Russian Railways (RZD) introduced a number of significant discounts on International North-South Transport Corridor (INSTC) rail transport two years ago, reducing transportation fees by up to 50 per cent depending on the route and freight type. Now, RZD is extending the discounts into 2025 for the third year in an attempt to boost INSTC traffic.

At 50 per cent, ferrous metal transportation through the Samur border crossing with Azerbaijan, provided that it continues into Georgia, can count on the largest discount of all. This particular discount is likely aimed at boosting Russian exports through the Mediterranean ports of Turkey, according to Russian media.

Likewise, Russian ferrous metals exported along the eastern section of the INSTC through Kazakhstan and Turkmenistan are eligible for a 50 per cent discount, as well as fruits and vegetables coming into Russia from Tajikistan and Uzbekistan via rail.

RZD is extending a discount of 20 per cent on import and export containers through Kazakhstan and Turkmenistan, and a 20,4 per cent discount on reefer containers between Moscow’s Selyatino hub and Uzbekistan will also remain in place.

Russia’s interest in the INSTC

The discounts are supposed to help attract additional shippers along the INSTC on both sides of the Caspian Sea. The corridor still has excess capacity, according to industry experts. At the same time, other important transport routes are struggling with capacity limitations, such as the connections with China in Russia’s Far East.

For that reason, Russia is interested in growing the INSTC as an alternative international transport corridor, diversifying away from existing ones. The INSTC also links up to Iran, an important Russian ally with Indian Ocean ports, as well as India, a key customer for Russian energy resources.

European Silk Road Summit 2024

Rates for Asia-Europe rail freight traffic will be one of the key topics we will discuss at the European Silk Road Summit 2024, taking place in Vienna on 27-28 November.

Registrations for the yearly event are already open, while the programme, which this year highlights the fast-recovering China-Europe rail market, is shaping up.