BAKU, Azerbaijan, January 26. The need for
alternative, reliable, and sustainable logistics hubs in the
Eurasian space is rapidly growing at a time when global supply
chains are being reshaped, and traditional routes are facing
geopolitical and economic risks. Namely, in this context, the Baku
International Sea Trade Port (Baku Port) is becoming a point of
strategic interest for dozens of countries, along with Azerbaijan,
seeking to diversify cargo flows between Europe and Asia.


In recent years, the Trans-Caspian International Transport Route
– more commonly known as the Middle Corridor – has entered a
qualitatively new stage on the global trade agenda. This route,
connecting China, Central Asia, the Caspian Basin, the South
Caucasus, and Europe, has already begun to function as a major
transit route for several cargoes. At the center of this route is
the Port of Baku. Located at the intersection of the East-West and
North-South corridors, the port plays the role of the main 'transit
platform' of Eurasia, thanks to its multimodal capabilities - the
integration of rail, road, and sea transport. Logically, container
handling at the port has almost doubled in the last five years, and
in 2025, the annual container turnover exceeded 100,000 TEU for the
first time. Thus, from 2020 through 2025, the Baku International
Sea Port of Azerbaijan Railways CJSC (ADY) handled more than
365,860 TEU containers. Last year alone, the port handled 107,540
TEU containers, marking a growth of almost 40% compared to
2024.


As of 2026, the port plans to handle more than 110,000 TEU of
cargo. In general, the port aims to increase the annual cargo
handling capacity to 260,000 TEU, which is quite different from the
previous indicator. Currently, the annual cargo handling capacity
of the port is 150,000 TEU. It would not be correct to explain this
increase only with numbers. At the same time, we are talking about
a combination of factors such as route safety, shortening delivery
times, reducing risks, and optimizing costs. The World Bank's
latest reports on Eurasian transport corridors also emphasize that
the growth of transportation along the Middle Corridor is a real
example of the adaptation of supply chains to geopolitical
risks.


The completion of the first phase of the port's development in
2018 enabled the Port of Baku to achieve an annual handling
capacity of 15 million tons of cargo and 100,000 TEU containers.
However, the actual growth dynamics of cargo showed that this limit
wasn't sufficient. That's why the planned expansion of the second
phase - 25 million tons of cargo and 500,000 TEU containers per
year - is considered a strategic necessity.


Director of the Baku International Sea Port, Eldar Salahov, told
reporters during a media tour of the port late last year that the
results of the design work on the second phase of the Port of Baku
will be announced in the coming months. He recalled that work on
the first phase of the Port of Baku had already been completed.


"The second phase of the Baku International Sea Trade Port will
provide us with significantly increased capacity, including over 25
million tons of cargo and half a million TEU container equivalent.
Design work is ongoing, and preliminary results are expected in the
coming months," he said.


The remarkable point here is that Baku Port is not only
increasing its capacity but also deepening its functionality. The
fertilizer terminal, the planned wheat terminal, the TIR park, and
the intermodal cargo terminal are transforming the port from a
classic seaport into a complex logistics hub. Baku Port is becoming
a critical transit gateway, especially in terms of access of
fertilizers and agricultural products from Central Asian countries
to European markets.


The merger of Baku Port into Azerbaijan Railways CJSC in
February 2025 can be seen as a transition to a unified transport
management model. This step will reduce transit time and lower
logistics costs by strengthening coordination between sea and rail
operations. The International Monetary Fund (IMF) also notes in its
assessments of transport and trade flows that unified management
models in multimodal transport significantly increase the
competitive advantage of transit countries. In the case of the Port
of Baku, this is already showing real results: the number of block
trains is increasing, the waiting time for cargo is decreasing, and
the quality of service is improving.


One of the most priority directions in the development strategy
of the Port of Baku in recent years is digitalization. After the
integration of the port into Azerbaijan Railways CJSC, this process
has become more systematic and phased. The introduction of digital
solutions not only increases operational transparency but also
allows for the unification of information flows on a single
platform and the formation of a customer-oriented service
model.


