RZD Logistics (a subsidiary of Russian Railways) and Azerbaijan Railways will develop the International North–South Transport Corridor. The partners agreed on a pass-through rate aiming to attract more freight traffic to the multimodal route. This route is starting in India, and passing through Iran, Azerbaijan to Russia and in the opposite direction.
Nowadays all the freight flows from India and Iran to EU are concentrated in sea-based routes. An average transit time from Nava Sheva (Mumbai) to Moscow by conservative sea route is 40 days. The alternative new multimodal route including sea, rail and road transport allows to reduce transit times by half – to 19 days.
Another service advantage is favorable tariff which is 3 246 $ for a 40 ft container.
According to Pavel Sokolov, CEO of RZD Logistics, the service is launched as an alternative to sea transportation. RZD Logistics is successfully developing similar project in Asia offering regular container services from China to EU and back through Russian territory.