🚊🇦🇿🇨🇳 The day before #Azerbaijany media dessiminated news with reference to the chairman of "Azerbaijan Railways" CJSC (ADY) Rovshan Rustamov about "Azerbaijan Railways" plans of possibility to purchase or build a terminal in #China.
That being said the head of "Azerbaijani Railways" declared a big plans for the Chinese market. A special representative of "Azerbaijan Railways" has already been assigned, it is possible to open a representative office in China in the future.
And #ADY is already thinking about building or buying a terminal in #China.
Experts involved in cargo transportation have taken this news differently. They think that "ADY" is going ahead of the curve.
Experts believe that there are several factors on the basis of which "Azerbaijan Railways" expansion into the Chinese market is not economically feasible.
Okay, we can understand the appointment of a special representative, because "ADY" is interested in this market and administration of railroad visited Beijing to discuss cooperation. In theory we can even understand the possibility of opening a representative office in China, although special representative is basically enough.
But why "ADY" needs a terminal in China?
#Cargo transportation volumes from China are relatively small,and for containerized transportation, it is a disaster. By the end of 2024, containerized cargo transportation from the Chinese port of Xi'an along the "Middle Corridor" will amount to about 250 block trains. And this,as we understand is a drop in the ocean for cargo transportation from China in general.
It remains to be seen how "ADY" with its weak tariff policy is goin to bring in Chinese cargo to the "Middle Corridor" and most importantly to keep these trucking companies. That is why the investments in "construction or purchase of terminal" in China is more likely money down the drain.
"ADY" currently has more than enough projects the economic viability of which is questionable.The desire to invest in China raises questions that have no logical answer. Everyone perfectly understands what means the word "construction". And the main question-when " ADY" will ensure payback of state investments in railroad projects.
#Transport, #Corridor, #CentralAsia, #China, #Kazakhstan, #CaspianSea, #Azerbaijan, #Georgia, #Turkey
@cascargo_az
That being said the head of "Azerbaijani Railways" declared a big plans for the Chinese market. A special representative of "Azerbaijan Railways" has already been assigned, it is possible to open a representative office in China in the future.
And #ADY is already thinking about building or buying a terminal in #China.
Experts involved in cargo transportation have taken this news differently. They think that "ADY" is going ahead of the curve.
Experts believe that there are several factors on the basis of which "Azerbaijan Railways" expansion into the Chinese market is not economically feasible.
Okay, we can understand the appointment of a special representative, because "ADY" is interested in this market and administration of railroad visited Beijing to discuss cooperation. In theory we can even understand the possibility of opening a representative office in China, although special representative is basically enough.
But why "ADY" needs a terminal in China?
#Cargo transportation volumes from China are relatively small,and for containerized transportation, it is a disaster. By the end of 2024, containerized cargo transportation from the Chinese port of Xi'an along the "Middle Corridor" will amount to about 250 block trains. And this,as we understand is a drop in the ocean for cargo transportation from China in general.
It remains to be seen how "ADY" with its weak tariff policy is goin to bring in Chinese cargo to the "Middle Corridor" and most importantly to keep these trucking companies. That is why the investments in "construction or purchase of terminal" in China is more likely money down the drain.
"ADY" currently has more than enough projects the economic viability of which is questionable.The desire to invest in China raises questions that have no logical answer. Everyone perfectly understands what means the word "construction". And the main question-when " ADY" will ensure payback of state investments in railroad projects.
#Transport, #Corridor, #CentralAsia, #China, #Kazakhstan, #CaspianSea, #Azerbaijan, #Georgia, #Turkey
@cascargo_az