Ports and ships: Baku strengthens Trans-Caspian connectivity Overview by Khazar Akhundov

In recent years, Caspian littoral states have been accelerating the development of transport infrastructure to eliminate logistical bottlenecks along the Middle Corridor. Against the backdrop of instability in the Persian Gulf, cargo flows have increasingly been redirected to the more secure East–West route. However, this shift has also intensified pressure on Caspian ports, creating new congestion challenges.

To address these issues, Azerbaijan has been actively modernising its port infrastructure and expanding its maritime fleet. A seventh berth has recently been commissioned at the Baku International Sea Trade Port (BISTP), equipped with a high-capacity crane designed to accelerate vessel turnaround times, including the unloading of container ships.

In parallel, cooperation between Azerbaijan and Kazakhstan in maritime logistics is deepening. A recent agreement between Baku Shipyard LLC and Kazakhstan’s KTZ Express Shipping includes an order for the construction of two dry cargo container vessels.

With the active support of the Caspian littoral states, the combined land–sea route — the Trans-Caspian International Transport Route (TITR) — has been operating successfully for eight years.

Amid the ongoing Russia–Ukraine conflict and restrictions on cargo transportation along the Northern Corridor, the main overland flow of goods between China, Central Asian countries (CA), and onward to Türkiye and Europe has shifted to the Trans-Caspian route.

Not surprisingly, over the past four years, delivery times along this route have decreased from 58–60 days to 15 days, while cargo volumes have increased more than sevenfold — from 600,000 tonnes in 2021 to 4.5 million tonnes in 2025.

This dynamic is also clearly reflected in Azerbaijan. Last year, the Azerbaijan Caspian Shipping Company (ASCO) increased dry cargo transshipment by 45%, while ferry container transshipment more than doubled.

According to forecasts by the World Bank, cargo flows along the Middle Corridor could reach 10–11 million tonnes by 2030. This outlook is encouraging Azerbaijan and its partners within the TITR to steadily expand the transport and logistics infrastructure along the route.

Expanding transshipment capacity at Caspian ports is particularly important, as they continue to face congestion during sudden surges in freight volumes. This issue is especially relevant for the ports of Aktau and Alat, as well as Georgian seaports, which often experience bottlenecks that hinder the rapid scaling of cargo handling and transshipment operations.

This pressure on infrastructure became most acute in the summer of 2022 and re-emerged in April 2026, when a queue of approximately 1,500 trucks formed at the Baku International Sea Trade Port (BISTP), with cargo moving from Türkiye to Central Asia via transit routes through Georgia and Azerbaijan.

Until recently, only a portion of heavy trucks were transported by ferry from Alat to Aktau, while a significant share moved overland through Iran to Turkmenistan and onward to Central Asian markets.

However, following the outbreak of the Gulf conflict, nearly all transit flows through Iran were diverted via Azerbaijan for security reasons. This shift placed additional strain on the Alat port, significantly increasing the load on its truck-handling and container transshipment capacity.

To expand multimodal container transportation along the TITR, project participants will need to invest hundreds of millions of dollars in developing port infrastructure and acquiring additional vessels.

In this context, Baku and Astana are implementing a Road Map for the synchronised removal of logistical bottlenecks and the development of the TITR for 2022–2027.

Among the key measures underway are dredging works at Kazakhstan’s Kuryk port and the expansion of throughput capacity at the modernised Aktau port. Similar modernisation efforts are also being carried out in Azerbaijan to enhance handling capacity and improve the efficiency of regional cargo flows.

In particular, the second phase of the expansion of the Alat port is being implemented in stages. Once completed, its annual cargo-handling capacity is expected to rise to 25 million tonnes, including up to 500,000 twenty-foot equivalent units (TEU).

At present, the container terminal capacity of the Baku International Sea Trade Port (BISTP) stands at 150,000 TEU and is projected to reach 260,000 TEU over the next two years.

Construction of a fertiliser terminal within the port area is also nearing completion, with an annual handling capacity of 2.5 million tonnes. In addition, projects have been developed for the construction of a grain terminal and a TIR park within the port complex.

