Azerbaijan Railways

History

2025: Receiving $60.52 million from the Asian Development Bank to digitalize railways

The Asian Development Bank and the Government of Azerbaijan invest a total of $60.52 million in the digital transformation project of Azerbaijan Railways CJSC. Of this amount, the bank provided $47 million in the form of a loan, and the national contribution of Azerbaijan amounted to $13.52 million. This became known at the end of May 2025.

The project is expected to be completed by December 31, 2028. The ADB does not exclude the possibility of increasing the cost of the project if there is a need for additional improvements to the country's railway system.

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Фото: Freepik

The goal of the project is to digitalize the key processes of the Azerbaijani railways with an emphasis on improving safety, reliability and efficiency. The initiative includes the introduction of digital solutions in transportation, asset management, investment planning, client data processing and corporate functions.

The ADB believes that digitalization plays a key role in increasing the operational efficiency and competitiveness of railway transport. The project should reveal the transit potential of Azerbaijan as an important link in international transport corridors.

It is expected that the project will optimize the management of data and assets of the railway company. This should have a positive effect on the operating and financial results of AZhD. The introduction of modern technologies will increase the quality of passenger service and cargo transportation.

The railway network of Azerbaijan is a strategic link in corridors 2 and 6 of the Central Asian Regional Economic Cooperation. The routes are among six key economic corridors in the region connecting Europe with Asia.

The project implementation is in line with CAREC Transport Strategy 2030 and CAREC Railway Strategy 2017-2030. These documents are aimed at modernizing infrastructure, developing multimodal transportation and reforming the railway sector^[1]

2024: Receiving $47 million from the Asian Development Bank to digitalize the railway

On October 1, 2024, it became known that the Asian Development Bank (ADB) approved the provision of a loan to Azerbaijan in the amount of $47 million for the implementation of the digital transformation project of Azerbaijan Railways CJSC (AZD). These funds are aimed at modernizing the country's railway system in order to improve its safety, reliability and efficiency.

According to the Report, the project provides for the digitalization of key AZhD processes, including railway transportation management, assets, planning and investment management, as well as customer data processing and corporate functions.

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Фото: Freepik

ADB Director General for Central and Western Asia Evgeny Zhukov noted that the modernized digital railway system will support Azerbaijan's key role in connecting the economies of East and Central Asia with the Caucasus and Europe. According to him, this initiative will help the country to maximize its potential as a trading and connecting hub.

ADB emphasizes that digitalization is crucial for improving operational efficiency, competitiveness and full use of Azerbaijan's role in regional transit corridors. ADB transport specialist Nanyang Zhou pointed out that this financing will improve the operational and financial performance of AZhD through optimized data and asset management.

Azerbaijan's railway lines are a key hub in corridors 2 and 6 of the Central Asian Regional Economic Cooperation (CAREC). The project is in line with CAREC Transport Strategy 2030 and Railway Strategy for CAREC 2017-2030 aimed at improving rail and multimodal infrastructure, commercializing and reforming railways.^[2]

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