News / Azerbaijan boosts trade ambitions with new cargo village and airport project

Azerbaijan has moved to take advantage of the trade growth opportunities open to Central Asian countries in the wake of Russia’s ostracism from global supply chains.

Though much of that growth has flowed from an influx of rail freight, as shippers with China-Europe volumes sought ways to bypass Russia, Azerbaijan aims to position itself as a “global hub for logistics and cargo services”.

And, in recent weeks, efforts on this front have stepped up, with Azerbaijan Railways and domestic cargo airline Silk Way West announcing a series of new agreements.

In what it called a “landmark” deal, the Silk Way Alat Free Economic Zone (SW Afezco) is to develop the Silk Way Cargo Village, that will include a new air cargo airport, with airside perishables and forwarding facilities.

Zaur Akhundov, president of Silk Way Group, told reporters that the development “represents a significant milestone in the country’s history”. He added it “signifies a shift towards new opportunities that will effectively address the increasing local and global demand for freight transport, and not only bolsters our standing within the Middle Corridor, but also opens up new avenues for growth”.

The airport will have 18 aircraft stands, a 4,000-metre runway and taxiway and will have access to Baku International Sea Trade Port, as well as railway and motorway networks.

Jawad Dbila, director of SW Afezco, said: “This agreement marks a transformative step toward establishing Azerbaijan as a premier global logistics hub. The fully automated 30,000 sq metre cargo terminal will be the largest in the Caspian Sea region.

“It will set new standards in sustainable construction and enhance trade connectivity between Europe and Asia, solidifying Azerbaijan’s strategic role in the global logistics network.”

Azerbaijan’s ambition reflects the slew of recent announcements from neighbouring Kazakhstan, so far the biggest winner of sanctions on Russia following its invasion of Ukraine, with its rail freight operator, KTZ, seeing volumes surge 63% this year.

Indeed, container volumes of China-Europe shipments on trans-Caspian routes have rocketed up more than 1,400%, year on year.

Tapping into that, Azerbaijan Railways has sought to deepen its ties with German firm Rhenus, the two working on a project to electrify and modernise Azerbaijan’s rail infrastructure.