Azerbaijan Railways: Achievements of the Last 20 Years and Future Prospects

Azerbaijan Railways: Achievements of the Last 20 Years and Future Prospects

Over the past two decades, Azerbaijan Railways has transformed into one of the leading forces in the country’s transportation sector. Under the leadership and guidance of President Ilham Aliyev, the railway industry has undergone significant development, contributing substantially to Azerbaijan’s socio-economic progress. Starting in 2003, a new era of advancement began, providing unique opportunities for the modernization of the railway system.

Thanks to significant investments and a targeted development strategy, Azerbaijan’s railway sector has been revitalized and achieved numerous milestones. In recent years, Azerbaijan Railways CJSC (ADY) has undergone fundamental changes, including corporate governance reforms. As a result, a more transparent, efficient, and inclusive management structure has been established.

Modernizing the Rolling Stock
Under the directives of President Ilham Aliyev, the railway fleet has been significantly modernized:

- In 2014, 50 locomotives were delivered under a contract with Alstom.

- Between 2015 and 2018, advanced electric trains were acquired from Stadler Rail Group for domestic and Absheron Circular Railway routes.
 

- In 2019, a contract was signed to purchase Stadler FLIRT diesel and electric trains, which were added to the fleet in late 2023 and 2024.

- Efforts have been made to adapt the locomotive and wagon fleet to the growing demand for freight transportation. To this end, a contract was signed in 2014 for the purchase of 10 new locomotives from Kazakhstan, which were included in the fleet. In 2023, 303 new platforms were purchased.

- To ensure the safe organization of freight transportation and improve the locomotive fleet, 17 locomotives were sent to Kazakhstan and Latvia for maintenance, 12 of which have already been delivered back to the country.

In parallel with the acquisition of new trains, in 2023, an agreement was signed with Stadler Rail Group to establish a Regional Service Center. This center will repair and provide technical maintenance for all types of Stadler-brand railway vehicles actively used in the region. In addition to serving the local train fleet, the center's services will also be available to railway operators in the region who use the same type of rolling stock.

Becoming a Transportation Hub

Over the past 20 years, Azerbaijan has recorded significant growth in freight transportation by rail. To sustain this growth, existing railway lines have been modernized, and international partnerships strengthened.

In 2024, ADY transported over 18.5 million tons of freight, with transit volumes increasing by 5.7% to 7.3 million tons and imports rising by 10% to 5.2 million tons compared to 2023. More than 3.2 million tons of cargo were transported along the East-West route, the main transit corridor, throughout the year.

In order to ensure the transportation of transit cargo to Europe and open seas through Turkey, in parallel with the ports of Georgia, the Baku-Tbilisi-Kars (BTK) railway line was constructed with the active and direct participation of Azerbaijan, particularly ADY, and was opened in 2017. This new railway line has shortened the distance and duration of regional freight transportation, bringing a new dimension to the China-Europe-China transport and trade corridor. As one of the key components of the Middle Corridor, the modernization works carried out on the Georgian section of the railway since May 2023 were completed in May 2024, increasing the annual cargo capacity from 1 million tons to 5 million tons.

In addition, in 2024, with Azerbaijan's initiative, an effort was made to establish another branch of the Middle Corridor along the eastern coast of the Caspian Sea—connecting China, Tajikistan, Kyrgyzstan, Uzbekistan, Turkmenistan, and crossing the Caspian Sea. In September, an initiative was launched in Baku to create the "Eurasian Transport Route" International Association for this purpose.

As a result of continuous and active negotiations conducted by ADY with international partners, the volume and share of container transportation are increasing year by year in order to enhance the speed and efficiency of transit shipments through the Middle Corridor. In this regard, 2024 has been marked by significant results. Last year, 358 container block trains were sent from China to Azerbaijan, indicating the growth in freight volume through the Middle Corridor and further strengthening Azerbaijan’s role in the international transportation system. In order to support the development of the Middle Corridor not only as an East-West route but also as a West-East transport artery, the first export cargo by rail was sent from Baku to China in November 2024.

Advancing the North-South Corridor
Efforts to realize the strategic potential of the North-South Corridor have also progressed:
- In 2024, the Astara freight terminal handled 814,000 tons of cargo, a 28% increase from 2023.
- Reconstruction of the Astara terminal was completed, including modern storage facilities and a customs office equipped with advanced technology.
- In September 2023, a $131.5 million loan agreement was signed with the Asian Development Bank to modernize the Sumgayit-Yalama railway line, part of the North-South Corridor.

