Nowadays the economy of Azerbaijan is showing a sustainable development along with the active integration into the international community and large-scale projects are being implemented domestically. Special significance in this development is attached to the transport sector. Nowadays, steel highways of Azerbaijan, as one of the main links of the transport system of the country, are developing with high rates. The work in this direction was carried out thanks to the personal help and care to the railway system of the great politician and Nationwide Leader of the country Heydar Aliyev. Thus, H.Aliyev personally supervised the process of making purposeful economic changes. Successful domestic and foreign policy, democratization introduced under his supervision, resulted in the fostered social and economic development of Azerbaijan. 

The processes on modernization and development of the transport infrastructure initiated when Nationwide Leader Heydar Aliyev was in power have entered a new stage of development under the leadership of President Ilham Aliyev. So, in recent years big changes have been fixed both in the transport system of the country and in the operation of the railway transport, as a component of the entire transport system. Active operations in the field of construction of a new railroad Baku-Tbilisi-Kars are implemented thanks to the will of the Head of State. 

In view of bringing the level of the Azerbaijan railroads into compliance with the international standards, on July 20, 2009 President of Azerbaijan Ilham Aliyev signed the Executive Order on establishment of Azerbaijan Railways CJSC, and it actually served a new starting point for development. The operations in this direction were accelerated after the Government of Azerbaijan approved the Charter and the structure of Azerbaijan Railways CJSC on February 15, 2010. 

Thus, it was the start to a new process of reforms in the sphere of improvement and restructuring of the railroad, in particular modernization of the infrastructure of the railroad and rolling stock. 

As a logical continuation of the mentioned work, on July 6, 2010 President of Azerbaijan Ilham Aliyev signed the Executive Order, approving the State Program on Development of the Railway Transport System of Azerbaijan for 2010-2014. This Order became the most powerful document in the history of development of the railways. 

According to the State Program, measures are introduced to update the rolling and locomotive stocks, to perform the overhaul railroads, power supply, signalization and communication facilities, to ensure transition from alternating current to constant in the direction of Baku-Boyuk Kasik route, to modernize technical equipment as well as to perform other important tasks. State Program’s main focus is on enhancement of the transit potential, improvement of the level of railway transport services, ensuring fruitful operation of the transport complex by reducing transportation costs in passenger traffic. 

The active bilateral and multilateral cooperation that has been recently maintained with the international financial structures also have a positive impact on the development of railroads. The negotiation process with the international financial structures, which focuses on reconstruction of the railroads, has entered a new stage. Due to the support of the Head of State the credit agreements were signed to ensure funding “The project of support of the railway transport and trade”, aimed at improvement of the infrastructure, managements and development of railways. Under the agreements, the International Bank for Reconstruction and Development (World Bank) allocated a $450 million loan and the Export Bank of the Czech Republic provided some 215 million euros. According to the State Program, these funds will be spent on reconstruction of locomotives, roads, power supply, signalization and communication facilities, on purchase of new locomotives and introduction of the International Financial Reporting Standards. 

To specify economic, legal and organizational bases of Azerbaijan Railways CJSC within the frames of the State Programme on Development of the Railway Transport System of Azerbaijan for 2010-2014 the draft bill “On the Railway Transport of Azerbaijan” was revised by Azerbaijan Railways CJSC taking into consideration the suggestions and proposals of the Ministry of Justice and thereafter submitted to the Ministry of Transport. 

At present Azerbaijan Railways CJSC is providing accelerated fulfillment of tasks in accordance with the State Programme. The repair of 317-km road towards Baku-Boyuk-Kasik is ongoing and about 237 kilometers of the road have been already overhauled. 

