intersection of North-South and East-West transport corridors,
Azerbaijan is recognized as an important transport and logistics
center of the region. In this area, successful cooperation is
carried out with the countries of the European Union. The
international transport corridors East-West, North-South and
South-West, passing through the territory of the country, are
beneficial for the transportation of goods both in terms of
distance and time savings. Baku-Tbilisi-Kars railway, Baku
International Sea Trade Port further expand the possibilities of
these transport corridors. Against the background of these
opportunities, the volume of transit cargo is significantly
increasing.
Transit cargo traffic through the territory of Azerbaijan
increased by about 30 percent in the first half of 2022. In some
directions, in particular, along the North-West transport corridor,
the growth of this indicator amounted to 300 percent. In
January-June 2022, the transportation of oil of Turkmen origin
through the BTC oil pipeline increased by 746 thousand tons (155%)
compared to the corresponding period in 2021 and amounted to 1.2
million tons. In the first 6 months of 2022, compared to the same
period in 2021, the transportation of oil products (in particular,
of Kazakh origin) by rail in the direction of Yalama – Boyuk Kesik
increased by 772 thousand tons (an increase of 707 percent) and
amounted to 0.9 million tons.
Taking a strategic central position between Europe and China and
with a developed aviation, rail, pipeline and maritime
infrastructure, Azerbaijan is emerging as a new leading logistics
center in the face of reshaping global supply chains in
Eurasia.
In this regard, it should be noted that a decision was recently
made in the country to create a single headquarters for the
management of transit cargo transportation. The main goal of the
headquarters is to simplify and digitalize procedures at border
checkpoints, improve the processes of synchronized planning and
management of transit operations through a single dispatcher. The
headquarters will monitor operations and regularly submit reports
to the secretariat of the Coordinating Council. A call center will
also be set up at the headquarters to promptly resolve the problems
of cargo carriers during transit. A “Transit Roadmap” has been
drawn up, which defines short-term, medium-term and long-term goals
for the full disclosure of the country’s transit potential.
Among the measures taken by the customs authorities to develop
the transit potential of Azerbaijan, an important place is taken by
the simplification of intermodal transportation. Steps have been
taken to connect to the new European Computerized Transit System.
Thus, from June 1, 2020 to March 31, 2022, in order to join the
Convention on Common Transit Procedures, simplify documentation in
trade in goods and support the State Customs Committee in the
process of joining the new computerized transit system, the EU
implemented an appropriate twinning project. Its main goal was to
simplify trade procedures between the EU countries and
Azerbaijan.
In addition, the Web Transit digital service will be launched in
Azerbaijan in the near future. This platform will improve the
efficiency of the declaration process at customs points, as well as
contribute to the expansion of Azerbaijan’s transit opportunities.
Its launch will make it possible to provide customs authorities
with the necessary information in advance about goods and vehicles
intended for transit through the customs territory and transit
customs declaration, as well as speed up transit customs procedures
by making payments through the electronic system.
The cooperation agreement signed in the middle of this month
between the Turkish holding Albayrak and the Baku port will also
increase the transit potential of Azerbaijan. As part of the
agreement, Albayrak Holding will invest in the construction and
management of a bulk cargo terminal in the Baku port, as well as in
the management of a Ro-Ro terminal in order to redirect Turkish
wheeled vehicles from Central Asia to Azerbaijan. Transshipment of
containers by the port is growing every year. If in 2018 22,887
containers were transshipped through the port of Baku, then in 2019
– 35,024, in 2020 – 40,345, and in 2021 – 45,025. Transshipment of
containers by the port in 2021 almost doubled compared to 2018. By
the end of this year, an even greater increase in this indicator is
predicted. According to the latest data, in the first half of 2022,
the port of Baku increased the transshipment of containers by 31.8
percent compared to the same period last year – up to 27,844 TEU
containers.
The Permanent Secretariat of the Intergovernmental Commission of
the Eurasian Transport Corridor (TRACECA) predicts that in the
current geopolitical situation, container cargo transportation from
China to Europe and back through the territory of Azerbaijan will
grow three to five times by the end of 2022 compared to previous
years. Nevertheless, it is noted that the transport infrastructure
of Azerbaijan is ready for a sharp increase in the flow of transit
cargo. It should be noted that Turkmenistan is also interested in
joining TRACECA, which will make a significant contribution to the
development of the transport corridor and further enhance the role
of Azerbaijan as a transit country.
The importance of the Middle Corridor is also growing, in which
Azerbaijan is also an important link. The middle corridor – the
route from China to Europe – plays a big role in the current
agenda. Trade disruptions in Eurasia and around the world have
greatly increased the importance of the Middle Corridor connecting
East and South Asia with the European part of the continent.
Azerbaijan is critical to the viability of this Middle Corridor
across Eurasia.
The full use of routes through Zangezur will greatly facilitate
trans-Eurasian transportation and ensure the development of the
Middle Corridor. This will have a positive economic impact on the
entire region, from the Black Sea through the Caucasus and Central
Asia to India, China and other countries of East and South Asia.
The Zangezur corridor is an important route that allows to optimize
the transport and logistics schemes of our region, as well as
create opportunities for the transportation of much larger volumes
of cargo. In fact, with the implementation of the Zangezur
corridor, our country will have the opportunity to increase non-oil
and non-primary exports. The growth of trade through the Zangezur
corridor, which will also allow the export of electricity, will
contribute to the prosperity of Azerbaijan and the region as a
whole.
The realization of the transit potential of our country, which
has a favorable geographical position, is of great importance in
the policy of economic diversification. At the same time, the
development of international and regional transport corridors has a
positive effect on improving the efficiency of the economy. Joint
projects in the fields of transport, infrastructure and logistics
expand Azerbaijan’s economic opportunities and increase its
importance. Azerbaijan provides efficient organization of transit
transportation of goods to various destinations. This allows for
safe and timely delivery in a short time on more favorable terms.
Transit routes continue to expand, trade is increasing, which
ultimately leads to the prosperity of Azerbaijan and the whole
region.
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