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Economic viability of the Baku-Gabala railway line

Economic viability of the Baku-Gabala railway line
Economic viability of the Baku-Gabala railway line

A single-track Laki-Gabala railway station opened. The length of the railway line is 42.3 kilometers, and its total length with access roads is equal to 44.5 kilometers. The railway line runs through hard-to-reach mountainous terrain. The electric trains manufactured by the Swiss company Stadler named Kiss will run on the Baku-Gabala line. The train's average speed will be 100 kilometers per hour, which will reduce safe and comfortable travel from Baku to Gabala to three hours.

Construction of the Gabala Railway Station and the Laki station-Gabala single-track railway began in 2018. The project renovated 122 artificial engineering structures, Aghdash Railway Station, Gabala Railway Station, Gabala Traction Substation, and also Hajiali Substation. The Laki-Gabala railway station was inaugurated on May 15. President of the Republic of Azerbaijan Ilham Aliyev and First Lady Mehriban Aliyeva attended the opening ceremony. It was noted at the opening ceremony that the modernization of the railway is a demonstration of the economic potential of Azerbaijan and a real indicator of the social situation. The modern road and transport infrastructure will primarily serve the citizens. With the renewed railway, the population will be able to travel comfortably and safely from Gabala to the capital and other destinations.

According to Azerbaijani economists, the commissioning of this railway is important for the development of domestic and international tourism.

"Economic indicators of tourism in Gabala are growing. The number of people registered in hotels has increased 31 times in the last five years. In 2015, 5,909 people stayed in hotels in the region, while in the year before the pandemic, this figure rose to 186,431. During this period, the income of hotels grew from AZN 393,000 to AZN 30,919,000. The number of hotel rooms has risen from 196 to 1,127 in the last five years. It is directly related to the growing demand in the tourism sector. The development of tourism has also affected other areas. Thus, the retail trade turnover in Gabala has increased by 32% over the past five years and reached AZN 197 million. The turnover of public catering rose from AZN 7,554,000 to AZN 14,774,000. The commissioning of the new railway line will increase the number of tourists visiting Gabala. Given that foreign tourists prefer to travel by train, this will make a notable contribution to the development of inbound tourism," economist-expert Vugar Bayramov stated.

Passenger fares on the Baku-Gabala railway line are still unknown. The price of a passenger ticket will be determined by the time when the highway officially starts passenger transfers. According to Natavan Bayramov, spokesman for the Azerbaijan Railways, this will happen after the end of the coronavirus pandemic.

"As you know, due to the pandemic, regional and international passenger transportation has been suspended in the country. This is why the Baku-Gabala train fare has not been set yet. Once the pandemic is over, information on the fare will be posted on the official website and social networks," Bayramov said.

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