BAKU, Azerbaijan, August 12. Development in Nakhchivan under President Ilham Aliyev is moving well beyond regional projects, as new railways, transport routes and energy infrastructure gradually reshape its position on the South Caucasus map.
For the Nakhchivan Autonomous Republic, this marks a new stage of development. For Azerbaijan, however, the implications are much broader. Railway projects, the restoration of regional transport links, the TRIPP route, expanding ties with Türkiye and Iran, industrial development and energy projects are gradually changing Nakhchivan’s role in the region.
During his visit to Nakhchivan on August 11, President Ilham Aliyev stressed that the autonomous republic is developing across multiple sectors, noting that many major projects have been implemented there during his presidency. “Every visit of mine is of great significance and produces important results. Over these years, many important projects have been implemented, ensuring the overall development of Nakhchivan,” the President said.
What sets the current phase apart, however, is that Nakhchivan’s development is increasingly tied to the restoration of its historic role as a crossroads for trade routes running in different directions.
Railway links are restoring Nakhchivan’s transit role
For decades, Nakhchivan’s geography was both an advantage and a constraint. The region borders Türkiye and Iran and lies close to Armenia, but the lack of a direct land connection with mainland Azerbaijan significantly limited the economic value of this location.
That is now changing. One of the key elements of this process is the restoration and expansion of railway connectivity. The Nakhchivan railway project will extend the line to 194.2 kilometers and includes the reconstruction of 10 stations and three passenger platforms. Work has already begun on a seven-kilometer section from Salam Malik station to the Armenian border.
The railway infrastructure is also being developed as part of the broader Zangezur Corridor project. Once the relevant projects are completed, the railway will have an annual capacity of 15 million tons of freight. “As you know, the creation of the Zangezur Corridor was our initiative. Connecting the main part of Azerbaijan with Nakhchivan, which is an integral part of it, has been our long-standing dream,” President Ilham Aliyev said.
According to the President, Azerbaijan has moved steadily toward achieving this goal. The project, however, is about more than restoring an internal connection. The Nakhchivan railway section is expected to be technically and structurally aligned with the Kars–Igdir–Dilucu railway being built in Türkiye. At the same time, work on the section near the Armenian border is planned to be coordinated with the TRIPP project.
This could create an integrated chain linking mainland Azerbaijan with Türkiye and wider international transport routes, putting Nakhchivan at the center of several emerging connections.
TRIPP raises Nakhchivan’s regional significance
This is where Nakhchivan’s transport agenda takes on a broader regional dimension. A joint statement by the United States, Armenia and Azerbaijan marking the first anniversary of the White House peace summit said that the Trump Route for International Peace and Prosperity, or TRIPP, is gradually moving from an idea toward implementation.
Engineering and surveying work is already underway in Armenia, while Azerbaijan has nearly completed the road and railway infrastructure on its territory that will connect with TRIPP in Armenia. The parties also support the construction of a power transmission line along the route. The emerging infrastructure network therefore goes beyond a single transport link. It could reshape the movement of goods and energy across the South Caucasus.
President Ilham Aliyev has also pointed to growing international interest in the route. “Many international organizations and some countries are interested in this railway, particularly in the Nakhchivan segment of Azerbaijan’s railway. One of them is the European Union,” he said.
This is particularly relevant as the Middle Corridor continues to develop. While a significant share of freight between the Caspian region and Europe currently moves through Georgia, additional routes through Nakhchivan could diversify the region’s transport geography.
President Ilham Aliyev has pointed to the scale of the potential impact. “Of course, the transportation of, say, 15 million tons or perhaps more of cargo through here (the Zangezur Corridor – ed.) will lead to much greater activity. More jobs will be created, economic activity will increase, and Nakhchivan, I can say, will become one of the indispensable transportation hubs. This is entirely possible,” he said.
This is where a transport project begins to translate into an economic opportunity.
Transit can support industrial growth
Transit alone does not guarantee a lasting economic impact. To achieve that, part of the infrastructure and business activity generated by new routes must remain in the region. Against this backdrop, the 310-hectare Nakhchivan Industrial Park is an important project. Its development includes engineering, transport, energy and production infrastructure, while talks are already underway with potential residents.
