From oil tankers to transcontinental trains: Achievements and development path of Azerbaijan Railways

October 13 is annually celebrated in Azerbaijan as Railway Workers' Day - a holiday established in 2005 by a decree of President Ilham Aliyev. This date symbolizes the significant contribution of railway transport to the development of the country's economy and society. Azerbaijan's railway network, one of the largest in the Transcaucasus, plays a key role in transporting goods and passengers, contributing to the region's economic growth.

History and role of railways

Railways in Azerbaijan date back to January 1880, when the first 20 km line Baku - Sabunchi - Surakhani was put into operation. Initially, the railway infrastructure served to transport oil from Absheron to the port of Baku. Since then, the country's railways have gone through periods of modernization and expansion.

After the collapse of the USSR, Azerbaijan's railway underwent reorganization, becoming an important element of the new economic system. In 2009, Azerbaijan Railways CJSC was created on the basis of the Azerbaijan State Railway, which today holds a leading position in the country's transport industry.

The engine of new geopolitics

Azerbaijan Railways CJSC has structured its activities as an important element of international corridors since its establishment and has achieved significant progress in this direction. Effective cooperation with many countries and steps taken to attract cargo have made an important contribution to the country's transit and logistics potential.

In recent years, the geopolitical situation has increased the importance of Azerbaijan Railways, bringing them to an international level. Azerbaijan has become an important hub connecting Europe and Asia, especially within the Middle Corridor - a route that bypasses Russia and connects China with Europe through Central Asia, the Caspian Sea, the Caucasus, and Türkiye. Today, the country's railway network plays a key role in ensuring efficient and fast transportation of goods between continents. Thus, despite the lack of access to the open sea, Azerbaijan has become an important international transport hub.

Interest in the Middle Corridor is growing, as evidenced by the increase in freight traffic, which has grown by 70% this year, reaching 3.4 million tons, exceeding the figure for the entire last year. It is projected that by the end of the year this figure will reach 4.2 million tons. Global geopolitical changes contribute to the growing demand for routes connecting China and Europe, and also require diversification and expansion of the corridor's infrastructure. The agreements reached between countries confirm that Azerbaijan can provide faster and more efficient delivery of goods from Asia, including Japan and South Korea, which will significantly increase the attractiveness of the corridor.

The expansion of the route is taking place on both the western and eastern sides of the Caspian Sea. In the west, in addition to Baku-Tbilisi-Kars, the construction of the Baku-Nakhchivan-Kars railway line is planned, which will create an additional branch of the Middle Corridor. The integration of the Middle Corridor with North-South is also expected, which will strengthen the transit potential of Azerbaijan and its partners.

In the east, goods pass from the Chinese city of Kashgar by road through Kyrgyzstan, connecting to the railway in Andijan (Uzbekistan). The construction of a new railway line, recently agreed upon by China, Kyrgyzstan, and Uzbekistan, will open up additional opportunities for countries such as Tajikistan, Turkmenistan, Afghanistan, and Pakistan, and may create conditions for connecting the Middle and Trans-Afghan corridors.

The need for transporting goods from Kyrgyzstan, Uzbekistan, Turkmenistan, and Tajikistan through the southern wing of the Trans-Caspian East-West transport corridor, as a continuation of the Middle Corridor, already exists, and European countries are showing interest in accessing Central Asian markets. In response to this, Azerbaijan Railways initiated the creation of the International Association "Eurasian Transport Route" (ETR) to improve the coordination of transport services and increase tariff accessibility.

The development of the Eurasian transport route and the modernization of key railway lines make Azerbaijan a significant transit hub. Projects such as Baku-Tbilisi-Kars and the modernization of lines leading to ports on the Caspian Sea make Azerbaijan a key transit hub. Moreover, the construction of new railway infrastructure and its integration into international logistics chains contributes to the growth of the country's economic influence.

In the context of global changes, Azerbaijan Railways are becoming not only an important element of the economy but also a strategic geopolitical tool, ensuring the stability of transport flows between East and West.

Achievements and Indicators

Railway transport reforms in Azerbaijan are yielding tangible results, as confirmed by statistical data. From 2020 to 2023, the country significantly increased its transportation volumes, indicating improvements in infrastructure and efficiency of railway network management.

During this period, the volume of rail freight increased by 3.65 million tons (or 25%), reaching 18.276 million tons. The growth in transit transportation is particularly noticeable, increasing by 66.2% (or 2.74 million tons), exceeding 6.87 million tons. This highlights Azerbaijan's growing role as a transit corridor, which is especially important in the context of developing major projects such as North-South and East-West.

The implementation of digital technologies simplifies transportation processes, as cargo processing time at borders has been reduced, and shippers can track their cargo in real-time. The transition to electronic services continues rapidly, and today railways offer the possibility of online card balance top-up on their website, allowing passengers to save time. Additionally, a dynamic pricing system for intercity routes has been introduced, where ticket prices depend on the day of the week, direction, holidays, and demand. This approach allows passengers to get more favorable rates with early booking and encourages trip planning.

The loyalty program for suburban trains through the ADY Mobile app offers 3% cashback for each trip, bonuses for registration and community participation, attracting more passengers to use rail transport and digital services.

From 2020 to 2023, the number of passengers using the railway increased 3.4 times, reaching 7.19 million people, the highest figure since 1995. Improved travel conditions, modernization of rolling stock, and route expansion contributed to the growth in passenger trust.

Railway transportation expenses during the same period increased by 25.6%, amounting to 501.159 million manats ($294.799 million). A significant increase is noted in passenger transportation expenses - 2.6 times (up to 326.202 million manats, or $191.883 million), associated with rolling stock renewal, station modernization, and service improvements.

The average monthly salary of railway employees also increased 2.2 times, reaching 1,200.3 manats ($706.06), reflecting efforts to improve working conditions and attract qualified specialists.

The positive dynamics continued in 2024. In the first six months, the freight volume was 9.32 million tons, 1.8% more than in the same period last year. Passenger traffic for the same period increased by 19.2%, reaching 3.85 million people, and approached 6 million people after nine months, indicating a stable growth in demand for rail transportation.

Efforts to improve working conditions also continue: the average employee salary in January-June 2024 was 1,402.4 manats ($824.94), 21.3% higher compared to the same period of the previous year.

Recognition and Awards

Recognition of Azerbaijan Railways employees' merits has gained special significance, and their professional holiday has become an important event highlighting the employees' contribution to the country's development. Annually, the best industry workers receive state awards and commemorative gifts, demonstrating recognition of their work and important role in strengthening the national economy.

Today, Azerbaijan Railways is a modern, dynamically developing industry that not only supports the domestic economy but also contributes to the country's integration into global transport projects such as the Eurasian Route and the Middle Corridor.

Given the active expansion of international transport routes and infrastructure development, the role of Azerbaijan Railways will only strengthen, reinforcing the republic's position as a key player in global trade and logistics.