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Azerbaijan/Georgia: High cost of high-speed railway line

May 2008.

The South Korean party has submitted the last proposal to Azerbaijan State Railway Company (ADDY) for creation of high-speed railway line from Baku to the border with Georgia.

ADDY chief engineer Gurban Nazirov said that the last proposal stipulates increase of traffic speed on railway segment Baku – Beyuk Kesik up to 100-150 km/h.

“The Koreans offered to use the available railway line with its reconstruction. The last suggestion says of cost of work at the level of AZN 2 bn. The project can be realized within the framework of State Railway Development Programme 2008-11, making of which is under way. Tariff for transportation can be re-considered after reconstruction and increase of traffic speed,” Nazirov said.

Earlier the Transport Ministry, ADDY, and the Korean consultants have established a working group to consider the project of a 503 km high-speed railway line to run from
Baku to Georgia.

Cost of project primary stage alone was estimated at $2.4 billion and its full cost was expected to be up to $3.5 billion. Speed of trains via this railway route should have made 160-200 km/h.

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