Railways of Azerbaijan and Kazakhstan are upgrading the Middle Corridor

2024-10-23 21:06:00, Kosova & Bota CNA

Much has been reported in recent years about the steady progress across Central Asia and the Caucasus in creating the so-called "Middle Corridor", also known as the Trans-Caspian International Transport Route (TITR), a multimodal transport system, which allows rail traffic from China to reach Western Europe without passing through the Russian rail network under heavy Western sanctions from 2022.

Western sanctions on Russia gave the project a massive boost, but coordination between the countries involved has continued for more than a decade. Azerbaijan Railways CJSC (ADY) actively participates in the "Trans-Caspian International Transport Route" of the International Association of Legal Entities (TMTM) since its establishment in February 2014.

This strategic cooperation aims to increase the efficiency and effectiveness of transport links between Azerbaijan, Georgia and Kazakhstan, Arif Agayev, Advisor to the President of Azerbaijan Railways CJSC, told NE Global in Baku on October 4.

At the governmental level, on November 25, 2022, in the city of Aktau, Kazakhstan, the Ministers of Foreign Affairs and Transport of Azerbaijan, Turkey and Kazakhstan signed the "Roadmap for the Elimination of Obstacles and the Development of the Middle Corridor for 2022-2027." "This agreement represents an important step in increasing the efficiency and capacity of the Middle Corridor. The roadmap aims to synchronize efforts across the three countries to address infrastructure bottlenecks and improve the overall flow of goods through this crucial transport corridor. This roadmap highlights the commitment of Azerbaijan, Turkey and Kazakhstan to foster greater regional cooperation and to benefit from the growing importance of the Middle Corridor for global trade. On the part of Azerbaijan, one of the main entities responsible for the implementation of the roadmap is Azerbaijan Railways (ADY).

At the level of railway administrations in 2022, a Medium-Term Planning Service was established between the railways of Azerbaijan, Georgia and Kazakhstan, to facilitate the exchange of information and forecasting of key strategic goods among the participants of the Middle Corridor. Finally, in 2023, a joint venture was established for the management of transit goods along the Middle Corridor by the railways of Azerbaijan, Georgia and Kazakhstan. The new company, called Middle Corridor Multimodal Ltd, is based in the International Financial Center of Astana, Kazakhstan. Under this joint operation, the company will facilitate services based on the "one-stop shop" principle, guarantee the delivery time of goods, and implement a coordinated policy for the development of multimodal services along the China-Europe route. /Turkey-China.

Railways of Azerbaijan and Kazakhstan are upgrading the Middle Corridor

The Middle Corridor continues to attract significant investment and will play a crucial role in the shift to alternative trade routes. China Railways expressed interest in joining the joint venture Middle Corridor Multimodal Ltd.

To improve the operational efficiency of the route, Azerbaijan Railways has implemented a number of comprehensive measures, including the integration of modern information-analytical systems for the management of cargo operations and the creation of real-time cargo tracking services along the corridor. This has increased transparency and control over shipments. ADY actively participates in international forums and working groups dedicated to developing the corridor, creating new partnerships and creating agreements with transport operators and logistics companies from other countries to simplify procedures and increase cargo volumes. An example of ADY's international cooperation is its participation in the working groups of the World Bank, the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), as well as its membership in organizations such as TRACECA and the Organization for Cooperation Railways, which focus on the standardization and development of international transport. ADY is steadily modernizing infrastructure and updating information systems to optimize cargo management and real-time cargo monitoring.

Plans to modernize Azerbaijan Railways and improve its environmental impact

In recent years, ADY has embarked on an ambitious journey to transform the railway infrastructure, with a strong emphasis on modernization and sustainability. ADY's ongoing projects are proof of the company's commitment to creating a more efficient, reliable and environmentally friendly railway system, Agayev said.

One of the main initiatives is the installation of power supply and communication signaling systems on the Baku-Boyuk Kasik railway line, which spans 503 kilometers along the Middle Corridor. ADY has made significant progress in rebuilding the electricity supply network, with 73 percent of the project already completed.

Along the North-South transport route, the project for the construction of the Alat-Osmanli-Astara railway line has progressed significantly, along with the planning, reconstruction and development of energy supply and communication-signaling systems. The railway line will expand the potential of the North-South transport route and increase its freight capacity.

The construction of the Barda-Agdam, Agdam-Khankendi, Horadiz-Agband and Agband-Salammalik railway lines is not only about rebuilding the infrastructure; it represents a modern and strategic vision for the future of the territories of Karabakh and the Western Zangezur region. Overall, these initiatives reflect Azerbaijan's wider ambition to modernize its railway infrastructure, ensuring that it meets contemporary standards of efficiency and effectiveness.

ADY has 102 electric locomotives out of a total fleet of 224, with a focus on sustainability through the purchase and replacement of aging units with electric freight locomotives. In line with its modernization initiatives, ADY has procured 13 electric passenger trains and three more are expected by the end of 2024.

Efforts to modernize ADY are not only about improving infrastructure - they are also about contributing to Azerbaijan's national sustainability agenda. By reducing ADY's carbon footprint through electrification and introducing more efficient trains, ADY is aligning the company with the country's wider goals of reducing CO2 emissions and transitioning to greener transport solutions. Azerbaijan Railways operates an operational length of railway lines totaling 2,140 km, with 1,151 km of this network electrified. Electrification is essential for sustainability goals.

Azerbaijan Railways is strategically advancing its digital transformation to position itself as a leader in modern railway logistics and operations. With the recent approval of a $47 million loan from the Asian Development Bank, ADY aims to optimize operations and significantly increase its efficiency. This transformation focuses on leveraging advanced technologies to automate planning processes, improve security measures, incorporate data analytics into decision-making and move to paperless operations. The digital strategy includes seamless integration into international logistics platforms, further aligning ADY with global trade flows. This strategic digital transformation underscores ADY's commitment to future-proofing its infrastructure and aligning with Azerbaijan's broader economic goals.

Azerbaijan Railways is strongly committed to reducing its carbon footprint, and ADY has set an ambitious target of reducing emissions by 40 percent by 2050. In addition to electrifying the railway infrastructure and using electric trains, ADY is already taking steps to important towards this goal, with initiatives such as the solar energy projects in the locomotive depots of Bilajar and Ganja. Solar power generation allowed ADY to reduce emissions by nine percent last year.