Much has been reported in the last few years about the steady progress across Central Asia and the Caucasus in establishing the so-called “Middle Corridor,” also known as the Trans-Caspian International Transport Route (TITR), a multimodal transport system which allows rail traffic from China to reach Western Europe without crossing into the Russian rail network, under heavy western sanctions since 2022.
Western sanctions on Russia gave the project a massive boost, but coordination between the countries involved has been ongoing for more than a decade. Azerbaijan Railways CJSC (ADY) actively participates in the “Trans-Caspian International Transport Route” International Association of Legal Entities (TMTM) since it established in February 2014.
This strategic collaboration aims to enhance the efficiency and effectiveness of transport connections between Azerbaijan, Georgia, and Kazakhstan, Arif Agayev, Advisor to the Chairman of Azerbaijan Railways CJSC, told NE Global in Baku on October 4.
On a governmental level on November 25, 2022, in the city of Aktau, Kazakhstan, the foreign and transport ministers of Azerbaijan, Turkey, and Kazakhstan signed the “Roadmap for the Elimination of Bottlenecks and Development of the Middle Corridor for 2022-2027.” This agreement represents a significant step in enhancing the efficiency and capacity of the Middle Corridor. The roadmap aims to synchronize efforts across all three countries to address infrastructure bottlenecks and improve the overall flow of goods through this critical transport corridor. This roadmap underscores the commitment of Azerbaijan, Turkey, and Kazakhstan to foster greater regional cooperation and capitalize on the Middle Corridor’s growing significance for global trade. On Azerbaijan’s side, one of the main entities responsible for implementing the roadmap is Azerbaijan Railways (ADY).
On a railway administrations level in 2022, a Medium-Term Planning Service was established among the railways of Azerbaijan, Georgia, and Kazakhstan to facilitate information exchange and forecasting for key strategic freight among the participants of the Middle Corridor. Eventually, in 2023 a Joint Venture for the management of transit freight along the Middle Corridor has been established by the railways of Azerbaijan, Georgia, and Kazakhstan. The new company, named “Middle Corridor Multimodal Ltd,” is based in Kazakhstan’s Astana International Financial Centre. Within the framework of this joint operation, the company will facilitate services based on the “one-stop shop” principle, guarantee delivery times for freight, and implement a coordinated policy for the development of multimodal services along the China-Europe/Turkey-China route.
The Middle Corridor continues to attract significant investments and will play a critical role in the shift toward alternative trade routes. Chinese railways expressed interest in joining the Middle Corridor Multimodal Ltd joint venture.
For improvement of the operational efficiency of the route, Azerbaijan Railways has implemented a range of comprehensive measures, including the integration of modern information-analytical systems for managing cargo operations and the creation of real-time cargo tracking services along the corridor. This has increased transparency and control over shipments. ADY actively participates in international fora and working groups dedicated to the development of the corridor, establish new partnerships, and establishes agreements with transport operators and logistics companies from other countries to simplify procedures and increase cargo volumes. An example of ADY’s international cooperation is its participation in working groups of the World Bank, the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), as well as membership in organizations such as TRACECA and the Organization for Cooperation of Railways, which focus on the standardization and development of international transportation. ADY is steadily modernizing infrastructure and updating information systems to optimize cargo management and real-time cargo monitoring.
Plans to modernize Azerbaijan’s Railways and improve its environmental impact
In recent years, ADY has embarked on an ambitious journey to transform the railway infrastructure, with a strong emphasis on modernization and sustainability. ADY’s ongoing projects are testament to the company’s commitment to creating a more efficient, reliable, and environmentally-friendly railway system, Agayev said.
One of key initiatives is the installation of electrical supply and communication-signaling systems on the Baku-Boyuk Kasik railway line, which spans 503 kilometers along the Middle Corridor. ADY has made considerable progress in reconstruction of the electrical supply network, with 73 percent of the project now completed.
Along the North-South transport route the project for the construction of the Alat-Osmanli-Astara railway line, along with the planning, reconstruction, and development of energy supply and communication-signalling systems has also progressed significantly. The railway line will expand the potential of the North-South transport route and increase its capacity in terms of cargo transportation.
The construction of Barda-Agdam, Agdam-Khankendi, Horadiz-Agband and Agband-Salammalik railway lines is not just about rebuilding infrastructure; it represents a modern and strategic vision for the territories of Karabakh and the Western Zangazur region’s future. Overall, these initiatives reflect Azerbaijan’s broader ambition to modernize its railway infrastructure, ensuring it meets contemporary standards of efficiency and effectiveness.
ADY has 102 electric locomotives out of a total fleet of 224, with a sustainability focus through purchasing and replacing the outdated units with electric powered cargo locomotives. In line with its modernization initiatives, ADY has procured 13 electrical passenger trains and three more are expected by the end of 2024.
ADY’s modernization efforts are not just about improving infrastructure — they’re also about contributing to Azerbaijan’s national sustainability agenda. By reducing ADY’s carbon footprint through electrification and introducing more efficient trains, ADY is aligning the company with the country’s broader goals of reducing CO2 emissions and transitioning to greener transport solutions. Azerbaijan Railways operates an operational length of rail lines totalling 2,140 km, with 1,151 km of this network having been electrified. The electrification is central to sustainability goals.
Azerbaijan Railways is strategically advancing its digital transformation to position itself as a leader in modern rail logistics and operations. With the recent approval of a $47 million loan from the Asian Development Bank, ADY aims to optimize operations and significantly enhance its efficiency. This transformation focuses on leveraging advanced technologies to automate planning processes, improve safety measures, incorporate data analytics into decision-making and transition to paperless operation. The digital strategy includes seamless integration into international logistics platforms, further aligning ADY with global trade flows. This strategic digital transformation underscores ADY’s commitment to future-proofing its infrastructure and aligning with Azerbaijan’s broader economic goals.
Azerbaijan Railways is strongly committed to reducing its carbon footprint and ADY has set an ambitious target to cut emissions by 40 percent by 2050. Alongside the electrification of railway infrastructure and the use of electric trains, ADY is already making significant strides toward this goal, with initiatives such as solar power projects in Bilajari and Ganja locomotive depots. Solar power generation allowed ADY reduce emissions by nine percent last year.