Azerbaijan at the Heart of Eurasia’s New Silk Road

The world is rediscovering Azerbaijan as a logistics powerhouse at the crossroads of continents. The Middle Corridor — the Trans-Caspian route linking China to Europe via Central Asia and the South Caucasus — has become a defining initiative in the reconfiguration of Eurasian trade. As its profile rises, Azerbaijan is deepening collaborations with partners across regions, underscoring its emergence as a key hub in this evolving network. The country’s investments in the Baku-Tbilisi-Kars (BTK) railway, the Port of Baku at Alat, and the planned Zangazur Corridor reflect its ambition to become a strategic connector for east-west trade in the South Caucasus.

Azerbaijan’s focus on regional connectivity has strengthened in light of the peace process with Armenia over the past five years, supported by the Washington-brokered peace agreement in August 2025. This agreement placed the long-discussed Zangezur Corridor on a renewed and cooperative footing. For Baku, the development represents the consolidation of a long-term strategy. By integrating Zangezur into the broader Trump Route for International Peace and Prosperity (TRIPP), Azerbaijan not only secured a direct land link to Nakhchivan and Türkiye but also advanced its position as a central player in transcontinental logistics. For international partners, the project contributes to route diversification, trade efficiency, and greater regional interconnectivity. The Zangezur Corridor holds potential to foster stability, as revenues from transit operations, new logistics hubs, and improved access to European markets encourage sustained economic cooperation.

The results of these efforts are already visible. Azerbaijan Railways (ADY) has emerged as one of the fastest-growing transport operators in the region. Since 2022, cargo flows along the Middle Corridor have expanded, and ADY has responded with modernization and operational improvements. Streamlined customs processes, expanded rolling stock, and the digitalization of logistics have all contributed to notable increases in throughput. The growth continued in 2025, positioning ADY not only as a national champion but also as a trusted regional connector linking European and Asian partners.

Equally transformative is the Port of Alat near Baku. Once a modest facility, it has rapidly evolved into a major logistics hub. Between January and July 2025, container turnover at the port reached a record 60,429 TEU — a 54.2% increase compared with the same period in 2024, when the volume was 39,184 TEU. New terminals have enhanced efficiency and reduced waiting times. Today, the Port of Baku serves as Azerbaijan’s main gateway between Europe and Asia, integrating Caspian shipping with rail and road networks that extend toward the Black Sea and beyond.

Partnerships have been instrumental to this success. With Europe, Azerbaijan offers an efficient and secure trade route that contributes to supply chain resilience. European companies benefit from reduced costs and shorter delivery times, while Azerbaijan strengthens its role in continental trade infrastructure. With China, the Middle Corridor is seen as a complementary component of the Belt and Road Initiative, offering an additional connection between Asia and Europe. Azerbaijan’s approach emphasizes balance — positioning itself as a bridge that collaborates with both Western and Eastern partners. Through its participation in the Southern Gas Corridor and cooperation on Belt and Road routes, Baku advances a pragmatic and inclusive connectivity agenda.

This balanced engagement continues to define Azerbaijan’s regional strategy. Unlike some transit states that face the challenge of alignment, Azerbaijan’s model focuses on integration, emphasizing its role as a connector between diverse economies.

The upcoming construction of the Zangezur Corridor will further strengthen these gains. Once operational, freight will flow seamlessly from Central Asia across the Caspian, through Baku, along the Zangezur route, and into Türkiye before reaching Europe. Estimates suggest that roughly 15 million tons of cargo annually could transit this route, reshaping the logistics landscape of Eurasia. The project also opens new opportunities for energy and transport cooperation. Once direct land connectivity between Azerbaijan and Türkiye is established, Caspian energy resources will reach European markets more efficiently.

Moreover, the Zangezur Corridor will serve as a crucial link in the broader North–South transport network, enhancing connectivity between the Persian Gulf, the Caucasus, and Northern Europe. By integrating with existing rail and highway systems, it will streamline the movement of goods between regions , significantly reducing transit times and costs. This strategic alignment will transform Azerbaijan into a central hub for both East–West and North–South trade routes, consolidating its position as a pivotal crossroads in Eurasian logistics. Reflecting this vision, President Ilham Aliyev noted during the Shanghai Cooperation Organization summit in China:
“I am confident that the Zangezur Corridor will soon become another important segment of the Middle Corridor, as well as the North–South Corridor, contributing to peace, multilateral partnership, and the prosperity of Azerbaijan’s neighbors to the east, west, north, and south.”

In a few years, with the opening of the Zangezur Corridor, the regional landscape will have transformed. What was once fragmented geography will become a cohesive network of connectivity. For Azerbaijan, this transformation demonstrates how strategy, investment, and cooperation can turn geography into opportunity. The Middle Corridor is no longer a vision — it is a reality, and Azerbaijan stands at its center.

[Photo by AlixSazCC BY-SA 4.0, via Wikimedia Commons]

Fuad Shahbazov is a policy analyst with a particular focus on regional security, energy diplomacy, and interregional partnership issues. He regularly appears with expert commentaries on various international outlets and think tanks covering the Caucasus, Middle East and Central Asian regions. He tweets at: @fuadshahbazov. The views and opinions expressed in this article are those of the author.

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