Azerbaijan makes a vital move towards its role as regional transportation hub by endorsing the “Agreement between the Government of the Republic of Azerbaijan and the Government of the Russian Federation on Cooperation for the Development of Transit Cargo Transportation via the ‘North-South’ International Transport Corridor”. The government agreement received approval from President Ilham Aliyev through a Decree because this strategic initiative makes Azerbaijan an essential transit center uniting Eastern and Western regions.
Azerbaijan has pursued for many years its plan to utilize its favorable geographic location for increasing international trade. Economic connectivity will receive major growth from the North-South Transport Corridor which functions as a multimodal network spanning between South Asia and the Middle East and Europe through Iran and Azerbaijan and Russia. The implementation of this agreement directed by Azerbaijan’s Ministry of Digital Development and Transport will lead to effective cargo transit processes while building enhanced logistical capability for Azerbaijan as a dependable transit pathway.
Baku demonstrates dedicated economic interdependence through its active participation in regional infrastructure projects. Iran together with Azerbaijan and Russia will meet to finalize discussions about continuing development of the Rasht-Astara railway project demonstrating their dedication to this goal. Despite being unfinished the Rasht-Astara part of the corridor offers an unquestionable economic value by connecting the Caspian Sea to the Persian Gulf. According to the agenda this meeting will feature signing a new document that aims to boost railway construction progress at this crucial juncture.
Geostrategic and Economic Implications
Azerbaijan achieved transportation sector diversification by investing heavily in infrastructure development throughout two decades therefore expanding its transit capacity through air services and rail networks as well as pipeline systems. As a result of this multi-dimensional transportation system Azerbaijan functions as an appealing international trading partner by handling multiple kinds of cargo.
The transport experts agree that Azerbaijan benefits from its strategic geographic location. With a mere 500 km distance between Russia’s border and Iran’s border through Azerbaijan, no other route offers a comparable transit efficiency. The remarkable geographical position gives Azerbaijan decisive transportation benefits thus securing its status as a vital Eurasian trade connection.
Since 2018 the Qazvin-Rasht-Astara railway’s Qazvin-Rasht section has established proof of the corridor’s betting potential. Upcoming completion of the Rasht-Astara segment remains the primary impediment for the corridor operation at its maximum potential. The future completion of this part will make the corridor operational at its maximum potential thus allowing cargo to move seamlessly from Southeast Asia and the Gulf region to Europe and Russia while also providing the opposite direction.
Conclusion
So according to my point of view, recent progress in Azerbaijan’s transport and logistics sector shows how the Azerbaijan maintains an expanding role in global international business activities. Baku cements its status as a leading transit center through strengthened infrastructure and established strategic deals and multinational partnerships. Azerbaijan’s Rasht-Astara railway completion along with North-South Transport Corridor complete operation will boost the nation’s economy and develop regional cooperation to support long-term economic development and geopolitical importance.
Ms. Fatima Tuz Zehra is the Editor-In-Chief of https://thegulfobserver.com
