SOUTH CAUCASUS RAILWAY ASKS ARMENIAN GOVERNMENT TO GRANT IT STATUS OF INTERNATIONAL COMPANY

ARKA
Nov 12, 2009

YEREVAN, November 12, /ARKA/. The South Caucasus Railway (SCR)
company has asked the government of Armenia to grant it the status
of an international company.

The chief manager of the SCR, Shevket Shaidulin, said today the status
of an international transport company that will allow SCR to join
international transport and logistical organizations, will provide
it with an opportunity of equal cooperation with railways companies
from neighboring countries.

According to him, it will also help promote Armenia’s interests in
international organizations and become more attractive in terms of
investments attraction.

He said the unfolding developments in the South Caucasus, especially
those related to the opening of the border and plans for construction
of Iran-Armenia railway may radically change the external and internal
environment of the Armenian economy, including the role of railroads
in the country’s economic and political life.

‘This pace of developments in mind Armenia’s railroads should be
considered as a transit chain in international transport corridors
Europe-Asia and North-South. We think it is quite real for the
railroads to act as a locomotive to take other economy sectors to
foreign markets. These objectives can be achieved only in close
interaction with Armenian government,’ he said.

Shaidulin raised this issue during the recurrent meeting of
Armenian-Russian inter-parliamentary commission on cooperation in
Yerevan earlier this week. His proposal was endorsed by Russian and
Armenian parliament members.

In 2007 the Armenian government called tenders for a 30-year
concession to modernize and operate Armenian Railways. An Indian
RITES and Russian Railways qualified to bid, but the Indian company
withdrew. The Russian Railways was the only bidder and has set up
South Caucasian Railway as a subsidiary to run the Armenian Railway.

The concession agreement was concluded for 30 years, with a right of
extension for another 20 years after the first 20 years of operation.

From: Emil Lazarian | Ararat NewsPress