Azerbaijan as the main transportation hub of Eurasia - North-South or East-West? -ANALYSIS

Azerbaijan as the main transportation hub of Eurasia - North-South or East-West? -ANALYSIS
# 30 April 2024 14:50 (UTC +04:00)

International transport corridors are one of the most important factors in the development of the world economy in the context of global integration processes and global division of labor. Corridors ensure the creation and operation of stable transport links between various foreign participants of international economic relations.

Being a part of global economic processes, the role of Azerbaijan in the development of international transport corridors is increasing and it spares no efforts in this direction.

As a clear example of this, it is worth mentioning the discussion of the "North-South" international transport corridor during the business visit of the President of Azerbaijan Ilham Aliyev to the Russian Federation on April 22. During the visit, the heads of state gave instructions to the relevant government representatives to take the necessary steps towards the implementation of the project.

President Ilham Aliyev noted that there is a railway line connecting Azerbaijan with Russia, but the expected 15 mln. the existing infrastructure for transportation of tons of cargo should be expanded accordingly.

In addition, within the framework of the visit, the joint meeting of President Ilham Aliyev and President Vladimir Putin with the veterans and employees of the railway sector on the occasion of the 50th anniversary of the Baikal-Amur Highway was an event of special importance. The role and important contributions of Heydar Aliyev, the national leader of the Azerbaijani people, in the implementation of this huge project, while working under the leadership of the USSR, were specially noted at the meeting held in cordial conditions. It was reported that the efforts and determined will of Heydar Aliyev played an important role in overcoming the technological and natural difficulties encountered in the construction process of BAH, which is currently of great importance for Russia and the global economy.

It should also be noted that Azerbaijan attaches great importance to the development of the transport sector, increasing its role in transport corridors and expanding the transit potential. One of the important factors underlying the development of the country's transport sector is the implementation of infrastructure projects and the establishment of a management system that meets modern standards. In this direction, funds were allocated from the state budget, and loans were also attracted. As a result of these efforts, the share of the transport sector in GDP increased from 5.4% to 7% in 2024.

In the current global economic conditions and geopolitical processes, the issue of the development of international transport corridors has become more urgent and is on the agenda. The role of Azerbaijan, located at the intersection of a number of corridors, has increased in the direction of the work carried out to increase their importance and load carrying capacity.

Years ago, our country implemented a number of works and programs in the direction of the development of international cargo transportation. Thus, under the leadership of the Head of State, "State Program for the renewal and development of the highway network in Azerbaijan for 2006-2015", "State Program for the development of the transport system in the Republic of Azerbaijan (2006-2015)", "Transportation in the city of Baku" Additional Actions Plan for 2008-2013 on the Improvement of the Railway System", "State Program for the Renewal and Development of the Road Network in the Republic of Azerbaijan (2006-2015 Years)", "The Improvement of the Railway Transport System in the Republic of Azerbaijan in 2010-2014 State Program on Development" etc. numerous programs covering various directions have been successfully implemented.

In terms of increasing the role of Azerbaijan in the transport corridors, it is necessary to emphasize the importance of the Action Plan "for the years 2024-2026 on increasing the transit potential of the international transport corridors passing through the territory of the Republic of Azerbaijan and promoting transit freight", approved by the Decree of the President of the Republic of Azerbaijan on November 23 last year.

In 2005, Azerbaijan, which continuously works and implements measures in the direction of the restoration of the Great Silk Road, joined the North-South transport corridor. Thus, the country's opportunities to become an important transport transit hub of Europe and Asia at the intersection of the East-West (Great Silk Road) and North-South transport corridors have increased.

At present, work is being done in our country in the direction of the development of the North-South corridor and the improvement of movement along it. Thus, "Azerbaijan Railways" CJSC is conducting reconstruction works on the Sumgayit-Yalama railway line, which is an important component of the North-South international transport corridor.

