Azerbaijan road transport at the crossroads of Europe and Asia
EU’s Transeca Project modernizes Ancient Silk Road

Ever since ancient man first began to migrate, Azerbaijan has been the key landbridge between Europe and Asia. The country also sits astride the main route between Russia and Iran and onward points in the Middle East and South Asia. So, the country truly is the crossroads of North-South and East-West traffic.

"There are several routes between Europe and Asia, but the most important traverses Azerbaijan, through Baku and across the Caspian," says Dr. Husein A. Huseinov, president of Azerautoaqliyyat, Azerbaijan’s state road transport company.

Azerautoaqliyyat is the state agency responsible for supervising all road transportation within the territory of Azerbaijan and Huseinov is a leading candidate for the possible new government position of Transport Minister.

"The northern route," he explains, "goes through Russia, but it is closed in winter. The southern route goes through Iran, but it is mountainous and thus is less attractive to shippers. The route through Azerbaijan, which coincides with the Great Silk Road, has favorable geography and climate."

The Great Silk Road route, used for centuries by traveling traders, was rendered useless for seventy years by the USSR’s political policies. Nevertheless, Azerbaijan’s position and its oil supplies made it important to the Soviets, too, and they developed an extensive transportation infrastructure here.

After the breakup of the Soviet Union, the European Union recognized the great economic impact the restoring the Silk Route could have for the region, and thus was created the "Transeca" project --- an acronym standing for "Transport Corridor Europe-Caucasus-Asia."

"The Transeca project is very important," Huseinov says. "Thirty-eight countries participated at the ministerial level to develop it. Eleven countries signed the multilateral agreements." The multi-year project will rehabilitate and modernize roads and links connecting Europe to China.

Participating countries chose the route through Azerbaijan. "There was another route discussed that went through Iran," Huseinov recounts, "but the Europeans preferred the Azeribaijan route."

According to Huseinov, Azerbaijan has about 24,000 kilometers of main asphalt roads. "Of those, 1240 kilometers are of international significance. "Even though our cargo shipped by road has increased five times in recent years, we are still using only 25 to 30 percent of our capacity. We also have good supporting infrastructure, such as warehouses."

In its ten years of independence, Azerbaijan has adopted a number of important laws concerning road transport. The 1997 Unified Law on Transport set tariffs and duties in accordance with international rates, and set the regimes for licensing and movement of transit and transit cargoes.

"In Azerbaijan," Huseinov emphasizes, "we have favorable national and international rules. As a result, our road cargo is now more than two million tons, including both international transit cargo and cargo for domestic use."

Dr. Huseinov takes pride in the successful privatization of some 200 service companies - including trucking firms, bus companies and taxi services -- that were once a part of the state company.

"Azerbaijan takes part in a World Bank program that covers parastatal enterprises," he explains. "The World Bank oversaw our program, and we worked together well on this issue. All of the transport enterprises that were once part of this agency have been privatized. Their privatization significantly improved the sector’s efficiency."

Today the agency sets road transportation polices, and is responsible for regulation and licensing of truck, automobile, taxi and bus companies and traffic in Azerbaijan.

The company is also an advocate for strong international ties in the transport sector. Azerbaijan has entered the TIR Carnet Convention and signed the European International Highways Agreement and the European Agreement on
Personnel Working on International Highway Transport.