ADB Approves $47 Million Loan to Digitalize Azerbaijan’s Railway System

The Azerbaijan Railways Digital Transformation Project will also introduce a digital system for clients, providing access to vital information such as shipment pricing and tax calculations.

The Asian Development Bank (ADB) has approved a $47 million loan to support the digital transformation of Azerbaijan’s railway system. This initiative aims to modernize the national railway operator, Azerbaijan Railways Closed Joint Stock Company (ADY), by improving the management of cargo operations, asset maintenance, repair, and investment planning.

The Azerbaijan Railways Digital Transformation Project will also introduce a digital system for clients, providing access to vital information such as shipment pricing and tax calculations. Additionally, the project will finance improvements to ADY's corporate functions, including budgeting and contract management.

ADB’s Director General for Central and West Asia, Yevgeniy Zhukov, emphasized the importance of this project, noting that a digitally enhanced railway system will strengthen Azerbaijan’s role as a vital trade and connectivity hub between East and Central Asia, the Caucasus, and Europe.

Azerbaijan’s railway sector, despite its strategic location and the government’s infrastructure investments, has struggled to maintain market share due to aging infrastructure and limited digitalization. ADB’s Transport Specialist, Nanyan Zhou, stressed that digitalization is crucial to improving operational efficiency, competitiveness, and Azerbaijan’s strategic position in regional transit corridors.

The project aligns with the CAREC Transport Strategy 2030 and the Railway Strategy for CAREC, 2017–2030, which aim to enhance regional connectivity through improved rail and multimodal infrastructure.

Since joining ADB in 1999, Azerbaijan has received over $5 billion in support for sectors such as transport, energy, health care, and agriculture. This new digitalization project is expected to optimize rail operations and strengthen Azerbaijan’s transit potential across the region.