Azerbaijan - TransportationAzerbaijan - Transportation
Azerbaijan is positioning itself as a transportation hub for East-West trade in the region through major infrastructure investments. The completion of the Baku-Tbilisi-Kars railway and the Alat Port create a potential transit route for trade between East, Central, and South Asia and Europe. Azerbaijan has also vastly expanded its air cargo facilities with cold storage and a modern general cargo terminal at the Heydar Aliyev International Airport in Baku. These air cargo facilities will complement Azerbaijan’s investments in road, port, and rail infrastructure.
The Baku-Tbilisi-Kars (BTK) railway links the Soviet-era rail systems of Azerbaijan and Georgia to that of Turkey, and, eventually, the rest of Europe. The peak capacity of the corridor will be 17 million tons of cargo per year, once fully operational. At the initial stage, this figure will include one million passengers and 6.5 million tons of cargo. Azerbaijan is also building a North-South transport corridor with Iran and Russia.
Azerbaijan has also developed a new Caspian Sea port at Alat. Alat is situated at a rail and road hub, allowing for multimodal North/South and East/West transit and is able to accommodate rail ferries that can transport 52 train cars at a time. The three-phase project will cost of $544.74 million. A free trade zone located adjacent to the port will offer companies tax and customs exemptions in an effort to encourage value added processing in addition to through transit Azerbaijan. Almost 4 million tons (excluding oil) of cargo were handled at Alat Port in 2018.
Freight forwarders, logistics/supply chain developers, and managers may have opportunities as the BTK railroad and Alat Port develop. Firms with experience working with difficult customs regimes or helping countries reform their customs operations may also do well in Azerbaijan.
Suppliers of aircraft, rail wagons, locomotives, transport equipment, construction equipment, and materials or international transportation companies may find opportunities in the transport sector, especially as links across the Caspian and into Turkey are completed.
Ministry of Transportation, Communication, and High Technologies:
Port of Baku and Port Alat:
Azerbaijan Distribution and Logistics Trade Development and Promotion