BAKU, Azerbaijan, January 29. The Permanent Representative (National Secretary) of the IGC (Intergovernmental Commission) TRACECA in Azerbaijan Rufat Bayramov named the introduction of digital solutions to ensure the passage of cargo, an increase in the container and ferry fleet, and the development of port infrastructure on the Caspian Sea among the priorities of the TRACECA international program for 2024-2026 last week, Trend reports.
According to Bayramov, considering the digitalization process in 2024, a single universal electronic consignment note between Türkiye, Georgia, Azerbaijan, Ukraine, and Kazakhstan (CIM/SMGS) may become officially operational. The experts from a specialized UN program have greatly assisted in the development of the consignment.
"The digitalization of the corridor will increase containerization, which in the future can transport up to 600,000 containers per year (10 times more than the current limit). Many shippers prefer container transportation, and this aspect will be taken into account in the work for the period 2024-2026," he added.
He also noted that it is expected to agree on the creation of the TRACECA Business Council by mid-2024, which will include representatives of business, government agencies, cargo carriers, customs, border authorities, and other participants in the process of cargo transportation.
Additionally, discussions are underway among the 14 participating countries in the program regarding the creation of the TRACECA Fund this year, with the participation of both public and private capital.
Bayramov also named the most important task of 2024 as the commencement of actual operations by the Middle Corridor Multimodal Unified Operator Company agreed upon by Georgia, Azerbaijan, and Kazakhstan in November 2023 – active participants in TRACECA.
Last week, Kazakhstan hosted an international round table organized by Kazakhstan Railways JSC (KTZ, a national company) with the participation of Azerbaijan Railways CJSC and major Kazakh exporters.
The advantages and opportunities of the Trans-Caspian International Transport Route (TITR, or Middle Corridor), which allows the delivery of the cargo of domestic exporters to world markets as quickly and economically as possible, were discussed at the event.
The Asian Development Bank (ADB) will allocate a grant to elaborate a strategy for further development of the TITR in 2024.
This agreement was reached on January 25–26 in Ankara during the retreat meeting of the working group and the general meeting of associations of legal entities—members of the TITR Association.
Within the framework of the meetings in Ankara, a round table was held with the participation of cargo owners from Kazakhstan and Türkiye, representatives of the World Bank, EBRD, and the Ministry of Transport of Türkiye.
"Topical issues related to the digitalization of the TITR route were discussed, and key points of interaction in the organization of transportation development were identified," the association stressed.
During a meeting in Ankara, it was also noted that more than 2.7 million tons of goods were transported along the TITR route in 2023, representing an 86 percent increase over 2022, and the projected total for 2024 is approximately four million tons.
The Middle Corridor connects the networks of container rail freight transportation in China and the European Union through the countries of Central Asia, the Caucasus, Türkiye, and Eastern Europe.
The Secretary-General of the TITR Association, Gaidar Abdikerimov shared his expectations about the number of companies operating on the Middle Corridor route.
"Last year was very dynamic for us, as interest in TITR is growing both from participants in the market of transport and logistics services, international financial institutions (IFIs), and large economic conglomerates. In the near future, more major companies interested in cooperation with TITR will join us," Abdikerimov noted.
He said that a total of 25 railway, transport and logistics, port, and shipping companies from 11 countries are operating on the route.
Spain may organize a conference with a focus on the Middle Corridor, said the Secretary of State for Trade of Spain and co-chairperson of the Kazakh-Spanish intergovernmental commission Sheana Mendes during a meeting with the Ambassador of Kazakhstan to Spain Danat Musayev.
Brussels will host the Global Gateway Investor Forum on Sustainable Transport Connections between Europe and Central Asia to discuss the Trans-Caspian International Transport Route (TITR, or Middle Corridor) projects at the initiative of the European Commission on January 29–30.
Kazakhstan Railways JSC is actively working on the development of the Middle Corridor, Deputy Chairman of the KTZ Logistics Board Yerlan Koishibayev said during an international roundtable organized by KTZ, which was also attended by major local exporters.
For this purpose, KTZ is actively working to develop the "soft and hard infrastructure" of TITR to improve the service of logistics services both in Kazakhstan and outside the country, he explained.
"The route currently offers a competitive delivery time of 12 days on average. In the mid-term, we are interested in increasing the volume of freight traffic along the corridor to 10 million tons," the KTZ's deputy chairman noted.
Kazakhstan has called on Croatian businesses to participate in projects along the Middle Corridor, said Minister of National Economy of Kazakhstan Alibek Kuantyrov during the first meeting of the Kazakh-Croatian intergovernmental commission on trade and economic cooperation in Zagreb.
"Developing transport and logistics projects, especially within the framework of the Trans-Caspian International Transport Route, is beneficial for Kazakhstan and Croatia. This is one of the effective areas to which Kazakhstan pays special attention," the minister noted.
Harmonization and unification of Azerbaijan's laws in the field of transportation with international legislation will contribute to the popularization of the Middle Corridor route, the Chairman of the Freight Forwarding Association of Azerbaijan (FFAA), Kamran Habibov said.
Azerbaijan Caspian Shipping Company (ASCO) has published data on cargo transportation by its different types of vessels in 2023.