During the 5th session of the three-sided council for the Baku-Tbilisi-Kars railroad project held in March 2013 the parties agreed to speed up the construction work within the framework of the mentioned project. The first test train is expected to run along the Baku-Tbilisi-Kars railroad late in 2013. The Baku-Tbilisi-Kars railroad will become a globally important project after the opening of the railroad tunnel Marmara under the Bosporus which is to connect the Asian part of Istanbul with the European part. The highest carrying capacity of the corridor will total 17 mln tons of cargoes. This figure will total about 1 mln passengers and 6.5 mln tons of cargoes at the initial stage. In future, once the Marmara project has been completed, the Baku-Tbilisi-Kars railroad will have ensured the access to Europe. 

The work on reconstruction of power supply, signalization and communication facilities will be commenced in the near future as well. Acquisition of new locomotives and cars of different purpose is also on the agenda. 

The operations on construction of the second new bridge under the Kura River and the branch railway line passing over the bridge on the 73rd kilometer of the Saloglu-Poylu section are also under implementation. The reconstruction of the ferroconcrete bridge over the Valvalachay River on the 2,508th kilometer of the Charkhy-Shirvan section and the metal bridge over the Araz River on the 98th kilometer of the Saatly-Bedzhar section have been already accomplished. 

Within the frames of World Bank’s project on transition of the traction system of the Baku-Boyuk Kasik section to alternating current of 25 kV, the corresponding procedures on acquisition of 50 new cargo locomotives with alternating current are now underway. 

According to the contract signed between VEST QAS and Azerbaijan Railways CJSC in February 2009, 5 "Express" carriages were delivered to Sazvzuduki plant of the Slovak Republic for overhaul repair. On October 28, 2011 the repaired carriages returned to the republic. The life cycle of these carriages comprises 28 years. In other words with the speed of 160 km/h they can be operated till 2039. On November 24, 2011 the President of Azerbaijan Ilham Aliyev visited the passenger station ‘Baku’ and inspected 5 passenger carriages which had passed the overhaul repair in Slovakia. 

In addition, 50 passenger cars with the expired life cycle were sent for overhaul to Dneprovagonremontmontazh OJSC. 15 passenger carriages after the overhaul were delivered back to the country and put in operation in the direction Baku-Tbilisi. 

As a result of some reorganization works on reconstruction of the material base of Emergency Train LLC the new equipment, carriages and mechanisms, materials were purchased for Emergency Train LLC and distributed between Ganja, Bilajar, Hajikabul, Imishly, Evlakh and Shabran sections with the purpose to prevent probable oil spills during transportation. 

For maintenance and repair of the railroads new maintenance machines GSM 09-32, RM - 80 and USP-2000 were purchased from Austria. The construction of a hangar has been accomplished in the Bilajar workshop to maintain their operation on the proper level. 

Within the frames of the State Programme, the works on reconstruction of water-pumping and sewerage systems in the territory of the Bilajar station launched early in 2012 are at stage of completion. 

Production and transportation of long size rails (800m) at the rail welding train #24 in Salyan were commenced on February 22, 2012. 

The second production line and the plant bunker of the Gyzyldzha Gyrmadash Plant came on stream on July 4, 2012. 

The CJSC is currently developing a program of the Azerbaijan railroads’ development till 2020 and considering possibilities for introduction of electronic services on the railroad. It should be also noted that the non-cash payment has been introduced at acquisition of tickets since March, 2012 by means of POS-terminals installed in booking offices. It is obvious that safe movement of trains will be provided and the train traveling speed increased as a result of introduction of operations provided in the State Programme. 

It found the exact definition in the preamble of the State Programme: “Needs for railway transport services will be completely satisfied and more modern transport infrastructure for integration of the railroad of the country into the international transport system created. Transport costs per unit of cargo transportation were reduced and institutional transformations were performed. The perfect legislative base has been created and training of highly qualified personnel and social protection of their interests provided”. 

The State Programme contains the ways for implementation of the requirements in the forthcoming years. In this regard, the Government of Azerbaijan has set up important tasks for Azerbaijan Railways CJSC. The personnel of the steel highway of the country that numbers thousands of employees will apply all efforts for getting the assigned tasks done.