Tazeen Akhtar | Islamabad
Azerbaijan Republic in the center of Asia and Europe is mostly known for her oil and gas resources as the major source of the development of social fabric as well as the basic infrastructure but it is not all about this emerging transit state connecting the continents and not the regions only.
Azerbaijan’s “Contract of the Century” is famous for being signed thanks to the untiring efforts of the national leader Hyedar Aliyev soon after the independence from the USSR. the landmark agreement of $7.4 billion production-sharing between Azerbaijan’s state oil company SOCAR and 11 major international energy firms from 07 countries to develop the Azeri-Chirag-Gunashli (ACG) oil fields in the Caspian Sea.
It formed the backbone of modern Azerbaijan’s economy and connected Caspian energy supplies to Western markets via pipelines like the Baku-Tbilisi-Ceyhan pipeline.It catalyzed the construction of critical export routes .
The project introduced Azerbaijan to the world as a stable, trustworthy, and independent economic partner, strengthening its sovereignty.
The contract that was signed in the last century was mainly about oil but its second importance was connectivity and transit as the oil exports were streamlined through pipelines connecting different countries.
Today, the transit and connectivity is the first priority of the export oriented countries while some provide transits to regions and the continents and Azerbaijan is geographically qualifies to that characteristic as well. Azerbaijan is providing opportunities of the century here too.
Azerbaijan supplies natural gas to Europe through the Southern Gas Corridor, a 3,500-kilometer pipeline network connecting Caspian Sea gas fields to European markets. Azerbaijan delivers gas to 16 countries, including European nations like Italy, Greece, Bulgaria, Romania, Hungary, Serbia, Slovenia, Croatia, North Macedonia, Slovakia, Austria, and Germany (with Austria and Germany added in January 2026).
Azerbaijan is transforming the Caspian Sea from a geographical barrier into an active trade bridge connecting Central Asia to Europe through the Trans-Caspian International Transport Route (the Middle Corridor).
Azerbaijan’s trade and economic cooperation with Central Asian nations reached $1.8 billion in 2025, marking a 53% annual increase as ties transition into a formal C6 geopolitical and economic framework.
Azerbaijan is becoming a natural partner. It provides access across the Caspian Sea to the rail and port routes of the South Caucasus and, from there, to the Black Sea, Türkiye, and European markets. During the talks, the presidents emphasized joint development of the Trans-Caspian route, or Middle Corridor, more efficient logistics infrastructure, and simpler transportation procedures.
Zangezur Corridor or TRIPP Initiative with the Horadiz–Aghband railway project connects mainland Azerbaijan to Nakhchivan, offering a new route toward Turkey and Europe with a 15-million-ton capacity.
Belt and Road Initiative, Middle Corridor, North South Corridors are the topics the world is talking about in the international conferences. Azerbaijan enjoys a location that serves the main purpose of most of the International corridors in Asia and Europe that can further connect the third continent Africa as well as a network of roads and rails to promote trade and tourism both.
Azerbaijan serves as a vital strategic transit and logistics hub connecting Asia and Europe, driven by major infrastructure investments and its central role in the Trans-Caspian “Middle Corridor”.
The Middle Corridor links China and Central Asia to Europe via Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Türkiye cutting freight transit times to 8–10 days. It has gained immense value as an alternative to northern routes affected by geopolitical tensions.
North-South connects Russia down through Iran and South Asia, positioning Azerbaijani roads and railways as critical multimodal trade links. The country provides core infrastructure assets at the port of Baku that is located on the Caspian Sea at Alat, equipped to handle high-capacity rail ferries and freight.
Baku–Tbilisi–Kars (BTK) Railway provides a direct, uninterrupted rail connection from the Caspian region straight into Europe.Alat Free Economic Zone (AFEZ) offers specialized logistics, warehousing, and industrial incentives to attract international trade and manufacturing companies.
Upgraded facilities at Heydar Aliyev International Airport support rapid cold-storage and general cargo distribution. Combining rail, road, maritime, and air networks to cut transport times and costs between regions are strategic advantages with multimodal integration . The transit and connecting infrastructure of Azerbaijan is helping in growing international trade ,shifting flows of goods, including energy products, agricultural shipments, and industrial components across Eurasia.
ERA OF CONNECTIVITY AND ZANGEZUR CORRIDOR – by Tazeen Akhtar from Islamabad Pakistan
Pakistan Azerbaijan Connectivity
Pakistan and Azerbaijan are actively expanding their bilateral connectivity and truck trade through cross-border agreements, Transit Trade Rules, and regional transport corridors.
The National Logistics Corporation (NLC) runs commercial road transport operations under the Transports Internationaux Routiers (TIR) system, linking Pakistan to Azerbaijan via Iran. NLC trucks take approximately 8 days to cover the roughly 3,680-kilometer route from Pakistan through Taftan to Baku, carrying exports like textile products and tires, and returning with raw materials and electronics.
The Federal Board of Revenue (FBR) approved the Azerbaijan-Pakistan Transit Trade Rules, allowing Azerbaijan-registered commercial vehicles carrying bilateral and transit cargo to enter Pakistan via major ports like Karachi Port, Port Qasim, and Gwadar Port without needing financial security for duties and taxes.
Both countries advanced plans to launch dedicated freight train routes, specifically the Pakistan-Azerbaijan Express and the Pakistan-Iran-Azerbaijan rail corridor, to lower transit costs and speed up cargo movement. Bilateral discussions emphasize integrating with the North-South International Transport Corridor (INSTC) and leveraging Azerbaijan’s position on the Middle Corridor to bridge South Asia with Europe.
The Gwadar port of Pakistan can connect Azerbaijan and Central Asia with CPEC that will further pave the way for transportation of goods from Azerbaijan and Central Asia for international markets to China, Middle East and Africa. Reciprocally , Azerbaijan’s transit network is available for Pakistan to export her products to Eurasian countries.
Finally, transport links to develop reliable, commercially viable, and sustainable trade corridors through Azerbaijan are connecting East and West , North and South. In the regions Central Asia, South Asia, Middle East, Eurasia, Caucasus and European markets. Azerbaijan has become mainly the Gateway between Asia and Europe. Enhanced and efficient road and rail connectivity could be a game changer for all regional countries.
