WB estimates Azerbaijan's investment needs for Trans-Caspian route at $1.16B

The World Bank estimates Azerbaijan's investment needs to unlock the full potential of the Trans-Caspian International Transport Route (TITR, or Middle Corridor) at $1.16 billion by 2040, Report informs, citing the World Bank update titled "Integration: World-Class Trade Logistics along the Trans-Caspian Transport Corridor."

The investment portfolio spans three key areas. The first direction involves the completion of the ongoing modernization of the Baku-Alat-Boyuk-Kasik railway line, requiring $260 million. This linear infrastructure project is already in the implementation phase, targeting the short term without private sector participation. It includes the deployment of an updated electrification system and modern signaling equipment on the country's core TITR mainline.

The second area is the establishment of a national network of dry ports, requiring $300 million. This nodal infrastructure project is currently at the pre-feasibility study stage for the near term, with plans to attract private capital in partnership with Azerbaijan Railways CJSC (ADY). The initiative includes building dry ports at the Boyuk-Kasik border checkpoint for branches toward the Black Sea and Türkiye, in Baku as an expanded terminal for the Port of Baku, and a southern logistics hub for the new TITR route to Kars through the territories of Azerbaijan and Armenia.

The third direction focuses on the long-term capacity and load-bearing expansion of the Baku-Alat-Boyuk-Kasik line, requiring $600 million in capital investments. This linear infrastructure project is at the pre-feasibility stage and is scheduled for the medium term in the 2030s to accommodate growing TITR cargo traffic without private sector involvement.

In total, the volume of priority complementary investments required to transform the TITR into a full-fledged economic corridor across the region is estimated at $30.5 billion through 2040.