The Sumgayit-Yalama railway is being reconstructed within the framework of the measures taken in the direction of the implementation of the North-South international transport corridor, which plays an important role in strengthening the transit-logistics potential of Azerbaijan. The axial length of the road connecting the Absheron peninsula with the northern border of the republic is 167.7 km, the opened length is 362.8 km. Reconstruction works are planned to be completed by the end of 2024.

Let's add that the North-South Transport Corridor is mainly designed for the delivery of goods from India and the Iranian Gulf region to Russia, Western Europe, the Baltic and Scandinavian countries. The main advantage of the North-South Transit Corridor compared to other routes is that the transit distance and transit time are two to three times less. If shipping by sea takes 45-60 days to Helsinki through the Persian Gulf and Indian Ocean, Suez Canal, Mediterranean Sea, Baltic Sea, then it takes 20-25 days with the North-South Transit Corridor.

It should be emphasized that the Baku-Tbilisi-Kars (BTK) railway plays an important role in the development of trade relations between East and West and makes Azerbaijan an important transit transportation center. Currently, the modernization of the railway line, which was initially commissioned in 2017, is being carried out.

Thus, the repair-restoration, reconstruction and expansion works carried out in the 183 km long complex geographical relief area are about to be completed. The main goal of the modernization of the mentioned railway line is to increase the competitiveness of the Middle Corridor and to attract a significant part of the cargo to the BTK.

"Our goal is to increase the volume of cargo transportation over the BTK to 5 million tons per year, to make the BTK one of the most attractive parts of the Middle Corridor. Increasing the volume of cargo sent from Central Asia, and from Asia as a whole to the West and vice versa, is the demand of the day, a new reality. Azerbaijan Railways is ready to respond to these challenges with the modernized BTK railway line, to compete at the international level in terms of cargo transportation," said Rovshan Rustamov, chairman of Azerbaijan Railways CJSC.

Let's also add that the modernization works of the Georgian railways, as well as the part of the railway line passing through the territory of Georgia, are planned to be completed this year. The mentioned works will also contribute to the increase of cargo transportation along the route and the acceleration of processes.

Thus, as a result of the successfully implemented strategy of Azerbaijan, our country has become the main decisive force between China-Europe-China, which is the main cargo flow direction of the world.

As a result of geopolitical events in the world and the region in recent years, the Trans-Caspian International Transport Corridor - the Middle Corridor has become the shortest and most convenient route connecting Europe and Asia by passing over the countries of Central Asia and the Caspian Sea. The cargo train going from China to Europe will travel 7,000 kilometers instead of 10,000 kilometers in 12 days through the Middle Corridor. This shows how profitable and safe the corridor is in global trade between Asia and Europe.

Azerbaijan has become a decisive country between Asia and Europe, which is the main cargo flow direction of the world, and is a leading country at the junction of East-West and North-South transport corridors. Most importantly, Azerbaijan's initiatives ultimately create an artery over the Caspian that also connects the Turkic states. On the other hand, the Victory achieved in the 44-day long Patriotic War further increased the potential of Azerbaijan as a transit country. The opening of the Zangezur Corridor will further increase the role of Azerbaijan in the world. Through Zangezur, it will be possible to access from Nakhchivan to Turkey, and from there to a wider geography. After the Zangezur Corridor is opened, Azerbaijan's transportation opportunities through the Middle Corridor will expand further.

Summing up, it should be noted that Azerbaijan, by using its natural resources effectively, has improved its entire economy and turned it into one of the most dynamically developing economies. The development has affected not only the oil and gas sector, which has a very long history in Azerbaijan, but also other industries, including the transport sector.

Now the country, which has a very favorable geographical position, is a part of large transport corridors, acts as an initiator and participant of large transport projects on a regional and international scale. All these efforts, in turn, will allow Azerbaijan to become a major transportation hub, as well as a reliable supplier of hydrocarbons to world markets.

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