SECOND FERRYBOAT LINE TO LINK ARMENIA WITH RUSSIA

 
YEREVAN, JANUARY 9, ARMENPRESS: Armenia has been posting double-digit economic growth rates in the last several years with its foreign trade growing 20-25 percent annually. Armenpress asked Arsen Ghazarian, chairman of the Armenian Union of Industrialists and Businessmen, (he is also director general of Apaven forwarding company), to share his views on whether the current external transport and road infrastructures are sufficient to meet the demands of the expanding business.
A. Being constrained by a partial blockade and being unable to use some of major roads, for example the railways conduits towards Russia, Iran, Turkey and Europe, Armenia has managed through these years to adapt to working in these conditions and its economy has been expanding by double-digit rates in the last 5 years with forwarding companies making their contribution to the overall GDP growth. These companies are trying to improve their services and make them conform with international standards. But transport infrastructures- sea ports, railways and terminals may fail in several years to meet the demands of expanding economy. Nevertheless I believe we will be able to resist in upcoming years regional competition challenges, posed also by transport infrastructures.
Q. What routes Armenian businessmen are using now to conduct foreign trade and are there prospects for new routes that could open any time soon?
A. Now there are two major roads linking Armenia to the external world. One of them is through Iran from where Armenian businessmen can reach the Persian Gulf and further towards East and the second route lies through Georgian ports of Poti and Batumi on the Black Sea.
Armenian businessmen use seaways to transport their cargo batches to Russia, particularly, by Poti-Novorosiysk and Poti-Ilichevsk ferryboats. A program envisaging foundation of a second ferryboat line with a Russian port, by the way, this program has been elaborated in the last 10 years, is set to materialize soon and in all likelihood in March or April we shall have a second ferryboat line between the port of Poti and the Russian port of Kavkaz.
Vessels with required displacement have been constructed to operate this new route as the Russian port Kavkaz is in shallow waters. Operation of this new route will enable Armenian businessmen to transport their goods to Russia by freight cars and this in turn will decrease all costs by 20-25 percent and will fill also the gap that was caused by the closure of Azerbaijani and Abkhazian railways for Armenia.
This new road will also boost development of facilities in Georgian sea ports- construction of new terminals and mooring lines. We also appreciate the decision of the government on handing the Armenian Railway to a concessional management that will be accomplished in 2008. The company that will win the right to run the Armenian Railways will have to make serious investments to improve its overall operation and management.
Reopening of the Abkhazian section of the railway and of another railway from Turkish Kars to Armenian Gyumri offer alternative options but they are possible only after the settlement of the Georgian-Abkhazia conflict and normalization of Armenia-Turkey relationships. Given this Armenia will regain its once status of a transit transport juncture.
Q. Several years ago a new $20 million worth terminal was built for Zvartnots airport to make Armenia a transit country for transportation of goods by air. Does it serve this goal?
A. The terminal was built on a $20 million credit and in conformity with European standards. It is supposed to become a transit juncture for both passenger and cargo aircrafts. A government decision that has adopted the so-called ‘5th free corridor’ for cargo transportation will give a fresh boost to these plans. In view of a tough struggle launched by Lufthansa, British Airways, Austrian Airlines and Russian carriers for Armenian air market and in view of a new terminal which is being built for the airport we can say that real opportunities are opening for invested money to serve their goals.