Azerbaijan boosts its global transport and energy role with key projects

Azerbaijan’s advantageous geographical position and abundant resources have long enabled it to serve as a vital link between Europe and Asia. Today, this role as a bridge is being further strengthened through enhanced cooperation with neighboring countries.

A key initiative in this effort is the Trans-Caspian International Transport Route, also known as the Middle Corridor. This route facilitates connectivity between China, Kazakhstan, Azerbaijan, Georgia, Turkiye, and various European countries, by crossing the Caspian Sea and linking these regions seamlessly.

The development of bilateral relations with China is a key priority in Azerbaijan’s foreign policy. On July 3 of this year, a significant step was taken with the adoption of a Joint Declaration establishing a strategic partnership between Azerbaijan and China, during the Shanghai Cooperation Organization Summit in Astana.

This declaration highlights the commitment of both nations to collaborate on the Middle Corridor project. The document specifies that China is dedicated to actively participating in the construction and operation of the Trans-Caspian International Transport Route (Middle Corridor). It emphasizes a joint effort to enhance the continuous operation and accelerated development of freight train routes between China and Europe, as well as the South Corridor. The declaration also underscores China's readiness to work closely with Azerbaijan and other countries along the route to foster regional cooperation, enhance production and supply chain security, and ensure stability. This alignment reflects a shared vision between China and Western interests regarding the Middle Corridor project.

In 2013, China introduced its "One Belt, One Road" initiative, a comprehensive economic development strategy designed to enhance infrastructure and foster connections between Eurasian countries. Azerbaijan was the first nation in the Caucasus to endorse this ambitious plan, positioning itself as a key logistics hub, junction, and bridge in the "One Belt, One Road" strategy.

Notable infrastructure projects, such as the Baku-Tbilisi-Kars (BTK) railway and the Baku International Sea Trade Port, are crucial to the initiative and regional cooperation. The BTK railway, providing the most direct rail link between Europe and China, has significantly reduced transit times, allowing goods from China to reach Europe via Azerbaijan in just two weeks. Both Azerbaijan and China are committed to elevating their cooperation on the Middle Corridor, exploring new opportunities, and expanding their partnership.

The Baku-Tbilisi-Kars railway not only benefits Azerbaijan, Georgia, and Turkiye but also creates new economic prospects for the broader Eurasian region.

During President Ilham Aliyev's official visit to China in December 2015, a significant agreement was signed: the "Memorandum of Understanding between the Government of the Republic of Azerbaijan and the Government of the People's Republic of China on the Joint Promotion of the Silk Road Economic Belt."

Azerbaijan's unique position as a member of both the "East-West" and "North-South" transport corridors enables it to offer connectivity opportunities for countries to the north and south, facilitating their involvement in this major project.

The Middle Corridor, operational since 2014, stands out as the most efficient and secure route for transporting goods between China and Europe. Stretching from China through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkiye to European countries, it has proven its value in global logistics.

In 2023, approximately 2.8 million tons of cargo were transported through the Middle Corridor, marking an 86 percent increase from the previous year. Projections for 2024 suggest that cargo volumes will surpass 4 million tons, with around 250 container block trains expected to transit the corridor by year’s end.

Furthermore, in the first half of 2024 alone, cargo transport on the Trans-Caspian International Transport Route saw a 65 percent increase, reaching 2.1 million tons.

Given the current geopolitical climate and regional developments, the Middle Corridor has emerged as the most direct and efficient route linking Europe and Asia via Central Asia and the Caspian Sea. This route not only enhances its strategic importance but also opens up unique opportunities for deepening cooperation among countries across a broad region. Consequently, Azerbaijan’s role in regional connectivity projects, such as the East-West and North-South transport corridors, has become increasingly significant.

Azerbaijan, situated at a crucial junction on the West-East route, plays a pivotal role in the critical project of linking China and Europe, two of the world's largest economies. Amid global and regional challenges, including disruptions in the Red and Black Seas and the Suez Canal, the Middle Corridor stands out as the most reliable and efficient connection between Europe and Asia, traversing Central Asia and the Caspian Sea.

A comprehensive plan for the development of the Middle Corridor maritime infrastructure has been adopted for the 2024-2028 period. This plan outlines the establishment of a major maritime transport and logistics cluster centered around the ports of Aktau and Kurik.

The initiative aims to enhance container capacity, expand cargo terminals, and advance international transport logistics. Additionally, it seeks to streamline administrative processes, reducing barriers to efficiency and facilitating smoother operations.

The inaugural trial transit of cargo from China to Europe via the China-Kazakhstan-Azerbaijan-Georgia route through the Kurik and Baku seaports marked a significant milestone.

Currently, dredging operations are underway in the Kurik port waters to ensure safe navigation. These operations are part of a broader initiative to develop the Trans-Caspian International Transport Route (TITR) and will address the increasing demand for cargo transport on this route.

The dredging is being conducted with advanced deep drilling equipment provided by the major European company "Jan de Nul." An EPC contract with this company covers all phases from design to completion of the dredging work. These improvements will enhance the terminal's capacity and functionality.

As it stands, Kurik Port has a capacity of 6 million tons (4 million tons for the railway terminal and 2 million tons for the car terminal) and can accommodate up to 250 trucks. Similar enhancement projects are planned for the Aktau port.

In the first seven months of this year, cargo transport through TITR saw a 62 percent increase, reaching 2.5 million tons compared to 1.6 million tons in the same period of 2023.

Azerbaijan is also enhancing its role as an "energy bridge" through a significant collaborative project with Central European countries. Azerbaijan, in partnership with Georgia, Romania, and Hungary, is developing the Caspian Sea-Black Sea-Europe energy corridor. This project aims to export 4 GW of electricity. Additionally, 1 GW of "green energy" is planned to be transported via the Nakhchivan-Turkiye-Europe route.

Another pivotal initiative is the "Digital Silk Way," which aims to transform Azerbaijan and Kazakhstan into key international transport and communication hubs. A major component of this project is the construction of an under-Caspian fiber-optic cable highway, a critical infrastructure that will enhance digital connectivity across the region.

In this context, it is noteworthy that on September 28, 2022, AzerTelecom and Kazakhtelecom signed a memorandum of strategic partnership. This agreement is centered on the ambitious project to lay a fiber-optic communication line across the Caspian Sea, furthering the development of regional digital connectivity.

Azerbaijan’s strategic location and abundant resources have long positioned it as a crucial link between Europe and Asia. As the Middle Corridor continues to grow in significance, enhanced cooperation with neighboring countries and pivotal infrastructure projects are reinforcing Azerbaijan’s role as a major logistics and energy hub. Key initiatives, such as the development of the Trans-Caspian International Transport Route and the Caspian Sea-Black Sea-Europe energy corridor, showcase Azerbaijan’s commitment to expanding regional connectivity and facilitating global trade.

The successful trial transit of cargo and ongoing improvements in maritime infrastructure, including dredging projects at Kurik port, underscore the growing capacity and efficiency of the Middle Corridor. Additionally, the establishment of strategic partnerships, such as the agreement between AzerTelecom and Kazakhtelecom, highlights Azerbaijan’s proactive approach to advancing digital connectivity.

As global and regional dynamics evolve, Azerbaijan is poised to continue its pivotal role in international transport and energy projects, driving economic growth and fostering deeper regional cooperation.