Azerbaijan Railways CJSC signed a Memorandum of Understanding with the Chinese company 'Xi'an Free Trade Port Construction and Operation' and has opened its representative office and container terminal in the Xi'an International Port.
The ceremony was held within the visit of Azerbaijan Railways delegation to China led by its chairman Rovshan Rustamov.
The Memorandum of Understanding represent new directions for cooperation in logystics and transit along with the joint execution of digital initiatives.
Highlighting President Ilham Aliyev’s visit to China in April to promote comprehensive strategic relations, Rustamov stated that the opening of the representative office will play a significant role in expanding cooperation between the two countries, particularly in transit transportation and the development of the Middle Corridor.
"Providing ADY representatives with access to the Xi'an Port operating system for swift information exchange is a crucial measure to strengthen the Middle Corridor’s capacity and boost collaboration aimed at increasing cargo traffic along this route," Rustamov stated.
The newly-opened container terminal will have an annual handling capacity of 20,000 TEU - a very large cargo vessel capable of carrying the equivalent of 20,000 standard 20-foot (6 metres) shipping containers.
ADY and Xi'an Free Trade Port Construction and Operation Co., Ltd. also approved joint action plans to enhance cooperation in organizing container trains along the Trans-Caspian International Transport Route, increasing the capacity of railways, ports, and transportation across the Caspian Sea via the Middle Corridor, expanding access to Turkey and Europe through the Baku-Tbilisi-Kars railway line, and attracting additional cargo flows by developing a data-driven traffic scheduling system.
The parties also agreed to collaborate on establishing a real-time cargo tracking and electronic data exchange system to enhance broader cooperation in digitalization.
The sides highlighted the growing trend in freight transportation between China and Azerbaijan. In 2024, 287 block trains were received from China, and within the first six months of this year alone, the figure has already reached 199 block trains. By the end of the year, the number is expected to exceed 400.
Baku International Sea Port has recently been officially integrated into the structure of the company, which now enables more efficient coordination of port-railway operations, allowing for the provision of comprehensive and optimized logistics services to international partners.
The Port of Baku plays a crucial role in facilitating the exchange of cargo between Asia and Europe. Currently, the port has a cargo handling capacity of 15 million tons per year, including 150,000 TEU containers. In the future, the total capacity is expected to reach 25 million tons annually, including 500,000 TEU containers.
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Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most shipowners away. Six commodity vessels crossed the strait on Tuesday, down from nine the day before and below the 10-day daily average of 11.
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Iran has said the Strait of Hormuz will remain closed until the U.S. fulfils the terms of an interim deal, including lifting the maritime blockade and sanctions and releasing Iran’s frozen assets.
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