Azerbaijan’s Transit Logistics in a Regional and Eurasian Perspective

Azerbaijan is strengthening its role as a Eurasian transit hub through the Middle Corridor and the prospective Zangezur corridor. While transport volumes and carrier capacity are growing, regulatory asymmetries and administrative barriers in neighboring states constrain competitiveness, highlighting the need for institutional alignment to fully unlock regional logistics potential.

Dunya Sakit
Dunya Sakit
Source: https://middlecorridor.com/en/route

Over recent years, Azerbaijan has consistently expanded freight volumes along international transport corridors, consolidating its position as one of the key transit hubs of Eurasia. The most illustrative case is the Middle Corridor (the Trans-Caspian International Transport Route), where a steady increase in road freight transport has been recorded. In parallel, conditions are taking shape for the launch of the Zangezur corridor, which has the potential to significantly alter the configuration of regional transport flows.

The growth in transport volumes has been accompanied by an expansion of the operational capacity of the national road transport sector. Azerbaijani carriers possess a sufficient vehicle fleet, accumulated experience on transit routes, and the organizational resources required to service substantially increased cargo flows. From the standpoint of infrastructure and human capital readiness, the sector is capable of adapting both to current demand and to the anticipated expansion of transit following the opening of the Zangezur corridor.

At the same time, the external regulatory environment remains asymmetric. A number of neighboring and transit countries apply measures aimed at protecting their domestic carriers, which increases costs for Azerbaijani companies and undermines their competitiveness. In practice, this includes mandatory customs guarantees in Central Asian states, additional transit fees in Georgia, differentiated entry charges in Iran, and a combination of road tolls and customs guarantee payments in the Russian Federation.

In Azerbaijan, comparable restrictions are largely absent, with the exception of a fixed transit clearance fee. As a result, a persistent imbalance in market access conditions has emerged, whereby national operators face higher financial and administrative burdens than foreign carriers on comparable routes. Additional pressure stems from excessive administrative fines in some countries for minor violations, as well as complex bureaucratic procedures, which increase transaction costs and reduce the predictability of logistics operations.

The functioning of the International North–South Transport Corridor, linking Europe, Russia, Iran, India, and the countries of the Persian Gulf, also requires separate analysis. This route is widely regarded as a strategically important element of Eurasian multimodal logistics. However, restrictions introduced on 1 January 2025 limiting the stay of Azerbaijani citizens in the Russian Federation to 90 days per year create systemic risks for international road transport.

Given the vast territory of Russia, inevitable delays, and the absence of international border checkpoints on the Russia–Belarus border, these restrictions effectively reduce the permissible working time of drivers on the route. This leads to fines, deportations, and entry bans, negatively affecting the resilience of transport chains and the staffing stability of the sector.

The prospective launch of the Zangezur corridor is of strategic importance for regional logistics. A multiple increase in transit cargo flows in the Asia–Europe direction is expected, alongside a redistribution of existing routes and a reduction of pressure on overloaded corridors. For Azerbaijan, this implies higher foreign currency inflows, the development of related infrastructure, and the strengthening of its status as a key transit hub. For Türkiye, the Turkic states of Central Asia, Russia, China, and European countries, the corridor offers additional overland alternatives amid the fragmentation of global supply chains.

At the same time, unlocking the full transit potential of the Zangezur corridor will require institutional and regulatory adaptation. Priority tasks include expanding the use of international transport mechanisms under the TIR Convention, accelerating the implementation of digital instruments such as e-CMR, e-TIR, and e-Permit, and harmonizing customs procedures and requirements at border crossing points. Without systematic regulatory alignment, the advantages of the new route will remain only partially realized, while the competitiveness of national carriers will continue to be constrained.

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