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Azerbaijan and Afghanistan explore expansion of trade corridors via Baku Port

Azerbaijan plays a critical role in this corridor, leveraging its Baku International Sea Trade Port, Baku-Tbilisi-Kars railway, and regional logistics zones.

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Azerbaijan Railways Chairman Rovshan Rustamov met this week with Afghanistan’s Deputy Prime Minister for Economic Affairs, Abdul Ghani Baradar, in Baku to discuss the expansion of cargo transportation routes between South Asia, the Caucasus, and Europe.

The meeting, which took part during Baradar’s visit to Azerbaijan, signals a deepening of economic cooperation as Afghanistan seeks greater integration into regional and transcontinental logistics networks, including the strategically vital Middle Corridor.

According to a statement issued by Azerbaijan Railways, the parties explored ways to enhance multimodal transport cooperation, with a particular focus on facilitating Afghan exports via the Baku Port.

Afghan representatives emphasized the need to accelerate the movement of goods to international markets and called for technical and logistical support from Azerbaijan.

In response, Rustamov expressed Azerbaijan Railways’ readiness to deliver Afghan-origin cargo to European markets, highlighting Baku’s growing role as a regional logistics hub.

“Azerbaijan stands ready to support Afghanistan’s economic integration by providing reliable and efficient access to international corridors,” Azerbaijan Railways stated.

The Middle Corridor and Afghanistan’s Trade Ambitions

The Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), connects China to Europe through Central Asia, the Caspian Sea, the South Caucasus, and Turkey.

Azerbaijan plays a critical role in this corridor, leveraging its Baku International Sea Trade Port, Baku-Tbilisi-Kars railway, and regional logistics zones.

Afghanistan, a landlocked country with limited direct access to global markets, has long sought alternatives to its dependency on Pakistan’s ports.

In recent years, it has aimed to integrate more deeply with regional trade initiatives linking Central Asia, the Caucasus, and Europe—especially after the re-establishment of the Islamic Emirate in 2021 and renewed focus on self-reliance and connectivity.

Despite ongoing political and financial challenges, Afghan exports of dried fruits, minerals, carpets, and medicinal plants have continued to find demand in international markets.

Expanding access to ports via multimodal routes through Uzbekistan, Turkmenistan, and the Caspian Sea could significantly reduce costs and transit times for Afghan producers.

Geopolitical Implications

The meeting between Afghan and Azerbaijani officials underscores the increasing geoeconomic importance of the Middle Corridor amid shifting global supply chains. For Baku, deeper logistics cooperation with Afghanistan presents a chance to strengthen ties with South and Central Asia, diversify transit flows, and cement its position as a bridge between East and West.

For Kabul, the success of such initiatives could not only bolster trade but also enhance its standing in regional diplomacy, offering an avenue for engagement despite a lack of formal international recognition.

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Kazakhstan grain exports to Afghanistan jump sharply

Shipments to Afghanistan reached 302,000 tons during the period, marking a 4.2-fold increase compared to the same timeframe last year.

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Grain exports from Kazakhstan to Afghanistan surged more than fourfold in the first quarter of 2026, according to a report by Kazinform International News Agency.

Shipments to Afghanistan reached 302,000 tonnes during the period, marking a 4.2-fold increase compared to the same timeframe last year.

Kazakhstan’s overall grain exports also recorded solid growth, rising 18 percent to 3.2 million tonnes. Domestic grain shipments increased by 8 percent, totaling 0.9 million tonnes.

Looking ahead, Kazakhstan plans to expand its agricultural processing capacity, with new grain facilities expected to handle a combined 5.8 million tonnes annually by 2028.

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Afghan economic commission approves 12 major development projects across key sectors

In the infrastructure sector, projects include connecting the eastern Kandahar substation to the new central substation in Tarinkot, as well as a major electricity transmission project from Kajaki dam to New Tarinkot.

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The Economic Deputy Office of the Prime Minister says 12 major development projects have been approved in the latest meeting of the Economic Commission and referred to relevant departments for implementation.

According to the statement, the approved projects include the transfer of imported electricity to the province of Paktika, construction of a double-circuit transmission line from Ghazni, completion of remaining substation works, and expansion of the national power network.

The package also includes extension of electricity lines from the Nurul-Jihad substation to the provinces of Herat, Farah, and Nimroz, as well as supplying electricity to Seydan village in the Grishk district of Helmand.

In the infrastructure sector, projects include connecting the eastern Kandahar substation to the new central substation in Tarinkot, as well as a major electricity transmission project from Kajaki dam to New Tarinkot.

Other approved projects include irrigation schemes in Faryab, upgrading and activating the 350-bed Aino Mina hospital in Kandahar, construction of a grand mosque with a capacity of 40,000 worshippers in Nimroz, and expansion of the Torghundi–Herat and Andkhoy–Shiberghan–Mazar-i-Sharif railway lines.

Officials say these projects aim to strengthen infrastructure, improve public services, and support economic growth across the country.

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Afghanistan, Iran sign 23-point MoU to expand border trade

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Local authorities in Iran’s Sistan and Baluchestan province say a 23-point memorandum of understanding (MOU has been signed with Afghan officials following a recent visit by an Iranian delegation to Nimroz, aimed at deepening economic cooperation and boosting cross-border trade.

Mojib Hassani, Deputy for Economic Coordination and Regional Development in Sistan and Baluchestan, said the visit produced significant outcomes, particularly in expanding small-scale trade, activating border markets, and strengthening bilateral economic ties, IRNA news agency reported.

He noted that Iran is fully prepared to launch local border markets in Shahgol, Milak, and Gomshad, but implementation will depend on readiness from the Afghan side. According to Hassani, the necessary infrastructure has already been completed on Iran’s side of the border.

Trade through official crossings remains ongoing, he said, with livestock imports among the key commodities exchanged—especially ahead of Eid al-Adha, when demand typically rises.

Hassani added that the 23-point framework was developed following the Afghan Minister of Commerce’s visit to Iran, with a strong focus on improving and expanding infrastructure to facilitate trade.

Among the early outcomes of the agreement is the construction of a temporary road linking two border markets, completed within a short timeframe and already contributing to increased trade flows.

He also confirmed Iran’s readiness to build a second border bridge, noting that some equipment has already been deployed. However, further progress on the project—currently around 30 percent complete—will require coordination with Afghan authorities.

Plans are also underway to install an X-ray scanning system at the border, with the process accelerated and expected to be finalized by the end of Jawza (June).

In addition, Hassani said broader infrastructure projects, including road expansion and rail development in the region, are being considered, though they will take time to implement.

He further highlighted efforts in Iran’s Chabahar Free Zone to facilitate Afghan traders, including the development of commercial storage facilities and the allocation of land for business use.

Iranian officials say these initiatives are part of a broader strategy to transform the shared border into a hub for sustainable economic cooperation between the two countries.

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