The Center for Analysis of Economic Reforms and Communication has published an analytical review covering the current state of Azerbaijan’s transport sector for 2021–2025. The study assesses the transport sector’s macroeconomic indicators, freight and passenger transportation, revenues and expenditures, the operation of international transport corridors, infrastructure provision, and future development prospects.

According to the findings of the analysis, the transport sector has significantly strengthened its position in the national economy over the past five years. The value added generated in the sector increased from AZN 6.4 billion in 2021 to AZN 9.1 billion in 2025. The number of people employed in the transport sector also rose from 147,000 to 185,200. During this period, the sector’s total profit increased by 44.1%, exceeding AZN 7 billion.

In 2025, a total of 243.3 million tons of freight were transported in Azerbaijan, with road transport maintaining its leading position with a 62.4% share. At the same time, total freight turnover increased from 78.7 billion ton-km to 101.9 billion ton-km between 2021 and 2025. In particular, the more than fivefold increase in freight turnover in maritime transport was assessed as an indication of the expansion of Azerbaijan’s transit and logistics capabilities in the Caspian basin.

As for passenger transportation, significant growth was also recorded, with 2.215 billion passengers served in 2025. Road transport accounted for 89.1% of passengers transported, while metro transport accounted for 10.2%. Although the faster growth in passenger transportation by rail and air indicates that demand for transport services is becoming more diversified, the high dependence on road transport remains one of the key challenges.

Agil Asadov, Doctor of Economics and author of the review, stated that Azerbaijan holds an important position in terms of transit transportation. In 2025, 14.27 million tons of freight were transported through transit corridors passing through the country, of which 52.2% accounted for road transport, 46.1% for rail transport, and 1.7% for air transport. Regarding international corridors, the recorded growth along the East-West and North-South routes demonstrates the strengthening of Azerbaijan’s role as a regional transport and logistics hub. In addition, the East-West route’s 33.7% share of transit transportation particularly highlights the prospects of the Middle Corridor.

The study emphasizes Azerbaijan’s favorable geographical location, access to the Caspian Sea, the Alat International Sea Trade Port, the Baku-Tbilisi-Kars railway, and projects such as the North-South, East-West, and Middle Corridors as the country’s key advantages in terms of transit potential. It also notes that the Zangazur Corridor could become an important component of the Middle Corridor in the future, creating new opportunities. The analysis shows that in the next stage, Azerbaijan’s transport policy should focus not only on infrastructure expansion, but also on digitalization, the development of multimodal transportation, strengthening integration among different modes of transport, improving the efficiency of logistics services, and implementing green transport solutions. In particular, the development of electronic documentation, digital customs procedures, cargo tracking, and flexible coordination mechanisms along the Middle Corridor could further enhance Azerbaijan’s competitiveness in transit transportation.

Overall, the findings of the analysis show that the future development of Azerbaijan’s transport system should be based on the parallel expansion of physical infrastructure and the development of a digital, green, and multimodal transport model. This approach could enable Azerbaijan’s transport system to evolve not merely as an infrastructure sector serving domestic demand, but as an integrated transport-transit-logistics ecosystem supporting the country’s economic activity, export potential, global and regional integration, and role in international transit.

For more detailed information, please follow the link: Comprehensive Analysis of the Current State of Azerbaijan’s Transport System