Azerbaijan’s economy is one of the most dynamic and rapidly growing in the region through marketing its huge natural resources. The nation’s healthy economic indices and constantly improving international credit rating is a result of the Government’s responsible fiscal policy and a long-term economic strategy.
Currently, Azerbaijan is making major investment into wide-ranging infrastructure projects and encourages development of the rapidly growing agriculture, telecommunications and IT, transportation and service sectors throughout the country. The well-established tradition of building positive partnerships with foreign investors, simplified tax and the Government’s strong emphasis on developing non-oil economy, open wide range of opportunities for investors interested in Azerbaijan.
Therefore, among the business opportunities in Azerbaijan we can mention oil and na-tural gas, financial services and infrastructure.
Azerbaijan Railways Network, a company fully owned by the state, comprises 2,932 kilometres of rail infrastructure. There are 2,932 kilometres of rail tracks of which 72% or 2,117 kilometres are single track and 28% or 815 kilometres are double tracks. Of the total exploitation length of route, 43% or 1,272 km are electrified.
Much of the railway track and rolling stock is in need of repair or replacement. However with the Kars–Tbilisi–Baku railway, a regional rail link project that will directly connect Turkey, Georgia and Azerbaijan and is currently under construction, the railway lines are being modernised in Azerbaijan with the latest technology and brand new and fast rail stock will be added and will replace the old rail stock which are still in service. The freight market share of the railways is also expected to rise rapidly with completion of the Kars–Tbilisi–Baku railway in 2012. Azerbaijan benefits from railway links with Russia, Georgia, Iran, Turkey and Armenia.
Azerbaijan is part of the TRACECA Corridor, and an important project for freight transport for this corridor consists in the execution of a new port to the Caspian Sea, Alyat, point in which the TRACECA corridor and the North-South corridor cross. More precisely, it is about the railway line to Georgia and the one from Russia to Iran, via Baku, Lenjaran and Astara, all crossing in the port of Alyat. The amount necessary for the project is EUR 210 Million, the funds being ensured by the Ministry of Transport in Azerbaijan.
The new port means the improvement of the transport containerisation along TRACECA corridor, the development of the new type transport and logistics services to increase attractiveness of the TRACECA route in terms of liability of transportation, reduction of tra-vel times and costs.
During the meeting of the TRACECA’s Intergovernmental Commission from November 2011, the representative of Azerbaijan, Akif Mustafaev, underlined the importance of ensuring EU financing for the development of TRACECA. At the same time, Mustafaev talked about Azerbaijan’s plan of purchasing wagons, locomotives, of improving the railway network for which USD 2.5 Billion are necessary, 40% from the World Bank and 60% from the state budget.
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