BAKU, Azerbaijan, February 3. Russia considers joint transport and logistics projects with Azerbaijan strategically important, focusing on long-term growth in cargo transportation by rail and road, as well as construction and modernization of road infrastructure, the press service of the Russian Ministry of Transport told Trend.
According to the ministry, promising areas of cooperation include cruise shipping on the Caspian Sea and the implementation of electronic international consignment notes (e-CMR).
The introduction of unified tariffs for the International North-South Transport Corridor (INSTC) is expected to increase cargo volumes by reducing transportation costs, eliminating price gaps on certain segments, and making the corridor more attractive to shippers with predictable and competitive rates.
"This initiative is part of a broader effort to optimize border-crossing procedures and create an efficient mechanism for managing cargo flows," the ministry said. A special trilateral working group for road transport, established following meetings of representatives from Azerbaijan, Iran, and Russia, aims to address obstacles currently limiting cargo flows along the Russia-Azerbaijan-Iran route.
On this account, the first session of the technical Russian-Azerbaijan-Iran group took place on October 29, 2025, focusing on road cargo transport development along the entire INSTC. Discussions also covered increasing rail cargo transport on specific segments and shifting some cargo from road to rail transport.
"The main goal of the memorandum signed on November 25 between Azerbaijan, Russia, and Iran is to develop logistics services along the western route of the INSTC and establish competitive unified rates. Additionally, a bilateral agreement on electronic data exchange regarding rolling stock has been signed, enhancing the efficiency of cargo transport and enabling digital documentation," the ministry noted.
The launch of regular block trains along the INSTC is expected to transform corridor logistics, improving predictability, delivery speed, and infrastructure efficiency. For example, the average transit time from Moscow to Bandar Abbas has already been reduced from 27 to 16 days.
Currently, the main cargo flows include forestry and paper products, metals, foodstuffs, and chemical products. In the future, the range of transported goods is expected to expand to include coal, petroleum products, fertilizers, and grain. Digitalization of logistics and the development of container services will eventually allow the transportation of electronics and various equipment," the press service concluded.
The International North-South Transport Corridor (INSTC) is a 7,200-km multi-modal network connecting India, Iran, Russia, Central Asia, and Europe, aimed at streamlining trade routes and reducing costs by bypassing traditional passages like the Suez Canal. Established in 2000 by India, Iran, and Russia, it now includes several Central Asian nations and facilitates faster and cheaper goods movement between Asia and Europe via diverse transport methods.
The corridor offers significant time savings, reducing transport duration to 13-15 days compared to 37 days for some Suez routes, enhancing economic cooperation, and serving as a crucial trade route for landlocked Central Asian countries and Russia, despite existing infrastructure challenges.