Restoration of the Great Silk Road

An international conference dedicated to the restoration of the historical Silk Road was convened in Baku on September 7–8, 1998, at the initiative of National Leader Heydar Aliyev. The event brought together heads of state from nine countries (Azerbaijan, Türkiye, Georgia, Ukraine, Moldova, Romania, Bulgaria, Uzbekistan, and Kyrgyzstan), as well as delegations representing 13 international organizations and 32 additional states. Upon conclusion of the conference, the “Basic Multilateral Agreement on International Transport for the Development of the Europe-Caucasus-Asia Corridor” was signed within the framework of the European Union’s TRACECA program, and the Baku Declaration was formally adopted.

In accordance with the provisions of the Basic Multilateral Agreement, the decision was taken to establish the Permanent Secretariat of the TRACECA Intergovernmental Commission in Baku. The Secretariat officially commenced operations on February 21, 2001. Through this initiative, Azerbaijan played a significant role in shaping the region’s development trajectory and contributing to the revival of the historical Silk Road.

Azerbaijan is also actively engaged in the “Silk Road Economic Belt” project initiated by the People’s Republic of China. In December 2015, during President Ilham Aliyev’s state visit to China, the Government of the Republic of Azerbaijan and the Government of the People’s Republic of China signed a Memorandum of Understanding on jointly promoting the establishment of the “Silk Road Economic Belt.”

Trans-Caspian East-West International Transport Corridor Connecting Europe and Asia

(Middle Corridor)

The Trans-Caspian East-West International Transport Corridor (hereinafter referred to as the “Middle Corridor”) is a multimodal transport corridor connecting the People's Republic of China with the European Union via Central Asia, the Caucasus, and Türkiye, and serves as an alternative to the Northern Route and the ocean route. The Middle Corridor primarily comprises railways (4,256 km) and sea sections (508 km), starting from the China–Kazakhstan border and extending through Kazakhstan and the Caspian Sea to Azerbaijan and Georgia. From Georgia, the corridor extends in two directions – through Türkiye to Europe or through the Black Sea to Ukraine, Romania, and Bulgaria.

Azerbaijan, favorably positioned between Europe and Asia, has implemented a number of projects aimed at enhancing the competitiveness of the Middle Corridor as it passes through the country. On February 7, 2007, an agreement was signed in Tbilisi, at the initiative of President of the Republic of Azerbaijan Ilham Aliyev, on the construction of the Baku–Tbilisi–Kars railway, an important component of the transport network of Eurasia. In November of the same year, the foundation stone of the railway line was laid in the Marabda District of Georgia. In July 2008, a groundbreaking ceremony for the construction of the Kars–Georgia border section was held in the city of Kars. More than 500 kilometers of the Baku–Tbilisi–Kars railway line, which has a total length of approximately 850 kilometers, passes through the territory of Azerbaijan.

The Baku–Tbilisi–Kars railway, which was put into operation on October 30, 2017, provides a transport connection between the East and the West as part of the Middle Corridor and constitutes a restoration of the ancient Silk Road along modern rail routes.

The Baku–Tbilisi–Kars railway reduces the delivery time of goods from China to Europe via the Middle Corridor by more than half compared with transportation by sea. Increasing the carrying capacity of the Baku–Tbilisi–Kars railway line, which serves the interests of stability and security in the region, creates significant opportunities for deepening foreign trade relations and supporting economic development.

The fact that this project is being implemented along the historical Silk Road increases its appeal for countries of the region and, at the same time, facilitates access for Central Asian countries – Turkmenistan, Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan – as well as Afghanistan, to European and global markets. It is of great importance for the development of trade relations and the deepening of their integration into the global economy.

One of the key advantages of the Baku–Tbilisi–Kars project is that Azerbaijan now has a direct railway connection with Türkiye through the territory of Georgia. This contributes to the further strengthening of relations between the countries.

