The majority of trade activity in this sector comes from oil and natural gas deposits being transported between areas of varying demand. Outside the fossil fuel sectors, transportation services are governed by the Ministry of Transport, Communications and High Technologies, previously recognized as simply the Ministry of Transport. This sector occupies a large share of domestic productivity, adding a consistent 10% in yearly economic value per capita. Growth indicators such as net operating surplus and fixed capital investment show evident signs of a favorable snowballing effect, compounding in economic efficiency, seen particularly in recent years.
The volume of cargo transportation in Azerbaijan has been increasing a yearly 1.8%, now 212.8 million tons in total, indicating capacity enlargement. Azerbaijan also has nearly 3,100 km worth of railway and plans to establish even more advanced metro systems outside the capital area. Additionally, highway and railway links via neighboring countries are vastly utilized as well, broadening the frontier of global sourcing to and from Azerbaijan. The existing network of transport infrastructure also allows Azerbaijan to transfer goods like hydrocarbons from Central Asia, playing a pivotal role in transit. The full-scale renovation of the national railway network is underway in Azerbaijan, which includes revamping the central administration system, modernizing locomotives, and reducing transit times.
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