Kazakhstan, Azerbaijan to set up JV for developing Trans-Caspian international transport route

NUR-SULTAN. March 9 (Interfax) - Kazakhstan's National Wealth Fund Samruk-Kazyna JSC and the Azerbaijani Ministry of Digital Development and Transport have signed a protocol to establish a joint venture (JV) for the development of the Trans-Caspian International Transport Route, the fund's press service said.

The document was signed in Baku during the visit of a Kazakh delegation headed by Samruk-Kazyna JSC Board Chairman Almasadam Satkaliyev on Wednesday.

"A new joint venture will resolve issues of through tariff setting and cargo declaration, and will apply unified IT solutions and consolidate transit cargo on this route," the statement said.

At the meeting with Azerbaijani Minister of Economy Mikayil Jabbarov, Azerbaijan Investment Holding CEO Ruslan Alikhanov, acting President and First Vice President of the State Oil Company of the Azerbaijan Republic (SOCAR) Rovshan Najaf and other officials, representatives of the Kazakh delegation highlighted the importance of redirecting export cargo flows from Kazakhstan to Europe via trans-Caspian route.

"The parties identified the substantial potential for cooperation in the field of oil transportation via Azerbaijan, which may become an alternative to existing routes," the statement said.

During the meeting of the Kazakh delegation with Azerbaijani Minister of Digital Development and Transport Rashad Nabiyev, "the parties discussed the unification of transport tariffs along the corridor, synchronization of customs procedures to increase the volume of cargo shipments along international transport corridors that pass through the countries."

"It was noted that the events taking place in the region and the geopolitical situation have created a new reality. There is already a risk that demand will exceed supply, and these factors will eventually affect the end user. Thus, both the cost of delivery and the waiting time will increase. This reality dictates the consideration of new framework of cooperation and the establishment of transit transport communications," the statement said.

The parties emphasized that geographic peculiarities of Azerbaijan and Kazakhstan, their location between the largest economic centers of Europe and Asia created real opportunities for the provision of efficient and well-organized transport network between the countries. The completion of building the Baku-Tbilisi-Kars railway line gave an additional impetus to the development of the route. This made it possible to cut the delivery time from China to Turkey via Kazakhstan to 12 days, the press release noted.