothetical possible unblocking of the Abkhaz section of the railway in the future, the presence of the currently constructed Iran-Armenia section of the North- Will make the Iran-Armenia railway, in connection with its insignificant length, inefficient. To this initially low efficiency, the third, perhaps most important, factor is added: the railway project of the Astara-Resht-Qazvin railroad realized by the Railways. This is a transport corridor that will connect the operating railways of Russia, Azerbaijan and Iran. The project is carried out within the framework of the international transport corridor "North-South", whose goal is the integration of the transport and information highways of Russia, Azerbaijan, Iran, India and Oman. In the opinion of analysts, the Iran-Armenia railway project is exclusively politically motivated and that is why during the last few years it practically did not manage to move from a dead center. The statements of the Armenian officials on the possibility of China's participation in this project in the framework of China's super-bureaucratic program for the revival of the Great Silk Road, worth $ 40 billion, do not stand up to the claims of the Armenian officials. Armenia does not exist in one scenario of the new Silk Road, but the maps show Iran- Azerbaijan and Turkey-Georgia.

POST A COMMENT
Input digits     


News
Armenia`s ICT sector revenue grew by double-digits in the first nine  monthsArmenia`s ICT sector revenue grew by double-digits in the first nine  months
Service sector revenue accelerated in the first nine monthsService sector revenue accelerated in the first nine months
Armenia`s trade sector generated $12.1 billion in revenue in the  first nine monthsArmenia`s trade sector generated $12.1 billion in revenue in the  first nine months
Kazakhstan`s national grain operator ready to supply Armenian  consumers with approximately 15,000- 20,000 tons of food grain  monthlyKazakhstan`s national grain operator ready to supply Armenian  consumers with approximately 15,000- 20,000 tons of food grain  monthly
Armenia`s telecommunications revenue growth slowingArmenia`s telecommunications revenue growth slowing
Armenia`s metallurgy sector decreased by 10% in the first nine monthsArmenia`s metallurgy sector decreased by 10% in the first nine months
Cargo transportation in Armenia increased by 1.6% over the first nine  months, while passenger transportation decreased by 2.4%Cargo transportation in Armenia increased by 1.6% over the first nine  months, while passenger transportation decreased by 2.4%
Power generation in Armenia increased by 8.2% in the first nine  monthsPower generation in Armenia increased by 8.2% in the first nine  months
Wine production dropped by 36% and  cognac by 34.4% in the first nine  months Wine production dropped by 36% and  cognac by 34.4% in the first nine  months 
5,312,038 AMD for “Symphonic Forest”: the November beneficiary is AI4Biodiversity: AI Solutions for Nature, a national hackathon5,312,038 AMD for “Symphonic Forest”: the November beneficiary is AI4Biodiversity: AI Solutions for Nature, a national hackathon
Expert on small nuclear power plants: The hardest thing of all is to  find a cat in a dark room, especially if there is no catExpert on small nuclear power plants: The hardest thing of all is to  find a cat in a dark room, especially if there is no cat
PSRC planning to revoke Electric Networks of Armenia CJSC`s operating  licensePSRC planning to revoke Electric Networks of Armenia CJSC`s operating  license
Armenian minister of economy takes part in 124th meeting of UNWTO  Executive CouncilArmenian minister of economy takes part in 124th meeting of UNWTO  Executive Council
Armenia, Iran discuss prospects for cooperation in tourism sectorArmenia, Iran discuss prospects for cooperation in tourism sector
Armenia`s first satellite, Armsat-1,  entered controlled deorbit  phaseArmenia`s first satellite, Armsat-1,  entered controlled deorbit  phase
Pashinyan: Investments in Armenia`s military-industrial complex  amounted to approximately $450 million over past two yearsPashinyan: Investments in Armenia`s military-industrial complex  amounted to approximately $450 million over past two years
Armenia`s industrial sector declined by 5.7% in January-September  2025Armenia`s industrial sector declined by 5.7% in January-September  2025
TEAM`s 5G network  available in Gyumri and VanadzorTEAM`s 5G network  available in Gyumri and Vanadzor
Economy Minister discussed rebranding of Armenian brandy with  producersEconomy Minister discussed rebranding of Armenian brandy with  producers
Dollar, ruble transactions   decreased in Armenia`s  interbank  foreign exchange market from November 3- 7, 2025Dollar, ruble transactions   decreased in Armenia`s  interbank  foreign exchange market from November 3- 7, 2025
Fly Cham to launch Aleppo-Yerevan flightsFly Cham to launch Aleppo-Yerevan flights
FLYONE ARMENIA to launch new Yerevan-Batumi - Yerevan flight next  yearFLYONE ARMENIA to launch new Yerevan-Batumi - Yerevan flight next  year
Armenia among top 10 popular destinations for Russian tourists,  according to results of  first nine months of 2025Armenia among top 10 popular destinations for Russian tourists,  according to results of  first nine months of 2025
Armenia, India discuss possible cooperation in defense industry Armenia, India discuss possible cooperation in defense industry 
Armenian MP proposes rising duty on metal fitting Armenian MP proposes rising duty on metal fitting 
New route through Azerbaijan to strengthen sustainability of supplies  of Russian agricultural products to regoinal countriesNew route through Azerbaijan to strengthen sustainability of supplies  of Russian agricultural products to regoinal countries