After the reconstruction work carried out in 2024, the railway's throughput capacity was increased to 5 million tons per year. In the same year, Azerbaijan Railways CJSC and Georgian Railways JSC established a joint venture called BTKI Railways LLC. This enterprise will enhance utilization and ensure the efficient organization of operations on the Baku–Tbilisi–Kars railway line.Thanks to its strategic geographical location, Azerbaijan is emerging as an important transport hub by investing heavily in the development of transport networks and thereby further strengthening its strategic position.

In order to ensure the sustainable development of Azerbaijan's transit and transport-logistical capabilities, the Baku International Trade Sea Port, located at the intersection of the country's main railway and highway networks in the Alat settlement of the Garadagh District, was put into operation in 2018.

The Baku International Trade Sea Port has become a major cargo transportation hub in the Caspian Sea region, facilitating maritime trade and enhancing Azerbaijan’s logistical capabilities. It creates favorable conditions for the full operation of the East–West International Transport Corridor passing through the territory of Azerbaijan. With an annual cargo handling capacity of 15 million tons and a post-optimization container capacity of 150,000 TEU, the volume of containerized cargo handled by the port reached 100,000 TEU in 2025.

In general, the establishment of the Alat Port is an integral part of a comprehensive approach that serves the goal of transforming Azerbaijan into the region’s key strategic hub.

The Alat Free Economic Zone (AFEZ), established in the Alat settlement of the Garadagh District of Baku on May 22, 2020, has strengthened Azerbaijan's leading role in Euro-Asian logistical chains. The primary objective behind the establishment of the Alat Free Economic Zone is to enable high value-added and export-oriented production, attract investors providing services based on innovative technologies, and thereby contribute to the sustainable development of the national economy and increase employment in the country. In addition to playing an important role in international freight transportation, the free economic zone supports the country's prospects for becoming a regional trade hub, facilitates the development of local production, and promotes the “Made in Azerbaijan” brand worldwide.

Currently, an air cargo cluster (Alat Cargo Airport and Cargo Village) is being developed to support cargo transportation within the AFEZ. The successful implementation of this project creates significant prospects for transforming the Alat Free Economic Zone into a strategic industrial center through the integration of various modes of transport.

In addition, large-scale projects for the construction of new transport and communication infrastructure in the liberated territories are creating favorable conditions for the transformation of these areas into an international transport and logistical center and for the development of the Middle Corridor. In recent years, highways, bridges, tunnels, railway infrastructure, stations, as well as three new international airports – Zangilan, Fuzuli, and Lachin – have been constructed and put into operation in these territories.

In recent years, reports by international organizations have emphasized the strong development potential of the Middle Corridor. According to World Bank forecasts, annual freight volumes along the Middle Corridor are expected to reach 11 million tons by 2030. Data from the European Bank for Reconstruction and Development (EBRD) indicate that container traffic will increase to 865,000 TEU by 2040.

These projections not only point to a rapid growth in cargo flows, but also underscore the need to develop new, shorter, and more reliable alternative transport routes in the region.

From this perspective important steps have been taken towards the opening of the Zangezur Corridor, which is regarded as one of the country’s most significant projects. The Zangezur Corridor has the potential to expand trade routes between Europe and Asia. It will serve as an important logistical route, contributing to historical and cultural integration.

The Zangezur Corridor will not only restore direct land connectivity with the Nakhchivan Autonomous Republic of Azerbaijan but also serve as a key strategic link between both the East–West and North–South transport corridors.

The trilateral statement signed following the historic victory in 2020 laid the groundwork for the restoration of transport and communication links in the region and the opening of new routes.

The joint declaration signed by the leaders of the Republic of Azerbaijan and the Republic of Armenia, with the participation of the President of the United States of America in Washington on August 8, 2025, represented a significant step towards the opening of this corridor.

After the glorious victory in the Second Garabagh War, Azerbaijan has already initiated efforts to realize this corridor. As part of the large-scale infrastructure projects being implemented in the liberated territories, construction of the Horadiz–Aghbend highway and railway, which form part of the corridor, is progressing rapidly and is expected to be completed in 2026.The implementation of the Zangezur Corridor will enable the creation of a circular railway system in the region and increase the country’s annual freight capacity along transport corridors by 15 million tons per year.

