Azerbaijan: Crucial hub in Eurasian Transport Route

Azerbaijan is successfully diversifying its economy, with a particular focus on transforming its transport sector into an international hub. The country has already emerged as a key player in global transportation, modernizing service infrastructures across all areas of the sector. Ongoing projects to reconstruct road infrastructure and develop a comprehensive railway network further solidify Azerbaijan's position, enhancing its reputation as a vital transit point for neighboring countries.

A significant development in this context is the "Eurasian Transport Route." Recently, a consultative meeting of railway administration heads took place to discuss the establishment of the "Eurasian Transport Route" International Association. Attendees reported that all official procedures are expected to be finalized soon, paving the way for forming this important association.

Azerbaijan is the main link between Europe and Asia

At the meeting, Enikö Györfi, the head of the Eurasia and Central Asia Liaison Department of the Austrian Federal Railways, stated that Austria confirms its commitment to using the Middle Corridor as part of the global freight transportation network and will contribute to its development. She noted that Azerbaijan is the main connecting point between Europe and Asia, and its initiative to establish the "Eurasian Multimodal Transport Route" International Association underscores this important role.

"This meeting held in Baku reflects a commitment to international partnership. In fact, the Railway Silk Road is not just a route but also a symbol of connection, cooperation, and shared goals among Eurasian countries," she emphasized. According to Enikö Györfi, this railway, which will traverse Eurasia, is vital for the economies of China, Central Asia, the Caucasus, Turkiye, and Europe.

Rovshan Rustamov, Chairman of Azerbaijan Railways CJSC, mentioned during his speech that Azerbaijan has become one of the international transport centers despite not having access to the open sea. He noted that Azerbaijan, having invested in building bridges between Asia and Europe, has established a branched railway network that connects with its neighbors and provides transit opportunities for countries in the region.

The chairman also highlighted an interesting point, mentioning ongoing work on the Baku-Nakhchivan-Kars railway line, which will pass through Iranian territory.

"As another branch of the Middle Corridor, work is underway on the Baku-Nakhchivan-Kars railway line. Simultaneously, the connection of the North-South corridor is expected to enhance Azerbaijan's transit opportunities for itself and its partners."

Rustamov also discussed transit transport with China, explaining that cargo is transported from China's Kashgar province by road through Kyrgyzstan and connects to the railway in Andijan, Uzbekistan. Recently, an agreement was reached between China, Kyrgyzstan, and Uzbekistan to construct a railway line in this section, with completion expected in the next few years.

Rustamov pointed out that the new railway line will create new opportunities for other countries in the region. "Through this new railway line, new opportunities will be opened for Tajikistan, Turkmenistan, Afghanistan, and Pakistan. There are potential opportunities here, such as connecting the Middle Corridor with the Trans-Afghan Corridor," he stated.

Rustamov added that cargo transportation is carried out between China and Andijan, as well as between China and Dushanbe, Tajikistan. By integrating these transportations into the railway network, they can become part of multimodal transportation in the East-West direction.

What is meant by multimodal transportation?

Multimodal transportation refers to the integration of multiple modes of transport to move goods or passengers efficiently from one location to another. This approach combines various transportation methods—such as road, rail, air, and sea—into a single journey, utilizing the strengths of each mode to optimize logistics and reduce costs.

Key benefits

Efficiency: By using the most suitable transport modes for different segments of a journey, multimodal transportation can significantly reduce transit times and improve overall efficiency.

Cost-Effectiveness: Combining modes can lower shipping costs. For instance, using rail for long distances and trucks for last-mile delivery can be more economical than relying solely on one mode.

Flexibility: Multimodal systems allow for greater flexibility in routing and scheduling, making it easier to adapt to changing circumstances such as delays or demand fluctuations.

Environmental Impact: Utilizing the most efficient transport modes can lead to reduced carbon emissions. For example, shipping by rail or sea is often more environmentally friendly than road transport.

Challenges

While multimodal transportation offers numerous advantages, it also presents challenges:

Coordination: Managing multiple transport providers and coordinating schedules can be complex, requiring effective communication and collaboration.

Regulatory issues: Different modes of transport often fall under varying regulations and standards, which can complicate compliance and documentation.

Infrastructure needs: Effective multimodal systems rely on adequate infrastructure, such as intermodal terminals, to facilitate smooth transitions between different transport modes.

Connecting continents: Azerbaijan’s vital role in the 'One Belt, One Road' initiative

Today's event highlights the restoration of the historic Silk Road and the implementation of the globally significant "One Belt, One Road" initiative, said the chairman of ADY.

He noted that President Ilham Aliyev has consistently expressed support for Azerbaijan's role in the "One Belt, One Road" initiative on various regional and global platforms. "As a visible continuation of this initiative, our country, in cooperation with partner countries and their railway administrations, has established the Trans-Caspian International Transport Corridor and signed important agreements aimed at its development."

It should be recalled that in 2013, the People's Republic of China announced a new economic development strategy called "One Belt, One Road," aimed at creating infrastructure and fostering mutual relations among Eurasian countries. The strategy envisions two main directions: the "Silk Road Economic Belt" and the "Maritime Silk Road." This initiative focuses on creating a trade corridor for the direct transportation of goods from East to West under favorable conditions.

Azerbaijan was the first country in the Caucasus region to support China's "One Belt, One Road" initiative. In this context, Azerbaijan serves as a logistics center, hub, and bridge in the implementation of the "One Belt, One Road" strategy.

In conclusion, Azerbaijan is solidifying its position as a key player in global transportation and logistics through its strategic investments and initiatives. By modernizing its transport infrastructure and establishing itself as a vital link between Europe and Asia, Azerbaijan enhances its role in the "One Belt, One Road" initiative. The recent developments, such as the formation of the "Eurasian Transport Route" International Association and ongoing railway projects, demonstrate the country's commitment to fostering regional cooperation and connectivity. As Azerbaijan continues to develop its transport capabilities, it not only bolsters its own economy but also creates new opportunities for neighboring countries, reinforcing its status as an essential transit hub in Eurasia.