ADY Express LLC, a branch of Azerbaijan Railways providing logistics services to various industries, has launched freight transportation on the South-West route, which is expected to increase transit potential of Azerbaijan, according to the Embassy of Azerbaijan.

The company will first implement test transportation. Some four cargo vehicles will depart from Iran to Azerbaijan, two containers filled with some 90 tons of light oil distillate will be directed to Georgian Batumi after being loaded on the platforms of Astara railways. The freight will be further delivered to the destination through the Black Sea. The route, which is of great importance for Azerbaijan will provide freight transportation en route India – Persian Gulf – Iran – Azerbaijan – Georgia – Black Sea – Europe.

The initial capacity of the route will stand at 10,000 of cargo per year, while the volume will be further increased up many times.

Some 94 percent of all freight traffic between India, Iran, the Persian Gulf states and Europe is currently carried out by sea through the Suez Canal, the Mediterranean and the Baltic Sea.

South-West is more attractive for the transportation of goods, while its main advantage is the reduction of the distance and delivery time two or threefold, as compared to other alternative routes, which provide cargo transportation within 35-37 days.

Head of Azerbaijani Railways, Javid Gurbanov earlier said that the route may ensure transit of cargo from the port of Bandar Abbas to the ports of Poti and Batumi within seven days and from the port of Mumbai within 14 days.

Meanwhile, the country has recently approved rules under which foreign-registered trucks are exempt from payment of state duties and road tax, when crossing the state borders of Azerbaijan. The rules will be in effect for three years.

The changes envisage that the tax exemption is applied should the freight is unloaded to the vehicle registered in the foreign country at the territory of Azerbaijan and directed to the nearest customs border enter point or the cargo is brought into the territory of the country by means of the vehicles registered abroad through the nearest border enter point.

Innovations in the area are intended to contribute to the fundamental changes in the system of transportation and logistics and turning the country into a major transport hub. The country is focused on gaining profit from its favorable geographic location between East and West placing particular importance on the transport sector.

The agreement on the South-West transportation corridor was signed in 2016 by Azerbaijan, Georgia, Iran and Ukraine in Baku.