Azerbaijan Railways’ digitalisation strategy

Digitalisation remains a key aspect to modernise the rail freight sector and enhance international cooperation. RailFreight.com had a chat with the Chairman of Azerbaijan Railways (ADY), Rovshan Rustamov, concerning the efforts that are being implemented in the country to this end.

Rustamov discussed the different projects that ADY has been (and will be) working on, stretching from a more efficient utilisation of rolling stock to data protection. The main goal of ADY’s digitalisation programme is to facilitate multimodal connectivity, especially along the Trans-Caspian International Transport Route, also known as Middle Corridor, connecting China and Europe via Central Asia.

What specific digital solutions or technologies are being implemented to improve freight operations within Azerbaijan Railways?

For better freight transportation services, we have upcoming projects such as the Locomotive Crew Management System (LCMS), the Freight Commercial Operations Management System (FCOMS), and the Freight Transportation Management System (FTMS). The LCMS project focuses on optimising the management of locomotive crews. By utilising advanced scheduling algorithms and real-time monitoring capabilities, we aim to enhance resource allocation and reduce idle time. This not only improves operational efficiency but also contributes to reducing fuel consumption and emissions, aligning with our sustainability goals.

The FCOMS initiative is designed to streamline freight commercial operations. This system will provide comprehensive tools for managing pricing, contracts and customer interactions, allowing us to offer a more responsive and customer-centric service. By improving the efficiency of commercial processes, we can better meet the demands of our clients and enhance overall service quality.

Finally, the FTMS project targets the optimization of freight transportation logistics. By implementing data analytics and automated planning tools, this initiative will enable us to improve load management and route optimization. This not only minimises empty runs but also ensures timely deliveries, thereby enhancing customer satisfaction and operational effectiveness.

Are there any digital innovations that focus specifically on energy efficiency or sustainability in freight operations?

We aim to implement these two key projects: the Locomotive Crew Management System (LCMS) and the Freight Transportation Management System (FTMS). The primary goal of the LCMS project is to optimise the management of locomotive crews, ensuring that we use our resources more effectively. This project will include monitoring fuel consumption, allowing us to identify areas for improvement and implement strategies to reduce fuel usage.

Similarly, the FTMS initiative is designed to enhance the management of freight transportation. This initiative focuses on optimising load management and route planning through advanced digital tools. By analysing data related to cargo loads, routes, and delivery times, we can minimise empty runs and optimise fuel usage. This approach not only increases operational efficiency but also significantly lowers our carbon footprint.

What challenges have you encountered in integrating your digital systems with neighboring countries’ rail networks?

In integrating our digital systems with the railway networks of neighbouring countries, ADY faced several challenges. First, differences in standards reflected in various technical aspects and communication protocols complicate system compatibility. Difference means, in other words, the absence of universal platforms for data exchange between countries or a slowly progressing integration process. Moreover, limited capabilities of existing infrastructure also obstruct full integration, leading to higher expenses associated with upgrading systems and technologies to meet the requirements of neighbouring countries.

One more challenge is the lack of national platforms in the regional countries. Establishment of such a system would allow us to combine our efforts and further shift to “Platform of platforms” (PoP) business model. Should we achieve this, we will have access to multiple connected small platforms without a necessity to switch between providers.

In Azerbaijan a lot has been done in this regard under the aegis of the Digital Development and Transport Ministry, and the Transit Freight Coordinating Council. Domestically, Azerbaijan has created favorable conditions to facilitate transition to PoP model.

Meanwhile, we are also planning to overcome the digitalization challenges within the Eurasian Transport Route (ETR), for the establishment of which we have gathered with railway administration officials from China, Central Asian nations (except Kazakhstan), Türkiye, and Austria in a consultative meeting in Baku. ETR stands for reinvigorating and further developing the southern branch of TITR through a global route rather than a regional.

ETR participating countries are highly keen on digitizing the route for coordinated, faster, diversified and effective freight operations. A digitized ETR, featuring all-new cooperation formats, will allow to throw more weight behind the collective efforts for developing TITR and strengthening its position along the East-West transport connectivity, including as part of the “Belt and Road Initiative”.

How are you managing the balance between operational efficiency and the protection of sensitive customer and operational data?

We maintain a comprehensive approach that combines advanced technologies with robust security measures. First, we have implemented stringent cybersecurity protocols, including state-of-the-art encryption methods and controlled access, to safeguard our data from unauthorised access. Regular audits and vulnerability assessments ensure that our systems are continuously monitored and protected against potential threats.

Training our staff is also a crucial aspect of our strategy. We invest in ongoing education to raise awareness about best practices in data protection and cybersecurity, fostering a culture of responsibility among our personnel. Moreover, we leverage technology to enhance operational efficiency without compromising data security. Our automated systems are designed with built-in security features, allowing us to optimise processes while maintaining the integrity of sensitive information.

What improvements can freight customers expect in terms of service through your digital transformation?

We have already implemented several innovations to enhance our services for freight customers, but we are committed to continuous improvement. The integration of applications with the ADY Smart platform has been successfully completed. This integration includes the incorporation of cost calculations for freight transportation and the associated formulas within the ADY Smart interface, ensuring a cohesive and efficient operational framework.

Freight transport documents are now being prepared in electronic format, and the data will be processed through an integrated system across countries. As a result, shipments will be conducted in a paperless manner, significantly enhancing efficiency and reducing the environmental impact associated with traditional documentation practices. This transition not only streamlines the logistics process but also facilitates smoother cross-border operations, reflecting our commitment to modernising freight transport.

Will Azerbaijan Railways introduce or improve customer-facing digital platforms, such as real-time cargo tracking and online freight booking?

Certainly. For example, online freight booking has already been implemented within our railway system through the “ADY Smart” platform. This system facilitates booking processes for freight services, allowing customers to conveniently manage their shipments with real-time access to essential information. Additionally, real-time cargo tracking is set to be implemented starting next year. This new feature will allow customers to monitor their shipments in real time, enhancing transparency and ensuring they are kept informed throughout the transportation process.