Azerbaijan is a transport hub of Eurasia

Azerbaijan is a country that opens up very promising opportunities for doing big business. This is due to the participation of the state in large-scale international economic projects, such as the Silk Road Economic Belt, as well as the construction of a railway that will connect the North and South and open new trade routes.

Restoration of the Great Silk Road

September 7-8, 1998 in Baku, at the initiative of the national leader Heydar Aliyev, an international conference was held on the restoration of the historical Silk Road, with the participation of the heads of state of 9 countries (Azerbaijan, Turkey, Georgia, Ukraine, Moldova, Romania, Bulgaria, Uzbekistan, Kyrgyzstan), delegations of 13 international organizations and 32 states. As a result of this conference, on the basis of the TRACECA program of the European Union, the "Basic Multilateral Agreement on International Transport for the Development of the Europe-Caucasus-Asia Corridor" was signed. and the Baku Declaration was adopted.

In accordance with the provisions of the Basic Multilateral Agreement, it was decided to host the Permanent Secretariat of the TRACECA Intergovernmental Commission in Baku, and on February 21, 2001, it was opened. Thus, Azerbaijan, having contributed to the restoration of the historical Silk Road, played an important role in determining the main development trajectories.

Currently, Azerbaijan is a participant in the Silk Road Economic Belt project, implemented at the initiative of China. In December 2015, within the framework of the state visit of President Ilham Aliyev to China, a memorandum of understanding was signed between the Government of the Republic of Azerbaijan and the Government of the People's Republic of China on the joint promotion of the creation of the Silk Road Economic Belt.

Baku-Tbilisi-Kars transport corridor connecting Europe with Asia

The Baku-Tbilisi-Kars railway, put into operation on October 30, 2017, providing a connection between the Trans-European and Trans-Asian railway networks, is the restoration of the ancient Silk Road on steel lines.

February 7, 2007 in Tbilisi, on the initiative of the President of the Republic of Azerbaijan Ilham Aliyev, an Agreement on the construction of the Baku-Tbilisi-Kars railway was signed. In November of the same year, the foundation of the railway line was laid at the Georgian point of Marabda. And in July 2008, the groundbreaking ceremony for the Kars-Georgian border section took place in the city of Kars. A 504-kilometer section of the Baku-Tbilisi-Kars railway line with a total length of about 850 kilometers falls on the territory of Azerbaijan. 263 kilometers of the railway line pass through the territory of Georgia, and 79 kilometers — on the territory of Turkey.

Compared to maritime transportation, the Baku-Tbilisi-Kars railway more than halves the time it takes to deliver goods from China to Europe. By the Baku-Tbilisi-Kars railway, which serves stability and security, it is planned to transport 5 million tons per year at the first stage, 17 million tons at the second stage, and subsequently — even more cargo.

The creation of this project on the historical Silk Road increases its attractiveness for the countries of the region, facilitates the exit of the countries of Central Asia — Turkmenistan, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, as well as Afghanistan to the European and world markets, is of great importance in the development of their trade relations, economies, integration.

One of the main advantages of the Baku-Tbilisi-Kars project is that Azerbaijan receives a direct railway connection with Turkey through the territory of Georgia, and this serves to further strengthen relations between the two states. Another issue is to extend this line to the Nakhchivan Autonomous Republic. In the future, it is planned to lay a separate railway line from Kars to Nakhchivan, which will allow the autonomous republic to be withdrawn from the Armenian blockade and ensure its transport independence.

The free trade zone created on the instructions of President Ilham Aliyev in the Alyat village of the Garadagh district of Baku, including the territory of the Baku International Sea Trade Port, will also be of particular importance in turning Azerbaijan into an international transport hub. The free trade zone, playing a leading role in international cargo transportation and the Europe-Asia logistics chain, will at the same time be of exceptional importance in encouraging local production and popularizing the Made in Azerbaijan brand in the world. It is planned that the Free Trade Zone will serve a regional scale market, which will include parts of the South Caucasus, Central Asia, Iran, Russia and Turkey and which will cover 130 million people.

North-South Transport Corridor connecting Northern Europe with South Asia

In accordance with the "Strategic Roadmap for the Development of Logistics and Trade in the Republic of Azerbaijan" Azerbaijan plays an active role in the creation of the North-South transport corridor. Thus, the country is turning into an important transport and logistics hub at the intersection of both transcontinental corridors, in the center of Eurasian geography.

The North-South transport corridor will connect India, Pakistan, Iran, Azerbaijan, Russia and the countries of Northern Europe.

Azerbaijan is the only country in the world that has a land border with both Russia and Iran, this geographical position is important for the development of trilateral regional cooperation.

The process of creating the Azerbaijani section of the North-South transport corridor has already entered the final stage. An important section of this corridor — railway from the Azerbaijani-Russian to the Azerbaijani-Iranian border — brought to a state of complete readiness for operation. At the same time, Azerbaijan participates in financing the construction of the Astara-Rasht-Qazvin railway in Iran. Azerbaijan plans to provide the Iranian side with a $500 million loan for the construction of the Astara-Rasht railway and equipping it with equipment.

The strategic roadmaps provide that Azerbaijan, by increasing the volume of transit trade in the region by 2020, will receive a share corresponding to the following indicators:

• on the route of Central Asia and the Black Sea — 40%;
• on the route of Central Asia and Europe — 25%;
• on the route China and Europe — 3%;
• on the route Russia and Iran — 40%;
• on the route Iran and the Black Sea — 25%.

In the future, the integration of the North-South and Baku-Tbilisi-Kars transport corridors is envisaged. Azerbaijan is an active participant in both projects. China, Kazakhstan, the republics of Central Asia, Azerbaijan, Georgia, Turkey, European countries will take advantage of this.

Currently, the process of turning Azerbaijan into an international transport hub is proceeding along the following important lines:

• development of economic, trade, transport and logistics links between the European, Black Sea, Caucasus, Caspian and Central Asian regions;
• development of the shortest land multimodal corridor between China and the European Union;
• creation of the North-South transport corridor;
• attracting transit cargo within the framework of the Great Silk Road;
• significant improvement in logistics and transport infrastructure and making Azerbaijan a more attractive node in this area in the region due to regulatory incentives;
• formation of the digital Great Silk Road through the Azerbaijani Digital Transport Hub and TASIM projects;
• message coordination between different transport sections;
• a coordinated policy in the field of international and domestic tariffs for cargo and passenger transportation;
• development of a coordinated action program for the organization of multimodal (combined) transportation, etc.

In recent years, the commissioning of new international airports in various regions of the country, the laying of new roads, its leading role in the implementation of new regional projects, as an integral part of Azerbaijan's targeted policy, on the one hand, contributes to the development of domestic transport infrastructure, and on the other, — turns Azerbaijan into a transport hub of Eurasia.