SHANT NEWS · 20 minutes

“I’ll note that the Armenian railway, I will not be afraid of that word, is an orphan. If we look at the world railway networks, they serve trade between different states or the majority of trade within the country. For example, RZhD, Russian Railways, serves a large part of the Russian economy, as well as a significant part of domestic tourism, and in Europe, railways serve trade turnover between different states. In the Republic of Armenia, the railway currently serves the route between Yerevan and Tbilisi, and from this point of view, it has a rather low operational capacity compared to its potential. If it were integrated with any world railway network, its potential and degree of competitiveness for the economy would increase considerably. It is not for nothing that the concession agreement with Russia, when the South Caucasus Railway was handed over to Russian concession management, was signed in 2008, because that year the war broke out and that road was completely closed, and the logic was that within 30 years the problem would be resolved and our railways would be able to establish connections with abroad.”

“Although the railway’s throughput is small compared to its potential, it is of great importance for the economy of the Republic of Armenia, especially since we import gasoline, fuel and grain (wheat) by rail. Cargo from the Russian Federation first arrives at the Black Sea ports, then arrives by ship at the port of Poti and continues its journey by rail again, that is, we have certain problems here in terms of economic efficiency. From mid-2025, Armenian cargo goes to Tbilisi, from Tbilisi to Azerbaijan, and via Azerbaijan to Russia. This reduces costs to some extent, but if it were direct, it would be greater. The Russian side is making little investment, because it considers the railway purely as a profit-seeking project, but this has a more strategic, political significance, and from that point of view, investments should increase.”

“If we can connect our railway to a larger regional network, its usefulness and potential will increase several times for the Republic of Armenia, and first of all we should think not about passenger transportation, but about freight transportation. Our big business will transport its cargo not by road, which is problematic in Lars, but by wagons, trains, and we will have alternative export and import routes, where the passability of Lars will no longer be a problem, corruption risks will not arise. TRIPP and the route proposed by Russia are both issues with rather large geopolitical baggage, and investors first of all think about long-term income. If there are certain geopolitical ups and downs, these two projects may not move. For example, Sasuntsi Davit station, our main railway station, is in a dire state. Many pavilions have been turned into shopping centers, you enter there and you don’t feel that it is a railway station that meets European standards, but, to put it bluntly, a bazaar. The renovation of the Sasuntsi Davit station, even if it does not bring income at the moment, could have a fairly large public response and move the matter forward.”

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