Caspian Energy (CE): Mr. Asgarov, how would you evaluate the path of development of the railway in Azerbaijan?

Arif Asgarov, Chairman, Azerbaijan Railways CJSC: Nowadays the economy of Azerbaijan is showing a sustainable development along with the active integration into the international community and large-scale projects implemented in the country. The transport sector is making a special contribution to this process as well. Steel highways of Azerbaijan, as one of the main links of the transport system of the country, are also developing with high rates. The work in this direction was launched thanks to the personal help and care to the railway system of the great politician and the National Leader of the country Heydar Aliyev. Consistent economic changes along with successful domestic and foreign policy and democratization were implemented under his supervision, and further resulted in the fostered social and economic development of Azerbaijan.

The processes of modernization and development of the transport infrastructure initiated when National Leader Heydar Aliyev was in power have entered a new stage of development under the leadership of President Ilham Aliyev. So, in recent years big changes both in the transport system of the country and in the operation of the railway transport, which is a component of the entire transport chain have been fixed. Active works in the field of construction of a new railroad Baku-Tbilisi-Kars are implemented thanks to the will of the Head of State.

In view of bringing the level of the Azerbaijan railroads into compliance with the international standards, on July 20, 2009 President of Azerbaijan Ilham Aliyev signed the Executive Order on establishment of Azerbaijan Railways CJSC, and it actually served as a new starting point for development. On February 15, 2010 the Government of Azerbaijan approved the Charter and the structure of Azerbaijan Railways CJSC, the operations in this direction were accelerated. 

Thus, it was the start to a new process of reforms in the sphere of improvement and restructuring of the railroad, in particular modernization of the infrastructure of the railroad and rolling stock.

CE: What are the main directions for development of Azerbaijan Railways CJSC? 

Arif Asgarov: As a logical continuation of the mentioned work, on July 6, 2010 President of Azerbaijan Ilham Aliyev signed the Executive Order, approving the State Program on Development of the Railway Transport System of Azerbaijan for 2010-2014. This Order became the most powerful document in the history of development of the railroads. 

According to the State Program, measures are introduced to update the rolling and locomotive stocks, to overhaul railroads, power supply, signalization and communication facilities, to ensure transition from alternating current to constant in the direction of Baku-Boyuk Kasik route, to modernize technical equipment as well as to implement other important tasks. State Program’s main focus is on enhancement of the transit potential, improvement of the level of railway transport services, ensuring a fruitful operation of the transport complex by reducing transportation costs in passenger traffic.

The ongoing active bilateral and multilateral cooperation with the international financial structures are to have a positive impact on the development of railroads. The negotiation process with the international financial structures, which focuses on reconstruction of the railroads, has entered a new stage. Due to the support of the Head of State the credit agreements were signed to ensure funding “The project of support of the railway transport and trade”, which is aimed at improvement of the infrastructure, managements and development of railways. Under the agreements, the International Bank for Reconstruction and Development (World Bank) has allocated a $450 million loan and the Export Bank of the Czech Republic provided some 215 million euros. According to the State Program, these funds will be used on reconstruction of locomotives, roads, power supply, signalization and communication facilities, on acquisition of new locomotives and introduction of the International Financial Reporting Standards.

To specify economic, legal and organizational bases of Azerbaijan Railways CJSC within the frames of the State Programme on Development of the Railway Transport System of Azerbaijan for 2010-2014 the draft “On the Railway Transport of Azerbaijan” has been revised by Azerbaijan Railways CJSC taking into consideration the suggestions and proposals of the Ministry of Justice and thereafter was submitted to the Ministry of Transport.

CE: Could you, please, specify what work is now carried out within modernization and reconstruction of railways? 

Arif Asgarov: At present the CJSC is performing the works in line with the State Programme. The repair of 317-km road towards Baku-Boyuk-Kasik is ongoing and about 180 kilometers of the road have been already overhauled.

The work on reconstruction of power supply, signalization and communication facilities are being commenced. Acquisition of new locomotives and cars of different function is also on the agenda.

Under implementation are the operations on construction of the second new bridge under the Kura River and the branch railway line passing over the bridge on the 73rd kilometer of the Saloglu-Poylu section. The reconstruction of the ferroconcrete bridge over the Valvalachay River on the 2,508th kilometer of the Charkhy-Shirvan section and the metal bridge over the Araz River on the 98th kilometer of the Saatly-Bedzhar section have been already accomplished.

Within the frames of World Bank’s project on transition of the traction system of the Baku-Boyuk Kasik section to alternating current of 25 kV, the corresponding procedures on acquisition of 50 new cargo locomotives with alternating current are now underway. 

According to the signed contract between VEST QAS and Azerbaijan Railways CJSC in February 2009, 5 «Express» carriages were delivered to Sazvzuduki plant of the Slovak Republic for overhaul repair. On October 28, 2011 the repaired carriages returned to the republic. The life cycle of these carriages makes 28 years. In other words with the speed of 160 km/h they can be operated till 2039. On November 24, 2011 the President of Azerbaijan Ilham Aliyev visited the passenger station ‘Baku’ and inspected 5 passenger carriages which had passed the overhaul repair in Slovakia. 

 In addition, 50 passenger cars with the expired life cycle were sent for overhaul to Dneprovagonremontmontazh OJSC. 15 passenger carriages after the overhaul were delivered back to the country and put in operation in the direction Baku-Tbilisi.

As a result of some reorganization works on reconstruction of the material base of Emergency Train OJSC the new equipment, carriages and mechanisms, materials were purchased for Emergency Train OJSC and distributed between Ganja, Bilajar, Hajikabul, Imishly, Evlakh and Shabran sections for the purpose to address probable oil spills in the process of transportation.

For maintenance and repair of the railroads new maintenance machines GSM 09-32, RM - 80 and USP-2000 were purchased from Austria. The construction of a hangar has been accomplished in the Bilajar workshop to maintain their operation on the proper level.

Within the frames of the State Programme, the works on reconstruction of water-pumping and sewerage systems in the territory of the Bilajar station launched early in 2012 have been completed.

Production and transportation of long size rails (800m) at the rail welding train #24 in Salyan were commenced on February 22, 2012. The second production line and the plant bunker of the Gyzyldzha Gyrmadash Plant came on stream on July 4, 2012.

The program of the Azerbaijan railroads’ development  till 2020 is now being developed and simultaneously the possibilities of electronic services introduction on the railroad are considered. It should be also noted that the non-cash payment has been introduced at acquisition of tickets since March, 2012 by means of POS-terminals installed in booking offices.

It is obvious that safe movement of trains will be provided and the train travelling speed increased as a result of introduction of operations provided in the State Programme. 

In the preamble of the State Programme it found the exact definition: “Needs for railway transport services will be completely satisfied and more modern transport infrastructure for integration of the railroad of the country into the international transport system created. Transportation costs per unit of cargo transportation were reduced and institutional transformations were performed. The perfect legislative base was created and training of highly qualified personnel and social protection of their interests provided”. 

To implement the requirements of the State Programme in the forthcoming years the Government of Azerbaijan has set up other important tasks for Azerbaijan Railways CJSC. We strongly believe that our team will apply all necessary efforts to fulfill the set objectives.