Azerbaijan poised to earn $300 million annually as key INSTC gateway Iranian expert’s forecast

Azerbaijan stands to generate between $250 million and $300 million in annual revenue by acting as a key transit hub for cargo shipments from India and Southeast Asia via the International North–South Transport Corridor (INSTC), according to Iranian diplomat and expert Hamidreza Arshadi.

Speaking in Baku at the international roundtable “Shaping Eurasia’s Transport Framework and Azerbaijan’s Key Role in the Process,” Arshadi, who previously served as Iran’s ambassador to Romania and is currently an advisor at the Iranian Embassy in Azerbaijan, highlighted the growing importance of transport cooperation between Tehran and Baku, Caliber.Az reports via local media.

He emphasised in particular the strategic significance of developing the INSTC.

"Cargo volumes along this route increased by 50% in 2023," Arshadi noted, stressing that recent infrastructure developments have further strengthened logistical links between the two nations. "The construction of the Aghband railway bridge has also significantly expanded the logistical capabilities between our countries."

Arshadi described the INSTC as the shortest and most efficient route connecting Europe and Asia, offering significant benefits for regional connectivity, economic diversification, and international trade. Goods from India and Southeast Asia are shipped via Iran’s Bandar Abbas port and transported through Azerbaijan. According to Arshadi, the corridor could handle up to 15 million tons of cargo per year, positioning Azerbaijan as a critical link in the route and offering it substantial economic gains.

"Transport via this corridor will be 10–15% cheaper than alternative routes," he said. "It shortens the journey by 800 kilometres 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."

Arshadi added that preliminary calculations indicate potential cost savings of more than $2,500 for every 15 tons of cargo moved through the corridor. He also drew attention to the strategic relevance of the corridor’s western branch, which runs from the Russian ports of Astrakhan and Makhachkala, through Azerbaijan—via the Samur and Astara checkpoints—and into Iran using the Astara–Rasht–Qazvin railway, which is still under development.

"This route is of particular strategic value not only to the broader region but especially to Azerbaijan," Arshadi concluded.

By Tamilla Hasanova