The key steps in this direction include the development of a new
generation solution for the Port Management Information System.
Taking into account the technical limitations that emerged during
the operation of the existing system from 2020 through 2023, work
on a completely new concept has been started since 2025 and is
currently in the active phase. The new system will integrate the
port's ship, cargo, wagon, car, and warehouse operations into a
single operational platform, allowing for real-time monitoring of
cargo handling planning, queue management, bridge utilization, and
resource allocation. As a result of integration with other
information systems, customers will be able to obtain online
information about the status of their cargo, stages of document
execution, and operational processes, which will significantly
improve the quality of service.







The second key component of the digitalization strategy is the
automation of the port's internal business processes on a single
platform. Within the framework of this phased project, the
implementation of daily processes in procurement, finance,
commercial, operational and control points is ensured in a digital
environment. The integration established between the modules
minimizes the re-entry of information, reduces risks arising from
the human factor, and creates more complete reporting opportunities
in real time. This approach, in addition to increasing flexibility
in management, allows for more operational and justified
decision-making.


The third important direction is the digitalization of security
and surveillance infrastructure. At the initial stage of the
project, modern surveillance and analytics equipment was installed
in the port area, and the system was commissioned. Currently, work
is underway to improve technical maintenance mechanisms and
eliminate malfunctions detected in existing analytics systems. The
next stage involves the creation of a centralized management zone
that will ensure the management of all surveillance and security
systems from a single center. This will create additional
opportunities for the detection of operational risks at an earlier
stage and the organization of cargo and transport traffic in the
port area in a safer manner.


Overall, digitalization and the transition to unified management
platforms at the Port of Baku significantly increase the speed of
processes, while increasing the transparency and control
capabilities of operations. Real-time data exchange, electronic
documentation, and centralization of management functions reduce
the port's operational burden, improve service quality, and turn
the Port of Baku into a more flexible, predictable, and competitive
logistics platform on the Middle Corridor.


The fact that the Port of Baku is the first port in the region
to receive the EcoPorts certificate and the goal of net zero carbon
emissions by 2035 further strengthen its international position.
The Solar Panels and Battery Energy Storage System (BESS) project
enhances the port's sustainability not only in terms of
environmental sustainability but also in terms of energy security.
For example, among the steps taken in this direction, we can
mention the signing of a framework agreement on the installation of
solar panels at the Baku Port within the framework of COP29. This
agreement, signed with Tiza Green Energy, a subsidiary of
Citaglobal, for the construction of a 5.4 MW solar photovoltaic
(PV) plant, once again highlighted the role of the port in
Azerbaijan's transition to clean energy.


Western think tanks emphasize in their latest reports that for
European companies, the 'green' status of logistics hubs is no
longer an additional advantage, but one of the main selection
criteria. In this regard, the Port of Baku acts not only as a
transit point for European investors but also as a platform for
long-term partnerships.


The role of the Port of Baku has long gone beyond the borders of
Azerbaijan. For Kazakhstan, Uzbekistan, Turkmenistan, China,
Türkiye, and European countries, the port can be considered a
critical link in the supply chain. The rapid increase in container
traffic in China-Europe cargo flows, the opening of new block-train
routes along the Middle Corridor, and the interest of international
financial institutions in the project clearly demonstrate this.


The fact that representatives of the World Bank discussed the
possibility of participating in the financing of the expansion of
the Baku Port also confirms that the port is perceived not as a
regional, but as a global logistics infrastructure.


Thus, the Baku Port is emerging as one of the main pillars of
the new trade architecture against the backdrop of changing
geopolitical and economic realities in Eurasia. Infrastructure
expansion, 'green' transformation, and international partnerships
are making the port increasingly visible on the global logistics
map. In this sense, the development of the Baku Port can be seen as
a strategic process that, along with Azerbaijan's transit
ambitions, supports the formation of a more secure, sustainable,
and predictable trade system between Europe and Asia.