Record Achievements in Passenger Transport and Updated Service Quality

Based on the instructions of President Ilham Aliyev, the railway fleet of ADY (Azerbaijan Railways) has been renewed with modern diesel and electric trains of the "Stadler" brand, as well as locomotives manufactured by "Alstom" to provide high-quality railway services to citizens. The use of outdated trains has been discontinued, and major repairs have been carried out on stations, terminals, and stops along the Absheron circular railway and the Baku–Balaken line. All these efforts have played a significant role in meeting the transportation needs of citizens, ensuring their comfort and safety, and enhancing their trust in the railways:

- Since 2015, modern trains have been put into operation on the Baku–Sumgayit–Baku line;
- From October 2015 to early 2017, 200 km of the main railway lines of the Absheron Circular Railway were repaired;
- In 2017, after reconstruction, Baku Railway Station was reopened with entirely new service infrastructure for residents;

- In the same year, the construction of the 110-kilometer Baku–Sabunchu–Pirshaghi–Sumgayit–Khrdallan–Bilajari–Baku line was completed to restore passenger transport services on the Absheron Circular Railway;
- Between 2018 and 2020, Sumgayit Railway Station, Sabunchu Railway Station, as well as Zabrat-1, Mammadli stops, and Zabrat-2 stations were reconstructed and opened for residents;
- In 2019, the opening of the Absheron Circular Railway’s Sabunchu–Pirshaghi section took place after its reconstruction;
- In 2020, the opening of the Absheron Circular Railway’s Pirshaghi–Goradil–Novkhani–Sumgayit section took place;
- In 2023, for the first time, passenger transport services began on the Baku–Gabala–Baku route;

In November 2023, large-scale repairs were carried out on the 164 km section of the Yevlakh–Balaken line, with worn-out ties, rails, and connectors replaced, and missing road signs added.

In 2023, ADY set a record by transporting over 7 million passengers. The increase in this indicator, compared to 5.1 million passengers in 2022, was due to the addition of more trains on the Absheron Circular route, the opening of the Baku–Gabala–Baku route, and the extension of the Baku–Ganja–Baku route to Agstafa, as well as the restoration of stops at Qovlar and Deller stations.

In 2024, the record was broken again with 8.5 million passengers served. This increase in service volume was mainly due to the introduction of new trains on the lines, the opening of new stops such as Laki and Ucar, and the overall improvement in customer satisfaction. In line with ADY’s passenger transport strategy, the number of trips on the Baku–Agstafa–Baku route increased from 2 to 4 with the introduction of new trains.

On January 3, 2025, regular train services started between Baku and Balaken. Trains now operate daily in both directions, making transport services more accessible for the local population in the region and allowing both local residents and tourists to plan their trips comfortably and safely.

Additionally, in order to reduce the burden on public transport, the schedule on the Absheron Circular Railway has been optimized. Express services on the Baku–Sumgayit–Baku route, which offer direct, non-stop travel between the two cities, have been introduced. The average number of passengers carried on the busiest days of the Absheron Circular Railway in each year has increased from 19.4 thousand passengers in 2022, to 26 thousand in 2023, and 37 thousand in 2024.

In September of the previous year, free Wi-Fi services were activated on trains operating on the Baku, Sabunchu, Sumgayit, Ganja, Gabala, Koroğlu, Bakikhanov, Pirshaghi, Agstafa stations, and stops, as well as in Baku–Agstafa–Baku, Baku–Gabala–Baku, and Baku–Balaken–Baku routes.

Infrastructure is Being Updated to Meet Modern Requirements

Under the orders and instructions of President Ilham Aliyev, large-scale construction and renovation projects have been implemented in the Azerbaijani railways over the past 20 years. As a result of these efforts, the quality of freight and passenger transport services has improved, and the country’s transit capacity has expanded:

Between 2015 and 2017, a 200 km section of the main railway lines was extensively repaired;
In 2017, the construction of an 8.3 km railway line between Astara (Azerbaijan) and Astara (Iran), as well as a railway bridge over the Astara River, was completed;
In 2021, the opening of the 43 km single-track Lekit–Gabala railway line connecting Gabala Railway Station with Lekit station took place;
Zirə port was connected to the railway network for the first time;
In 2023, work began on the restoration of the Bilajari classification yard’s tracks, which had not been updated since the 1960s;

- Between 2022 and 2023, the construction of the New Bilajari and New Ganja locomotive depots was completed;
- In 2023, a new railway bridge was built over the Kura River, and the railway bridges over the Araz and Kura rivers were thoroughly repaired.

