Azerbaijan plays a central role in the Middle Corridor (TITR), linking Central Asia to the Caucasus and onward to Europe via the Caspian Sea. Its multimodal infrastructure includes a 20,000-km road network, a growing container-capable rail system, and the modern Alat Port, which—alongside Baku Port—handled over 70% of national container traffic in 2023. With over 17 mt of transit cargo moved in 2023, Azerbaijan is positioning itself as a key Eurasian logistics hub.
The country has the advantage of having the Alat Port on the Caspian Sea, facilitating key transit route linking the Caucasus to Europe and Central Asia. However, despite significant investments in port and rail infrastructure, procedural inefficiencies at the Krasny Most BCP undermine competitiveness.
Recent trends show growing outbound efficiency but rising inbound border-crossing times and costs, thereby reversing some earlier gains. These asymmetries are reflected in the TFIs: while outbound TFI1 and TFI2 improved, inbound delays and congestion reduced speed and increased costs. Coordinated reforms across border agencies and improved interoperability with Georgian counterparts remain essential to sustaining Azerbaijan’s role as a reliable transit gateway.
Fluctuating Performance
Table 6.1: Trade Facilitation Indicators for Azerbaijan (2021–2023)
| Trade Facilitation Indicators | Road Transport | ||||
|---|---|---|---|---|---|
| 2021 | 2022 | 2023 | % change | ||
| TFI1 | Time taken to clear a border-crossing point (hour) | 5.8 | 4.0 | 4.3 | 6.29% |
| Outbound | 7.5 | 5.3 | 4.4 | -17.18% | |
| Kazakhstan | 3.6 | 2.5 | 4.1 | 66.82% | |
| TFI2 | Cost incurred at border-crossing clearance ($) | 106 | 52 | 56 | 5.91% |
| Outbound | 100 | 42 | 46 | 9.04% | |
| Kazakhstan | 112 | 63 | 67 | 5.70% | |
| TFI3 | Cost incurred to travel a corridor section | 27 | 50 | 58 | 15.44% |
| ($, per 500 km, per 20-ton cargo) | |||||
| SWD | Speed to travel on CAREC Corridors (km/h) | 39.1 | 28.9 | 22.0 | -23.91% |
| SWOD | Speed without Delay (km/h) | 52.3 | 53.3 | 50.0 | -6.47% |
Azerbaijan experienced a fluctuating TFI1, after a notable improvement from 5.78 hr in 2021 to 4.01 hr in 2022 (a 30.6% reduction). In 2023, the average time increased to 4.26 hr (+6.3%), mainly because of increased inbound clearance time, which jumped 66.8% from 2.47 hr in 2022 to 4.11 hr in 2023. By contrast, outbound clearance continued to improve, declining to 4.38 hr (a 17.2% reduction). The overall increase in inbound processing time is attributed to internal inefficiency related to border-crossing procedures.
Box 6.1: Inside the Krasyni Most BCP
According to the Georgian Revenue Service, the Krasny Most BCP has been officially renamed Kırmızı Körpü. However, most drivers surveyed were unaware of this change. In practice, drivers, shippers, and consignees continue to refer to the BCP by its more familiar names—“Red Bridge” or “Krasny Most” (Russian). For consistency and clarity, this report will continue using the name “Krasny Most.”
Reasons for the Slower Operations at Krasny Most (Azerbaijan) Compared to Tsiteli Khidi (Georgia)
- Infrastructure Design of the Service Counter: At the Tsiteli Khidi BCP, the infrastructure is designed to facilitate efficient processing by enabling drivers to remain inside their vehicles. An elevated service counter allows documents to be handed directly to customs officers without requiring drivers to disembark. By contrast, at Krasny Most, drivers are required to park their vehicles, exit the cabin, and queue at the service counter to complete document processing. This additional procedural step introduces avoidable delays ranging from several minutes to hours. During peak periods, particularly in August and September, these delays are magnified, as high traffic volumes lead to bottlenecks and prolonged waiting times.
- Absence of an Integrated One-Stop-Shop Mechanism: The one-stop-shop model is officially promoted by Azerbaijani authorities, but its implementation at Krasny Most is limited. Drivers must navigate a sequential process involving multiple agencies, including immigration, transport, customs, and SPS inspections. This fragmented approach is in sharp contrast to the Tsiteli Khidi operational model, where customs officers are authorized to conduct multiple control functions, including immigration procedures. Such an integration streamlines processing and enhances overall efficiency at the Georgian BCP.
- Redundant Exit Scanning Procedure: Upon completion of all customs formalities at Krasny Most, drivers must return to their vehicles and proceed to the exit gate, where customs officers scan a barcode on the exit ticket. This step is redundant, as vehicle control procedures are subsequently repeated by traffic police stationed beyond the customs zone. This duplication of control measures is an additional layer of delay and undermines the efficiency of the overall border-crossing process.
Source: CAREC Institute.
TFI2 values follow a similar trend. Between 2021 and 2022, costs decreased by over 50% from $105.82 to $52.46. However, in 2023, the cost increased by 5.9% to $55.56. This uptick was consistent for both outbound (+9.0%) and inbound (+5.7%) traffic. The increase is attributed to rising service fees, inflationary effects, and potential cost recovery adjustments following post-COVID-19 fiscal tightening at border agencies. Compared to the 2021 levels, however, the costs remained significantly lower, suggesting that Azerbaijan retained some gains from earlier trade facilitation reforms.
TFI3 data highlight a consistent rise in corridor travel costs. The cost per 500 km for a 20-ton cargo increased from $26.77 in 2021 to $50.47 in 2022, and further to $58.26 in 2023 (+15.4%). While this indicates rising transport costs, it also originates from higher fuel prices, freight demand imbalance, limited truck fleet availability, or supply chain bottlenecks. External cost pressures, including global logistics inflation and regional trade realignments due to the war in Ukraine, likely influenced these trends.
Speed performance deteriorated sharply in 2023. SWD dropped from 28.85 km/h in 2022 to just 21.95 km/h in 2023 (–23.9%). This decline signals worsening travel efficiency, due to port congestion, roadworks, and suboptimal coordination among logistics stakeholders. SWOD also declined, from 53.3 km/h to 49.85 km/h (–6.5%), indicating that even when delays are excluded, underlying infrastructure or operational inefficiencies are contributing to slower transport.