Azərbaycan Dəmir Yolları (ADY), the Azerbaijani state-owned railways have done several noteworthy steps in recent period, here is an overview of the latest happening of freight rail sector in Azerbaijan:
ADY's transit freight traffic for January-April 2024 increased by 14% compared to the same period last year, reaching 2 million 517 thousand tons. During this period, freight traffic via the North-South corridor rose by 29%, totaling 260 thousand tons.
Container Traffic to Georgia on BTQ Line
The Baku-Tbilisi-Kars (BTQ) railway, a vital connector between East and West, has recently undergone expansion works, significantly increasing its annual freight capacity. As of early May, the 184-kilometer section of the BTQ crossing Georgia has been reconstructed and expanded, boosting its capacity from 1 million to 5 million tons.
This upgraded railway line began its new phase on May 20 with the departure of a freight train from the Absheron Logistics Center, heading towards Georgia with 20 containers. The BTQ line is now set to handle a larger volume of cargo, originating from China and Central Asia, and directed towards Western markets through Azerbaijan's segment of the Middle Corridor.
Astara Terminal Upgrade and Update
In another development in Azerbaijan's railways, the Astara terminal in the Astara district has been put into operation after extensive reconstruction works. This project aimed to streamline and speed up freight operations along the North-South International Transport Corridor. The terminal now features modernized facilities, including a refurbished warehouse that meets current standards and is equipped with the necessary machinery to ensure safe and efficient operations. The entire area is secured with barbed wire, equipped with 54 surveillance cameras, and offers full illumination and 24-hour security. Additionally, a scale has been installed to determine the weight of incoming cargo.
The terminal, which covers an area of 5.5 hectares, also includes a customs checkpoint created in collaboration with the State Customs Committee. This checkpoint is equipped with high-speed internet, necessary equipment, and computers, offering a new suite of services to forwarding companies, including multimodal transportation services. The terminal ensures swift clearance and movement of goods under customs control.
One of the terminal's major advantages is the application of discounted tariffs for the transportation and transshipment of accepted goods. Initial estimates indicate that the operation of the Astara Terminal could increase transit freight traffic along the North-South route by 10-15% by the end of the year. Currently, timber cargo accounts for approximately 40% of the total turnover at the terminal, with grain and grain products following at 35%.
Following the commissioning of the Astara-Rasht railway line in Iran, a significant increase in transit cargo handled through both Astara Terminals is anticipated. From 2018 to 2023, over 2.5 million tons of cargo were transshipped at the Astara Terminal in Iran, with volumes tripling from 211,789 tons in 2018 to 692,402 tons in 2023, a 48% increase compared to 2022. In the first four months of 2024, the terminal handled 284,688 tons of cargo, marking a 14% increase from the same period in 2023.
Upgrade of ADY’s locomotive fleet
To support safe cargo transportation, ADY is upgrading its locomotive fleet. Under an agreement with "Kamkor Lokomotiv," a maneuvering locomotive (TEM2U) has been delivered to Baku following its first factory repair in 22 years. This locomotive will be deployed at the Bilajari sorting yard for cargo sorting operations. So far, six locomotives have been sent to Kazakhstan for this purpose, with preparations underway to dispatch an additional five. Given the long operational life of these locomotives, timely maintenance is crucial to prevent breakdowns and irreparable damage.
Considering the expected increase in international corridor transit loads, ADY is prioritizing the renewal and major repair of its locomotive fleet. Following this plan, 11 maneuvering locomotives and four double-section locomotives will be delivered to Baku from Kazakhstan and Latvia, respectively, by the end of 2024. Currently, ADY's fleet includes 84 maneuvering locomotives.
Meeting of ADY and China Railways
In international developments, ADY's chairman Rövshən Rüstəmov recently discussed the Middle Corridor and Azerbaijan's role in it during an official visit to China. He met with the chairman of the China Railways State Corporation, Liu Jenfanq, where they discussed the current and future development of collaboration between the Azerbaijani and Chinese rail sectors. They reviewed the Middle Corridor's progress, noting that freight volume via this route had increased by 35% in the first four months of the year compared to 2023, with 60 block trains dispatched from Xi'an port. They also discussed the restored BTQ railway line's increased cargo discharge capacity, now reaching 5 million tons annually.
The meeting concluded with discussions on enhancing the competitiveness and cargo handling capacity of the Middle Corridor, including potential Chinese rail transit subsidies and the formation of a return cargo flow from Turkey and Azerbaijan to China.