The experience of Azerbaijan’s existing industrial parks illustrates the scale of this model. Eight industrial parks currently operate in the country, with 184 registered residents, 101 of which are already active. Their investments have exceeded 7.1 billion manats ($4.17 billion), while more than 11,500 jobs have been created. As of July 1, 2026, industrial parks had produced goods worth 21.4 billion manats ($12.5 billion), including 6.7 billion manats ($3.9 billion) in exports.
For Nakhchivan, this creates an opportunity to move beyond being a territory through which goods simply pass and become a place where some of those goods are produced, processed and generate additional value. Over time, this model could expand into logistics, warehousing, manufacturing and other industries serving both the domestic market and neighboring countries.
Energy adds another dimension
Energy is another factor reshaping Nakhchivan’s economic outlook. On August 11, President Ilham Aliyev reviewed the construction of two solar power plants, Shams 1 and Garbi Ufug, with a combined capacity of 50 MW. Once operational, they are expected to generate about 118 million kilowatt-hours of electricity annually, enough to supply around 40,000 households.
Nakhchivan, however, has much greater solar potential. “The solar energy potential in Nakhchivan is immense. Based on monitoring and precise analysis, Nakhchivan is the most favorable location within the territory of Azerbaijan for solar power generation,” President Ilham Aliyev said.
A total of 688 hectares in the autonomous republic has been designated for solar power projects. Nakhchivan currently accounts for 108 MW, or 5.2%, of Azerbaijan’s total installed renewable energy capacity. Once the two new plants are commissioned, the figure will rise to 158 MW.
This is where the transport and energy agendas begin to converge. President Ilham Aliyev has said that the Zangezur Corridor is now being viewed more broadly than its original transport concept. “We already have a project ready for laying power transmission lines from mainland Azerbaijan to Nakhchivan through the territory of Armenia,” he said.
Together with the power transmission line supported by the parties along the TRIPP route, this opens the possibility of creating new regional energy links alongside transport connections. For Nakhchivan, that could strengthen energy security while creating longer-term opportunities to use its renewable energy potential for wider markets.
Nakhchivan is being planned for 2044
Economic transformation requires a city capable of supporting it. This is why infrastructure development is also taking place within Nakhchivan itself. The city’s new master plan runs through 2044. It envisages expanding the urban settlement area by about 44%, increasing the population from 97,200 to 130,000 and raising employment by almost 40% to 78,000. The plan calls for improvements in transport, recreational areas, social infrastructure and tourism. The cycling network is expected to reach 122 kilometers, while green space per capita is projected to increase from 15 to 27 square meters.
At the same time, Nakhchivan is getting a modern public transport system. Sixty electric buses have been purchased for nine routes, while a digital monitoring system is being introduced and fare payments are being moved to cashless formats. These projects may appear disconnected from international transport corridors. But they show that Nakhchivan’s development is being planned with future growth in passenger flows, employment and business activity in mind.
President Ilham Aliyev said Nakhchivan, Eastern Zangazur and Karabakh should develop under a unified approach. “I instructed that a Master Plan for Nakhchivan city should also be developed and prepared, which was presented to me today, and that additional measures should be taken to ensure the city’s development and the creation of modern infrastructure,” he said.
In this sense, the changes underway in Nakhchivan reflect a broader policy that began with the emergence of new political and security realities following Azerbaijan’s victory and is now extending into the economic and infrastructure sphere. The military victory changed the conditions under which regional policy could be pursued. Peace agreements and new mechanisms for cooperation are creating space for the restoration of connectivity. Railways, TRIPP, the industrial park, power transmission lines and renewable energy projects are turning those changes into long-term infrastructure.
That is why Nakhchivan’s current development goes well beyond a regional socioeconomic program. President Ilham Aliyev’s policy is gradually giving Nakhchivan a new role — not only as a region to be developed and more closely integrated with the rest of Azerbaijan, but also as a potential node in the emerging transport and economic map of the South Caucasus.
If the railway projects are completed as planned and TRIPP and other regional connections move into sustained operation, Nakhchivan will have an opportunity to turn its geography into an economic advantage once again. Its links with mainland Azerbaijan, Türkiye and neighboring markets could strengthen East-West trade flows while also adding weight to the North-South route.
This is how the next phase of Azerbaijan’s regional strategy is taking shape: the military victory created new realities, while peace and development are embedding them through infrastructure, trade and economic ties. Nakhchivan is becoming one of the clearest examples of how a shift in regional geography can gradually translate into a new economic reality.
