Azerbaijan + Iran to build cargo terminal as part of Rasht-Astara railway project

Azerbaijan and Iran have inked a strategic cooperation plan to build and operate the Astara rail cargo terminal by the end of 2025, Azerbaijani news outlet Caspian News reported on Friday. The agreement includes the approval of a master plan for the cargo terminal on the Azerbaijan-Iran border and the recognition of final investments.

In context: The terminal is part of the Rasht-Astara railway project connecting the two nations, which is the final missing piece in the International North-South Transport Corridor (INSTC) connecting Russia, India, Iran, and Azerbaijan. The railway connection project — expected to be completed by 2028 — is expected to boost capacity and reduce transit times for cargo movement across countries involved in the INSTC. For example, goods transported from St. Petersburg in Russia to Mumbai in India could take 10 days instead of 30-45 days if transported by sea.

INSTC in numbers: The corridor is expected to move around 15 mn tons of cargo per year once it is fully completed.

Upcoming trilateral meeting for the INSTC: A meeting between the Iranian, Azerbaijani, and Russian transport ministers is set to take place in Moscow on 28 January to explore measures to enhance the corridor's transit potential.