Baku-Tbilisi-Kars railway as crucial segment of Middle Corridor enhances cargo volume [COMMENTARY]

The Baku-Tbilisi-Kars railway, one of the reasons for increasing the geostrategic importance of Azerbaijan with a length of 826 kilometers and connecting three countries, is realizing a number of priorities to achieve the set goals.

Emil Ahmadov, the head of the cargo transportation department at Azerbaijan Railways CJSC (ADY), announced that on May 20, a train comprising 20 containers was dispatched to Georgia. He highlighted that the 184-kilometer section of the Baku-Tbilisi-Kars (BTK) railway line, a crucial segment of the Middle Corridor, has been completed, enabling the commencement of cargo transportation along this route from May 20.

Ahmadov mentioned the plans to establish a joint venture between the governments of Azerbaijan and Georgia to manage the Baku-Tbilisi-Kars railway, with efforts underway to develop the business model of this venture in collaboration with an international consulting firm. The aim is to enhance cargo volume and foster the development of the BTK line.

He outlined that the joint venture's primary responsibilities include executing all tasks related to the project, setting tariffs for cargo transportation, managing cargo transportation operations, and addressing operational challenges comprehensively.

Additionally, Ahmadov highlighted ADY's efforts to facilitate cargo transportation between Central Asian and European nations via the Middle Corridor through regular on-site meetings with entrepreneurs and close collaboration with railway administrations and transport companies in these regions. Moreover, ADY has established partnerships with cargo operators in Europe to facilitate the transportation of goods from European countries to Central Asia via the Middle Corridor.

Regarding transit cargo transportation by rail, Ahmadov noted a significant increase in recent years, citing that in 2019, 3.8 million tons of transit cargo were transported, reaching 6.8 million tons in 2023. Furthermore, he emphasized a 14 percent increase in transit cargo transportation volume in January-April of the current year compared to the same period last year. Additionally, the first quarter of the current year witnessed a 10 percent rise in transit cargo transportation along the East-West corridor, including the BTK route.

We sought an expert opinion to provide answers to questions about the importance of the 184-kilometer segment of the railway and its benefits, as well as the reasons for the increase in cargo volume in recent years. While answering questions, the expert also touched on specific initiatives and strategies to attract more cargo operators and increase the utilization of rail transport for freight between European countries and Central Asia via the Middle Corridor.

Speaking to Azernews Azerbaijani economist Eldeniz Amirov said that while discussing the prospects and potential of the Baku-Tbilisi-Kars railway, emphasized the importance of briefly reviewing its history for a more accurate understanding.

“Although the first railway in Azerbaijan was laid in the late 19th century, it underwent a long development path and finally reached its current state. Specifically, when we look at the Baku-Tbilisi-Kars line, after the conflict between Azerbaijan and Armenia in 1993, the Qars-Gyumri-Tbilisi railway was temporarily disconnected. Subsequently, the construction of the Baku-Tbilisi-Kars railway was needed as an alternative route. Therefore, in 2005, a trilateral agreement was signed between Azerbaijan, Turkiye, and Georgia regarding the railway line. However, its implementation was delayed for a long time. The reasons for this were pressures faced by Azerbaijan. The West wanted this railway to pass through Armenian territory. However, Azerbaijan insisted vehemently on implementing this project unilaterally without involving Armenia. The conflict between Russia and Georgia also hindered the completion of this project for a while. The implementation period was extended several times over different periods. The opening of the said railway took place in 2017.”

According to him, it was impossible to imagine the Baku-Tbilisi-Kars line without the Baku International Trade Port; their infrastructures were being created and developed synchronously. Therefore, the opening of the Baku-Tbilisi-Kars line directly started from the Baku International Trade Port in September 2017.

When it comes to the importance of completing the 184-kilometer section of the Baku-Tbilisi-Kars railway line, the expert notes that it is not possible to reliably transport large volumes of cargo with an outdated railway line.

“Therefore, it is imperative to create an infrastructure that responds to modern needs, and this infrastructure should be created along the entire railway corridor to ensure more reliable supplies. Regarding the statistics for the period from 2017 to 2022, after the corridor became operational, it should be noted that during that period, 1,347,585 tons of cargo were transported. Looking at the potential, we see that this is a very small figure. Here, it is envisaged to transport 5 million tons of cargo in the first phase and up to 17 million tons in the subsequent phase.”

E. Amirov believes that this will allow for a further increase in the volume of transported goods through unilateral enhancement of technical capabilities, elevation of economic cooperation, and implementation of new technological, innovative approaches in the long term.

“The Russia-Ukraine war further conditioned the increases in this direction, as the majority of goods passing through the northern part of the Caspian Sea and Russian territory were given preference by logistics companies to transit through the central route, which further increased the relevance of the Baku-Tbilisi-Kars line,” he added.

When it comes to the initiative related to the expansion of the Middle Corridor, an economist stated that the completion of the aforementioned 184-kilometer section repair, preparation of a new concept for the Middle Corridor, and formulation of a strategy for providing unified customs services all contribute to enhancing the potential of this corridor in the long run.

“The creation of a joint institution for the management of the Baku-Tbilisi-Kars railway line will enable proper coordination. It will provide an opportunity for accurate analysis of existing problems, allowing for more agile responses and quicker resolution of identified issues within a shorter period. Additionally, considering the railway line passes through various countries, it will facilitate the harmonization of the legal framework in a unified direction. Most importantly, it will contribute to ensuring transparency,” the expert concluded.