By Tural Heybatov
In 2025, construction of the Resht-Astara railway is expected to commence-a long-awaited event. The issue, unresolved for twenty years, had delayed the full utilization of the railway segment of the North-South Transport Corridor (NSTC).
Currently, there is no through railway connection between Russia, Azerbaijan, and Iran. The majority of cargo along the western route of the NSTC is still transported by road, which significantly limits the development of trade and economic relations between the parties and reduces Azerbaijan’s transit potential.
Construction was initially scheduled to start in 2024, but unforeseen circumstances delayed progress. As Iran’s Ambassador to Russia, Kazem Jalali, stated, “many questions arose.” This railway is the missing link in the unified railway chain. Upon project completion, Iranian railways will be connected with Azerbaijan’s, providing Iran with a direct link to Russia and other CIS countries.
In its first stage, the railway’s capacity will reach 15 million tons annually, with potential growth to 30-50 million tons in the future. Design and technical works are complete, leaving only the practical implementation.
During a recent meeting with Russian Deputy Prime Minister Vitaly Savelyev, Iranian President Masoud Pezeshkian emphasized that constructing the Resht-Astara railway is one of the Iranian government’s top priorities.
The project is expected to take three years, with the railway slated for completion in 2028.
It is worth noting that, in addition to the Resht-Astara railway, Russia is interested in investing in a railway with a Russian gauge width stretching from Parsabad to Bandar Abbas.
On May 17, 2023, Russia and Iran signed an agreement to jointly construct the Resht-Astara railway segment as part of the NSTC’s western route development. After twenty years of discussions, progress has finally been made. This 160-kilometer stretch will provide direct access to Persian Gulf ports. Russia and Iran will handle the construction of the Resht-Astara section, while Azerbaijan will join the efforts to construct the segment between the Iranian and Azerbaijani cities of Astara.
In June 2023, a 37-kilometer segment of railway from the city of Resht to the Caspian port was put into operation. This section marks the first stage of the Resht-Astara railway and provides hope that the project will ultimately be completed.
It is worth recalling that the first step was taken in March 2023, when Russian President Vladimir Putin, speaking at a congress of the Russian Union of Industrialists and Entrepreneurs, called for funding to be secured for the Resht-Astara railway project. “To everyone present here: bear in mind-this is a very good project, profitable and preferential. Many of our partners, including those in the Arab world, have shown active interest. It will work… We support this project, Iran supports it, Azerbaijan supports it. It is of interest not only to us but to all participants in global trade because it is a significant addition to the Suez Canal and the Black Sea straits. It will reduce costs and thus lower the final price of goods. Many participants in global trade are interested in this and want to be involved,” Putin said, emphasizing that external funding was unnecessary-Russia could finance Resht-Astara from scratch.
At the same congress, the Russian President instructed the government to expedite the project, and by May 2023, Putin and Iranian President Ebrahim Raisi participated via video link in the signing ceremony for the joint construction and use of the Resht-Astara railway on Iranian territory.
The Resht-Astara segment’s completion will enable cargo to be transported from St. Petersburg to the Indian port of Mumbai-a distance of over 7,000 kilometers-in just 10 days. By comparison, the same journey via the Suez Canal takes 30-45 days.
The total project cost is estimated at €1.6 billion. Russia plans to provide Iran with an intergovernmental loan of €1.3 billion by 2030. Previously, Azerbaijan had extended a concessional loan of $500 million to Tehran for this purpose.
The railway will feature dual-gauge tracks, accommodating both the Iranian standard gauge of 1,435 mm and the Russian standard gauge of 1,520 mm. Initially, narrow-gauge tracks will be laid to integrate with Iran’s existing infrastructure, with Russian-gauge tracks to follow later.
The first test freight train from Russia reached Iran’s Astara on February 8, 2018. Following the launch of the Astara (Azerbaijan)-Astara (Iran) segment in late March 2018, the Iranian section, including the Astara station and a new cargo terminal, was leased to Azerbaijan for 25 years. The terminal complex in Astara consists of four terminals: general cargo, container, grain, and oil terminals.
The planned construction of the Resht-Astara railway marks a pivotal step in addressing a major gap in the North-South Transport Corridor. While the project holds significant promise for regional connectivity, its eventual impact will depend on successful execution over the next few years. Scheduled to begin in 2025, the railway aims to provide a direct link between Russia, Iran, and Azerbaijan, addressing long-standing inefficiencies caused by reliance on road transport for much of the corridor’s western route.
From an analytical standpoint, the project faces several challenges. The dual-gauge design, intended to accommodate both Russian and Iranian standards, introduces technical complexities that will require meticulous planning and coordination. Additionally, the ability of stakeholders to maintain financing and adhere to the timeline will be crucial for avoiding further delays.
If completed as envisioned, the railway could reduce transit times and costs for cargo between Europe and South Asia, potentially shifting trade patterns in favor of this route. However, geopolitical factors, operational hurdles, and competition from established routes like the Suez Canal remain key risks that may influence the project’s success and its long-term contribution to regional trade dynamics.
