Azerbaijan is seeing continued growth in rail freight activity in 2026, supported by rising transit demand and the country’s expanding role as a logistics bridge between Europe and Asia.
From January to July 2026, around 4.19 million tonnes of cargo worth approximately $2.09 billion were transported by rail in Azerbaijan, according to recently released data.
The broader transport sector has also recorded growth. Azerbaijan moved 140.8 million tonnes of cargo across all transport modes during the first seven months of 2026, up 2.8% year on year. Rail accounted for 7.4% of the total cargo volume.
Transit traffic remains a major driver. Transit cargo passing through Azerbaijan exceeded 9.1 million tonnes in January-July, an 11.6% increase from the same period in 2025 and the highest level recorded in five years. Traffic along the East-West corridor rose 16.5%, while the North-South corridor grew 14.3%.
Azerbaijan’s position on the Middle Corridor, also known as the Trans-Caspian International Transport Route, is helping support this growth. The route provides a multimodal connection between China and Europe through Central Asia, the Caspian Sea, Azerbaijan and the South Caucasus.
Rail transit through Azerbaijan is also benefiting from infrastructure upgrades. The modernisation of the Baku-Tbilisi-Kars railway has increased its annual freight capacity to around 5 million tonnes, strengthening its role in regional trade flows.
During the first half of 2026, transit cargo transported by Azerbaijan Railways (ADY) reached 3.625 million tonnes, representing a 9% year-on-year increase. Transit volumes on the East-West Middle Corridor climbed 12% to 1.958 million tonnes.
The country’s rail network is also handling increased volumes of specific commodities. Nearly 484,000 tonnes of sulphur and related cargo moved through Azerbaijan Railways during January-June, up more than 31% from the previous year.
Alongside rail investment, Azerbaijan is upgrading ports and digital logistics systems. Container handling at the Port of Alat increased 20% year on year to 72,370 TEUs during January-July, while dry-cargo throughput rose 82% to 1.4 million tonnes.
The government is also using digital tools, including electronic permits, e-TIR and e-CMR systems, to streamline border and customs procedures. These measures have helped reduce China-Europe transit times through the Middle Corridor from as much as 38–53 days to around 12 days, according to Azerbaijani authorities.
The combination of railway modernisation, port expansion and digitalisation is strengthening Azerbaijan’s position as a key transit hub between Asia and Europe. Continued growth in rail freight could further increase the country’s importance in regional supply chains and support the expansion of the Middle Corridor as an alternative Eurasian trade route.