Armenia’s Roadmap to Becoming a Transport and Trade Hub

Armenia has the potential to transform into a significant transport and logistics hub in the region, but several steps need to be taken to reach this goal. Experts and officials at the Yerevan Dialogue 2024 international forum discussed the country’s prospects, particularly focusing on how Armenia can align its transport and logistics sectors with global standards. Dmitry Maryasin, Deputy Executive Secretary of the United Nations Economic Commission for Europe (UNECE), listed the challenges and necessary actions for Armenia during a panel discussion on the topic.

Armenia has already made some progress by joining 13 out of the 61 UN conventions and legal frameworks related to transport. These conventions are crucial for ensuring that a country’s transport and logistics systems meet international standards and practices.

However, according to Maryasin, Armenia doesn’t necessarily need to join all the conventions to become a transport hub. Instead, it should focus on actively implementing the existing legal frameworks, which would improve transit, trade, and road safety.

One of the key factors in becoming a transport hub is creating a legal environment that is predictable and transparent for businesses. Businesses need to understand the rules and regulations of a country to operate effectively, and having a stable legal foundation can help attract more companies to invest in Armenia’s transport and logistics sectors.

Maryasin listed three specific international agreements that could be very important for Armenia if it wants to meet European Union (EU) standards. These agreements are:

1. The European Agreement on Important International Combined Transport Lines and Related Installations (AGTC)  

2. The European Agreement on Main International Railway Lines (AGC)  

3. The European Agreement on Main International Traffic Arteries (AGR)

These agreements set standards for the development of key transport infrastructure, such as railway lines, roads, and combined transport systems, which are vital for connecting Armenia with other countries. Armenia has not yet joined the AGTC or AGC agreements, while neighboring countries like Turkey, Georgia, and Russia have. By joining these agreements, Armenia could improve its connectivity with regional and international trade routes, positioning itself as a key transit point in the region.

A major issue that Armenia faces in its transport sector is road safety. Currently, Armenia has joined four out of seven UN conventions related to road safety, but the country still experiences a high number of traffic accidents. On average, around 360 people die in road accidents each year, a particularly high rate given Armenia’s small population. This places Armenia in a high-risk category for road safety.

To address this, the UN is working closely with Armenia to improve its road safety legal framework. This includes better data collection, improved management strategies, and public awareness campaigns to encourage safer driving behavior. A stronger focus on road safety will not only save lives but also make Armenia a more attractive destination for international logistics companies.

Another critical factor for Armenia to succeed as a transport and logistics hub is cooperation with neighboring countries. Armenia can use platforms provided by the UN to engage in more dialogue with its neighbors, including Georgia, Turkey, Azerbaijan, and Iran, to participate in regional transport projects. This could include joint infrastructure projects, such as highways, railroads, or combined transport corridors that pass through multiple countries.

For example, Armenia has already joined the AGR agreement, along with Georgia, Azerbaijan, Turkey, and Russia, which governs international traffic arteries. Expanding cooperation through other agreements and joint projects will be crucial for Armenia’s integration into regional transport networks.

Another challenge that Armenia must consider is the impact of climate change on its transport infrastructure. Climate change can affect the stability and reliability of key transport routes, including highways, railways, and airports. Maryasin stressed the importance of assessing the resilience of these communication channels to ensure they can withstand environmental changes.

Armenia should prioritize making its infrastructure more resistant to extreme weather conditions and natural disasters, which could disrupt transport routes and limit the country’s ability to serve as a reliable logistics hub. This will involve upgrading existing infrastructure and ensuring that new projects are designed with climate resilience in mind.

Armenia is in a unique position to become a transport and logistics hub in its region, but it must take concrete steps to align with international standards and improve its infrastructure. Joining key international agreements, enhancing road safety, cooperating with neighboring countries, and building climate-resilient infrastructure are all essential steps on this journey.

The support of international organizations like the UN and regional partnerships will play a vital role in this process. If Armenia can successfully implement these changes, it could become a crucial link in global trade routes, bringing economic benefits and greater connectivity to the region.