Record Growth in Transit Cargo Transportation: Strengthening Azerbaijan’s Position in Regional Logistics

Transit cargo transportation through Azerbaijan continues to grow in 2026. To sustain this momentum, AZCON Holding is taking consistent steps to strengthen integration among rail, port and maritime transport, develop logistics infrastructure, and improve the efficiency of cargo transportation. These initiatives help enhance Azerbaijan’s competitiveness along international transport corridors and expand its transit potential.

Speaking at the 8th Congress of the New Azerbaijan Party on October 2, 2026, President Ilham Aliyev said: “This year, the expected volume of transit cargo passing through Azerbaijan will reach 16 million tons.”

The head of state highlighted ongoing efforts to make the Middle Corridor and the North–South Corridor more attractive. He also announced a target of increasing transit cargo transportation through Azerbaijan to 30 million tons in the medium term.

The growth in transit freight traffic creates new opportunities to expand logistics services, strengthen Azerbaijan’s position in international supply chains, and generate added value for the national economy. It also supports the development of the transport sector and the diversification of the non-oil economy.

The scale and economic significance of the growth in transit freight traffic

During January–September 2026, transit freight traffic through Azerbaijan exceeded 12 million tons. The 14.5 percent increase compared with the same period last year was one of the highest recorded for this period in the past ten years.

Cargo volumes are rising amid changing demand among international shipping companies for existing routes, growing interest in alternative transport routes, and the restructuring of regional logistics connections.

During the first nine months of this year, 4.1 million tons of cargo were transported through Azerbaijan along the Middle Corridor. This was 20 percent more than in the same period last year - the highest figure in five years - and points to the route’s growing commercial appeal.

The fact that the Middle Corridor is growing faster than overall transit traffic highlights the need to pay particular attention to the pace of its development. The corridor’s competitiveness depends not only on the infrastructure available in individual countries, but also on how effectively all sections of the route function as a single system. Accordingly, in addition to investment in physical infrastructure, the development of the Middle Corridor requires harmonized tariff approaches, digital information exchange, and operational coordination across transport services.

Transit cargo volumes through Azerbaijan have almost doubled over the past five years. This reflects the country’s growing role in international transport corridors and its expanding transit potential.

This positive trend has been accompanied by measures to upgrade transport infrastructure, improve coordination among rail, port and maritime transport, and optimize logistics processes. These initiatives aim to increase transport efficiency, make better use of existing capacity, and strengthen Azerbaijan’s position as a regional logistics hub. 

Container Transport Increases by Nearly 30 Percent

In the first nine months of 2026, 100,000 TEU of containers were handled at the Port of Baku. This represents a 29 percent increase compared with the 77,300 TEU handled during the same period in 2025.

Container transport facilitates the movement of cargo between rail, road and sea transport, while improving planning and tracking capabilities. Sustaining growth at the Port of Baku will depend on the speed of terminal operations, vessel turnaround and the coordination of transport infrastructure.

When the Port of Baku began operations, its annual container-handling capacity was 100,000 TEU. This was later increased to 160,000 TEU through operational improvements.

The 100,000 TEU handled in the first nine months of this year points to a level of operational activity that is already high relative to the port’s original annual capacity. The current figures indicate growing demand and underscore the importance of using existing resources efficiently while developing additional capacity for the future.

The increase in container throughput creates further opportunities to develop cargo storage, sorting, customs clearance and forwarding services. Expanding infrastructure and improving related logistics services are essential to the continued development of the Port of Baku.

Next stage: 25 million tons

The target is to increase annual transit cargo transportation through Azerbaijan to 25 million tons by 2030. Achieving this will require expanded infrastructure, better integration of transport modes, and flexible management of logistics operations. 

Moving from the expected 16 million tons to the projected 25 million tons by 2030 will require continued expansion of the transit sector. The outcome will also be affected by seasonal fluctuations in cargo flows, infrastructure capacity in neighboring countries, border processing times, and the routes chosen by international shipping companies. Alongside infrastructure projects, forecasting cargo flows and aligning existing capacity with actual demand will therefore remain key management priorities.

