The South Caucasus Launches New Rail Connections Between Armenia, Türkiye and Azerbaijan

The South Caucasus is gaining new transport links between Armenia, Türkiye and Azerbaijan. The TRIPP project is expected to transform trade flows and the geopolitical landscape of the region.

In August last year, a peace process between Armenia and Azerbaijan was launched under the auspices of US President Donald Trump. An integral part of this process, which contributed to resolving a decades-long armed conflict, was the development of new transport and energy links across the South Caucasus.

The South Caucasus Gains New Railway Connection

The first phase of the project, which focuses on the transport and energy integration of the South Caucasus, was successfully completed last week. According to Le Monde, the transport and energy links will integrate the South Caucasian republics of Georgia, Armenia and Azerbaijan into Eurasian supply chains.

The first step was the opening of the railway line connecting the Georgian border town of Akhalkalaki with the Turkish city of Kars. Together with the railway connection to Azerbaijan, the route is now open for traffic to Armenia. Armenian Prime Minister Nikol Pashinyan emphasised that this development is highly important for his country’s economy and thanked the Turkish and Georgian partners involved.

Armenia’s Transport Blockade Is Becoming a Thing of the Past

The railway border crossing with Türkiye was closed in 1993 during the war over the Armenian-populated autonomous region of Nagorno-Karabakh in Azerbaijan. Türkiye declared at the time that the blockade would remain in place until Armenian forces withdrew.

In 2023, Armenia lost control of Nagorno-Karabakh and the Armenian population fled the region. Nevertheless, Türkiye did not reopen the border.

For Armenia, the end of the transport blockade imposed by Türkiye and Azerbaijan marks the end of a difficult and highly restrictive situation. Transport routes through the Caucasus Mountains to Georgia and the Black Sea, or alternatively through Iran, have long been insufficient for freight transport and are often disrupted during winter.

Open Borders Promise Cheaper Goods and New Investment

Prime Minister Pashinyan confirmed that a direct railway connection between Armenia and Türkiye, as well as between Armenia and Azerbaijan, will be launched in the future. This will be complemented by a route linking Armenia with Iran through the Azerbaijani exclave of Nakhchivan. "This will fully realise the Trump Route for International Peace and Prosperity (TRIPP) project," Pashinyan stated.

Economist Aghasi Tavadyan, speaking to the Armenian newspaper JAM News, noted that no comprehensive study has yet been conducted into the economic benefits of the railway connection through Georgia and Türkiye for Armenia’s economy.

Tavadyan pointed out that Turkish goods are already imported into Armenia via Georgia. These include textiles, agricultural products and construction materials. Despite the additional transaction costs, these products remain highly competitive on the Armenian market, particularly in terms of price.

"If a direct cross-border connection between Armenia and Türkiye is opened, transaction costs will disappear entirely. Turkish goods will become even cheaper in Armenia and the range of products will expand. This will certainly have a positive effect on economic growth," Tavadyan said.

In his view, the reopening of the border would benefit residents of the capital and businesses such as restaurants, which would be able to purchase goods at lower prices. However, he believes the move could have a negative impact on agriculture.

Armenia and the United States Establish a Joint Development Company

At the same time, many Armenian products are competitive in the Turkish market. Regarding the potential export of Armenian goods to the EU via Türkiye, Aghasi Tavadyan pointed out that under Prime Minister Pashinyan’s government, Armenian exports to the Russia-led Eurasian Economic Union have increased almost fivefold, whereas exports to the European Union have not experienced similar growth. One of the reasons has been logistical difficulties, which the new transport links are expected to address. Nevertheless, Armenian exporters will need to ensure that their products comply with European standards.

On 26 May, US Secretary of State Marco Rubio stopped in the Armenian capital Yerevan during a trip from India. Together with Armenian Foreign Minister Ararat Mirzoyan, he signed a non-public agreement establishing a joint development company for infrastructure construction and technical studies related to railway modernisation and energy projects.

Armenia will provide the United States with a 74% stake in the new TRIPP Development Company, together with an explicit commitment that American companies will benefit from the project.

The TRIPP project (Trump Route), involving Armenia, Azerbaijan and the United States, has already entered the stage of practical implementation.

Report informs, citing Armenian media, that Armenian Prime Minister Nikol Pashinyan said this during an election campaign.

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