BAKU, Azerbaijan, February 3. Russia considers
joint transport and logistics projects with Azerbaijan
strategically important, focusing on long-term growth in cargo
transportation by rail and road, as well as construction and
modernization of road infrastructure, the press service of the
Russian Ministry of Transport told Trend.


According to the ministry, promising areas of cooperation
include cruise shipping on the Caspian Sea and the implementation
of electronic international consignment notes (e-CMR).


The introduction of unified tariffs for the International
North-South Transport Corridor (INSTC) is expected to increase
cargo volumes by reducing transportation costs, eliminating price
gaps on certain segments, and making the corridor more attractive
to shippers with predictable and competitive rates.


"This initiative is part of a broader effort to optimize
border-crossing procedures and create an efficient mechanism for
managing cargo flows," the ministry said. A special trilateral
working group for road transport, established following meetings of
representatives from Azerbaijan, Iran, and Russia, aims to address
obstacles currently limiting cargo flows along the
Russia-Azerbaijan-Iran route.


On this account, the first session of the technical
Russian-Azerbaijan-Iran group took place on October 29, 2025,
focusing on road cargo transport development along the entire
INSTC. Discussions also covered increasing rail cargo transport on
specific segments and shifting some cargo from road to rail
transport.


"The main goal of the memorandum signed on November 25 between
Azerbaijan, Russia, and Iran is to develop logistics services along
the western route of the INSTC and establish competitive unified
rates. Additionally, a bilateral agreement on electronic data
exchange regarding rolling stock has been signed, enhancing the
efficiency of cargo transport and enabling digital documentation,"
the ministry noted.







The launch of regular block trains along the INSTC is expected
to transform corridor logistics, improving predictability, delivery
speed, and infrastructure efficiency. For example, the average
transit time from Moscow to Bandar Abbas has already been reduced
from 27 to 16 days.


Currently, the main cargo flows include forestry and paper
products, metals, foodstuffs, and chemical products. In the future,
the range of transported goods is expected to expand to include
coal, petroleum products, fertilizers, and grain. Digitalization of
logistics and the development of container services will eventually
allow the transportation of electronics and various equipment," the
press service concluded.


The International North-South Transport Corridor (INSTC) is a
7,200-km multi-modal network connecting India, Iran, Russia,
Central Asia, and Europe, aimed at streamlining trade routes and
reducing costs by bypassing traditional passages like the Suez
Canal. Established in 2000 by India, Iran, and Russia, it now
includes several Central Asian nations and facilitates faster and
cheaper goods movement between Asia and Europe via diverse
transport methods.


The corridor offers significant time savings, reducing transport
duration to 13-15 days compared to 37 days for some Suez routes,
enhancing economic cooperation, and serving as a crucial trade
route for landlocked Central Asian countries and Russia, despite
existing infrastructure challenges.