Restoration of the Great Silk Road
An international conference dedicated to the restoration of the historical Silk Road attended by heads of nine countries (Azerbaijan, Turkiye, Georgia, Ukraine, Moldova, Romania, Bulgaria, Uzbekistan, Kyrgyzstan), 13 international organizations and delegations from 32 states was held at the initiative of National Leader Heydar Aliyev in Baku on September 7-8, 1998. At the end of the conference, the "Basic Multilateral Agreement on International Transport for the Development of the Europe-the Caucasus-Asia corridor" was signed and the Baku Declaration was adopted based on the European Union’s TRACECA Program.
In accordance with the provisions of the Basic Multilateral Agreement, the decision was made to establish the Permanent Secretariat of the TRACECA Intergovernmental Commission in Baku, and it was officially opened on February 21, 2001. Therefore, by contributing to the restoration of the historical Silk Road, Azerbaijan played a significant part in determining its key development trajectory.
Azerbaijan is a participant in the “Silk Road Economic Belt” project implemented on the initiative of China. In December 2015, within the framework of President Ilham Aliyev's state visit to China, a Memorandum of Understanding on the joint promotion of the "Silk Road Economic Belt" was signed between the Government of the Republic of Azerbaijan and the Government of the People's Republic of China.
Trans-Caspian East-West International transport corridor connecting Europe and Asia
(Middle Corridor)
The Trans-Caspian East-West International Transport Corridor (hereinafter the Middle Corridor) is a multimodal transport corridor that connects the People's Republic of China with the European Union through Central Asia, the Caucasus and Turkiye, and serves as an alternative to the Northern route (China-Kazakhstan-Russia-Belarus-Europe) and to the sea route through the Suez Canal. The Middle Corridor mainly consists of a railway (4,256 km) and a sea (508 km) section. It starts from the China-Kazakhstan border, crosses Kazakhstan and extends to Azerbaijan and Georgia through the Caspian Sea. From Georgia, this corridor extends in two directions – through Turkiye to Europe and through the Black Sea to Ukraine, Romania and Bulgaria.
Azerbaijan, favorably located at the crossroads of Europe and Asia, has implemented a number of projects aimed at enhancing the competitiveness of the Middle Corridor passing through its territory. On February 7, 2007, the Agreement on the construction of the Baku-Tbilisi-Kars railway, an important component of Eurasia’s transport map, was signed in Tbilisi at the initiative of President of the Republic of Azerbaijan Ilham Aliyev. In November of the same year, the foundation stone of the railway line was laid in Marabda, Georgia. In July 2008, the groundbreaking ceremony for the construction of the Kars-Georgian border section was held in the city of Kars. A 504-km section of the 850-km Baku-Tbilisi-Kars railway passes through the territory of Azerbaijan, a 263-km section through Georgia and 79-km section through Turkiye.
The Baku-Tbilisi-Kars railway launched on October 30, 2017, represents a reconstruction of the ancient Silk Road on steel highways, providing transport links between East and West as part of the Middle Corridor.
The Baku-Tbilisi-Kars railway significantly cuts down cargo delivery time from China to Europe by more than fifty percent compared to shipping by sea. Enhancing the capacity of this railway, which plays a crucial role in maintaining stability and security in the region, presents substantial opportunities for strengthening foreign trade ties and fostering economic growth.
The construction of this project over the historical Silk Road further enhances its appeal to countries of the region and facilitates the access of Central Asian countries of Turkmenistan, Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan, as well as Afghanistan, to European and world markets. It is of tremendous importance in the development of trade relations and in the deepening of integration into the global economy.
One of the main advantages of the Baku-Tbilisi-Kars project is that Azerbaijan has obtained a direct railway connection with Turkiye through the territory of Georgia, which serves to further strengthen the relations between the countries involved.
Possessing a diversified infrastructure, Azerbaijan is becoming an important hub by investing heavily in the development of transport networks and further strengthening this strategic edge. In 2018, the Baku International Trade Seaport, located at the junction of the country's main railways and highways, was put into operation in Alat settlement of Garadagh district in order to ensure the sustainable development of Azerbaijan's transit and logistical capabilities.
The Baku International Trade Seaport has become the main cargo handling center facilitating maritime trade in the Caspian Sea region and enhancing Azerbaijan’s logistical capabilities. It has created favorable opportunities for the full-capacity operation of the East-West international transport corridor passing through our country.
