The new route will help diversify global trade flows, according to President Putin
Russian President Vladimir Putin and his Iranian counterpart Ebrahim Raisi have taken part in a signing ceremony, via video link, for an agreement on the construction of a rail line between the Iranian cities of Rasht and Astara, the Kremlin press service reported on Wednesday.
The railroad linking the two cities is part of the International North South Transport Corridor (INSTC), a 7,200-kilometer multi-mode transit system that connects ship, rail, and road routes for moving cargo between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.
The $1.6 billion contract to build the Rasht-Astara rail line, a project in northern Iran which will serve as a key cargo transit route within the INSTC system, was signed by Russian Transport Minister Vitaly Savelyev and Iranian Minister of Roads and Urban Development Mehrdad Bazrpash.
“The unique North-South transport artery, of which the Rasht-Astara railway will become a part, will help to significantly diversify global traffic flows. Transportation along the new corridor will have significant competitive advantages,” the Russian president said. Putin added that the route will substantially cut travel times and costs, and help develop new logistics chains.
The 162-kilometer railway will connect the city of Rasht, near the Caspian Sea, to Astara on the border with Azerbaijan. Once completed, it will allow the transport of cargo from the Persian Gulf to the Finnish capital, Helsinki, via the Russian city of Saint Petersburg.
Putin also noted that the new rail section will make a tangible contribution to ensuring global food security.
www.rt.com/business/576438-iran-russia-railway-construction-deal/