In the face of mounting global crises and the restructuring of logistics systems, Azerbaijan is transitioning to a new development model, placing railways at the center as a key tool for geoeconomic positioning. At the heart of these changes is not merely an infrastructure upgrade, but a strategic reset of the country’s role in global and regional supply chains. Azerbaijan Railways (ADY), having undergone large-scale institutional reforms, is now focused on digitalization, decarbonization, modernization, and internal process optimization. These efforts align with Baku’s broader strategy to reduce dependence on hydrocarbons and transform the country into a logistics hub linking Europe, Asia, and the Middle East.
Since 2022, geopolitical tensions have intensified, rendering many established routes unstable or inefficient. In response, Azerbaijan has moved proactively. In 2024 alone, over 18.5 million tons of cargo were transported across the country. Transit volumes reached 7.3 million tons, up by 5.7% compared to the previous year, while imports totaled 5.2 million tons — a 10% increase. More than 1,000 block trains now pass through the country annually, made possible by strategic investments in infrastructure and international partnerships.
Particular attention is being paid to rebuilding the railway network in territories affected by conflict. New stations have been constructed in Barda, Aghdam, Tazakand, and Kocharli as part of a broader reintegration and development policy. The new transport hub in Aghdam, inaugurated in May 2025, can accommodate up to 1,500 passengers per day, combining rail and bus connections. These measures aim not only to restore transport links but also to stimulate investment and accelerate economic growth in the region.
A critical pillar of Azerbaijan’s transport strategy is its active participation in the development of the Middle Corridor — an alternative route between China and Europe traversing the Caspian Sea and the South Caucasus. In 2024, the first train from Xi’an, China, arrived in Baku in just 11 days, confirming the corridor’s viability. The geopolitical shifts have further increased the corridor’s value, prompting China, Türkiye, the EU, and the US to deepen engagement with Caspian countries, including Azerbaijan. At the same time, Central Asian states like Kazakhstan are redirecting exports of energy and strategic raw materials via Azerbaijan, viewing it as a stable alternative to traditional channels.
The rise in container traffic has driven the need for a technological transformation. ADY has introduced digital services, including an online tariff calculator and the ADY Smart platform. Singapore-based Global DTC PTE Ltd launched a tracking system for cargo on the TITR route. In September 2024, the Asian Development Bank allocated $47 million to support ADY’s digital modernization, including improvements in safety, operational efficiency, and capacity. Alongside digital transformation, rolling stock is being upgraded: in cooperation with Swiss-based Stadler Rail Group, Azerbaijan has been acquiring modern electric trains since 2015 for domestic routes and the Absheron Ring Line. In 2023, the first four of ten FLIRT diesel and electric trains were delivered, with the remaining six expected in 2024. That same year, a contract was signed to establish a Regional Service Center in Azerbaijan, dedicated to the maintenance and repair of Stadler trains — both for ADY and for neighboring countries operating similar rolling stock.
No less significant is the implementation of the Zangezur Corridor. The Horadiz–Aghband line, over 110 kilometers long, connects mainland Azerbaijan with Nakhchivan and subsequently with Türkiye. This route includes stations, tunnels, and bridges, forming not only a new logistics axis but also a symbolic statement of Azerbaijan’s regional resurgence. The Port of Baku in Alat plays a central role in this project, aspiring to become the key multimodal hub of the modern Silk Road.
Simultaneously, Baku is also advancing along the southern vector. The International North-South Transport Corridor (INSTC) connects India, Iran, Russia, and Europe. In 2024, the cargo terminal in Astara was renovated to speed up cargo handling along this route. While the Middle Corridor may hold greater appeal for Western partners, the INSTC remains vital for trade with South Asia and Gulf countries. Azerbaijan continues to invest in this direction, seeking to ensure a balanced diversification of logistics partnerships and revenue streams.
Taken together, Azerbaijan’s railway transformation is not just about new rails and stations. It represents a deliberate strategy to reposition the country on the global map. By integrating into key routes and simultaneously building its own, Azerbaijan is not simply responding to global shifts — it is actively shaping them.
