Azerbaijan constitutes a bridge between Europe and Caucasus with Central Asia. It borders Russia in the North, Georgia and Armenia in the West, the Islamic Republic of Iran in the South and shares a common maritime border with Turkmenistan in the East. Azerbaijan therefore plays a key role in the development of international trade along the TRACECA corridor. It is also crossed by the North South corridor, which goes from Russia to Iran, and further to the Persian Gulf.
The transport network of Azerbaijan is composed of 2,929 km of rail and 24,981 km of roads. Baku, the capital city of Azerbaijan, is also the main airport and maritime hub of the country and of the Caspian Sea. In the near future, a new port will be operational at Alyat, 60 km South of Baku.
The National Strategy for the Development of Transport Sector in the Republic of Azerbaijan was defined in the mid-2000s with the assistance of ADB/CAREC. It is covering the period 2006-2015. The main priorities relevant to LOGMOS include:
a) Legislative reforms aiming to:
- separate the State regulatory function from operational activities,
- transfer non-core transport activities to the competitive market/private operators,
- enhance transport safety and address environmental issues through the implementation of world standards and introduction of new technologies.
b) Construction and reconstruction of the network of highways linking different regions, cities and towns.
c) Improvement of railway infrastructure and upgrading of handling equipment.
d) Construction of a new sea port with increased capacity in handling liquid cargo and containers