The government has designated the industrial zone of Sumgayit, located just north of Baku, as a free economic zone in an effort to attract foreign investors to produce goods for export. Most of the country s farming activity is centered in the fertile lowlands of central Azerbaijan, along the Kura and Araz rivers. Leading crops have traditionally been cotton, grains, vegetables and grapes. However, production has declined in recent years because much of the most valuable farmland is now under Armenian control or is adjacent to the conflict area in Nagorno Karabakh. In particular, the country has large reserves of iron ore and aluminum ore.
Foreign investment is needed to develop and modernize existing mining operations.
Unfortunately, northern routes through Russia have been disrupted by instability in the Caucasus. There are 2,089 km of railways, which provide the main source of transportation for freight. The network of roads for vehicles serves domestic cargo traffic and provides access to international main highways. However, the roads are generally in poor condition. Sea cargo transportation is very important for Azerbaijan, connecting the country with other states of Central Asia, Iran and Russia.