A $47 million loan to help Azerbaijan digitize its railway system and improve the safety, reliability, and efficiency of the country's rail networks has been approved by the Asian Development Bank (ADB).
Through the Azerbaijan Railways Digital Transformation Project, ADB will support Azerbaijan Railways Closed Joint Stock Company (ADY), the national state-owned railway operator, in digitizing key processes. These include managing freight operations, maintaining and repairing assets, and investment planning.
“A modernized and digitally enhanced railway system will support Azerbaijan’s key role in connecting the economies of East and Central Asia with the Caucasus and Europe,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.
A system for customers to access information, including shipping prices and tax calculations, will also be developed as part of the project. In addition, the project will fund digital improvements to ADY's corporate functions, such as budgeting and contract management.
“Digitalization is critical to enhancing operational efficiency, improving competitiveness, and fully leveraging Azerbaijan's role in regional transit corridors,” commented ADB Transport Specialist Nanyan Zhou.
Azerbaijan's railways are a key node in the Central Asia Regional Economic Cooperation (CAREC) Corridors 2 and 6. These are two of six major economic and trade corridors that criss-cross the region. The project aligns with the CAREC Transport Strategy 2030 and the Railway Strategy for CAREC, 2017-2030. These strategies aim to improve rail and multimodal infrastructure and to commercialize and reform the railways.
