The South Caucasus has serious potential to become a full-fledged logistics hub of regional significance. While opposition to developing a new corridor remains, the potential benefits for all countries in the South Caucasus and beyond will outweigh any costs or perceived risks.

The region of the South Caucasus is located at the intersection of logistics routes leading from north to south and east to west. Of course, the countries of the region are interested in increasing their logistical attractiveness. In this regard, significant funds have been invested in the development of logistics infrastructure over the past ten years. In particular, the Alat port in Azerbaijan was recently built and is now operational. In order to ensure the smooth functioning of the International North-South Transport Corridor, Baku allocated a soft loan to Iran of 500 million US dollars to finance the construction of the Astara-Rasht railway line. The investment was also used for the creation of logistics-related infrastructure to service this line. Azerbaijan took on a long-term lease of the Iranian section of the railway, as well as a railway station and a cargo terminal located there.