Baku-Tbilisi-Kars Railway Upgrade Unlocks New South Caucasus Freight Capacity

The Baku-Tbilisi-Kars (BTK) railway has completed a major upgrade of its Georgian segment, significantly increasing the line's freight-carrying capacity and removing a critical bottleneck in the South Caucasus section of the Middle Corridor trade route. The works, completed in late 2025 and now fully operational, are expected to increase throughput on the Georgian section by approximately 30 percent, supporting the region's ambitions to capture a larger share of China-Europe overland trade.

The BTK, which opened in 2017, is the only railway linking Azerbaijan and Turkey via Georgian territory, bypassing both Russia and Armenia. It forms the backbone of the South Caucasus's overland connectivity with Western markets and has been central to the Middle Corridor's growth story. However, its capacity has historically been constrained by single-track sections, outdated signalling systems, and ageing infrastructure along the Georgian segment.

The upgrade programme, financed through a combination of Georgian state budget allocations, an Azerbaijani government loan, and support from the European Bank for Reconstruction and Development, addressed the most significant capacity constraints along the route. New signalling and traffic management technology has been installed at key junctions, while several short sections of track have been doubled to allow simultaneous bi-directional movement of freight trains.

The practical impact is already being felt. Logistics operators report that average dwell times at the Georgian end of the BTK have fallen, and the reliability of transit schedules has improved — a critical competitive parameter for shippers choosing between the Middle Corridor and maritime alternatives through the Suez Canal. For time-sensitive cargo, the BTK can now offer a credible 15–18 day transit time from Chinese railheads to European destinations.

Kazakhstan, which uses the BTK as the final land leg of its Trans-Caspian export route, has responded by increasing the frequency of block trains on the corridor. In the first quarter of 2026, Kazakh grain exports via the BTK grew by more than 20 percent year-on-year, supported both by the railway upgrade and by new cross-Caspian ferry capacity deployed from the port of Aktau.

Azerbaijan's railways authority is also planning a modest expansion of the Boyuk Kasik–Tbilisi segment, which currently experiences capacity constraints at peak periods. Engineering studies for this section are expected to be completed by mid-2026, with construction to follow in 2027 if financing is confirmed.

For Georgia, the BTK upgrade strengthens the country's case for continued investment in its transit infrastructure. The railway sector now contributes approximately 2 percent of Georgian GDP in transit-related revenues, and the government projects this figure could reach 3.5 percent by 2030 if the full suite of planned corridor investments is completed on schedule.

Further Reading:
Middle Corridor Freight Volumes Set to Rise 10% in 2026, OTS Summit Projects
Kazakhstan and Georgia Forge Closer Ties to Strengthen Middle Corridor Capacity