Furthermore, foundation reinforcement works are being carried out on quays and container yards to ensure safe cargo storage and accommodate larger bulk shipments. The container handling equipment fleet is being expanded, while preparatory works are underway to increase the capacity of the rail sorting station. This will further improve the efficiency of the rail–road logistics chain, helping to reduce congestion and minimise delays in cargo processing.

A significant step in this direction has been the commissioning of Berth No. 7 at the Baku International Sea Trade Port (BISTP), which had not been in use until now. Alongside the strengthening of the pier’s technical capacity, a next-generation (Italian-made) port crane with a lifting capacity of 125 tonnes has been put into operation.

According to information released recently by Azerbaijan Railways CJSC (ADY), the launch of the new berth is an important step in the modernisation of port facilities. It will allow container and other cargo to be handled in parallel and with greater flexibility, helping to balance operational flows within the port and ensure uninterrupted operations during peak demand periods.

The use of the high-capacity crane will maximise the potential of the existing port infrastructure without requiring additional expenditure, expanding both throughput and operational capabilities of the harbour.

Given that the new crane is designed in line with modern environmental standards and operates on electricity, it reduces the carbon footprint and improves energy efficiency, making an important contribution to the BISTP concept of a “green port.”

Alongside the modernisation of ports, the Trans-Caspian transshipment route also increasingly requires the expansion of dry cargo tonnage, particularly ferries and other types of container vessels.

In this regard, the CJSC ASCO, which is part of the state-owned AZCON Holding, is the largest dry cargo carrier on the Caspian Sea. Its fleet comprises nearly 60 vessels of various types, including 16 dry cargo ships, 13 railway ferries, two Ro-Ro vessels for wheeled vehicles, as well as two universal Ro-Pax ferries (“Azerbaijan” and “Zarifa Aliyeva”). Construction of a third ferry of the same design is expected to be completed soon at the Baku Shipyard.

It should be noted that the domestic shipyard has become a key supplier, successfully increasing ASCO’s fleet capacity. Over the past twelve years, 14 vessels of various types have been built at the Baku Shipyard for ASCO orders.

Notably, the Baku Shipyard has also gained the opportunity to attract potential customers from Central Asia. For example, in August last year, Uzbekistan’s Minister of Transport Ilkhom Makhkamov stated that his country plans to operate its own ferries in the Caspian Sea and therefore announced plans to place orders at shipyards in Azerbaijan and Turkmenistan. According to media reports, the financing volume of this project is estimated at $150 million.

On May 4, a cooperation agreement in the field of shipbuilding was signed between the Baku Shipyard and KTZ Express Shipping, a subsidiary of Kazakhstan’s Samruk-Kazyna JSC.

Under the agreement, the construction of two vessels meeting modern international standards is envisaged at the Baku Shipyard facilities.

“The project is important both in terms of demonstrating technological capabilities and in terms of developing Azerbaijan’s shipbuilding industry. We are confident that this cooperation will create a solid foundation for new successful projects,” said Shahin Babayev, Executive Director of AZCON Holding, emphasising that the expansion of cooperation with international partners is one of the company’s priority areas.

Under the contract, the construction of two dry cargo container vessels is planned, said Chairman of the Board of the Baku Shipyard, Ruslan Talibov.

“According to the design, each vessel will be 140.97 metres in length, with a draught of 5.56 metres in marine conditions. The ships will be equipped with two main engines of 1,600 kW each and will be capable of reaching a speed of approximately 11 knots. The deadweight is set at around 9,900 tonnes in sea conditions and 5,057 tonnes in river conditions, while container capacity will amount to 537 TEU at sea and 433 TEU in river operations,” he said.

The chairman also stressed that this order once again demonstrates the strong technical capabilities of the shipyard and its international competitiveness.

“In total, the Baku Shipyard currently has contracts for the construction of 17 vessels. Construction of 11 of them is ongoing in parallel, while work on six vessels is at the design stage,” Talibov added.

It is also important that the shipyard’s portfolio includes orders for four vessels from international clients.

In March 2026, a ceremony was held at the Baku Shipyard marking the start of construction of two 780-TEU container ships. This work is being carried out under a contract signed with the UAE-based AD Ports Group.