North-South ITC sees major growth as Azerbaijan Railways reports record traffic

Azerbaijan Railways CJSC (ADY) has reported a 28% year-on-year increase in the volume of transit freight traffic along the North-South international transport corridor, reaching a total of 814,000 tonnes in 2024.

This growth is part of ongoing efforts to fully realize the strategic potential of the corridor, which connects Northern Europe and Russia to the Indian Ocean via Azerbaijan, Iran, and other regional countries, Caliber.Az reports citing ADY.

The North-South corridor spans approximately 7,200 kilometres and integrates railways, sea routes, and highways passing through Russia, Azerbaijan, Iran, and additional regional countries. It was initially launched in 2000 with Russia, Iran, and India as founding members. Over time, its scope has expanded to include Oman, Armenia, Belarus, Kazakhstan, Syria, Türkiye, Tajikistan, and Kyrgyzstan.

Azerbaijan has played a key role in expanding the corridor's capacity and modernizing its infrastructure. In September 2024, ADY secured a $131.5 million loan agreement with the Asian Development Bank (ADB) to modernize the Sumgayit-Yalama railway line. This investment aims to further strengthen the corridor's capacity for handling increased freight traffic.

In December 2024, Azerbaijan and Russia signed a landmark agreement aimed at developing railway infrastructure and enhancing transit freight traffic along the North-South corridor. This agreement is particularly focused on improving the western route of the corridor, which passes through Azerbaijan and links the Caspian Sea to Russia’s rail networks.

Meanwhile, ADY management visited Iran in December to discuss the ongoing development of the Astara terminal project in Iran, which is an important part of the corridor’s expansion. The terminal, due for completion by the end of 2025, will provide further capacity for freight transhipment. The management also emphasized the growth of the Southern Freight Terminal LLC, which operates Astara terminals both in Azerbaijan and Iran. The reconstruction of the Astara cargo terminal in Azerbaijan was completed in 2024, which included a complete renovation of the cargo storage facility, the installation of new technical equipment, and the addition of security cameras. The terminal now has a new customs point with scales and high-speed internet, and it provides multimodal transport services with preferential tariffs, contributing to a 10-15% increase in transit traffic along the North-South corridor by the end of 2024.

The completion of the Astara-Resht railway line, which connects Azerbaijan to Iran, is expected to further increase freight transit along the corridor once it becomes operational. The Resht-Astara line is the last missing link in the corridor's western route and is scheduled to be completed by 2025.

The North-South ITC has seen significant milestones in recent years. In July 2022, the first commercial cargo shipment was successfully transported through the corridor, signalling the operational readiness of the transport network. In 2023, Azerbaijan, Russia, and Iran signed agreements for further cooperation on infrastructure and logistics along the corridor, including the Resht-Astara railway project.

By Tamilla Hasanova