By Sabina Alizade
Azerbaijan Railways is considering acquiring or building a terminal in China, which will allow Azerbaijan to strengthen its presence in the Chinese market and ensure a more efficient railway link between the two countries.The issue was discussed at a recent meeting between Azerbaijan Railways (ADY) Chairman Rovshan Rustamov and the Chairman of the China State Railway Group, Liu Zhenfang, in Beijing.
Another topic of discussion at the meeting was bilateral cooperation in railway transport between Azerbaijan and China. Special attention was given to the Middle Corridor project, which is a key element in strengthening transport links between Europe and Asia.
The appointment of a special ADY representative to China and the potential opening of a representative office are important steps towards enhancing partnership and communication transparency between the two countries.
Azerbaijan is actively developing its infrastructure to ensure efficient transportation of goods through the Middle Corridor. In recent months, the volume of freight traffic along this route has significantly increased, indicating its growing competitiveness. Additionally, plans have been presented to resume freight transportation on the Baku-Tbilisi-Kars railway and increase its capacity to 5 million tons per year.
Transport and logistics expert Rauf Agamirzayev emphasized that the news of a possible acquisition or construction of a terminal in China is extremely positive. He noted that Azerbaijan has owned terminals in various regions over the years, such as SOCAR's oil terminal in Kulevi and container terminal in Izmir. These investments demonstrate Azerbaijan's capability to strengthen its position in strategic locations.
"Interest in a container terminal in China at the next stage indicates that Azerbaijan is strengthening its position in the East-West corridor . This demonstrates Azerbaijan's functionality not only as a transit country but also as a country creating opportunities for freight transport along the corridor," he said.
Agamirzayev also noted that interest in Azerbaijan and the Middle Corridor is growing, with infrastructure solutions ensuring faster freight transportation. He emphasized that such terminals will help attract more cargo and create more flexible tariffs.
The acquisition or construction of a terminal will also lead to an increase in the number of block trains. Kazakhstan also has a terminal in China, and a multimodal terminal has been built in the port of Poti in Georgia. Such projects will serve the growing needs for freight transportation in the corridor in the future.
Discussions with China's railway corporation regarding the Trans-Caspian International Transport Corridor are focused on faster and safer freight transportation, and attracting additional cargo. Both countries have introduced innovations in the processes of operational train inspection, daily transmission of container trains, locomotive movement, and cargo transfer at customs and border points. Working groups created for coordinating transit-logistics processes in Azerbaijan have met multimodal transportation requirements, contributing to increased transit.
ADY reports that the volume of freight traffic through the Middle Corridor increased by 35% in the first four months of this year compared to 2023. A total of 60 block trains were dispatched from Xi'an in China through this corridor. Freight transportation on the Baku-Tbilisi-Kars railway was resumed, with its capacity reaching 5 million tons per year.
Both companies discussed the possibility of subsidizing transit rail transportation through Azerbaijan by the Chinese side to increase the competitiveness and capacity of the Middle Corridor. ADY expressed readiness to contribute to forming cargo flows from Europe to China through Turkey and Azerbaijan.
To ensure uninterrupted freight transportation and optimize transit times along the route, ADY, together with its partners, has developed and is implementing an action plan to eliminate infrastructure constraints, electronic document management, the use of the ADY Smart program for cargo owners, synchronization of operations, and effective distribution of the rolling stock along the route.
A joint venture has been created between the railways of Azerbaijan, Kazakhstan, and Georgia to increase the volume of transit cargo and effectively manage them through the Middle Corridor.
