ECONOMYSLIDE

Strengthening Uzbek-Azerbaijani Transport and Logistics Cooperation

Azerbaijan’s Strategic Role in Regional Transport

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Bekzod Kholmatov
Director, Center for the Study of Transport Problems

Shokhjakhon Shikhnazarov
Chief Specialist, Center for the Study of Transport Problems

Located at the intersection of the East-West and North-South transport corridors, Azerbaijan enjoys a highly favorable geostrategic position. Over the past decade, major investments in transportation infrastructure—including the reconstruction of roads and railways, the construction of international airports in Baku and other regions, and the development of the Baku International Sea Trade Port—have not only modernized Azerbaijan’s own logistics network but also significantly enhanced connectivity across the wider region.

Uzbekistan and Azerbaijan: Expanding Bilateral Transport Ties

Uzbekistan and Azerbaijan continue to strengthen their relationship across multiple sectors, with transportation and logistics emerging as a cornerstone of their bilateral cooperation. This partnership is vital not only for both countries but also for the broader Eurasian region, as it facilitates the development of new, reliable transit corridors linking East and West.

As a double-landlocked country, Uzbekistan is highly dependent on international transportation corridors to access global markets. Azerbaijan serves as a critical partner in this regard, providing access through the South Caucasus and on to Europe. The free trade agreement signed in 1996 between the two countries further enables seamless entry of Uzbek goods into partner markets.

By the end of 2024, cargo transportation between Uzbekistan and Azerbaijan exceeded 100,000 tons, marking a 5% increase compared to the previous year—a testament to the growing dynamism in bilateral logistics ties.

Aviation Cooperation

Air connectivity has also seen significant growth. Bilateral aviation relations are governed by the 1996 Air Communication Agreement and reinforced through multiple memorandums and consultations. Uzbekistan’s air navigation authority has joined the Regional Platform on Air Navigation Safety Coordination for Europe and Asia, and since December 21, 2023, it has become a member of the association of air navigation service providers of Turkey and Azerbaijan.

The number of flights on the Tashkent–Baku route has doubled over the last two years, with 8 regular weekly flights now in operation.

Maritime and Port Integration

Both sides are investing in joint development of logistics infrastructure. The Baku International Sea Port in Alyat and its associated free economic zone present significant opportunities for Uzbek exporters and logistics companies. To enhance freight capacity across the Caspian Sea, Uzbekistan is actively exploring the acquisition of two vessels for maritime transportation.

Railway and Digital Transformation

Railway collaboration is also advancing. “Uzbekistan Railways” and “Azerbaijan Railways” are cooperating on container transport, capacity expansion, and the adoption of digital logistics solutions. Key agreements include the 1996 agreement on international railway relations and the 2008 agreement on combined rail transport cooperation.

A major milestone is the CASCA+ initiative—a multilateral agreement signed by the railway authorities of Azerbaijan, Georgia, Kyrgyzstan, Turkmenistan, and Uzbekistan, with Turkey joining in December 2021. This protocol supports the formation of a multimodal route from the Asia-Pacific to Europe via the Trans-Caspian corridor, offering rail freight discounts of up to 70%.

In 2024, Uzbekistan’s cargo volume through the Port of Baku (Middle Corridor) exceeded 1 million tons, a 26% increase from the previous year.

The emphasis is now on accelerating digitalization. In December 2022, Uzbekistan and Azerbaijan completed their first transport operation under the E-TIR system, and as of March 2025, they have fully transitioned to the electronic exchange of E-PERMIT forms.

Future Directions in Uzbek-Azerbaijani Transport Cooperation

  1. Adapting to New Geopolitical Realities:
    In today’s evolving geopolitical environment, there is a shift from traditional maritime routes to more secure, multimodal land transport corridors. Although Uzbekistan lacks direct access to sea ports, it can become a vital player in Eurasian logistics by establishing and modernizing land routes.Two transformative railway projects stand out:

    • China–Kyrgyzstan–Uzbekistan Railway
    • Uzbekistan–Afghanistan–Pakistan Railway

    These routes will enhance transit capacity across Central Asia and the Caucasus, creating new multimodal digital corridors, including:

    • Asia-Pacific – China – Kyrgyzstan – Uzbekistan – Turkmenistan – Azerbaijan – Georgia – Turkey – EU
    • Southeast Asia – Pakistan – Afghanistan – Uzbekistan – Kazakhstan – Azerbaijan – Georgia (Black Sea Ports) – EU
  2. Multilateral Transport Integration:
    Uzbekistan and Azerbaijan are also deepening their cooperation through regional platforms such as the CIS, Organization of Turkic States, Economic Cooperation Organization, and TRACECA.

Conclusion

Transport and logistics cooperation between Uzbekistan and Azerbaijan is evolving beyond a bilateral framework to become a strategic pillar in the emerging Eurasian transport architecture. Given their geographic positions and expanding partnerships, both countries are playing a pivotal role in establishing sustainable, diversified, and secure corridors linking East and West.

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