Meanwhile, construction has already begun on the Dilucu–Kars railway in Türkiye, following a groundbreaking ceremony in August. This line is scheduled for commissioning within four years, thereby creating conditions for the full integration of the Zangezur Corridor by providing a direct railway connection between Azerbaijan and Türkiye.

In parallel, work is underway to create infrastructure for the construction of new railway and highway connections, as well as communication and energy supply lines, between the East Zangezur Economic Region of the Republic of Azerbaijan and the Nakhchivan Autonomous Republic through the territory of the Islamic Republic of Iran. In this context, a “Memorandum of Understanding between the Government of the Republic of Azerbaijan and the Government of the Islamic Republic of Iran on the establishment of new communication links between the East Zangezur Economic Region of the Republic of Azerbaijan and the Nakhchivan Autonomous Republic through the territory of the Islamic Republic of Iran” was signed on March 11, 2022.

According to the aforementioned memorandum, a groundbreaking ceremony was held on October 6, 2023, and work began on the construction of a road bridge and border customs infrastructure, as well as coastal reinforcement measures in Zangilan.

As a result of these projects, the Araz Corridor will develop in parallel with the Zangezur Corridor, providing additional impetus to the expansion and integration of the region's transport links.

In order to promote the Middle Corridor, Azerbaijan closely cooperates with countries along its route. In particular, to coordinate infrastructure projects and ensure synchronized development among the participating countries, a Roadmap for the Development of the “Middle Corridor” covering 2022−2027 was signed between Azerbaijan, Kazakhstan, and Türkiye on November 22, 2022.

The “Action Plan for 2024−2026 on Increasing the Transit Potential of International Transport Corridors Passing through the Territory of the Republic of Azerbaijan and Promoting Transit Freight Transportation,” approved on November 23, 2023, creates opportunities for the more efficient utilization of the country’s transit potential.

To increase freight traffic along the Middle Corridor, fast and efficient transportation of goods is ensured through both rail and road networks.

The “Joint Declaration on the Establishment of Strategic Partnership between the Republic of Azerbaijan and the People’s Republic of China” and the “Joint Declaration on the Establishment of Comprehensive Strategic Partnership between the Republic of Azerbaijan and the People’s Republic of China” have been signed, envisaging the development of the Middle Corridor in 2024 and 2025. These documents serve to deepen cooperation between the two countries in transport and logistics, creating conditions for increased trade flows along the Middle Corridor, facilitating infrastructure projects, and strengthening economic ties.

Additionally, the “Memorandum of Understanding on the Development of Trans-Caspian International Transport Routes for the China–Europe Railway Express,” approved in 2024, represents a significant step towards increasing rail freight traffic and strengthening the transit potential of the Middle Corridor. This initiative will facilitate further development of trade relations between China and Europe and enhance the region’s role as a strategic transport hub.

On July 10, 2025, a Memorandum of Understanding was signed between Azerbaijan Railways CJSC and the China Railways State Corporation. The document primarily focuses on enhancing the importance of the Baku–Tbilisi–Kars railway line. The two organizations agreed to develop transport links along the Baku–Tbilisi–Kars route, facilitating access to Türkiye and subsequently to Europe. This line is expected to further accelerate the movement of goods from Chinese production centers to European markets through Azerbaijan, Georgia, and Türkiye.

On the same day, July 11, 2025, a Memorandum of Understanding was signed between Azerbaijan Railways CJSC and China’s Xi’an Free Trade Port Construction and Operation Co., Ltd. (Xian Port). Within the framework of the document, a representative of Azerbaijan Railways CJSC was appointed to Xian Port, and a container yard with an annual handling capacity of 20,000 TEU was established.

On September 30, 2025, an Action Plan was signed between the railways of Azerbaijan, Kazakhstan, and Georgia to eliminate existing bottlenecks along the Trans-Caspian International Transport Corridor.

As a result of these measures, a total of 358 block trains were dispatched from various ports in China to Azerbaijan via the Middle Corridor in 2024. Today, the average delivery time for these trains to the Port of Alat is 8–10 days, and to the ports of the Black Sea, 12–14 days. As a continuation of these successes, there are plans to dispatch 1,000 block trains along the corridor in the medium term.

