Azerbaijan set to play key role in new China-Europe railway corridor

The China-Kyrgyzstan-Uzbekistan (CKU) railway project is now seeking to involve Azerbaijan as a key partner in an ambitious international transport initiative.

Azamat Sakiyev, the CEO of Kyrgyzstan’s state-owned railway company "Kyrgyz Temir Zholu," shared the plans with journalists, emphasising the strategic significance of this project, which will benefit both Central Asia and global logistics, Caliber.Az reports via local media.

"The large-scale megaproject that has launched in Kyrgyzstan is crucial not just for Central Asia but for the entire world’s logistics network. The China-Kyrgyzstan-Uzbekistan route will eventually integrate with transport corridors that go through Turkmenistan, Azerbaijan, Türkiye, and ultimately into Europe. We are focused on promoting this route within Azerbaijan to engage the country’s participation in the project," Sakiyev stated.

He also mentioned that construction work on the railway project has already begun.

"The project is set to be completed by 2030, with the first phase of operation capable of handling around 5 million tons annually. Over time, this figure is expected to rise to 15 million tons per year. What sets this route apart is its speed: cargo will be delivered from China to Europe in just seven days," Sakiyev explained.

The project’s success will also rely on a flexible tariff policy, a key competitive advantage facilitated by close collaboration with railways in China, Uzbekistan, and Turkmenistan.

"We are working on developing a tariff structure that will make this route more attractive compared to alternative routes. Specifically, construction is underway for a section between Kashgar (China) and the Kyrgyzstan border at Torugart, covering 180 km of Chinese territory and 301 km from Torugart to Jalal-Abad in Kyrgyzstan. In Uzbekistan, the infrastructure is already ready, and now we’re focusing on completing the Kyrgyz section, which is expected to be finished by 2030," he added.

Sakiyev noted that the new railway line will serve both containerised cargo and bulk shipments, with passenger services also planned for future operation. Due to the rising export of coal to Europe, the route will also utilise open-top and covered wagons.

In September 2024, the joint venture for this project was officially launched in Bishkek. China holds 51% of the shares, while Kyrgyzstan and Uzbekistan each own 24.5%. The total project budget amounts to $4.7 billion.