Established in the Alat settlement of Garadagh district in Baku on May 22, 2020, the Alat Free Economic Zone reinforces Azerbaijan's pivotal position in Europe-Asia logistics chains. The primary aims of establishing the Alat Free Economic Zone are to facilitate value-added and export-driven manufacturing, attract investors utilizing cutting-edge technologies, bolster sustainable development of the national economy, and enhance employment opportunities within the country. Beyond its significant role in international cargo transit, it fosters Azerbaijan's potential to emerge as a regional trade hub, encourages domestic production, and elevates the global recognition of products under the "Made in Azerbaijan" brand.
Additionally, the large-scale projects for the construction of new transport and communication infrastructure being implemented in the territories liberated from occupation create favorable conditions for turning them into an international transport and logistical center and developing the Middle Corridor.
Infrastructure is being put in place for the construction of a new railway, highway, as well as communication and energy 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. With this aim, the "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.
Within the framework of the Memorandum of Understanding, a groundbreaking ceremony for the construction of a road bridge and border/customs infrastructure was held in Zangilan on October 6, 2023 and construction work started.
As a new branch of the Middle Corridor and a reliable trade route, the Baku-Nakhchivan-Kars railway will serve to deepen regional cooperation and improve living standards. The Protocol of Intent on the construction of the new Kars-Nakhchivan railway line was signed during a meeting of the presidents of the Republic of Azerbaijan and the Republic of Turkiye on September 25, 2023. The length of the future railway will be 224 kilometers and the Turkish side plans to put it into operation within five years. The project will be of historic importance in establishing a connection between Nakhchivan and the rest of Azerbaijan and enabling the transportation of goods to Europe.
Azerbaijan closely cooperates with countries located along the corridor in an effort to promote the Middle Corridor. It should be noted that the Road Map on the development of the Middle Corridor for the 2022-2027 period was signed between Azerbaijan, Kazakhstan, Turkiye and Georgia on November 22, 2022.
The Action Plan on increasing the transit potential of international transport corridors passing through the territory of the Republic of Azerbaijan and promoting transit cargo transportation for the 2024-2026 period, approved on November 23, 2023, creates ample opportunities for a more efficient use of Azerbaijan’s transit potential.
"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 on the North-South International Transport Corridor in 2005.
The referenced transport corridor will link India, Pakistan, Iran, Azerbaijan, Russia, and Northern Europe. Azerbaijan's strategic position, boasting land borders with both Russia and Iran, profoundly influences the advancement of trilateral regional collaboration. Specifically, Azerbaijan is emerging as a crucial transport and logistics center situated at the intersection of these transcontinental corridors, strategically positioned in the heart of Eurasia.
The infrastructure along the segment of the transport and logistics corridor traversing Azerbaijan has undergone substantial modernization, positioning the country as a pivotal link between the northern and southern regions of the Eurasian continent. Notable enhancements include the expanded capacity of the Baku Trade Seaport, the reconstruction of the Alat-Astara highway, and the construction of a new railway bridge connecting Iran and Azerbaijan. These developments have significantly augmented Azerbaijan's transit capabilities and elevated its international standing.
Our country is actively engaged in the establishment of the North-South International Transport Corridor. The railway line of this corridor passing through Azerbaijan spans 511 km in length. Crucially, the railway segment stretching from the Azerbaijan-Russia border to the Azerbaijan-Iran border, a key component of this corridor, is now operational. A trilateral meeting focused on the development of the North-South Transport Corridor took place in Baku on September 9, 2022, resulting in the signing of the Baku Declaration. According to this agreement, the involved parties (Azerbaijan, Russia, and Iran) committed to implementing measures aimed at increasing cargo transportation along both the Northern and Southern corridors to a volume of 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 on Russia’s financing the construction of the Rasht-Astara railway line, the missing segment of the corridor.
There are plans for the future integration of the North-South and Baku-Tbilisi-Kars transport corridors, and Azerbaijan is actively involved in both initiatives. One significant endeavor is the construction of the Osmanli-Horadiz-Aghband-Nakhchivan-Kars railway line, which will position Azerbaijan as a transit hub linking both transport corridors that traverse the country. This integration holds promising prospects for Azerbaijan, Georgia, Turkey, Europe, China, Kazakhstan, and other Central Asian republics, all of which stand to benefit from enhanced connectivity and expanded transportation opportunities.
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As part of Azerbaijan's focused policy objectives, concerted efforts are underway to bolster both the development of domestic transport infrastructure and the transformation of the nation into a Eurasian transport hub. Highways situated along international transport corridors within Azerbaijan are undergoing reconstruction to meet the highest available standards. Moreover, significant initiatives such as transitioning from direct to alternating current, conducting comprehensive infrastructure overhauls, modernizing the railway traffic structure, and enhancing control systems are currently in progress within the railway sector.