BAKU, Azerbaijan, February 19. On January 29, 2026, the European Union (EU) and Azerbaijan agreed to jointly prepare a feasibility study for a railway project in Nakhchivan, signaling a deepening of economic cooperation between the two sides. The initiative is part of the EU’s Global Gateway strategy and its recently launched Interregional Connectivity Program, both aimed at developing sustainable, secure, and diversified links in transport, energy, digital infrastructure, and trade.
The proposed Nakhchivan railway is set to become a pivotal segment of the Trans-Caspian Transport Corridor linking Europe with Central Asia. According to the European Commission (EC), the route could cut transit times between the two regions to 15 days, offering a faster and more predictable alternative for freight movement. Beyond reducing delivery times, the corridor is expected to stimulate new trade flows, attract investment, and strengthen economic interdependence across the wider Eurasian space.
For Azerbaijan, the project represents a strategic opportunity to accelerate economic diversification, generate employment, advance rural development, and reinforce the country’s role as a regional transit hub. Improved rail connectivity is also expected to enhance the movement of goods and passengers, upgrade transport infrastructure, and create additional channels for both domestic and international commerce.
For the EU, the railway provides a practical avenue to diversify transit options, reduce reliance on limited routes, and expand economic engagement with Eurasia, while contributing to long-term regional stability. Brussels sees the project as a concrete step toward translating geopolitical objectives into infrastructure on the ground, particularly at a time when fostering cooperation and connectivity in the South Caucasus remains a strategic priority. Together, the Trans-Caspian Corridor and the Nakhchivan railway could serve as a blueprint for broader regional integration across Eurasia.
New transport routes will allow countries in Central Asia, the South Caucasus, and Eastern Europe to connect more rapidly to European and Asian markets, cutting logistics costs and enabling diversification of export flows. The project is set to spark a wave of innovative financial tools and foster the growth of “soft” infrastructure, such as aligning regulations, standardizing processes, and providing specialized training, paving the way for lasting partnerships between governments and businesses.
Ultimately, the Nakhchivan railway extends beyond its transport function. It is designed to generate a broader economic multiplier effect, from job creation in construction and logistics to investment inflows and growth in related sectors ranging from warehousing infrastructure to digital technologies. By promoting economic diversification and regional connectivity, the project is poised to strengthen the competitiveness and resilience of Azerbaijan and its neighboring economies.
The Nakhchivan railway project goes far beyond a local infrastructure upgrade. It illustrates how targeted investments in transport and logistics can serve as catalysts for stability, unlock new economic opportunities, and foster deeper regional integration.
By strengthening connectivity between Europe and Asia, the initiative stands to benefit not only Azerbaijan and the EU but also a broader group of countries seeking sustainable growth, resilient trade routes, and long-term stability across Eurasia’s evolving transit landscape.
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