Bypassing the Suez Canal: New Russian "Corridor" Proves Popular

The Russian transit project ‘North-South’ has received serious international support. The route primarily involves moving freight from India, Iran, Azerbaijan and Russia via ship, rail and road. The objective of the corridor is to increase trade connectivity between major cities such as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, and Bandar Anzali.

Unlike the Chinese ‘New Silk Road,’ the emphasis of the ‘North-South’ project is on the use of maritime transport. It is expected that the time savings for the delivery of goods from Asia to the EU will be up to two weeks. Thus, the ‘North-South’ corridor will become a serious competitor to the route passing through the Suez Canal.

The head of the port and shipping organization of Iran, Mohammad Rastad, reports of a significant increase in cargo turnover in the country's maritime harbors. It is noteworthy that, according to Rastad, the Iranian side continues to make serious efforts to further develop its port infrastructure. To this end, Iran signed a contract with India for the supply of port equipment worth $85 million. It is expected that the renewal of the maritime infrastructure will allow the Iranian side to significantly accelerate the process of providing the necessary capacity for trans-shipment of goods along the shortest route from India to the EU market.

Dimitri Dolaberidze

09 November 2017 17:47