Digitalization and the Application of Artificial intelligence Will Further Strengthen the Transport and Logistics Position of Our Country

Digitalization and the Application of Artificial intelligence Will Further Strengthen the Transport and Logistics Position of Our Country

From the ideas voiced at the first meeting of the Digital Development Council, dedicated to the execution of the measures outlined in the "Action Plan for 2026–2028 on Accelerating Digital Development in the Republic of Azerbaijan," held under the leadership of the First Vice-President of Azerbaijan, First Lady Mehriban Aliyeva, it became clear that processes in this direction are successfully continuing. Steps taken toward integrating many e-services into the "mygov.az" platform, increasing the opportunities to benefit from mobile applications in various directions, and digitalizing non-digital services draw attention as the initial results of the Action Plan. Naturally, the acceleration of digitalization is characterized by various impacts on society and industry. As was also voiced at the meeting of the Digital Development Council, the goal is to give impetus to the development of the national economy, form a modern innovation ecosystem, and raise investment attractiveness. All of these also require flexible transport-communication opportunities, fast and easy access to local and foreign markets, and modern logistics services. How will the implemented digitalization affect transport services? What impacts can digitalization and the application of artificial intelligence have on the international transport-logistics-transit processes realized with the participation of Azerbaijan, an important transport-transit hub of the Eurasian space? What advantages do digital transport-logistics processes promise? Commenting on the topic, Agil Asadov, Head of Department at the Center for Analysis of Economic Reforms and Communication, believes that in the modern era, the development of international transport connections is of vital importance for the sustainable operation of the global economy. Structural changes occurring in the world economy in the 21st century have also significantly affected the operation of international transport systems. Globalization, the rapid development of e-commerce, the expansion of global supply chains, the increase in cargo and passenger transportation volume, and the intensification of mutual relations require more flexible, safe, and efficient management of transport operations. Since traditional management methods no longer fully satisfy these requirements, the application of digital technologies and artificial intelligence has become a strategic priority. As voiced during the first meeting of the Digital Development Council of the Republic of Azerbaijan held on June 29 under the chairmanship of the First Vice-President of Azerbaijan, First Lady Mehriban Aliyeva: "...Artificial intelligence is no longer a factor of the future, but a main factor of development today."

As emphasized at the meeting: "Our goal is not only to apply new technologies, but at the same time to give a strong impetus to the country's economy, form a new modern innovation ecosystem, attract local and foreign investments to the country, support local startups, and create a more efficient state governance system." Of course, transport connections and transport-logistics processes play a special role in the realization of all this. Digitalization implies not only the application of information technologies, but also changing the management model, processing data in real time, creating automated decision-making systems, and optimizing logistics processes. In this process, artificial intelligence plays an important role, ensuring the analysis of large volumes of data in a short time frame, more flexible and accurate forecasting of demand, optimal distribution of cargo flows, route optimization, risk assessment, and overall automatic management of transport processes.

Agil Asadov notes that digitalization in the transport sector can be characterized as the integration of information and communication technologies into all management and production processes. As a result of this transformation, document turnover transitions to an electronic format, logistics operations are automated, decision-making accelerates, and errors arising from the human factor are minimized. I would like to state that the main components of digitalization in international transport connections include electronic cargo documents (e-CMR, etc.), electronic customs systems, GPS and satellite monitoring, cloud-based logistics platforms, big data analytics, the Internet of Things (IoT), blockchain technologies, and artificial intelligence-based decision-making systems. These technologies increase the transparency of transportations, reduce operational costs, and accelerate information exchange among all participants in the logistics chain.

Artificial intelligence (AI) is considered one of the most promising technologies in the transport sector as well. AI algorithms determine the most optimal route considering road congestion, weather conditions, waiting times at border-crossing points, fuel consumption, and other factors. This reduces transportation duration and, consequently, logistics costs. At the same time, robotic systems in warehouses automate the preparation, sorting, and loading of orders. AI programs optimize cargo placement, ensuring maximum utilization of transport vehicle capacity. Likewise, through AI, monitoring the technical condition of transportation vehicles and identifying possible malfunctions in advance is also possible. As a result of these technologies, the movement of cargo can be fully tracked, making the logistics chain more transparent.

According to the Head of Department, digitalization and the application of artificial intelligence also promise long-term perspectives in transport services. From this point of view, it is necessary to pay special attention to the development of digital transport systems in Azerbaijan, which is an important participant in the East-West and North-South international transport corridors and a significant party in the development of the Middle Corridor. This is both a necessity arising from global challenges and acts as an essential condition for further strengthening Azerbaijan's important position, formed as a transport-transit-logistics hub in the Eurasian space. Measures successfully implemented in our country, such as the development of ASAN service and e-government systems, the application of digital customs platforms, the automation of logistics centers, the implementation of digital management systems at the Baku International Sea Trade Port, the electronic management of railway transportations, the integration of transport databases, etc., will also contribute to the development of digital transport-logistics services. Against the background of the modernization of the section of the Baku-Tbilisi-Kars railway line passing through the territory of Georgia, the preparation of the Zangezur corridor for operation, and the overall development of the Middle Corridor, the application of digital logistics solutions will further increase Azerbaijan's international transit capabilities.

As is also known from international experience, digitalization may face a number of challenges, such as high investment requirements, cybersecurity risks, the formation of the necessary legal framework, problems arising in the integration of information systems of different countries, a shortage of qualified personnel, and the protection of data privacy. Nevertheless, digitalization and the application of artificial intelligence will make digital transport operations an integral part of the daily life of society and industry in the near future through fully automated logistics centers, driverless cargo and passenger vehicles, drone transportations, blockchain-based international cargo documentation, digital management of green logistics, and flexible optimization of transportations.

Thus, the digitalization of transport connections is one of the main directions of global economic development. The application of artificial intelligence technologies creates opportunities to optimize logistics operations, reduce transport costs, increase safety, and raise service quality. The digital logistics ecosystem forming in the world shows that future competitive advantage will depend on the level of application of innovative technologies. Taking into account Azerbaijan's growing role in international transport corridors, the widespread application of digital transformation and artificial intelligence technologies will further strengthen the country's transit potential, increase the efficiency of international freight transportations, and further reinforce its position as an important logistics center of the region.