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ADB Approves $47 Million Loan to Accelerate Digital Transformation of Azerbaijan’s Railway System

By Timucin Turksoy October 2, 2024

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The key scope of ADB’s financial assistance within the “Azerbaijan Railways Digital Transformation Project” spans the modernization of key processes of Azerbaijan Railways / Azerbaijan Railways

The Asian Development Bank (ADB) has approved a $47 million loan to support Azerbaijan in the digitalization of its railway system.

As part of the “Azerbaijan Railways Digital Transformation Project,” ADB’s financial assistance will focus on modernizing key operations within Azerbaijan Railways (ADY). This includes upgrading cargo operations management, asset maintenance, repair processes, and investment planning.

The project aims to improve client access to essential information, such as shipment pricing and tax calculations, while also enhancing corporate functions like budgeting and contract management.

According to ADY, the funds will be allocated to separate projects aimed at developing a cargo-commercial system, enhancing the movement control system, establishing a more agile maintenance management system, ensuring business sustainability, boosting cybersecurity, and modernizing outdated IT systems.

“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. “We are pleased to back this initiative, which will help Azerbaijan maximize its strong potential as a trade and connectivity hub.”

ADB Transport Specialist Nanyan Zhou emphasized the importance of digitalization in improving ADY’s operational efficiency and competitiveness, enabling Azerbaijan to capitalize on its strategic position within regional transit corridors.

ADY has been actively implementing measures to optimize the use of rolling stock, accelerate cargo operations, improve user-friendly interfaces, ensure reliable data protection, and establish an eco-friendly railway grid. The overarching goal of ADY’s digitalization efforts is to enhance multimodal connectivity, particularly along the Trans-Caspian International Transport Route, also known as the Middle Corridor, which links China and Europe via Central Asia.

To further improve freight transportation services, ADY is preparing to launch several projects, including the Locomotive Crew Management System (LCMS), the Freight Commercial Operations Management System (FCOMS), and the Freight Transportation Management System (FTMS).

In addition, ADY has introduced a series of innovations designed to improve services for freight customers. One notable advancement is the successful integration of various applications into the “ADY Smart” platform, which allows for seamless cost calculations for freight transportation and direct interaction with customers, creating a more efficient operational framework.

Freight booking processes are now available on the “ADY Smart” platform, offering customers real-time access to constantly updated shipping information. Starting next year, ADY will also introduce real-time cargo tracking, enabling customers to monitor their shipments with increased transparency and stay informed throughout the transportation process.

Moreover, ADY has adopted electronic freight transport documents, facilitating paperless shipments and reducing the environmental impact of conventional documentation practices.

ADY also takes a comprehensive approach to security, combining advanced technologies with robust cybersecurity measures, including state-of-the-art encryption methods and controlled access. The company places a strong emphasis on staff education, aiming to raise awareness about best practices in data protection and cybersecurity, which remains a top priority.