TRANSPORT / OCEANis Advance’s agent in China.The expansion to Urumqi will offer apotential connection from the extremewestern Chinese inland region to Poti andthen by feeder ships to Europe and the EastCoast of North America.Advantage International already operatesrail services originating in Turkey, CIS andRussia and combined rail, roll-on/roll-offand ferry services, as well as container feederservices, between Black Sea and Mediterraneanports to Poti for onward transport byrail and road to all destinations within theCIS, Iran and Iraq.Anticipating good volumes on the AdvantageExpress Service, the companyplans to charter some 12,000- to 15,000-ton multipurpose ships to operate betweenWestern Europe and Poti on a 14-day ortwice-monthly sailing frequency. The transittime between Antwerp and Poti is expectedto be about 12 days.For North <strong>American</strong> cargoes, AdvantageInternational charters ships from Germany’sBBC Chartering and Logistics on tworoutes: from Houston, Galveston, Baltimoreand Charleston to Poti; and from Toronto,Montreal and St. John’s in Canada to theGeorgian port. Houston-based World ProjectsInternational acts as Advance’s agentin North America.There are also plans to increase the AdvanceExpress Service’s frequency to five departuresa week by the end of this year.“With a question mark over suppliesfrom other parts of the world, energy fromKazakhstan is becoming more vital everyday,” Kamel said.“Furthermore, with the Chinese governmentkeen to open up inland parts of thecountry to international trade, more shipperswill need to consider the overland option.Central China is a long way from the portsof the country’s Eastern seaboard, and thenew express link will be vital in opening upthese areas to the outside world,” he said.Iran At The Hub. While the IslamicRepublic of Iran may be considered partof the “axis of evil,” it is also located at thecrossroads of the TRACECA and North-South Corridor, and has big plans to makethe most of its strategic location.From Europe, Iran imports vehicles frommanufacturers like Daimler, Renault, Peugeotand Fiat. Cargo from the United Statesincludes frozen food stuffs.In September 2000, Russia, Iran and Indiasigned the North-South Transport CorridorAgreement to restore Soviet Union-era connectionsby extending the Helsinki/St. Petersburg/Moscowroute across the CaspianSea through to the southern Iranian port ofBandar Abbas, India and eventually beyondto South East Asia.To facilitate the burgeoning corridor,Iran has embarked on one of the world’slargest railway construction programs. Lastyear, it committed to a five-year economicdevelopment plan to plug holes in its railnetwork and increase its cargo capacity to53 million tons by 2010.To do this, Iran aims to upgrade 5,600kilometers of its existing 8,300 kilometersworth of track and lay down an extra 3,500kilometers of electrified railway lines.The development of the Qazvin-Rasht-Astara railway has been identified as apriority, which will connect the northernprovince of Gilan to the state railway networkand complete the western branch ofthe North-South Corridor.Other major transport infrastructureprojects include extending the Sangan-Heartrailway by 201 kilometers to link Afghanistanto the Persian Gulf, and a Baku-Astarahighway.Astara Transit Terminal. Advancehas identified Astara on the Azerbaijan andIranian border as a major rail/road hub forthe future. Over two years, the companyhas invested about $17 million to develop70 AMERICAN SHIPPER: APRIL 2006
TRANSPORT / OCEANJawad Kamelpresident and chiefexecutive officer,AdvanceInternational“Central China is a longway from the portsof the country’s Easternseaboard, and the newexpress link will be vitalin opening up these areasto the outside world.”and become a 50-50 joint shareholder withthe Azerbaijan State Railway in the AstaraTransit Terminal.Advance said cargo moved by rail fromWestern Europe can reach Astara in about15 days, or five to 10 days from Russia andthe CIS countries. From Astara, cargo will bedispatched to final destinations throughoutIran by road.The terminal has new offices able to offerthrough documentation, and is equipped tohandle breakbulk cargoes, 20-foot and 40-foot containers, including heavy lift, andoutsized cargoes up to 120 tons, within therail loading gauge. It has 6,000 square metersof warehousing, 120,000 square meters ofopen storage and four sidings, connecteddirectly to the warehousing area.The terminal is also prepared to transfercargo from the Russian broad gauge to theIranian standard gauge in readiness for whenAstara is connected to Iran’s rail network.“Before its break, the former SovietUnion was a main supply corridor by railfrom Western Europe to Iran via the Soviet-Iranian border at Djulfa; at its peak movingover 800 rail wagons a day,” Kamel said.“However, the war between Azerbaijan andArmenia (1988-1994) disrupted this routeand the railway through Azerbaijan to Djulfawas eventually destroyed,” he said. “Cargohad to be rerouted, either by sea to the Iranianports of Bandar Abbas and Bandar ImmamKhomeini, or by road via Turkey.“Other alternatives were rail via Russia tothe Caspian Sea port of Astrakhan and thenby conventional shipping to the Iranian portof Bandar Anzali or, during May to Octoberonly, the Volga River.“There is also a very long rail route fromRussia via Kazakhstan, Uzbekistan andTurkmenistan to the Iranian border.“All of these alternatives are either morecostly, or not as efficient. <strong>Shipper</strong>s in Iran areseeking more freight capacity on routes to andfrom Europe. Business is booming and theAstara Terminal heralds the return of a CentralAsian transport artery,” Kamel said.Notwithstanding its position in the “axis,”Iran has recently troubled a number ofgovernments by threatening to develop itsnuclear capacity. Kamel dismissed Iran’sfaltering diplomatic relations as a potentialthreat to the success of the North-South Corridorand the Astara Transit Terminal:“No matter how many sanctions havebeen imposed on Iran in the past, none haveworked. It is a big market with a populationof 70 million. There are so many willingtrading countries that sanctions would justmake the middleman rich,” he said.Although Advance has earmarked Iranand the Central Asian region with its latentconnections to China and South Asia as agrowth market, Kamel refused to be drawninto the company’s profit expectations forthe Astara terminal.“It is difficult to anticipate when we willmake money back on the investment. Aswith any investment, any money is writtenoff on day one,” he said.Moving cargo through Iran and CentralAsian has been problematic in the past.“There were a lot of mishaps on deliveryof cargo. In one case a container roof wascut away and stripped of its contents withthe consignee receiving an empty container,”he said.“Those days are fortunately gone. Unfortunately,there are still a lot of difficulties.Custom invoices go missing and containerscan wait more than a year to be deliveredawaiting documentation.”To counter this hazard, all documentationwill be handled at the Astara Transit Terminalsite office while sales will be controlledfrom any of Advance’s offices in Bulgaria,Romania, Turkey, Azerbaijan, Uzbekistan,Iran, Kazakhstan or Russia. Advance hasalso established a network of 30 differentsub-agents, headed by Seabreak Antwerp inBelgium, to handle sales of Astara TransitTerminal services in Europe.How long before a seamless new SilkRoad is completed will depend on thewillingness of numerous states, some withlong-held grudges towards one another, towork together and make serious transportinfrastructure investments. For a quicker andcheaper alternative to the transport throughthe Suez Canal, shippers will hope past differencescan be easily resolved and othercompanies will decide to join Advance onthe Silk Road.■ClosestAMERICAN SHIPPER: APRIL 2006 71