Recently, the company announced plans to expand its collaboration with the German logistics company Rhenus Group. During a meeting with the Rhenus Group delegation, led by CEO Tobias Bartz, the Chairman of Azerbaijan Railways, Rovshan Rustamov, presented plans for the modernization and electrification of Azerbaijan’s railway infrastructure. He also outlined measures to increase the capacity of railways that run through international transport corridors such as the Middle Corridor.
One of the key topics of discussion was the ecological sustainability of railway transportation. Rovshan Rustamov emphasized that reducing carbon emissions is a top priority, and digitalization of processes is an essential step toward achieving this goal. In recent years, Azerbaijan Railways has actively worked on attracting new cargo, diversifying routes, and improving logistics operations to strengthen Azerbaijan’s position as a key transport hub in the region.
Rhenus Group CEO Tobias Bartz expressed interest in collaborating with Azerbaijan Railways, highlighting Azerbaijan’s importance in international logistics. He also noted that his company is ready to provide innovative solutions in the field of international freight transportation and logistics.
Simultaneously, during the 29th United Nations Climate Change Conference (COP29), Azerbaijan Railways held discussions with the International Union of Railways (UIC) and Polish State Railways (PKP). The meeting addressed global climate challenges, the implementation of innovative solutions in international freight transportation, and best practices in sustainable development. UIC President Alain Barbey and Rovshan Rustamov focused on the digitalization of railway operations and the introduction of modern technologies to enhance transportation efficiency.
Additionally, Azerbaijan Railways signed a loan agreement with the Asian Development Bank (ADB) for $131.5 million to implement a project for the reconstruction of a key section of the North–South international corridor. The total cost of the project is $160.5 million, with $29 million funded by the government of Azerbaijan. The funds are allocated for the modernization of 333 kilometers of railway track on the Sumgayit–Yalama section, including civil structures and railway crossings. The project is scheduled for completion by 2025.
The project aims not only to improve physical infrastructure but also to strengthen the financial sustainability of Azerbaijan Railways. The agreement stipulates regular adjustments to freight and passenger tariffs to allow the company to mitigate market risks and maintain debt sustainability. Special attention is given to maintaining the quality of railway tracks and infrastructure facilities to ensure safe and efficient railway operations.
Since joining the Asian Development Bank in 1999, Azerbaijan has received over $5 billion to support projects in transport, energy, agriculture, and other sectors. These investments have strengthened the country’s position as a key transport hub connecting Europe and Asia, contributed to the development of economic infrastructure, and enhanced Azerbaijan’s competitiveness on the international stage.
