Integration of Iraq into the International Logistics Network via Azerbaijan

New Transit Corridors through Astara: Iraq → Azerbaijan → China / Russia → Europe

In response to growing needs in foreign trade, Iraq has an opportunity to benefit from Azerbaijan’s advanced logistics infrastructure to diversify its supply chains and gain cost-time efficiency in logistics operations.

In this context, the Astara border crossing serves as a strategic hub for multimodal logistics cooperation between Iraq and Azerbaijan.

 Inbound Transit to Iraq from China and Russia

Kazakhstan → Turkmenistan → Caspian Sea → Baku → Astara → Iran → Iraq

​Modes of Transport:

•Cargo from China and Russia is moved by rail to the Caspian coast.

•Then shipped by sea across the Caspian to Baku Alat Port.

•From Baku, it is transported by rail to Astara.

•From Astara, goods transit through Iran’s road network into Iraq.

Advantages:

​•Shorter and faster than the Suez Canal or Black Sea routes.

•Duty-free and secure corridor for Iraq’s imports from China and Russia.

•Established infrastructure allows for low-cost, integrated transportation.

Outbound Shipments from Iraq to China, Russia, and Europe

​​Iraq → Iran → Astara (Azerbaijan) → Baku → Georgia / Caspian Sea → Europe / Russia / China

Modes of Transport:

​•Iraqi exports are moved by road through Iran to Astara.

•Then rail transport from Astara to Baku.

•From there:

•Via the Baku-Tbilisi-Kars Railway to Europe,

•Across the Caspian Sea from Baku Port to Central Asia and China,

•Or northward by rail into Russia.

 Advantages:

•Direct market access for Iraq’s industrial, agricultural, and energy exports.

•Middle Corridor connection to China via Baku.

•Fully integrated rail transport through Iran and Azerbaijan.

Astara Logistics Center: A Key Transit Hub

​•Located on the Azerbaijan-Iran border, the Astara Logistics Center integrates road and rail transport with modern customs infrastructure.

•With its customs gate connected to Iran, it offers an ideal transit solution for Iraqi goods.

•Azerbaijan Railways provides high-capacity freight movement between Astara and Baku.

Strategic Gains for Iraq

1-Alternative and Secure Corridor:

​•Provides a stable and continuously operational route, free from high political risk.

2-Time and Cost Efficiency:

•Up to 30% time savings on shipments from China.

•Lower freight and customs costs compared to the Suez route.

3-Logistics Hub Potential:

•Iraq can become a regional center for cargo handling, transfer, and customs.

•Enables new business models for Iraqi logistics companies (e.g., hub & spoke, intermodal transport).

4-Regional Integration:

​•Strengthens trade links with Iran, Azerbaijan, Central Asia, and Turkiye.

•Diversifies Iraq’s foreign trade volume and trade partners.

Azerbaijan: Iraq’s New Logistics Gateway

​By leveraging Azerbaijan’s modern logistics infrastructure, strategic location, and multimodal transport systems, Iraq will:

•Accelerate imports from China and Russia.

•Expand exports to Europe and Central Asia.

•Integrate its own logistics network into the regional system.

This integration will transform Iraq from a target market into a regional logistics player.