As global trade networks continue to expand, China, Azerbaijan, and Kazakhstan recently signed a significant agreement to establish a joint venture for building a new logistics center at Baku Port on the Caspian Sea. This agreement is a key component of Chinese President Xi Jinpings Belt and Road Initiative, marking a critical step in regional multilateral cooperation.

The agreement was signed by Tarekh Ziadov, CEO of Azerbaijans Baku International Sea Trade Port; Nurlan Saulanbeyov, Chairman of the ports board; representatives from Kazakhstans national railway board; and Yuan Xiaojun, CEO of Chinas Xian Free Trade Port Construction and Operation Company.

A Key Step in Enhancing Trans-Caspian Trade Routes

Currently, trade between China and Central Asia or former Soviet Caucasus republics is constrained by Azerbaijans weak port infrastructure, particularly for goods transported across the Caspian Sea. Baku Port, a core hub of the Trans-Caspian International Transport Route (TITR) and a key part of the Belt and Road Initiative, is expected to become a vital trade link between China and Europe. This route traverses Central Asia, crosses the Caspian Sea, and connects Eastern and Western markets via Azerbaijan, Georgia, and Turkey.

Development of the New Logistics Center

Under the agreement, the new project will develop modern infrastructure on a 40-hectare multimodal freight terminal at Baku Port. The existing port spans over 400 hectares and is located approximately 70 kilometers from Baku. Currently, it accommodates roll-on/roll-off ships, ferries, and general cargo. However, growing global trade demands have outpaced its capacity and efficiency.

The new logistics center will include advanced container terminals, significantly boosting Baku Ports cargo handling capacity and speeding up loading, unloading, and transportation. This will increase freight volume along the Trans-Caspian route, reduce delivery times, and improve overall trade efficiency.

Multilateral Collaboration Drives Regional Economic Growth

This joint venture not only underscores Chinas leading role in global trade but also highlights Azerbaijan and Kazakhstans proactive stance in regional economic cooperation. By pooling resources and expertise, the new logistics center will serve as a key engine for economic development in Central Asia and the Caucasus.

Yuan Xiaojun stated at the signing ceremony: This cooperation marks an important milestone in the Belt and Road Initiative, which will further strengthen the collaboration among China, Azerbaijan, and Kazakhstan in logistics and trade, promoting regional economic integration.,

Taleh Ziyadov added: The construction of the new logistics center will significantly enhance the operational efficiency of Baku Port, strengthen its position as an international trade hub, and inject new momentum into the economic development of Azerbaijan and neighboring countries.,

Envisioning the New Landscape of Future Trade

With the completion of the new logistics center, Baku Port is expected to play an even more important role in the global trade network. As a key hub connecting China and Europe, it will further facilitate the flow of goods and trade within the region, advancing the Belt and Road Initiative in Central Asia and the Caucasus.

Moreover, modern logistics infrastructure will attract more international enterprises and investors, optimizing and upgrading regional industrial chains and enhancing overall economic competitiveness. Through multilateral cooperation and coordination, China, Azerbaijan, and Kazakhstan can achieve mutual benefits on the global trade stage, fostering sustainable regional economic development.