Azerbaijan, Georgia Form JV to Boost Efficient Management of Baku-Tbilisi-Kars Railway Line

Azerbaijan and Georgia have established a joint venture (JV) named BTKI Railways LLC to leverage the Baku-Tbilisi-Kars (BTK) railway line’s capacity.

On Tuesday, Azerbaijan Railways CJSC (ADY) and Georgian operator Marabda-Kartsakhi Railway signed a document to form the new company, which will ensure efficient use and management of the BTK’s Marabda-Kartsakhi section in Georgia’s territory.

BTKI Railways is also tasked to take effective measures to attract new cargo, strengthen strategic transportation links in the region and significantly boost the potential of the Middle Corridor.

The JV is based on the agreement signed on February 7, 2007, between Azerbaijan and Georgia as part of the project for BTK railway’s development. The agreement addressed the financing, design, construction, rehabilitation, reconstruction, and operation of the Marabda-Kartsakhi railway section up to Georgia’s border with Türkiye.

According to the document, after the construction and commissioning of this section, the operation and management of the entire railway infrastructure on Marabda-Kartsakhi line would be under the new JV.

The joint venture will also ensure the full repayment of the loan allocated by Azerbaijan to Georgia, from the revenues generated.

In 2023, ADY undertook extensive repair, rehabilitation, reconstruction, and expansion efforts on the 184-kilometer stretch of the BTK railway line that passes through Georgia's challenging terrain, successfully completing the work in five phases by May.

Freight services along the BTK railway resumed on May 20.

The main objective of this modernization is to enhance the Middle Corridor's competitiveness and establish the BTK as a key freight artery within the corridor. Following the expansion, the BTK's annual freight capacity surged from 1 million tons to 5 million tons.

The BTK railway has been upgraded under the five-phase modernization project, with 61 kilometers of railway tracks, 98 kilometers of contact network lines, 172 kilometers of 10 kV cables, and 338 kilometers of fiber-optic cables installed. Additionally, pedestrian and automobile roads along a 41-kilometer stretch have been asphalted.

The 826-kilometer-long BTK line, connecting Azerbaijan’s railway network to Türkiye’s railroad grid, offers a quicker and more accessible rail link between China, Central Asia, and Europe. Traversing from Baku through Georgia’s capital Tbilisi to Kars in northeast Türkiye, it significantly reduces the overland journey between China and Europe to just 15 days, compared to the previous 25-45 days.

Once fully operational, the modernized BTK railway is expected to handle annual cargo deliveries of up to 17 million tons, offering a substantial boost to Azerbaijan’s rail transit capacity.

The renovation project has significantly bolstered opportunities for intercontinental transportation. BTK is anticipated to accommodate more block trains, particularly those traveling from China to European markets on the Middle Corridor.

During the first four months of this year, the Middle Corridor facilitated 34 block trains, collectively carrying 6,319 TEUs of container cargo. Among these, 10 were transit cargo trains carrying 4,020 TEUs, while the remaining 24 trains transported import cargo, totaling 2,299 TEUs.