MOSCOW, May 17. /TASS/. The Rasht-Astara railway section will enable the diversification of transportation routes for goods, as well as reduce the time and cost of their delivery, Russian President Vladimir Putin said on Wednesday. He was speaking at the signing ceremony for the agreement to build the rail line, which was held via video link.

"This unique North-South transport artery, the Rasht-Astara railway, will become a part of, and will help to significantly diversify, global [cargo] traffic flows. Transportation along the new corridor will offer significant competitive advantages," Putin said.

As an example, he cited the delivery of goods from St. Petersburg to Mumbai, which will take about 10 days via the new route, versus up to 30-45 days via traditional routes.

"There is a significant savings in terms of time and costs," the Russian head of state noted.

Putin also noted that the new route would be used, in particular, for the transportation of foodstuffs and other agribusiness products intended for consumers in Iran as well as the countries of the Persian Gulf and Africa. That is why this transportation corridor will make a tangible practical contribution to ensuring global food security, the Russian president emphasized.

Putin also highlighted the direct economic benefit from the project for both Russia and Iran, pointing out that the income to be earned from the transportation of goods along the North-South corridor and the more intensive utilization of port capacities would stimulate the establishment and growth of related businesses.

"It will be necessary to form large-scale logistics and production clusters. This means new jobs will be created, and the investment appeal of those Russian and Iranian regions traversed by the new transport routes will get a major boost" the Russian president said.