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Turkey has broken ground on a railway project linking it to Azerbaijan's Nakhchivan exclave, Reuters reported on Friday. The 224-km rail line will connect Turkey’s eastern provinces, Kars and Iğdır, through the Dilucu border crossing to Azerbaijan’s Nakhchivan. No investment ticket or project timeline was disclosed.
The details: The project will feature an electrified, double-track railway capable of moving 15 mn tons of cargo and 5.5 mn passengers annually, the Turkish outlet Anadolu reported last week. Construction works will also include extensive tunnels and bridges to install the rail amid the irregular terrain that characterizes the region. The connection is set to boost energy exports in the South Caucasus and bolster economic ties between Armenia and Azerbaijan.
Seizing the moment: Turkey is benefiting from progress on the Armenia-Azerbaijan logistics corridor, after the two historic rivals signed a Washington-brokered peace accord earlier this month. Once developed, the Zangezur Corridor — now named the Trump Route for International Peace and Prosperity — will provide a direct link between Europe and the regions of Central Asia and South Caucasus, bypassing both Russia and Iran as transit hubs.
Footing the bill: Ankara clinched EUR 2.4 bn in green financing for the railway project last month, according to Reuters. A consortium of lenders provided the funds, including Japan's MUFG Bank, Swedish export credit agency EKN, Austria's OeKB, and a subsidiary of the Islamic Development Bank. Meanwhile, Turkey expects to generate TRY 147.6 bn (USD 3.6 bn) from the Zangezur Corridor over 30 years, Anadolu said, citing Turkish Transport and Infrastructure Minister Abdulkadir Uraloğlu.
Trade in numbers: Azerbaijan’s exports to Turkey reached around USD 5.9 bn in 2023, with gas comprising some USD 3.7 bn of the exported goods, according to the Observatory of Economic Complexity. Turkish exports to Azerbaijan reached USD 2.6 bn, with packaged pharma products making up the single largest exported commodity at USD 68.2 mn.