"North-South" International Transport Corridor

The Agreement on the North–South International Transport Corridor was signed between Russia, Iran, and India and entered into force on May 21, 2002. Azerbaijan joined the agreement in 2005.

This transport corridor connects India, Pakistan, Iran, Azerbaijan, Russia, and countries of Northern Europe. Azerbaijan’s land borders with both Russia and Iran play a significant role in facilitating trilateral regional cooperation. Consequently, Azerbaijan is becoming an important transport and logistical hub at the crossroads of both transcontinental corridors, positioned strategically in the heart of Eurasia.

Azerbaijan is playing an active role in the development of the western route of the “North–South” International Transport Corridor. The length of the railway line of the corridor passing through Azerbaijani territory is 511 kilometers. The railway connecting the Azerbaijan–Russia border to the Azerbaijan–Iran border, which forms a crucial segment of this corridor, has been made fully operational.

In order to further develop the North–South Transport Corridor, a trilateral meeting was held in Baku on September 9, 2022, resulting in the signing of the Baku Declaration. According to the document, the parties (Azerbaijan, Russia, and Iran) will take all necessary measures to increase cargo transportation along the North–South Corridor to 15 million tons.

On May 17, 2023, on the sidelines of the Kazan Forum, a loan agreement was signed between the Russian Federation and the Islamic Republic of Iran, providing Russian financing for the construction of the Rasht–Astara railway line, the missing segment of the corridor.

The infrastructure along the segment of the transport and logistical corridor passing through Azerbaijan has been substantially upgraded, as it plays a critical role linking the northern and southern parts of the Eurasian continent. The cargo handling capacity of the Baku International Trade Sea Port has been increased, the Alat–Astara highway has been reconstructed, a new highway Baku–Guba–state border with the Russian Federation has been put into operation, the throughput capacity of the Khanoba Customs Checkpoint on the border with the Russian Federation has been expanded, a railway bridge between Iran and Azerbaijan, an automobile bridge over the Astarachay River, and a modular border checkpoint have been established. In addition, design and construction work on the Southern Cargo Terminal is currently underway. These projects have significantly strengthened the country’s transit role, enhancing its international status.

On December 21, 2024, an Agreement on Cooperation for the Development of Transit Freight Transportation through the “North–South” International Transport Corridor was signed between the Republic of Azerbaijan and the Russian Federation. The purpose of the agreement is to enhance the efficiency of transport connections, develop the potential of the corridor, and increase the volume of cargo transported to 15 million tons per year.

On November 26, 2025, a trilateral Memorandum of Understanding was signed between Azerbaijan, Iran, and Russia to enhance the effectiveness of the western branch of the North–South transport route.

The future opening of the Zangezur Corridor entails the integration of transport corridors through the creation of a new branch of the North–South Corridor. Azerbaijan is an active participant in both projects. In particular, the construction of the Osmanli–Horadiz–Aghband–Nakhchivan–Kars railway line will enable Azerbaijan to become a transit hub and connect both transport corridors passing through the country. Along with Azerbaijan, Georgia, Türkiye, European countries, China, Kazakhstan, and other Central Asian nations are expected to benefit from these opportunities.

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All these initiatives demonstrate the strategic vision of the President of Azerbaijan to establish the country as a key player in the global supply chain. This vision encompasses not only the transit of goods through the country by road or rail but also the strengthening of Azerbaijan’s position as a reliable and strategic hub connecting the East and the West.

The Baku–Tbilisi–Kars railway line, the Baku International Trade Sea Port, the Alat Free Economic Zone, the Alat Cargo Airport, and other large-scale infrastructure projects implemented on this solid foundation have created the basis for the expansion of advanced logistical capacity, the creation of a favorable business environment, and the establishment of a coordinated regulatory framework. These infrastructure and institutional reforms have contributed to Azerbaijan’s effective integration into the global supply chain, providing access to markets of approximately 200 million consumers within a matter of hours.

As a result, Azerbaijan is further consolidating its position as a key hub in international transport networks and enhancing its strategic significance in regional and global supply chains.