Azerbaijan is rapidly emerging as a central player in global logistics, capitalising on its strategic location as a bridge linking the Caucasus, Middle East and Central Asia. This geographical advantage makes it a natural hub for trade and investment. With substantial investments in transport infrastructure, active participation in international trade corridors and a commitment to sustainability, the country is solidifying its role as a vital link in global supply chains. In this blog, I am proud to share why I believe these bold steps are positioning Azerbaijan as an indispensable player in the future of global trade.
Expanding trade corridors and infrastructure
The country is actively developing its transport networks to enhance regional connectivity and facilitate trade. The Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, is gaining traction as a key alternative to Russian-dominated trade routes. By partnering with Kazakhstan and Georgia, Azerbaijan is optimising cargo flows along this route through improved tariff structures, digitalisation and streamlined logistics (Geopolitical Monitor).
Meanwhile, the Baku-Tbilisi-Kars (BTK) railway, operational since October 2017, connects Azerbaijan, Georgia and Turkey and serves as a crucial east-west link, connecting Asia to Europe through the South Caucasus (Caspian Policy Center). The Baku International Sea Trade Port at Alat further strengthens Azerbaijan’s position, offering a multimodal transport hub integrating rail, road and sea networks. The adjacent Alat Free Economic Zone (AFEZ) provides tax and customs incentives, attracting foreign investment and boosting exports.
Additional strategic initiatives include the North-South International Transport Corridor (NSTC), which enhances trade between Southeast Asia, Russia and Northern Europe and the Ashgabat Transit Agreement, improving transit efficiency across the Caspian region (AzerNews).
Modernising transport and digital trade
Azerbaijan is embracing digitalisation to streamline cross-border logistics. Investments in digital transport corridors are reducing bottlenecks and enhancing trade efficiency. The country’s 2024-2026 Action Plan and the 2025-2030 State Program focus on modernising transport infrastructure, ensuring scalability and sustainability (AzerNews).
Sustainability efforts are also a key priority, with investments in green energy projects such as the 230-megawatt solar plant launched in 2023. Plans for a green energy corridor to Europe align with Azerbaijan’s long-term vision of sustainable trade and infrastructure development (News.az).
Joining global partnerships
Azerbaijan’s expanding role in global trade is supported by its active engagement with international organisations and key trading partners. Collaborations with the European Union (EU), Turkey, China, Russia and Central Asian nations are driving economic growth and increasing trade opportunities:
Additionally, Azerbaijan plays an active role in organisations such as BRICS, the Shanghai Cooperation Organisation (SCO) and TRACECA, further advancing its influence in global logistics (AzerNews).
Capitalising on geopolitical shifts
The shifting geopolitical landscape, particularly the Russia-Ukraine conflict, has accelerated Azerbaijan’s emergence as a preferred trade hub (Harvard University). With sanctions limiting Russia’s role in transit, the conflict has disrupted traditional trade routes, compelling countries and businesses to explore alternative pathways for energy and goods. As a result, many are increasingly redirecting trade through Azerbaijan. Kazakhstan, for example, is exploring new oil export routes to Europe via Azerbaijan, reinforcing the country’s strategic importance in global energy trade (Globuc).
International openness
Beyond infrastructure, Azerbaijan strengthens international ties by hosting major global events. The COP29 climate summit held in November 2024 showcased Azerbaijan’s commitment to sustainable development, which is an important part of the country’s plan to reduce greenhouse gas emissions by 40% by 2050 and increase renewable power capacity to 30% by 2030. In addition, the InMerge Innovation Summit, bringing together tech leaders, companies and startups, reinforces Azerbaijan’s role in fostering innovation and economic partnerships.
Key role in the future of global commerce
As an Azerbaijani native, I am deeply proud to witness my country’s transformation into a key logistics and trade hub. By capitalising on geopolitical shifts and focusing on strategic investments, growing international collaborations and modernisation, Azerbaijan is transforming into an indispensable hub for regional and global trade. This rapid progress will not only enhance Azerbaijan’s role on the world stage but also bring prosperity and new opportunities to all Azerbaijanis, fostering economic growth, job creation and a higher quality of life for future generations.
