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Horadiz-Aghband railway to enhance global trade & regional connectivity
Despite Azerbaijan having garnered significant international
recognition for its achievements in the energy sector, the
country’s influence is also expanding rapidly in the field of
transport. In recent years, particularly after the liberation of
Garabagh, Azerbaijan has embarked on several ambitious large-scale
transport projects. Among these, the Horadiz-Aghband railway line
stands out as a project with the potential to reshape regional and
international trade dynamics by directly connecting Europe and
Asia. This initiative, part of the broader Zangezur Corridor, is
not merely a regional transportation link, but rather a critical
infrastructure project with vast economic implications for
Azerbaijan and its neighbors.
The Zangezur Corridor, which will facilitate an efficient rail
connection between Azerbaijan’s mainland and the Nakhchivan
Autonomous Republic, is strategically important for fostering trade
between East and West. More than just providing a new route for
freight transportation, this railway line is poised to become a
pivotal corridor for global trade, facilitating fast and secure
transport of goods between major economic regions, including China,
India, South Korea, and Europe. As these Asian economies continue
to grow in global significance, their trade with Europe has become
increasingly important. In this context, the Zangezur Corridor
offers a highly competitive and viable solution for transporting
goods overland at lower costs and in less time.
Economic impact and regional
connectivity
From an economic standpoint, the Horadiz-Aghband railway line
stands to significantly bolster Azerbaijan’s position as a transit
hub. As a key connector in this transport corridor, Azerbaijan will
capture substantial transit revenues, facilitating greater economic
integration into the global marketplace. Preliminary estimates
suggest that, should 10-15% of cargo pass through the Zangezur
Corridor, Azerbaijan could generate $3-3.5 billion annually in
transit fees. These revenues would substantially contribute to the
national budget, fueling further investment in infrastructure and
economic development.
Additionally, the railway will create a ripple effect throughout
the economy. The flow of foreign currency into Azerbaijan’s economy
will be accompanied by the establishment of offices and branches of
international companies in Baku, leading to the creation of new job
opportunities. Such developments will further stimulate local
economies and contribute to the overall improvement in the social
welfare of the population, particularly through enhanced employment
prospects and better living standards.
Moreover, Azerbaijan’s role as a transit country will position
it as a vital player in broader geopolitical and economic
processes. This will enhance the nation’s negotiating power in
international forums, strengthening its influence on the global
stage. Importantly, the diversification of Azerbaijan’s economic
activities into transit services will help reduce the nation’s
reliance on the energy sector, thereby fostering a more resilient
and balanced economy.
Regional cooperation and long-term strategic
advantages
The Horadiz-Aghband railway line is poised to deliver
far-reaching benefits that extend well beyond Azerbaijan’s borders,
creating a foundation for broader regional growth and
collaboration. President Ilham Aliyev has rightly characterized the
Zangezur Corridor as a “fundamental element of regional peace,”
highlighting its transformative role not only as an economic asset
but also as a catalyst for regional stability. This railway will
act as a critical bridge, physically linking Azerbaijan with
Nakhchivan, while symbolizing strengthened relations between
Azerbaijan, Armenia, and other neighboring nations. Such
developments lay the groundwork for broader political dialogue and
could serve as a model for future collaborative projects aimed at
ensuring long-term peace and stability in the South Caucasus.
The Zangezur Corridor’s efficient transportation network will
provide a significant reduction in both travel time and
transportation costs for goods moving between China, Turkiye, and
Europe. By offering a faster and more affordable alternative to
traditional routes, this corridor will lower shipping expenses,
making products from the region more competitive on the global
stage. As a result, it will enhance the economic prospects of all
countries connected by the corridor. Furthermore, the improved
access to the East-West trade route will not only boost regional
trade volumes but also benefit landlocked nations, such as Armenia,
by providing them with a more viable pathway for international
trade. This broader connectivity promises to unlock new economic
opportunities for all involved, fostering deeper regional
integration and long-term prosperity.
Project status and future
prospects
The design and construction of the Horadiz-Aghband railway line
is progressing steadily, with key milestones already achieved.
According to the latest reports, 83% of the design work has been
completed, and 62% of the construction and installation works have
been finalized, including earthworks and the construction of
artificial structures. The demining process along the railway
corridor has also been completed, ensuring a safer route for future
operations. A significant portion of the railway, 72 km along the
main axis and 83.4 km including side tracks, has been completed,
with 65.6 km of long-gauge rails already installed. Notably, the
construction of one tunnel has been completed, with excavation
continuing on the second tunnel.
With a total length of 110.4 km (140.6 km including side tracks)
and the construction of 534 engineering structures, the railway is
set to open new economic frontiers for Azerbaijan and its regional
partners. The project’s completion will mark a key achievement in
Azerbaijan’s infrastructure development and will serve as a
catalyst for increased trade, economic growth, and regional
cooperation.
In conclusion, the Horadiz-Aghband railway line is not merely a
transport infrastructure project; it is a strategic initiative that
will have lasting economic, political, and social impacts on
Azerbaijan and the wider region. The Zangezur Corridor will not
only position Azerbaijan as a central transit hub in the global
economy but also foster regional cooperation, peace, and stability.
By capitalizing on the growing demand for efficient transportation
routes between Asia and Europe, Azerbaijan is poised to reap
substantial economic benefits, strengthen its international
position, and ensure a prosperous future for its citizens.
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