The Azerbaijan State News Agency

Expert: Baku has colossal potential in developing multimodal logistics chains – INTERVIEW

Expert: Baku has colossal potential in developing multimodal logistics chains – INTERVIEW

Baku, September 5, AZERTAC

AZERTAC presents an interview with Alexandra Ogneva, an expert in transport and logistics, project manager in Eastern Europe, Caucasus and Central Asia (EECCA) at Rhenus Logistics (Germany).

- Alexandra, could you please tell us about your experience working in the field of logistics in Eastern Europe and the Caucasus regions? How has the logistics market changed in recent years, and what role does Azerbaijan play in this?

- In recent years, logistics in Eastern Europe and the Caucasus has shifted from being infrastructure-driven to becoming much more solution-oriented, with stronger integration, digitalization, and sustainability at its core. What used to be fragmented supply chains are now supported by modernization and international partnerships.

Since the end of 2022, when I began working on the first Rhenus projects in Central Asia and the Caucasus, the sector has entered a pivotal phase. The Trans-Caspian Corridor is no longer just about transit — it is about connecting Central Asia, the Caucasus, Türkiye, and Europe. Azerbaijan, with its strategic position, plays a key role as both a transit hub and a logistics orchestrator for the entire region.

- Azerbaijan is an important transport hub on the historic Silk Road. How do you assess the country’s potential in developing multimodal logistics chains, and what projects is Rhenus Logistics already implementing in this regard?

- The potential is tremendous. Azerbaijan has already proven its ability to create seamless multimodal connections. For example, cargo arriving at the Port of Baku can be transferred by rail within hours to Georgia and onward to the Black Sea or Türkiye, saving valuable time compared to northern routes.

Last year, we converted our representative office in Baku into a legal entity in order to strengthen our commitment in Azerbaijan. We are now looking at various projects in different parts of Azerbaijan and will certainly invest if the conditions are right. To this end, we are also in close contact with potential partners and the authorities.

- Rhenus Logistics is actively introducing innovative solutions in logistics. Which technologies and approaches do you consider particularly promising for improving transport routes passing through Azerbaijan?

- Digital corridor management systems are among the most promising. By connecting customs, port, and rail operators in one digital platform, we can avoid bottlenecks and provide real-time visibility. Predictive analytics also helps us plan capacities more efficiently.

We believe that the greatest value we can contribute in Azerbaijan is our extensive experience in building and operating highly efficient transhipment facilities. We even wrote the necessary software ourselves. This reduces both throughput times and costs, making the Trans-Caspian Corridor competitive with alternative routes. It is important that the transit times on the Trans-Caspian Corridor are reliable and stable, and that competitive prices are offered.

- How did the COVID-19 pandemic affect the logistics industry in the EECCA countries, and what lessons can be learned from this experience, especially in relation to Azerbaijan?

- COVID-19 exposed the risks of relying on single routes and rigid supply chains. Border closures and bottlenecks forced companies to diversify their corridors. This made Azerbaijan and the Middle Corridor more relevant than ever – it moved from being a backup option to becoming a core alternative.

The main lesson of that time: diversification equals resilience. For Azerbaijan, this means keeping infrastructure flexible and expanding multimodal capacity.

- Azerbaijan is actively developing its port and transport corridor infrastructure. How important is the role of Baku’s seaports and dry ports for international logistics and for your company?

- Baku’s port is the beating heart of the Middle Corridor. It is the natural gateway linking Central Asia with Europe. For us, it is a strategic node to consolidate shipments and connect them to rail corridors leading to Georgia and Türkiye.

Beyond Baku, Azerbaijan has the potential to strengthen its role further by developing additional dry port locations, for example in Sumgait or Ganja. Such facilities would support regional industries, improve hinterland connections, and create more balanced cargo flows across the country.

Another important new initiative is the Zangezur Corridor through Armenia. While its practical implementation and long-term impact still need to be carefully assessed, it could open an additional link between Azerbaijan, Türkiye, and Europe. If realized, this corridor would significantly reshape logistics patterns in the South Caucasus and provide new opportunities for diversified and resilient transport networks.

- Your portfolio includes projects related to sustainable development. What steps is Rhenus Logistics taking to minimize the environmental footprint of logistics in Azerbaijan and neighboring countries?

- For us, sustainability starts with modal shift. When we first entered the Azerbaijani market in 2015, we began as a road transport operator in Baku. Today, we increasingly offer our customers multimodal solutions linked to rail, reducing long-haul trucking and the related emissions.

Another strong example of our commitment was our role as the Official Logistics Partner at COP29 in Baku. For this event, we successfully provided a fully emission-free e-truck service for delegates — a practical demonstration of how logistics can actively contribute to sustainability in action.

Looking ahead, we will continue to combine modal shift, innovation, and local partnerships to align with Azerbaijan’s national green transition goals and to help shape a more sustainable logistics ecosystem in the region.

- How do you see the development of cooperation between Germany and Azerbaijan in the field of logistics over the next 5–10 years?

- I am very optimistic. Germany is one of Azerbaijan’s leading EU trade partners, and logistics is the bridge enabling this partnership. In the next 5–10 years, we expect to see more joint ventures in rail freight, the introduction of German expertise in digital logistics, and co-investments in sustainable infrastructure.

The Middle Corridor is not just a route; it is a platform for cooperation. By combining German know-how with Azerbaijan’s strategic location, we can build resilient supply chains that benefit the entire Eurasian region.

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