Iran and Azerbaijan Accelerate Work on North-South Corridor

The governments of Iran and Azerbaijan have agreed to speed up the construction of the western section of the North-South Corridor to improve regional freight connectivity and trade capacity, The Caspian Post reports citing foreign media.

North-South Corridor Terminal to Be Completed by End of 2025

On July 22, 2025, rail officials from Iran and Azerbaijan met at the Iranian Astara border terminal to coordinate progress on the North-South Corridor. Representatives from regional authorities and Iran’s transport infrastructure agency also participated.

Both countries discussed practical steps to complete the terminal, built under a strategic cooperation agreement signed in January 2025. Design works are 90% done, while construction has reached 75%.

Once operational, the facility will handle up to 3.5 million tonnes of cargo annually. Officials confirmed plans to complete the project by late 2025, significantly boosting corridor throughput.

North-South Corridor Rail Link Prioritized for Regional Growth

The Rasht-Astara railway line, another crucial section of the North-South Corridor, was a focal point of the talks. Iranian Railways confirmed that land acquisition for this route is now a top priority.

This rail link plays a vital role in connecting Iran’s internal network with Azerbaijan’s, creating a continuous route from the Persian Gulf to Russia via the Caspian Sea.

Enhancing the corridor will offer a shorter, cost-effective alternative to traditional maritime routes and serve regional economic development goals.

Strategic Impacts of Corridor Development

The North-South Corridor offers a vital trade axis linking India, Iran, Central Asia, and Russia. It promises to reduce shipping times by up to 40% and cut freight costs by as much as 30%.

Iran and Azerbaijan are positioning themselves as key logistical hubs in this emerging Eurasian route. Their cooperation underscores a shared commitment to regional integration and global supply chain resilience.

With upgraded terminals and faster rail development, the corridor is expected to attract growing volumes of transit trade, drawing interest from China, India, and the EU.