On the sector of Transport in Armenia

Origin: Seen again Objective is / summer, 2003

The development of the sector of transport is part of means to generate a lasting economic growth and to allow the smallest of the former republics of the Union to take out of its difficult situation. Indeed, several sectors depend on this one: mines and building, tourism.

THE EXISTENT

Railways:

Network (825 Km of electrified ways) is characterised by its obsolete structures, its slowness, and its working force in surplus stuff. He has sudden a deterioration of his external environment, with the closing of Turkish and Azerbaijani borders. So, between 1989 and 1999, the Armenian railways lost 93 % of their traffic in volume.

The reforms of the State since independence concerned the change of the grid of rates, the destruction of structures and of too ancient equipment and reduction of personnel. The restructuring of 1998 is also noted: the Armenian railways are divided into three state firms freight, movable capital, facilities; this restructuring had to be translated at the end of last year by the disappearance of the Direction of the Rail of the Ministry of the Transport and the fusion of three entities in the single firm, put under the supervision of the State.

Roads:

The mesh size of the Armenian roads (7 700 Km) is developed well and allows the access to all regions of the country, even most postponed. Two administrations are competent for the management of network: the Direction of the Roads of the Ministry of Transport for the long-distance regional roads, and the local city councils for the local roads. The Direction of Roads acquired a strategical importance in the administration of the sector, due to the fact that the majority freight goods and temporary traffic is made by road way. It can be said that she produces a consequent result, as much as it manages plans initiated by foreign help (see farther): so, the most used Armenian roads are undamaged supported.

Public transport:

In Armenia, buses and minibus constitute the most practical and the most reliable means of transport. In Erevan the line of underground, its service works correctly but is limited; incomes generated by the underground are not very high, and means allocated by the State for its service are, in comparison, disproportional. Finally, trolley buses circulate everywhere in the capital, but do not turn out to be very reliable because of frequent cuts of electricity on urban network and especially absence of maintenance of vehicles, which cause every year of serious accidents.

The air transport:

Facilities are composed by three international airports Tsvarnots and Erebuni near Erevan, Gumri in the region of Shirak and 9 not military local airports, although most are not any more in a fit state of functioning. Airports begin demonstrating the signs of an advanced obsolescence the state of tracks and of signalling on the soil sometimes leaves much to be desired, and the passengers have to forget the Western notions of comfort. In September, 2002, the Armenian government and the Argentinian Aeropuertos Argentinos company on 2000 run by Eduardo Ernekian, signed an agreement concerning concession for thirty years of the airport of Erevan-Tsvarnots.

THE QUESTIONS WHICH REMAIN

Certainly, Armenia made the object of solicitude and of competence of the international backers. However, several questionings remain today not resolute.

Rail

The sector needs to provisionner funds in next years to replace bridges and physical structures in bad state, but also to renew the park of wagons and of engines, the cycle of life of which was widely exceeded. Besides, the Armenians have to think of starting a concrete and efficient cooperation with the Georgian authorities in the sphere of railways. Finally, three state firms which manage network have to see each other allocating a managerial structure, including private representatives of the sector, who will be able to take measures of improvement of the profitability of the national rail.

Roads

There still, above all, cooperation must be started with Georgie: indeed, the very bad state of the Georgian part of the road Tbilisi Er van is a factor influencing accessibility by the north of the Armenian road network. Retiring sentence It seems that Armenia is not capable of supporting this one undamaged without the budgets of external assistance. Internal mechanisms of financings must be thought from now for years to come.

Air

The Armenian State seems to have played the card of easiness by granting the concession of the airport of Tsvarnots to foreigners. On the other hand, he gets stuck in the mud in the business of the national company Armenian Airlines: this one seems very to be near the voluntary liquidation since 2001; it was several times the object of calls to privatisation, but attracted at the moment no foreign investor. The company is taxed of debts, and the societies of subcontract (insurance, supply of meals aboard), were not regulated for several months. Finally, the Soviet apparatus of the fleet do not satisfy anti-noise any more in new European norms, and are hit of ban of landing in Western Europe.

Conclusion

The disorganisation of transport in Armenia is representative of a Soviet planifiction based on regions economic and unaware of internal administrative borders. The bursting of USSR not only put an end to this coherence but also drew away on internal plan the loss of grants habitually allocated by the Centre. Just like some Russian regions, Armenia struggles to renovate its facilities without an external intervention orientated on big road facilities and transnational axles.

Article writes by Roby

Origin: Seen again Objective is / summer, 2003

Written by admin one June 20th, on 2006 with no comments.
Read more articles one Armenia and Azerbaijan and CIS and Georgia and Logistics / Transport.