Companies form joint venture to transport grain through Azerbaijan
BAKU, AZERBAIJAN — Azerbaijan Railways CJSC and Rusagrotrans CJSC have reached an agreement to create AzRusTrans CJSC, a joint venture focused on increasing the share of rail transportation in freight turnover between Russia, Azerbaijan, Iran, Georgia and Turkey, according to an Oct. 10 report from the Trend News Agency.
Under terms of the deal, Azerbaijan Railways will own a 51% stake in the company and Rusagrotrans CJSC will own a 49% stake. Rusagrotrans is Russia’s rail infrastructure operator providing transportation of grain and agricultural bulk cargoes by specialized railcar fleet.
“The main goal of the company is to increase cargo transportation through Azerbaijan,” Javid Gurbanov, chairman of the Azerbaijan Railways CJSC, said at a meeting to announce the joint venture. “Tentatively, the car fleet of the company amounts to nearly 75,000 cars, and currently, this is a record figure in the CIS.”
According to the Trend News Agency, Gurbanov told participants at the meeting that AzRusTrans CJSC expects to transport up to 2 million tonnes of cargo each year by transit through the territory of Azerbaijan by 2020, with plans to transport up to 5.5 million tonnes in the future.