Silk Road Digest | 28 Sep 2026

2026-09-28

"Crossroads of Peace" Project

Armenia plans to rehabilitate several key railway sections to connect its network to regional transport corridors. These include the 80 km Hrazdan–Kayan, 43 km Nrnadzor–Agarak, 6 km Gyumri–Akhurik, and 1 km Yeraskh sections.

Restoring the Gyumri–Akhurik section will link Armenia to Turkey’s railway network, while developing the southern and Yeraskh routes will connect it to Nakhchivan and Iran. Armenia's railway network could serve as a connecting link between the "Middle Corridor," the "North-South" international transport route, and the "Black Sea–Persian Gulf" transport axis.

The EU in Asian Markets

"European free trade agreements already cover half of the world's consumers—an advantage no one else possesses." The EU is expanding its trade policy toward Asia. Following a breakthrough in free trade agreement negotiations with the Philippines, Brussels continues to diversify markets and supply chains, partly to reduce reliance on China. Alongside ongoing trade talks with India, Australia, and Indonesia, the EU is also seeking to reach agreements with Thailand and Malaysia.

Azerbaijan Upgrades Its Locomotive Fleet

Azerbaijan Railways is modernizing its fleet of locomotives. Seven new freight locomotives from China have already arrived in Baku and will be used for transport along international corridors. Concurrently, Azerbaijan is negotiating the purchase of another 14 locomotives.

Lagging Pace of Road Construction in Georgia

The development of Georgia's road infrastructure is proceeding at a slower pace compared to neighboring countries. In international rankings, the country’s infrastructure quality places it at 108th position, whereas Turkey ranks 43rd and Armenia 76th. This disparity is particularly striking given the intensifying competition for transit routes in the region.

Construction of the East-West E60-E70 highway in Georgia has been underway for years. Of the 428-kilometer route, approximately 325 kilometers are currently operational, with the completion of the remaining sections scheduled for 2032. Meanwhile, neighboring countries are investing significant resources in developing new highways and transport corridors.

Delays in infrastructure development impact more than just construction timelines; they directly affect the speed of transit shipments and the country's logistical competitiveness. Amid rising freight volumes, road capacity and travel times are becoming increasingly important.

The "Log-in Georgia" project is set to conclude by the end of 2027.

To date, 2,300 kilometers of fiber-optic network have already been constructed and are operational, while contracts for the remaining approximately 4,500 kilometers have been fully awarded, and the project is currently in the design phase. According to "Open Net," upon completion, the state network will facilitate expanded access to high-speed internet in the regions and support the development of local operators.

Over $181 million for Georgia's transport infrastructure

The Asian Infrastructure Investment Bank, in co-financing with the World Bank, is allocating funds for the Trans-Caspian Transport Corridor. The project entails the construction and rehabilitation of approximately 40 kilometers of road in Eastern Georgia, including improvements to road sections and the enhancement of transport safety. The initiative also plans to improve the road maintenance system and strengthen transport connections, linking these efforts to the development of the Trans-Caspian Corridor and enhanced regional mobility.

Shareholding in TRIPP Not Under Consideration

Armenia’s Ministry of Foreign Affairs and International Trade has stated that the TRIPP project does not entail the transfer of shares in exchange for investments. This statement follows media reports suggesting that the Armenian Prime Minister had considered offering a shareholding stake in the project to Kazakhstan and Kyrgyzstan.

Azerbaijan’s $17 Billion Projects

Baku’s policy aims to deepen ties not only with neighboring countries but also with their neighbors, thereby facilitating the development of new trade and transport routes amidst shifting global supply chains. Azerbaijan’s 2026 state budget projects revenues of approximately $22.71 billion and expenditures of $24.53 billion.

Twenty-three documents were signed at the 2nd International Investment Forum in Baku, with the associated projects totaling $10.8 billion in value. When combined with initiatives announced during Baku Energy Week in June, the total volume approaches $17 billion. The development of transport, logistics, and energy infrastructure fosters investment attraction, thereby strengthening Azerbaijan’s position in regional and international connectivity. Baku is leveraging its geographical location to ensure the country evolves beyond a mere transit corridor and establishes itself as a key link in economic ties between various regions and continents. In this approach, transport routes, logistics, and energy connections serve not only economic purposes but also act as instruments for deepening relations between nations.

Strengthening the Middle Corridor

Azerbaijan, Georgia, and Turkey plan to simplify transit procedures, harmonize customs processes, and reduce waiting times at border crossings. A key focus of this cooperation is the adoption of international standards and the development of infrastructure designed to boost East-West trade and increase the throughput capacity of the "Middle Corridor." According to Turkey’s Deputy Minister of Trade, significant investments in road, rail, and maritime infrastructure are being implemented across all three countries; however, increasing transit flows requires not only infrastructure development but also the integration of customs and other procedures into a unified system. In his assessment, this will facilitate the attraction of new investments and enable—alongside the movement of cargo—its processing and the creation of additional economic value.

Particular attention is being paid to Azerbaijan's role in the East-West corridor and to strengthening connections with Central Asia via the Caspian Sea. According to the Turkish official, improving the investment climate and implementing large-scale projects create an opportunity for both the three countries and their partner states to benefit from regional cooperation. During the trilateral meeting, the heads of the customs administrations focused on developing regional transit potential, enhancing the efficiency of the Middle Corridor and the Baku-Tbilisi-Kars railway line, and simplifying customs procedures. Additionally, key topics of discussion included the further development of the exchange of advance customs information, the interoperability of international transit systems, and the further reduction of border crossing times.

Sources:
commersant.ge / bpn.ge / ge.armradio.am
businessinsider.ge / caliber.az / bm.ge