The term “north-south corridor” has been frequently heard in Iran’s economy in the past two decades, which was conceived in St. Petersburg as a network of sea, road and rail transportation connecting Iran, India and Russia; naturally, Azerbaijan can be included in it, Hadi Haqshenas, an economic expert, said in an article for the Persian daily Arman-e Melli. A translation of the text follows:
The sea and road sections have been established. As it is the cheapest mode of transportation in the world, the three countries are seeking to complete the rail section, especially on the route to Iran.
Iran helps connect the Caspian Sea to the Persian Gulf. However, in the railroad sector, Iran is willing to connect to Azerbaijan through the 165-km-long Rasht-Bandar Anzali-Astara route. The Iranian government is looking for investors and has reached agreements with Russia. On the other hand, this rail route to Iran’s oceanic port, Chabahar, is 750 km, part of which is under construction.
The key point here is that the north-south corridor belongs to the Eastern Hemisphere — the same corridor in terms of the population and resources as well as the level of demand for goods. Note that when we talk about Iran and Russia, we do not mean to prevent the surrounding countries from having access to this network or prevent Turkey from getting connected to Turkmenistan or China.
Iran, India and Russia are proponents of the north-south corridor. The goals of all regional agreements would be achieved only when there is a possibility for new transportation routes. Iran, which has joined the Eurasian Economic Union, is gaining accession to Shanghai Cooperation Organization as the main member, and is a member of the Economic Cooperation Organization; these regional agreements will be fruitful when transportation is possible.
In other words, transportation is the first prerequisite for achieving the goals of regional economic agreements. Iran is one of the countries with access to both an oceanic port [Chabahar] and sea ports in the Persian Gulf and the Caspian Sea, as well as a unique rail network [if the Astara to Rasht route is completed]; this rail route is believed to be a key link in the north-south corridor.
Once India uses this route, it will no longer need the Red Sea, the Mediterranean Sea and the Suez Canal, or at least it has created a parallel route for transportation.
It is important for Russia to have another transportation route, which is the first precondition for regional agreements. The second condition is for these countries to exchange money or accept each other’s currencies, i.e. Iran and Russia, Russia and India or India and Iran barter their goods and each other’s money and facilitate trade in terms of documents and the formal process for their businessmen.
Once realized, a transportation hub will be formed in the Eastern Hemisphere. Given the political developments in Russia and the Russian president’s visit to Tehran, it is necessary for Russians to avail themselves of this route; such a necessity was felt long ago by Iran and India, prompting them to invest in Chabahar.
The last point is that the route halves the distance and consequently reduces energy consumption and pollution. Today, environmental issues are highly important for the world; less energy consumption will lead to lower global pollution.