AraratBank Honoured with STP Award by Commerzbank AGAraratBank Honoured with STP Award by Commerzbank AG
AI to change economy, public and everyday life beyond recognition in  coming years - Hakob Arshakyan AI to change economy, public and everyday life beyond recognition in  coming years - Hakob Arshakyan 
RA SRC: List of products subject to identification marking to be  expanded from January 1, 2026RA SRC: List of products subject to identification marking to be  expanded from January 1, 2026
ARMSWISSBANK: A strategic financial bridge between Armenia and international marketsARMSWISSBANK: A strategic financial bridge between Armenia and international markets
Germany to support Armenia with 152  million euros in strategic  cooperation areas  until 2027 - German EmbassyGermany to support Armenia with 152  million euros in strategic  cooperation areas  until 2027 - German Embassy
By the end of October, actual tax collections in Armenia exceeded   annual target by 13.7%By the end of October, actual tax collections in Armenia exceeded   annual target by 13.7%
Compelling Business Loan Offer from AraratBank: JOIN USCompelling Business Loan Offer from AraratBank: JOIN US
Economist: It`s too early to assess economic benefits of new freight  routes passing through ArmeniaEconomist: It`s too early to assess economic benefits of new freight  routes passing through Armenia
82% of tax revenues and state duties planned for 2025  already   secured- RA SRC Chairman82% of tax revenues and state duties planned for 2025  already   secured- RA SRC Chairman
I hope we don`t jinx it: Pashinyan commends Iranian company for  I hope we don`t jinx it: Pashinyan commends Iranian company for  "unprecedented construction speeds"
Grain delivery to Armenia dynamic - premier Grain delivery to Armenia dynamic - premier 
Armenian pensioners to get cashless pensions Armenian pensioners to get cashless pensions 
RA MOD to get $11mln more RA MOD to get $11mln more 
Health Programs Implementation Office to be responsible for  implementing Universal Health Coverage Loan ProgramHealth Programs Implementation Office to be responsible for  implementing Universal Health Coverage Loan Program
Further cargo transportation from Russia, Kazakhstan to Armenia via  Azerbaijan - Azerbaijani railways Further cargo transportation from Russia, Kazakhstan to Armenia via  Azerbaijan - Azerbaijani railways 
Direct rail service between Russia and Armenia through Azerbaijan and  Georgia tangible contribution to peace in the South Caucasus - Alexei  Overchuk Direct rail service between Russia and Armenia through Azerbaijan and  Georgia tangible contribution to peace in the South Caucasus - Alexei  Overchuk 
First grain consignment from Russia to Armenia via Azerbaijan First grain consignment from Russia to Armenia via Azerbaijan 
The interview of Mher Abrahamyan, Chairman of the Board of IDBank, to Khaleej TimesThe interview of Mher Abrahamyan, Chairman of the Board of IDBank, to Khaleej Times
Armenian manufacturers participating  in  Occupational Safety and  Health A+A 2025 trade fair  in DusseldorfArmenian manufacturers participating  in  Occupational Safety and  Health A+A 2025 trade fair  in Dusseldorf
In Armenia, annual inflation accelerated from 0.6% to 3.7%  in  October, driven by rising prices for food products, services in  transportation, tourism sector,  and beauty salonsIn Armenia, annual inflation accelerated from 0.6% to 3.7%  in  October, driven by rising prices for food products, services in  transportation, tourism sector,  and beauty salons
Central Bank Chairman: Macrostability becoming Armenia`s hallmark Central Bank Chairman: Macrostability becoming Armenia`s hallmark 
AraratBank – Title Sponsor of Urartu Football ClubAraratBank – Title Sponsor of Urartu Football Club
SCR, Armenian Tourism Federation sign Memorandum of CollaborationSCR, Armenian Tourism Federation sign Memorandum of Collaboration
SCR Director: Rail route through Azerbaijan to be in demandSCR Director: Rail route through Azerbaijan to be in demand
Economic growth down in Jan-Sept 2025 Economic growth down in Jan-Sept 2025 
RA Anticorruption Committee to get more money in 2026RA Anticorruption Committee to get more money in 2026
Amendments to Law on Ensuring Uniformity of Measurements in Armenia  aimed at enhancing accuracy of product informationAmendments to Law on Ensuring Uniformity of Measurements in Armenia  aimed at enhancing accuracy of product information
Armenian authorities` task is keeping freight vehicles at country`s  land bordersArmenian authorities` task is keeping freight vehicles at country`s  land borders
Ameriabank’s Corporate Loan Portfolio Surpasses AMD 1 TrillionAmeriabank’s Corporate Loan Portfolio Surpasses AMD 1 Trillion
New mechanisms to take effect on Armenia`s real estate market New mechanisms to take effect on Armenia`s real estate market 
RA Investigative Committee to get to get AMD 219.6mln more next year RA Investigative Committee to get to get AMD 219.6mln more next year 
Russian wheat beting transported to Armenia via Azerbaijan - minister Russian wheat beting transported to Armenia via Azerbaijan - minister 
In 2026, total funding for Ministry of Environment`s activities to be  15.4 billion dramsIn 2026, total funding for Ministry of Environment`s activities to be  15.4 billion drams
Martin Galstyan: Armenia is in a good position in terms of high  economic growth and low inflationMartin Galstyan: Armenia is in a good position in terms of high  economic growth and low inflation
Read more
Exchange rates
10.11.2025
RUB4.72-0.01
USD382.610.07
EUR442.370.54
GBP503.512.11
CAD272.921.86
JPY24.82-0.13
CNY53.740.02
CHF474.640.73