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Azerbaijan Transport Sector 2011 A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Tochitskaya, Irina Working Paper Azerbaijan Transport Sector 2011 CASE Network Reports, No. 107 Provided in Cooperation with: Center for Social and Economic Research (CASE), Warsaw Suggested Citation: Tochitskaya, Irina (2012) : Azerbaijan Transport Sector 2011, CASE Network Reports, No. 107, ISBN 978-83-7178-559-7, Center for Social and Economic Research (CASE), Warsaw This Version is available at: http://hdl.handle.net/10419/87594 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu The views and opinions expressed here reflect the authors’ point of view and not necessarily those of CASE Network. This publication has been prepared under the project on “Advisory Services on Macroeconomic Management and Institutional Reform (ASMMIR)” for the Min- istry of Economic Development of Azerbaijan. The project is being conducted by CASE on the basis of Grant Agreement G-08-BPCS-162136 signed between the British Petroleum Exploration (Caspian Sea) Ltd. and CASE. The publication has been co-financed from the funding received from PEKAO S.A. Keywords: Transportation analysis, Transition economies, Reform JEL codes: L91, L92, L93, R4, O18, P21 © CASE – Center for Social and Economic Research, Warsaw, 2012 Graphic Design: Agnieszka Natalia Bury EAN 9788371785597 Publisher: CASE-Center for Social and Economic Research on behalf of CASE Network 12 Sienkiewicza, 00-010 Warsaw, Poland tel.: (48 22) 622 66 27, fax: (48 22) 828 60 69 e-mail: case@case-research.eu http://www.case-research.eu The CASE Network is a group of economic and social research centers in Po- land, Kyrgyzstan, Ukraine, Georgia, Moldova, and Belarus. Organizations in the network regularly conduct joint research and advisory projects. The research co- vers a wide spectrum of economic and social issues, including economic effects of the European integration process, economic relations between the EU and CIS, monetary policy and euro-accession, innovation and competitiveness, and labour markets and social policy. The network aims to increase the range and quality of economic research and information available to policy-makers and civil society, and takes an active role in on-going debates on how to meet the economic chal- lenges facing the EU, post-transition countries and the global economy. The CASE network consists of: CASE – Center for Social and Economic Research, Warsaw, est. 1991, www.case-research.eu CASE – Center for Social and Economic Research – Kyrgyzstan, est. 1998, www.case.elcat.kg Center for Social and Economic Research – CASE Ukraine, est. 1999, www.case-ukraine.kiev.ua CASE –Transcaucasus Center for Social and Economic Research, est. 2000, www.case-transcaucasus.org.ge Foundation for Social and Economic Research CASE Moldova, est. 2003, www.case.com.md CASE Belarus – Center for Social and Economic Research Belarus, est. 2007. Center for Social and Economic Research CASE Georgia, est. 2011 Irina Tochitskaya Contents Abstract ................................................................................................................ 10 1. Introduction ..................................................................................................... 11 2. Review of the Transport Sector and Reforms Implemented in the Sector . 13 2.1. Current developments in the transport sector in Azerbaijan ..................... 13 2.2. Railways ................................................................................................... 20 2.3. Road transport and roads .......................................................................... 26 2.4. Civil Aviation and airports ....................................................................... 33 2.5. Maritime transport and ports .................................................................... 38 3. Infrastructure Sectors Reforms in 2010-2011 ............................................... 42 3.1. General description of the transport sector reform indices ....................... 42 3.2. Explanations of the infrastructure reform indicator evaluation in 2010- 2011 .................................................................................................................. 45 3.3. Reform areas ............................................................................................. 56 3.3.1. Railways ......................................................................................... 56 3.3.2. Road transport and roads ............................................................... 58 3.3.3. Air transport and airports .............................................................. 59 3.3.4. Maritime transport and ports ......................................................... 60 CASE Network Reports No. 107 4 AZERBAIJAN TRANSPORT SECTOR 2011 List of Figures and Tables Table 1. The structure of cargo turnover in the transport sector ........................... 14 Table 2. The structure of cargo shipment by the transport sector (excl. pipelines) 15 Table 3. The structure of cargo turnover of the transport sector (excl. pipelines) . 15 Table 4. Logistics Performance Index (LPI) ......................................................... 16 Table 5. The structure of passenger turnover for main types of transport ............. 17 Table 6. Rates of growth of cargo turnover excl. pipelines (% yoy) ..................... 18 Table 7. Infrastructure Reform Indices.................................................................. 54 Figure 1. The volume of cargo shipped by transport and non-transport sectors ... 14 Figure 2. Rates of cargo and passenger turnover growth ...................................... 17 Figure 3. Growth of revenues and costs of cargo transportation (excl. pipelines) 18 Figure 4. Growth of revenues and costs of passenger transportation .................... 19 Figure 5. The share of unprofitable companies and size of losses ........................ 19 Figure 6. The volume of cargo transported by rail ................................................ 21 Figure 7. The volume of passengers transported by railway ................................. 22 Figure 8. Asset utilization (locomotives) .............................................................. 22 Figure 9. Asset utilization (passenger coaches) ..................................................... 22 Figure 10. Asset utilization (wagons) .................................................................... 23 Figure 11. Labor productivity ................................................................................ 23 Figure 12. Rail traffic intensity ............................................................................. 24 Figure 13. Financial performance of cargo transportation .................................... 24 Figure 14. Financial performance of passenger transportation ............................. 25 Figure 15. Revenues and costs per cargo turnover ................................................ 25 Figure 16. Revenues and costs per passenger turnover ......................................... 26 Figure 17. Growth in cargo transportation by road (%) ........................................ 27 Figure 18. Growth in cargo turnover by road % .................................................... 27 Figure 19. A share of companies and individuals in the total volume of cargo transported (%) ...................................................................................................... 28 Figure 20. A share of companies and individuals in cargo turnover (%) .............. 28 Figure 21. Growth in passenger turnover (%) ....................................................... 29 Figure 22. A share of companies and individuals in passenger turnover .............. 29 Figure 23. Intensity of cargo and passenger transportation ................................... 30 Figure 24. Growth in revenues and costs in road transport ................................... 30 Figure 25. Growth in revenues and costs in cargo transportation ......................... 31 Figure 26. Growth of revenues and costs on passenger transportation ................. 31 5 CASE Network Reports No. 107 Irina Tochitskaya Figure 27. Profitability of road transportation ....................................................... 32 Figure 28. Volume of cargo transported, thousand tons, rate of growth (% yoy) . 33 Figure 29. Volume of the cargo turnover, million ton-km, rate of growth (% yoy) . 34 Figure
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