Azerbaijan Emerges as Eurasia’s Key Logistics Power with Strategic Astara Terminal in Iran
Baku, The Gulf Observer: Azerbaijan is steadily positioning itself as a rising logistics powerhouse in Eurasia, with the Astara Terminal in Iran serving as a pivotal element in this transformation. Built, managed, and operated by Azerbaijan Railways (ADY), the terminal is strategically located just 1.4 kilometers from the Azerbaijani border in Iran’s Astara city.
According to ADY Chairman Rovshan Rustamov and Iran Railways chief Jabbar Ali Zakeri, nearly 90% of the terminal’s design and 75% of its construction have been completed. This includes an 8.3 km rail link and one of seven planned bridges over the Astarachay River. The project, part of a Strategic Cooperation Plan signed earlier this year, is expected to be completed by the end of 2025.
The terminal’s performance has already shown significant promise, with 692,000 tons of cargo handled in 2023 and over 777,000 tons in 2024. Once fully operational, the terminal will boast a capacity of 3.5 to 4 million tonnes annually, reinforcing its role in the North–South International Transport Corridor, which spans approximately 7,200 km from India to Russia and Northern Europe.
A 28% increase in transit freight traffic along the corridor was recorded in 2024, totaling 814,000 tons, indicating the growing importance of the route. The completion of the Rasht–Astara railway in Iran, a $1.6 billion project largely financed by Russia, will eliminate the corridor’s last missing link, enhancing direct freight movement from India and the Gulf.
This development is geopolitically and economically significant. By leasing 35 hectares in Iran for 25 years, Azerbaijan has transitioned from a transit route to an active operator in a trilateral network with Iran and Russia. This strategy not only strengthens Azerbaijan’s economic influence through expected 10–15% increases in transit revenues but also offers an alternative to congested and vulnerable routes like the Suez Canal.
The Astara Terminal is thus more than a logistics hub—it is the embodiment of Azerbaijan’s long-term strategy to become a reliable transit partner, regional logistics innovator, and key player in shaping a new Eurasian trade landscape.
