ARMENIA: RAILWAY PREPARES TO GO TO TURKEY

/eav092909c.shtml
9/29/09

Amid serious domestic opposition in Armenia to plans for reconciliation
with Turkey, the Russian-run Armenian railway company, South Caucasus
Railway, has started work on providing a rail link between the two
countries.

A subsidiary of Russian Railway, South Caucasus Railway has announced
plans to invest roughly $1.5 million to set up a gauge conversion
facility. Such a facility would be necessary to facilitate rail service
between Armenia and Turkey, the Kavkazsky Uzel news service reported
on September 28.

South Caucasus Railway CEO Marat Khakov said he was in negotiations
with the Armenian government about the technical aspects of
establishing the railway link. Khakov estimated that initial export
cargo volumes would reach 6 million tons per year and would lead to
a significant reduction in Armenian exports to and through Georgia.