Azerbaijan Railways and China’s Xi’an Port Sign MoU to Boost Middle Corridor Cooperation
Azerbaijan Railways (ADY) and China’s Xi’an Port have signed a Memorandum of Understanding (MoU) to expand cooperation in oil, gas, and logistics, reinforcing their partnership along the Middle Corridor, a key route under China’s Belt and Road Initiative (BRI).
The agreement was signed following a meeting between ADY Chairman Rovshan Rustamov and a high-level Chinese delegation led by Xi’an Mayor Ye Niuping. Both sides highlighted that Azerbaijani President Ilham Aliyev’s visit to China in April 2025 laid the groundwork for this new phase of collaboration, particularly in multimodal transport and trade connectivity.
Strengthening the Middle Corridor
The Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), is a vital logistics chain connecting China to Europe through Central Asia, the Caspian Sea, and the South Caucasus. It has become increasingly strategic amid efforts to diversify trade routes away from traditional northern paths.
Rustamov emphasized that the MoU would “further enhance Azerbaijan’s role as a regional logistics hub and strengthen transport integration between Asia and Europe.”
In recent years, Azerbaijan Railways has deepened cooperation with Chinese logistics partners, opening a container terminal at Xi’an Port in July 2025 with an annual capacity of 20,000 TEU. The company also stationed a permanent representative at Xi’an Port and gained access to its operational data system for real-time logistics coordination.
Rising Trade and Digital Integration
According to ADY, freight activity has surged this year. In the first nine months of 2025, the railway handled 296 block trains, including 113 transit trains, marking a 39% year-on-year increase. Total container throughput reached 103,134 TEU, up 20% from 2024.
The new MoU, signed by ADY Deputy Chairman Arif Agayev and Xi’an International Port Group CEO Yuan Xiaojun, outlines a framework for joint digitalization projects, multimodal connectivity, and infrastructure modernization. The agreement also aims to create a real-time electronic data exchange system for cargo tracking and monitoring.
Expanding Regional Connectivity
Both sides committed to optimizing container train schedules, improving cargo transit times, and upgrading rail and port infrastructure along the Middle Corridor. They also plan to enhance shipping efficiency across the Caspian Sea and expand the Baku–Tbilisi–Kars railway, integrating it more closely with Turkish and European rail networks.
The parties further agreed to explore joint investments in logistics infrastructure, construction projects, and shared facility use. Discussions are underway to establish a joint freight company, either in Azerbaijan or China, to streamline cargo services across participating Middle Corridor nations.
Xi’an Port’s Expanding Role
Located in central China, Xi’an Port serves as a major inland logistics gateway connecting Chinese provinces with Europe, Central Asia, and the Middle East. It facilitates exports of electronics, textiles, and agricultural products while importing energy resources, industrial machinery, and chemicals.
Officials from both countries said the partnership reflects their shared vision for “seamless, sustainable, and digitally integrated trade corridors” that will enhance Eurasian connectivity under the Belt and Road Initiative.
