17.May .2022 14:00

Georgia, Kazakhstan, Azerbaijan pooling efforts to create joint venture

Georgia, Kazakhstan, Azerbaijan pooling efforts to create joint venture
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Georgia, Azerbaijan and Kazakhstan are planning to form a joint venture to develop the Southern Transit Corridor, Azernews reports with reference to Kazakh media.

The new project will be similar to the United Transport and Logistics Company - the Eurasian Railway Alliance (UTLC ERA) but with the difference that the first one includes Kazakhstan, Russia, and Belarus, the new venture will unite Kazakhstan, Azerbaijan, and Georgia.

Transportation of export-import cargo in containers and wagons will be carried out along the route of the Trans-Caspian International Transport Route (TITR), which runs through China, Kazakhstan, and the water area of the Caspian Sea, Azerbaijan, Georgia, and further to Turkey and European countries. The venture itself will serve transit container cargo.

For its part, the Kazakh Ministry of Industry and Infrastructural Development noted that they expect a common management system to be created within the framework of the joint venture. The enterprise itself will act on the international market on behalf of the countries.

Also, by distributing risks among all members of the organization, the state markets will be diversified and their investment appeal will be increased.

Due to the single-window concept, unified service, through tariff rates, and flexible pricing will be introduced.

"This will be a parity alliance with an equal dividend policy, common goals, and objectives for all participants in the joint venture. There will be no competition in the holding. At the same time, the organization will negotiate with international organizations and will be able to receive grants for the development of the route from external donors," the ministry added.

It was noted that a working group, which will deal with the plan for the implementation of the project, will be formed for the creation of the venture.

Earlier it was reported that railway authorities from countries along the Trans-Caspian International Transport Route (TITR) plan to form a joint venture called Middle Corridor.

It should be noted that TITR member countries are Azerbaijan, Georgia, Kazakhstan, and Turkey.

Earlier Azerbaijan, Georgia, Turkey, and Kazakhstan signed a quadripartite declaration on “the Trans-Caspian East-West Corridor".

It outlines steps to strengthen the transit potential of the countries participating in this document.

It should be noted that the Trans-Caspian transport route is a vital trans-Eurasian corridor that runs through the South Caucasus. The route begins in Southeast Asia and China and travels to Europe via Kazakhstan, Azerbaijan, Georgia, and Turkey. It is one of the new Silk Road routes, the Middle Corridor of the 'One Belt, One Road' project. During the crisis, this transport corridor proved to be the most profitable, safest, reliable, and stable. As a result, this corridor, which runs through Azerbaijan, is attracting the attention of an increasing number of exporters and importers, Azernews reports.