Azerbaijan Pioneers Direct Rail Cargo Route to China, Boosting Middle Corridor Potential

Azerbaijan has dispatched its first rail cargo shipment from Baku to China, marking a significant milestone in its ambitions to become a critical hub along the Middle Corridor. The Azerbaijan Railways (ADY) confirmed on Sunday that the inaugural "Baku-Xi'an" export block train, comprising 62 40-foot containers, has begun its journey.

The cargo is set to reach Xi'an through a multimodal transit via Kazakhstan, according to ADY. The project aims to deliver a total of 15,000 tons of goods—or approximately 600 containers—along this route by the end of 2024.

"This initiative is of great importance for ensuring freight flows in both directions along the West-East corridor. Local entrepreneurs can now ship their goods directly to China via the Middle Corridor," stated Arif Agayev, Deputy Chairman of ADY. "As ADY, we are committed to advancing projects that will transform Azerbaijan into an international transport and logistics hub."

The Middle Corridor, officially known as the Trans-Caspian International Transport Route, serves as a key alternative to traditional Northern routes passing through Russia. With heightened geopolitical challenges disrupting global supply chains, the strategic importance of this corridor has grown considerably, offering a shorter and politically stable link between Europe and Asia.

ADY reports that 280 container block trains have been dispatched from China to Azerbaijan along the Middle Corridor since its launch. This figure is expected to exceed 300 by the end of 2024, with projections for a more than threefold increase in block train shipments to 1,000 by 2025.

The development underscores Azerbaijan's strategic investment in transport infrastructure to diversify its economy beyond oil and gas. The country has leveraged its geographical position to bridge markets in Europe, Central Asia, and the Far East. Investments in railways, ports, and logistics facilities have positioned Baku as a linchpin in regional trade networks.

The move also strengthens ties between Azerbaijan and China, aligning with Beijing's Belt and Road Initiative to improve connectivity across Eurasia. By enhancing trade and transport links, Azerbaijan is not only increasing its role in international commerce but also offering local businesses unprecedented access to the Chinese market.

Despite the promising outlook, Azerbaijan faces challenges in scaling its logistics capabilities, including enhancing interoperability with neighboring countries’ infrastructure and ensuring competitive pricing for transport services. Additionally, the sustainability of the Middle Corridor will depend on consistent investment and cooperation among transit countries.

Nonetheless, the ambitious goal to triple block train traffic by 2025 reflects a bold vision. For Azerbaijan, the successful operation of the "Baku-Xi'an" train symbolizes more than a logistical achievement—it signals a new era in its pursuit to become a global transport and logistics hub.