Baku 26° C
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Azerbaijan has the potential to generate between $250 million and $300 million annually by serving as a transit hub for cargo moving from India and Southeast Asia via the International North–South Transport Corridor (INSTC), according to Iranian diplomat and expert Hamidreza Arshadi.
Speaking at the international roundtable “Shaping Eurasia’s Transport Framework and Azerbaijan’s Key Role in the Process” in Baku, Arshadi, a former Iranian ambassador to Romania and an advisor to the Iranian Embassy in Azerbaijan, emphasized the strategic importance of transport cooperation between Iran and Azerbaijan—particularly the development of the North–South Corridor, according to Report.
"Cargo volumes along this route increased by 50% in 2023," Arshadi noted. "The construction of the Aghband railway bridge has also significantly expanded the logistical capabilities between our countries."
He underlined that the INSTC serves as the shortest and most efficient transit route connecting Europe and Asia, contributing to regional connectivity, economic diversification, and enhanced international trade.
Goods originating in India and Southeast Asia will be shipped via Iran's Bandar Abbas port and cross Azerbaijan. According to Arshadi, the corridor's potential capacity is up to 15 million tons of cargo annually, offering Azerbaijan a major opportunity to become a vital transit hub and earn up to $300 million per year.
"Transport via this corridor will be 10–15% cheaper than alternative routes," he said. "It shortens the journey by 800 kilometers compared to the Suez Canal route and reduces delivery times by up to 20 days. Moreover, it offers greater reliability in terms of final delivery."
Preliminary estimates show cost savings of more than $2,500 for every 15 tons of cargo transported along the corridor. Arshadi highlighted the strategic importance of the corridor's western route—running from Astrakhan and Makhachkala in Russia, through Azerbaijan (from Samur to Astara), and into Iran via the Astara-Rasht-Qazvin railway, which is still under construction.
"This route is of particular strategic value not only to the broader region but especially to Azerbaijan," he concluded.
