Baku is the capital and the largest city of Republic of Azerbaijan. The city is situated on the Western Coast of the Caspian Sea in the southern part of the Apsheron Peninsula. The city boundaries of Great Baku include a vast territory with an area of nearly 2.2 thousand sq.km, which is not only the city itself, but also a vast municipal agglomeration. The central part of Baku is situated in the amphitheatre with descending terraces towards the Baku Bay. The layout of Baku is rectangular, only in the oldest part of the city within the fortress walls the streets are crooked and narrow. In the centre and along the highways the construction is dense and it is free in the outskirts. The suburbs of Baku are the centres of oil extraction where the enterprises of railway transportation, of machine-building and construction materials are located and where one can see mineral sources (Shikh, Surakhany). The boundaries of the city include a health resort area of the Apsheron Peninsula with coastal beaches. Baku is a great transport junction. The leading part in freight turnover belongs to the commercial seaport. Airlines connect Baku with a number of cities in the world. The railway lines connect Baku with Georgia, Russia, Iran.