Javid Gurbanov added that there are two main routes for the project and the most suitable and economical one is the one through Iran, reported IRNA.
The railroad from Baku to Nakhchivan would be possible once the North-South International Corridor materializes, he said.
The route crossing Iran extends for 1,450 kilometers and requires an investment of $1 billion while the track via Turkey would need $2.5 billion, Gurbanov noted.
Road and rail links between Baku and Nakhchivan were blocked following a dispute between Azerbaijan and Armenia over Karabakh.
Currently, Iran provides the only road transportation between Azerbaijan and Nakhchivan.