Azerbaijan is increasingly demonstrating that its economic
relevance extends well beyond oil and gas. Historically positioned
at the crossroads of East and West, the country has long functioned
as a natural transit hub. Today, however, Azerbaijan is
transforming this inherited geographic advantage into a strategic
economic asset through the development of the Middle Corridor,
officially known as the Trans-Caspian International Transport Route
(TITR). As global supply chains face prolonged disruptions,
geopolitical risks, and congestion along traditional routes, the
Middle Corridor is emerging as a competitive alternative – defined
not only by geography, but by speed, reliability, and institutional
coordination.
Recent operational data underline a key trend: reduced transit
time is rapidly becoming the corridor’s strongest value
proposition. According to Wang Sui Dun, Managing Director of
Beijing Cross-Eurasia International Logistics, the average delivery
time for cargo transported via the Xi’an–Baku railway route fell to
16 days in January 2026, down from 17 days in December 2025. While
a one-day reduction may appear marginal, in logistics terms it
represents a meaningful efficiency gain – particularly for
time-sensitive and high-value cargo. Faster transit reduces
inventory holding costs, improves supply chain predictability, and
enhances the overall competitiveness of the route vis-à-vis
maritime transport.
The operational intensity of the corridor is also increasing.
Eight freight trains were dispatched on the Xi’an–Baku route in
January 2026, compared to eleven in December 2025, reflecting both
seasonal fluctuations and ongoing optimization of schedules. Since
the launch of regular container train services on the Middle
Corridor in 2019, traffic has grown steadily, with more than 400
train runs recorded in 2025 alone. The launch of a new service from
Beijing on 30 June 2025 further expanded the corridor’s geographic
reach, reinforcing Azerbaijan’s role as a pivotal Eurasian
logistics node.
Infrastructure investment has been a decisive factor behind
these gains. The modernization of the Baku–Tbilisi–Kars (BTK)
railway in 2024 increased annual throughput capacity from 1 million
tonnes to 5 million tonnes, significantly reducing bottlenecks
along one of the corridor’s most critical segments. Equally
important is the growing institutional integration along the route.
In August 2024, China Railway and Container Shipping Corporation
(CRCT) joined the joint venture “Middle Corridor Multimodal Ltd,”
signaling stronger coordination between rail, maritime, and
logistics operators. This institutional consolidation has
translated into measurable results: in early 2026, the first train
of the year arrived in Baku with a reported transit time of just 11
days—approaching levels that position the Middle Corridor as a
serious competitor to northern routes.
Yet, the corridor’s future success will depend not only on steel
and concrete, but also on regulatory efficiency. According to
forecasts by the International Road Transport Union (IRU), freight
volumes along the Middle Corridor could triple by 2030. However,
without decisive modernization of border-crossing procedures,
customs digitalization, and harmonized documentation, actual
volumes could fall up to 35% short of their potential. This gap
highlights a critical reality: in modern logistics, institutional
efficiency is as vital as physical infrastructure. Delays at
borders can easily erase gains achieved through faster rail and
port operations.
The growing strategic relevance of the Middle Corridor is also
reshaping trade patterns. Whereas earlier cargo flows were
dominated by raw materials such as oil and minerals, containerized
freight is now expanding rapidly. Over the past 12 months,
container volumes along the corridor have more than tripled, with
over 60% consisting of Chinese exports destined for European
markets. This shift reflects deeper integration into global value
chains and underscores the corridor’s role not merely as a transit
route, but as a facilitator of diversified trade.
In this context, Azerbaijan’s role extends beyond that of a
transit country. By reducing transit time, expanding capacity, and
strengthening institutional cooperation, the country is positioning
itself as a key architect of a more resilient and multipolar
Eurasian logistics architecture. As global trade increasingly
prioritizes speed, security, and diversification, the Middle
Corridor’s evolving efficiency may prove to be its most decisive
competitive advantage.