Russia, Azerbaijan, and Iran Eye Alternative to Suez Canal Route

Russia, Azerbaijan, and Iran are said to be undertaking a "flag-ship project" to utilise the International North–South Transport Corridor.

First, it was the Kra Canal aiming to cut out the Straits of Malacca and Singapore, then a route through Nicaragua to circumvent the Panama Canal; now the Suez Canal is the latest major shipping route to find itself the focus of an ambitious bypass attempt.

Russia, Azerbaijan, and Iran are said to be undertaking a "flag-ship project" to utilise the International North–South Transport Corridor (NSTC) - a mixed mode transportation route - as a "cost-effective" alternative to the maritime Suez Canal route, according to local media reports.

The news follows the release of a study in May by the Federation of Freight Forwarders' Associations in India, which suggested that NSTC is 40 percent shorter than the existing routes, and could offer a 30 percent financial savings.

Russian Railways says goods currently transported by India and Russia via maritime routes could reach their destination much sooner if sent via the NSTC, reducing transit time from Mumbai to St. Petersburg from an estimated 40 days to just 14 days.

"We believe that this cooperation serves the interests of the peoples of Iran, Azerbaijan, and Russia and, of course, the interests of the entire region," said Iran's Foreign Minister Mohammad Javad Zarif.

Russian Foreign Minister Sergey Lavrov said on Monday that Russian president Vladimir Putin, Iranian president Hassan Rouhani,and Azerbaijan's president Ilham Aliyev have issued a declaration of agreement to cooperate on the development of the NSTC route.

The three countries are said to have specifically agreed to establish a tripartite mechanism that will facilitate cooperation among the countries' relevant ministries.

In March, Ship & Bunker reported that interest in another alternative shipping route, the Arctic's Northern Sea Route (NSR), has waned in recent years.