YEREVAN. – The main factor for viability of Armenia's Southern Railway (Iran - Armenia) should be the transit of Iranian oil to Europe. This is stated in the conclusion of the Armenian Finance Ministry to the concept of the railway.

As noted in the design estimate documentation of the railway, 80% of its traffic from the south to the north will make 30% of the transit of Iranian oil to Europe.

However, a preliminary agreement on supplies with Iran has not yet been achieved. In addition, it is unclear whether there will be this volume stable for many years. For example, in 2011 Europe imported only 18% of Iranian oil.

Earlier representatives of the railway structure at Transport Ministry Ashot Shahnazaryan told Armenian News-NEWS.am that construction of the railway will take six years with a maintenance of 50 years. The works are expected to start in the first quarter of 2015. Construction costs will amount to about $3.5 billion.

Supposedly the Armenian part of the Iran-Armenia railway will be 316-kilometer long and will run from the Iranian border (Meghri) to the town of Gagarin near Lake Sevan, where it will connect with the existing railway. Investors in the project have not been fully defined