In 2007, the government of Armenia conducted a tender process for the modernization and operation of Armenian Railways, with the intention of awarding a concession in 2008.
RITES and Russian Railways qualified to bid but RITES, an Indian Railways company, later withdrew.
Russian Railways was the only bidder and established South Caucasus Railway CJSC as a wholly owned subsidiary to run the former Armenian Railways.

On 1 June 2008, South Caucasus Railway officially commenced its modernization and operation program and, as part of the concession agreement, received assets owned by Armenian Railways consisting of 2,000 freight cars, 58 passenger coaches, 85 locomotives and 30 electric trains.
All 4,300 personnel formerly employed by Armenian Railways retained their jobs.
The concession agreement was concluded for 30 years, with a right of extension for another 20 years after the first 20 years of operation.
In 2007, the government of Armenia conducted a tender process for the modernization and operation of Armenian Railways, with the intention of awarding a concession in 2008. RITES and Russian Railways qualified to bid but RITES, an Indian Railways company, later withdrew. Russian Railways was the only bidder and established South Caucasus Railway CJSC as a wholly owned subsidiary to run the former Armenian Railways.
On 1 June 2008, South Caucasus Railway officially commenced its modernization and operation program and, as part of the concession agreement, received assets owned by Armenian Railways consisting of 2,000 freight cars, 58 passenger coaches, 85 locomotives and 30 electric trains. All 4,300 personnel formerly employed by Armenian Railways retained their jobs. The concession agreement was concluded for 30 years, with a right of extension for another 20 years after the first 20 years of operation.
Armenian Railways