North-South ITC Rail Traffic Rises in Jan–May 2023

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During January through May 2023, rail freight along the North-South international transport corridor (ITC) saw a remarkable surge, climbing over 40 percent to reach 4 million tons. This uptick underscores a shift in freight patterns along a corridor that links major markets and routes across Eurasia. Reports from Kommersant, drawing on newly received data, document this growth and its regional implications for shippers in Canada, the United States, and beyond.

In the period studied, the western leg of the North-South corridor carried the lion’s share of traffic, connecting Russia with Iran through Azerbaijan. This route alone moved 3.6 million tons, a 37.9 percent rise compared with the previous period. While other segments of the corridor posted even stronger percentage gains, their absolute volumes remained smaller. The overall picture, however, points to a broadening use of the ITC as a strategic trade artery for multiple markets.

Analysts note that several factors supported the eastern route which registered meaningful momentum. A notable policy move at the end of the prior year included a 20 percent discount on container shipments along the eastern corridor via Kazakhstan and Turkmenistan. This incentive helped local and regional shippers optimize modal choices and improve price competitiveness for cross-border flows.

Looking ahead, experts anticipate continued growth in cargo traffic along the North-South corridor. With ongoing uncertainties in Western supply chains, demand for overland freight in this corridor is likely to rise further. While infrastructure constraints remain a challenge, a positive trajectory is expected to persist until major projects, including the Rasht-Astara segment, advance to completion and unlock new transit potential.

On May 17, President Vladimir Putin highlighted the Rasht-Astara railway as a key component of the North-South ITC. He emphasized that its opening would diversify global traffic patterns and strengthen the corridor as a reliable route for commerce, linking producers and consumers across continents. This perspective aligns with broader strategic goals to improve cross-border connectivity and resilience in freight networks serving North America and other regions.

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