Azerbaijan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in azerbaijan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Transportation and Logistics
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Overview

Azerbaijan is positioning itself as a regional logistics hub for East-West trade through significant infrastructure investments. The expansion of the Baku-Tbilisi-Kars (BTK) railway and of the Port of Baku are substantially increasing the capacity of the transit route linking East, Central, and South Asia with Europe. Additionally, Azerbaijan has expanded its air cargo facilities at Heydar Aliyev International Airport in Baku, including a cold storage facility and a modern general cargo terminal. These facilities complement investments in road, port, and rail infrastructure, enhancing multimodal connectivity. A new private air cargo airport in the Alat Free Economic Zone (AFEZ) is also expected to open to cargo and private flights in 2027.

The BTK railway connects Soviet-era rail systems in Azerbaijan and Georgia to Türkiye and further into Europe, facilitating an East-West transport corridor. The Port of Baku, located southwest of Baku on the Caspian Sea, is strategically situated at a rail and road hub, enabling multimodal north-south and east-west transit. The port can accommodate rail ferries transporting up to 52 train cars at a time. In 2024, the Port of Baku achieved a total cargo turnover of 7.6 million tons, with container traffic rising by 73 percent compared to the previous year. 

AFEZ, located 40 miles south of the capital of Baku, opened in 2023.  The zone, covering an area of 850 hectares, aims to develop Azerbaijan’s non-oil sector exports by attracting foreign investors.  AFEZ is the focal point for the Government of Azerbaijan’s efforts to attract and grow value-added manufacturing activity for export. Investing companies are required to export at least 75 percent of their manufactured goods. AFEZ has unique government-approved legislation, which allows it to offer a range of incentives and advantages that are not available at any other location in the country, including exemptions from taxes and customs duties, as well as a self-regulated arbitration process. The government also established a new Alat Free Economic Zone Authority (AFEZA), which is responsible for all aspects of promotion, client facilitation, approvals, licensing, and client development. AFEZ currently has seven investors in various phases of development. As of the publishing of this guide, no company has started manufacturing.  

Leading Sub-sectors

Freight forwarders, logistics/supply chain developers, and managers may find opportunities as Azerbaijan continues investing in logistics infrastructure. 

Opportunities

Suppliers of aircraft, rail wagons, locomotives, transport equipment, construction equipment, and materials or international transportation companies may find opportunities in the transportation sector, especially as links across the Caspian and into Türkiye already have been built.

Resources

Transportation, Communication, and High Technologies:
https://www.cbar.az/home?language=en

Port of Baku and Port Alat:  http://portofbaku.com/en/

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