Experts discuss Armenia’s transport logistics overview within "Crossroads of Peace" and TRIPP frameworks

The Armenian State University of Economics hosted a discussion on the overview of Armenia's transport logistics within the frameworks of the "Crossroads of Peace" and TRIPP initiatives. Experts from the ASUE “Amberd” Research Center  Suren Minasyan, Hovhannes Melkumyan and Tatevik Vardanyan delivered reports.

Touching upon Armenia’s geographical location and logistical challenges, Suren Minasyan noted that Armenia, being a landlocked country with closed borders with two of its four neighboring states, has constantly faced logistical difficulties.

“Our "geographical quasi-isolation" has hindered the ability to fully utilize the potential of international trade,” Minasyan said. He emphasized that improving logistics infrastructure and diversifying transport networks are strategic necessities.

“Despite closed borders with Turkey and Azerbaijan, Armenia consistently seeks to engage in multilateral transport initiatives. Among them are the North–South Corridor, TRACECA, as well as the government’s "Crossroads of Peace" initiative, which aligns with the TRIPP program being discussed at the international level,” he added.

Hovhannes Melkumyan, PhD in Economics, presented the results of an assessment of the economic impact of logistics factors based on the gravity model.
“Amid the rise in fuel prices, export flows from Armenia to the EU are shifting to longer but more stable corridors, while in the direction of the EAEU, the positive impact is mainly due to the Russian factor,” Melkumyan noted.

He added that reducing export time has tangible results.

“A reduction of about 10 percent in export processes from Armenia increases the volume of exports to the EAEU by around 13 percent, and to the EU by about 4 percent. This shows that trade with the EAEU has structural advantages,” he explained.

According to the expert, developing trade relations with the EU requires transitioning to energy-efficient and sustainable routes, as well as promoting the export of high-value goods for which transportation costs constitute a smaller share of the total cost.

Presenting the results of field studies, Tatevik Vardanyan, PhD, noted that the main obstacles to the development of the logistics system remain high transportation costs and complex customs procedures. She also addressed potential regional cooperation with Georgia, Iran, Turkey and Azerbaijan.

“The development of mutual recognition and trust mechanisms in customs procedures with Georgia is a priority. In the context of cooperation with Iran, the Meghri Free Economic Zone has great potential, as it can serve as a connecting link between EAEU markets and the Middle East,” Vardanyan said.

“As for Turkey, according to our calculations, if the borders were opened, bilateral trade could increase by up to 494 percent, provided a free trade agreement is in place,” she added.

Vardanyan emphasized that with the opening of borders with Turkey and Azerbaijan and the implementation of the TRIPP or “Crossroads of Peace” projects, Armenia could become a key hub for regional connectivity.

“However, there are still institutional and technical obstacles that need to be resolved,” she noted.

The experts also presented a general package of recommendations at the event.