Armenia Transport and Logistics

Sector outlook

Being a landlocked country, Armenia depends on transport and cross-border access. So far, the borders with Iran and Georgia are the only to be opened. The North-South Road Corridor (550 km) connects Central Asia to Europe, Iran, Turkey and Georgia:

  • Two highway routes and one rail-link providing access to the Black Sea ports of Batumi and Poti (Georgia) and further to the EU by sea (TRACECA corridor);
  • One road South through Iran to the Persian Gulf.

Significant improvements to the road and railway networks are planned or already undergoing under the North-South Road Corridor investment programme, expected to halve travel time and double Armenian export by 2017. The logistics industry is still underdeveloped.

Strategic direction/ specific schemes and incentives

The Industrial strategy 2001 identifies the upgrading of the transport and logistics infrastructure as a key issue for Armenia competitiveness. The most important projects are to be implemented under the North -South Road Corridor investment programme, with the support of the Asian Development Bank, JICA and European Investment Bank. They are presented in the business opportunities below.

Business opportunities

The North-South Road Corridor investment programme encourages private investment for a total amount of USD 500 million in:

  • Road transport: rehabilitation of the North-South Road;
  • Railroad transport: rehabilitation of the North South Railway and the alternative link via Azerbaijan. Main projects: rehabilitation of the existing rail link Yerevan-Tbilisi (including 7 bridges), construction of a rail link Vanadzor-Fioletovo, complete reopening of Hrazdan-Ijevan section, new railway Gagarin-Meghri/ Iranian border.

Development of logistics services and facilities:

  • Construction of 2 international logistic centres in Yerevan (close to Zvartnots airport) and Gyumri Terminal, including logistics infrastructure for accessing the FEZ;
  • Construction of an international logistic centre at the Akhuryan railway station;
  • Development of logistics services for Armenian businesses.

Examples of investment opportunities:

Some success stories

Spayka (Russia), a regional leader in infrastructure in the fields of transportation and agriculture, created a freight affiliate in Armenia in 2011 and established its own warehouse and cooling unit and transportation system to export products in Russia and other CIS countries under the new brands “Araratfood” and “Araratfruit”.

Useful links and contacts

Ministry of Transport and Communications

Armenian CCI

Armenian Development Agency (ADA)

SME Development National Center of Armenia

TRACECA GIS Database and Maps and opportunities

This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of EUROCHAMBRES and can in no way be taken to reflect the views of the European Union.

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