Azerbaijan Transport Sector 2011

Azerbaijan Transport Sector presents itself as an important component of both – international trading transit routes and the country’s economy. The sector produces 6% of the added value, accounts for 8% of all capital stock of the country and 24.6% of the total volume of investments.

In recent years the transport sector experienced certain negative trends observed in all the subsectors: railways, road transport and roads, civil aviation and airports, maritime transport and ports. Among the major difficulties there were a slowdown in the volume and turnover of transported cargo and passengers, a substantial depreciation of fixed assets, increasing number of unprofitable enterprises. As a result, Azerbaijan turned itself from a net exporter into a net importer of transport services.

The author of CASE latest Network Report, CASE Fellow, Irina Tochitskaya aims to evaluate the progress achieved in implementation of structural reforms conducted in all subsectors. The report present standardized and qualitative indicators that assess the level of the transport sector reforms in three areas: 1) commercialization and privatization, 2) tariff policy, and 3) institutional and regulatory changes. The aggregated index is calculated on the basis of the 21 indicators that reflects the status of the reforms in each sector at a period under review.