New Opportunities for the Southwest Route

According to The Economic Times, the project of the new international transport corridor of the Persian Gulf-Black Sea was proposed by Iran in 2016, which would connect the country with Europe via the South Caucasus. At that time, all potential participating countries, namely Iran, Armenia, Georgia, Azerbaijan, Bulgaria and Greece, were interested in the project, but negotiations were suspended during the Covid pandemic.

From July 2024, Armenia will begin work on the construction of a “dry port” and an industrial zone. The feasibility study for the Shirak dry port project has already been carried out. With the implementation of the project, a logistics center, an industrial zone, a free economic zone, and warehouse zones will be created in Gyumri. It will allow the transportation of goods and cargo in any direction, both by air and rail. The concept of a “dry port” is widespread throughout the world and is especially relevant for Armenia. Functionally, a “dry port” is practically no different from a sea port, only instead of ships, railway wagons and trucks are used.

In August 2024, Armenia, Iran and India announced the launch of a new trade route. At the end of the year, all three countries agreed to create a new transport corridor. The logistics chain should start from the Indian port city of Mumbai, then reach the Iranian port of Chabahar, from where it should reach the western or northern markets through Armenia and Georgia.

On March 1, 2025, the European Union and India reached an agreement, within the framework of which work on a free trade pact between the two sides will be completed this year. This became known after the visit of the President of the European Commission, Ursula von der Leyen, to India.

Trade will be at the forefront of EU-India relations. The EU is India’s largest trading partner, with trade worth €124 billion in 2023, accounting for more than 12 percent of India’s total trade. India’s growing market offers significant opportunities for sectors ranging from defence to agriculture, automotive and green energy.

As early as October 2023, the European Commission called on Armenia to participate in the Black Sea submarine power line project, which would connect Azerbaijan via Georgia to Romania.

The opportunities for the implementation of the South-West Corridor project are growing. It is noteworthy that the Gyumri dry port is located in the shortest distance from the railway station of the Georgian city of Akhalkalaki, which is a logistics center on the Baku-Tbilisi-Kars highway. The simplified passenger traffic and free trade between Armenia and Georgia in itself contribute to the promotion of the South-West Corridor.

Source: bm.ge bpn.ge businessinsider.ge