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Second Ferryboat Line To Link Armenia With Russia

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  • Second Ferryboat Line To Link Armenia With Russia

    SECOND FERRYBOAT LINE TO LINK ARMENIA WITH RUSSIA

    Armenpress
    Jan 09 2007

    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.
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