To this end, several major infrastructure projects are underway.

One of the key projects is the creation of a new transport link to Türkiye via Nakhchivan. This route will provide additional connectivity and increase regional transport capacity to the west.

The new connection could diversify the transport network and distribute cargo flows across different routes. Its economic efficiency will depend on the route’s level of readiness, compatibility with neighboring networks, tariff policy, and the advantages offered to carriers.

As part of the second phase of the Port of Baku’s development, annual cargo-handling capacity is planned to increase to 25 million tons, while container-handling capacity is set to reach 500,000 TEU. This expansion will help meet growing demand and ease constraints on cargo handling.

Increasing the port’s capacity is one of the key infrastructure milestones in Azerbaijan’s transit strategy. Alongside port expansion, rail connections, storage areas and cargo-handling services must also be developed.

Maritime Transport Capacity in the Caspian Is Expanding

Growing cargo volumes along the Middle Corridor make it necessary to renew the Caspian Sea fleet and improve transport efficiency. In addition to land infrastructure, the corridor’s throughput depends on vessel capacity, sailing frequency and coordination between ports.

The Caspian Sea is a key link in the Middle Corridor. Expanding maritime transport capacity in line with growing cargo flows helps increase the route’s throughput and operational efficiency. A stronger fleet also supports the transport chain as a whole and helps unlock the Middle Corridor’s transit potential.

Four new cargo ships are being built at Baku Shipyard under international orders.

Two of these vessels are container ships, each with a capacity of 780 TEU, being built for AD Ports Group. Under the contract signed on September 16, 2025, construction is scheduled for completion by 2028.

The other two vessels are being built under a contract signed with KTZ Express Shipping in May 2026. Each has a container capacity of 537 TEU and can carry approximately 9,900 tons of cargo.

These orders demonstrate the growing opportunities for international cooperation in Azerbaijan’s shipbuilding industry and strengthen local production capacity. Their implementation will contribute to growth in non-oil and gas GDP, industrial development, the adoption of modern production practices, and the creation of new opportunities for cooperation.

Plans also include building next-generation ferries with greater capacity, expanding Ro-Ro transport, launching joint projects with private investors, and gradually renewing the existing fleet.

These projects will create additional transport capacity across the Caspian Sea and enable more efficient management of growing cargo volumes. The overall aim is to increase the throughput capacity and resilience of the maritime segment of the Middle Corridor.

Expanding maritime transport is also important for maintaining service quality along the Middle Corridor. The route’s competitiveness depends on the total time required to move cargo from origin to destination, transport costs, and service predictability. New vessel capacity must therefore be matched by adequate port facilities, well-organized rail transport, and coordination among international logistics operators.

Translating transit growth into sustainable economic outcomes

The main task is to turn growing transit cargo volumes into a sustainable economic advantage. This requires the development of logistics, warehousing, cargo processing and forwarding services, the creation of new jobs, and greater participation by local companies in international supply chains. The economic impact should be measured not only by the volume of cargo transported, but also by the added value generated around it.

Infrastructure investments should be planned on the basis of long-term traffic forecasts, realistic demand, operating costs and economic efficiency. Digitalization, simpler customs procedures, faster information exchange, and coordination among transport modes are also essential.

The main priorities for the next stage are expanding the Port of Baku, establishing new transport connections, strengthening the Caspian fleet, and improving operational efficiency.

At the same time, the electrification system and signaling infrastructure on the Baku–Alat–Boyuk Kesik railway line will be upgraded. This will help the Middle Corridor accommodate growing freight flows and expand its operational capacity.

Overall, comprehensive work is underway across all key areas of transport and logistics infrastructure, including maritime transport, ports and railways. The growth in transit freight traffic reflects Azerbaijan’s expanding role in the regional transport system. Achieving the country’s goals will require not only infrastructure development, but also effective coordination along the route, competitive tariffs, reliable service and accurate cargo forecasts. Long-term economic results will depend on how well these factors are coordinated.