Railways and the "Great Return" to Karabakh and Eastern Zangezur

Under the leadership of Supreme Commander-in-Chief Ilham Aliyev, the Azerbaijani Army’s victory in the 44-day Patriotic War has resulted in large-scale restoration and reconstruction efforts in the liberated territories, which also include railways. In addition to closely participating in the restoration projects with the involvement of work trains, ADY is also restoring its own infrastructure in these areas.

In this regard:

- In 2021, President Ilham Aliyev laid the foundation for the Horadiz–Agband railway line. Shortly thereafter, the design and construction of the railway line were initiated;
- Currently, 60% of the construction work for the Horadiz–Agband railway line has been completed;
In 2021, the design and construction of the Barda–Agdam railway line also began;
- The design work for this line is 95% completed, and the construction is 94% finished;
- The construction of Barda station, Kocharly station, Tezekend station, and service buildings has been completed in the first phase;
- In the second phase, construction continues at the Agdam railway and bus station complex;
- Additionally, the design work for the restoration of the Agdam–Khankendi road has begun.

Digitalization of Railways

ADY has achieved significant success in the field of digitalization, which is one of the key links in the value chain. Digital innovations are implemented in line with ADY's strategy, aimed at enhancing operational efficiency and increasing transit volumes across international corridors passing through the country. In particular, digitalization is being carried out in parallel with internal company procedures, freight and passenger transportation sectors, focusing on areas such as business process development, establishing a centralized reporting system, optimizing human capital, and digitizing customer services.

In recent years, ADY has:

- Formed a strong ICT team and attracted an experienced foreign Chief Digital Officer;
- Developed an ICT development strategy in collaboration with experts from a reputable consulting company;
- Begun work on automating logistics corridors using digital electronic signatures and cryptographic tools in partnership with entities in Azerbaijan and abroad;
- In 2023, the number of users of the ADY Mobile mobile app increased, surpassing 180,000 downloads.

In recent years, ADY has increased its efforts in the digitization of railway transport infrastructure along international corridors, offering an efficient, fast, and "one-stop" service package for freight owners through the online tariff calculator and the ADY Smart platform.

One of the key achievements has been the implementation of the unified CIM/SMGS electronic consignment note, which accelerates international shipments. This solution allows for the replacement of several documents with a single format, speeds up customs procedures, and reduces potential risks when crossing borders.

To eliminate queues at ticket counters and reduce paper usage, thereby preventing environmental damage, the use of paper tickets has been discontinued on trains operating along the Absheron circular railway line. Now, passengers can travel easily with NFC-supported bank or ADY-issued travel cards without any physical contact. Additionally, for domestic passenger trains, passengers can embark on their journeys by presenting their electronic ID via a QR code through the My.gov.az portal.

Most recently, ADY's digitalization efforts received financial support in October of this year from the Asian Development Bank. The bank approved a $47 million loan to support the digitization of the railway system in Azerbaijan, aimed at enhancing the safety, reliability, and efficiency of the country’s railway networks.

Commitment to Environmental, Social, and Corporate Governance

In 2023, by becoming a member of the UN Global Compact, ADY further enhanced its action program covering environmental, social, and corporate governance (ESG) areas. The sustainable development agenda, which is among the national priorities for our country’s socio-economic development, is also one of the key factors guiding the development of railways.

As part of ESG initiatives, ADY uses electric trains in passenger transportation to reduce environmental waste. In order to promote the use of bicycles, an environmentally friendly and health-beneficial mode of transport, bicycle racks have been set up at railway stations. To promote "green energy" and reduce carbon emissions, more than 650 solar panels were installed on the rooftops of the New Bilajari and New Ganja locomotive depots during their renovation to provide energy for the buildings.

For the first time last year, Azerbaijan Railways CJSC presented its report on sustainable achievements in the areas of environmental, social, and governance.

The successes achieved under the leadership of President Ilham Aliyev open great prospects for future development. Based on the 2030 Strategy document, which encompasses ADY's strategic objectives, the company will continue its work in the coming years to address issues such as operational efficiency, increasing commercial opportunities, digitization, and safety.