According to the information, ASCO tankers transported 4.9 million tons of oil and oil products.
Ferries and Ro-Pax-type vessels transported 37,642 freight cars and 35,207 automobiles.
ASCO bulk carriers transported 749,000 tons of cargo (the main part in the second half of the year).
The company operates 54 vessels for various purposes, including 22 tankers, 13 ferries, and two Ro-Pax-type vessels.
It intends to acquire large oil tankers capable of operating in international markets from 2024 through 2026.
ASCO has already taken under its balance such modern ships as "Karabakh," "Shusha," and "Zangezur" which were operated by the State Oil Company of Azerbaijan (SOCAR) from November 2023 through January 2024 to deliver oil from Russia's Primorsk to the Turkish Nemrut Bay Port.
SA Maritime AFEZCO, a joint venture of Azerbaijani Caspian Shipping Company CJSC (ASCO) and SOCAR state firms, purchased the tankers last year, with a capacity of 70,000 to 120,000 tons of oil.
ASCO said that the roll-on/roll-off passenger ferry "Ordubad," owned by the Marine Transport Fleet of Azerbaijan Caspian Shipping Company CJSC (ASCO), has started performing scheduled voyages after maintenance.
The Ministry of Transport and Digital Technologies emphasized that Azerbaijan has earned more than 550 million manat ($323 million) from telecommunications and optical satellite services.
"By 2023, loan liabilities totaling $206.2 million had been entirely repaid. The report stated that Azerbaijan spent $116.6 million on the building of its first telecommunications satellite, Azerspace-1, and $89.6 million on orbital services," the ministry noted.
In April, Azerbaijan Airlines will be launching direct flights to Karachi, which is the largest city in Pakistan.
The airline's first flight from Baku to Karachi is scheduled for April 18. Flights on this route will be operated twice a week, specifically on Thursdays and Sundays.
From January 23 to 25, the first CEO summit of the air navigation bodies of Azerbaijan, Türkiye, and Central Asian countries (Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan) is taking place in Baku under the auspices of CANSO. This significant event is jointly organized by the Ministry of Digital Development and Transport of Azerbaijan and Azerbaijan Airlines CJSC.
CANSO is an international organization of air navigation service providers, of which Azerbaijan has been a member since 2005.
The private Azerbaijani company "Global Force Technology Inc." plans to set up production of small civil aircraft in Azerbaijan, awaiting approvals.
The Executive Director of the Pakistan Research Center for a Community with Shared Future (PRCCSF), Khalid Taimur Akram said that the opening of the Zangezur Corridor will promote regional economic development and strengthen trade ties.
The Land Transport Agency under the Ministry of Digital Development and Transport reported that to date, 27,822 passengers have visited the liberated territories of Azerbaijan, and 680 trips have been carried out.
Cargo transportation by road in Azerbaijan in 2023 amounted to 134.2 million tons, which is 58.4 percent of the total volume of cargo transportation, the State Statistics Committee of Azerbaijan said.
Freight transportation by road increased by 6.5 percent compared to 2022.
Meanwhile, passenger transportation by road amounted to 1.69 billion people, which is 20.6 percent more than the previous year. During this period, 94.4 percent of passengers were transported by buses and 5.6 percent by taxis and other private carriers.
In addition, 219.5 million people (an increase of 5.2 percent) used the services of the Baku Metro.
The FFAA's head, Kamran Habibov also said that a draft law on transport and freight forwarding activities has been submitted to the Ministry of Digital Development and Transport.
He expressed hope that the draft law will be presented to the parliament and adopted this year.
"The establishment of this legislative framework will enable transport and freight forwarding companies to improve their operations and the country to increase freight flows," Habibov noted.
He pointed out that training programs for specialists in transport logistics and forwarding areas are being actively implemented in Azerbaijan, which is particularly significant given the country's accelerated development as a major international transportation hub.
The State Statistics Committee of Azerbaijan said that cargo transportation by railway transport amounted to 18.3 million tons in Azerbaijan in 2023, decreasing by 2.6 percent year-on-year, while passenger transportation increased by 38.4 percent (up to 7.1 million people).
Rail transportation accounted for 7.9 percent of all freight traffic in 2023.
The number of loaded rail cars amounted to 400 on average per day, while the number of unloaded rail cars amounted to 424.
Cargo transportation by sea transport in Azerbaijan exceeded 9.01 million tons in 2023, which is 19.8 percent more than in 2022, the State Statistics Committee also noted.
Passenger transportation by sea transport in the reporting period amounted to 23,700 people, which is 10.7 percent more compared to 2022.
Cargo transshipment by seaports in Azerbaijan in the mentioned period amounted to over 13.3 million tons. Of these, transit cargoes accounted for 82.6 percent, or 11 million tons.
Meanwhile, oil accounted for 54.4 percent of Azerbaijan's maritime export cargo transportation.
As of January 1, 2024, the volume of cargo in the ports of Azerbaijan amounted to 463,100 tons.
Cargo transportation by all types of transport in Azerbaijan amounted to 230.2 million tons in 2023, which is 5.3 percent higher year-on-year. Passenger transportation in Azerbaijan exceeded 1.92 billion people in 2023, which is 18.7 percent higher year-on-year.