The International North-South Transport Corridor (INSTC) and the Northern Sea Route can increase and accelerate freight transportation in Eurasia and become a profitable alternative to previous sea routes.
In 2024, the large-scale logistics project 'North - South' will get a new development, which was discussed at the international economic forum titled 'Russia - Islamic World: KazanForum2023'.
Cargo carriers of Eurasian countries expect the opening of a new fast route from the Indian Ocean and the Persian Gulf to the Caspian Sea region, to Russian ports on the Baltic and northern seas - by rail.
Iran is already completing the construction of the final branch line connecting the country's rail network through the city of Resht to the Caspian Sea port infrastructure.
In parallel, as part of the North-South corridor, the western and eastern land routes around the Caspian Sea through Azerbaijan, Kazakhstan, Turkmenistan are being developed, and last year Russia and Iran signed an agreement to build the last railroad section on the western branch of the project between the cities of Resht and Astara.
In general, the North-South corridor, according to Kazan Forum experts' forecasts, will provide fast and seamless transit of cargo to Europe, between Russia and the Persian Gulf countries. Container delivery time can be reduced by more than 2 times compared to traditional trade routes.
Russia plans to invest 280 billion rubles in the development of the North-South corridor until 2030.
By next year, according to the forecasts of First Deputy Prime Minister of the Russian Federation Marat Khusnullin, voiced at Kazan Forum 2023, the cargo turnover between Russia and the countries of the Caspian region, South and Southeast Asia, the Persian Gulf «should grow twice - at least to 30 million tons, and by 2030 - to 35 million tons. This is 155% more in relation to 2021».
Further modernization, according to experts' calculations, will increase the capacity of the corridor by more than 100 million tons of cargo per year, and investments in the project carry great economic potential.
To maximize the potential of the Caspian Sea, it is important to create port infrastructure with equipment for unloading-loading. It is necessary to deepen and clear the seabed in the port water area. All countries around the Caspian Sea benefit from cooperation in this business» - assessed the prospects of the route at Kazan Forum 2023 the head of the Trade Promotion Organization of Iran Alireza Peyman-Pak.
The North-South high-speed transport corridor is multimodal. It is connected by sea, rail and road routes, and the total length of the route from the Baltic Sea to the Indian Ocean is 7,200 kilometers.
The development of infrastructure and solution of joint logistical tasks within the framework of the project already unites a number of countries through which the routes pass by different modes of transportation: Azerbaijan, Kazakhstan, Turkmenistan, Iran, India, Iraq, Tajikistan, and Uzbekistan.