Azerbaijan and Turkmenistan enhance rail freight collaboration throughout Eurasia

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Azerbaijan, Turkmenistan and Iran are intensifying the collaboration efforts to boost rail freight transportation across Eurasia. They will focus on the Trans-Caspian International Transport Route or TITR.

Photo: Discussions focus on boosting freight traffic along Central Asia-Europe routes
Source: Azerbaijan Railways

During his recent visit to Turkmenistan Rovshan Rustamov (Chairman of Azerbaijan Railways, ADY) engaged in detailed discussions Azat Atamuradov (Head of Turkmenistan Railway Agency), and senior representatives of the Turkmenistan Marine Agency.

Recent talks aimed at strengthening railway relations between the countries and increasing freight traffic, particularly via multimodal transport along Central Asia-Europe and China Europe routes. They recognized the potential of collaboration and the necessity to promote these opportunities on the European market.

Rustamov also met with top Turkmenistan oil and gas executives to discuss Azerbaijan’s plans to expand the Middle Corridor.

TITR, or the Middle Corridor (initiated in 2013), is seen as a pivotal point for realizing Central Asian and South Caucasus nation’s high transit potential. TITR International is made up of Azerbaijan and Bulgaria, China, Georgia. Kazakhstan, Poland, Romania and Turkiye.

Photo: Middle Corridor offers a faster, more economical trade route than the Northern Corridor
Source: VOA

The Middle Corridor is a faster and more cost-effective trade route than the Northern Corridor. It consists of approximately 4,250 km of rail and 500 km of seaway.

The Middle Corridor also offers a 15-day reduction in travel time compared to sea routes, and passes through a more favorable climate. The Middle Corridor offers huge opportunities for cargo traffic, allowing goods to reach the Middle East and North Africa as well as the Mediterranean region through Turkiye port connections.

Middle Corridor’s strategic location is expected to generate substantial economic opportunities for South Caucasian and Central Asian countries, allowing them to benefit from the $600bn China – Europe trade each year. Trans-Caspian Cooperation will be boosted by the creation and expansion of free trade zones and logistics centers at the ports of Azerbaijan and Kazakhstan. By leveraging the Middle Corridor’s advantages, countries in the area can achieve increased economic growth and trade.

Azerbaijan has invested in the Middle Corridor, upgrading its multimodal transport system, including railways. Azerbaijan Railways announced in May that the Baku-Tbilisi – Kars railway expansion project was completed. The 184-kilometer Georgian segment of this line was modernized to increase its annual throughput from 1mn tonnes to 5mn tonnes.

Photo: Azerbaijan completes the modernization of the Baku-Tbilisi-Kars railway section
Source: Google Images

The first train on the upgraded BTK, which completed the journey on 25 May, left Azerbaijan after the resumption in freight operations. According to the railway administration in Turkiye, BTK has transported more than 1.5mn tons since its launch in 2017.

Turkmenistan is always looking for effective ways to export its primary commodities including oil and gas. It has, therefore, been a pro-active advocate for the Middle Corridor since its inception. Turkmen officials began exploring the idea of building a transnational highway that would stretch to China in 2023.

Ashgabat, demonstrating its commitment to Middle Corridor investment, invested $1.5bn in the 2010s for Turkmenbashi port to improve its principal intermodal hub. The expansion was aimed at Turkmenbashi facilities that could handle up to 17mn tones of cargo per year, including 400,000 shipping container.

In April, the Chairman of Turkmendenizderyayollary (Turkmen Sea and River Routes), Batyr Annaev, said the integration of the Turkmenbashi port into the Middle Corridor would contribute to the growth of the economies of Central Asian countries and strengthening their position in the world market.

He emphasized Turkmenistan’s unwavering measures to boost the activity at the Turkmenbashi Port. The efforts include implementing incentives, such as reductions of port fees and discounts on maritime transport. The port maintains regular ferry service with the Baku Sea Trade Port, and feeder transportation using dry cargo ships.

“It (Turkmenbashi Port) plays an important part in the transit system in Central Asia. It is a link on the East-West Corridor. The port’s throughput capacity is 17mn tons annually, which allows it to process all the goods demanded in the region. “Regular cargo transportation is carried on the route Turkmenbashi-ports of the Caspian States,” Annaev said.

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