The international transportation corridor across the Caspian Sea serves as a vibrant link connecting Asia and Europe, reflecting the evolving geopolitical landscape in the regionCentral Asia and the Caucasus, with their strategic geographical advantages and potential for economic collaboration, stand poised to enhance their engagement with global marketsThe initiative to construct this corridor aligns with the broader Belt and Road Initiative, which seeks to foster trade relations and cultural exchanges across the Eurasian continent, paving the way for a more integrated community of shared destinies.

As economic integration across the Eurasian landmass deepens, various transport routes are witnessing significant developmentThe corridor across the Caspian Sea has distinguished itself thanks to its shorter transit times and lower safety risksMajor economies, including China, the European Union, and the United States, are closely monitoring its progress, while countries along the route recognize its potential for boosting economic prospects

Advertisements

As such, the corridor's future appears promising and has become a focal point for international trade and logistics.

Known as the "Middle Corridor," this transportation route originated from the TRACECA initiative proposed by the European Union in 1993, aimed at establishing a transport route linking Europe, the Caucasus, and AsiaWith the 2017 integration of the Caucasus railway network with the European railway system, its transport capacity has been significantly enhancedThe corridor roughly spans 4,256 kilometers by rail and 508 kilometers by sea, beginning at the Kazakhstan-China border, traversing Kazakhstan, crossing the Caspian Sea to Azerbaijan, and then reaching Turkey or extending into other European nations via GeorgiaThe importance of this route is further emphasized by Kazakhstan’s Minister of Transport, Marat Karabayev, who dubbed it the shortest transit route between China and Europe.

The strategic value of the Middle Corridor continues to rise, as it sits between two principal transport routes: the northern route from Russia to Europe and the southern route from Iran through Turkey to Europe

Advertisements

This positioning allows for a diversification of trade routes and contributes to the security of supply chains and industry networksFurthermore, the stability of domestic politics in the countries along the corridor enhances its attractiveness as a reliable conduit for goods moving between Asia and Europe.

Efforts to develop the Middle Corridor are gaining momentumIn December 2016, the International Association for the Development of the Trans-Caspian International Transport Route was established in Astana, KazakhstanThis body, which includes transport authorities from Kazakhstan, Azerbaijan, and Georgia, plays a crucial role in improving efficiency and providing the necessary coordination among member countriesAdditionally, member countries have endorsed increasing investment into transport infrastructure, with Kazakhstan announcing plans to invest around $40 billion over the next few years to bolster its logistics capabilities along this corridor.

The President of Azerbaijan, Ilham Aliyev, has underscored the growing demand for the Caspian route among both European and Central Asian nations

Advertisements

Azerbaijan has focused on enhancing the capabilities of its main port in Baku, modernizing and expanding it to accommodate the surge in freight trafficMeanwhile, Georgia is actively participating in the construction of the Baku-Tbilisi-Kars (BTK) railway and advancing infrastructure projects like the Anaklia deep-water port, vital for increasing the efficiency of the Middle Corridor.

In late 2022, the governments of Kazakhstan, Azerbaijan, Georgia, and Turkey signed an initial framework for the development roadmap of the Trans-Caspian International Transport Route, marking a commitment to collaborative work principles and specifying projects with clear responsibilities and timelinesIn June 2023, further steps were taken with the establishment of an international logistics company aimed at enhancing cooperation along the corridor, standardizing customs protocols, and simplifying processes for greater efficiency in transcontinental freight movement

• Long-Term Treasury Bond ETFs Hit New Heights
• Zero-Carbon Push Fuels Green Growth in Fiberglass
• SHEIN and iMiracle Spearhead Channel Innovation
• Singapore’s Foreign and Outbound Investments Grow in Sync
• AI Opens New Frontiers for African Economies

As a result of these collective efforts, cargo volumes along the Middle Corridor have seen impressive growth, with freight jumping from 1.318 million tons in 2017 to 2.764 million tons in 2023, and an anticipated 1.647 million tons by mid-2024.

The rapid development of the Middle Corridor has captured global interestAt the first China-Central Asia Summit held in Xi'an in May 2023, the Chinese side reiterated its support for the construction of this routeIn addition, during the third Belt and Road Forum in October 2023, China announced its commitment to high-quality Belt and Road construction, which includes active participation in developing the Trans-Caspian routeBy 2024, the authorities from China and Kazakhstan are set to launch a direct express freight service across the Caspian Sea, marking a significant collaboration between the two nationsNotably, in May 2022, several China-Europe freight trains began utilizing the Trans-Caspian and Black Sea routes, which saw an increase of over tenfold in the number of trains operating along this corridor compared to previous years.

Moreover, significant financial backing from European and international financial institutions is expected to bolster the corridor's infrastructure

At the EU-Central Asia Transport Global Gateway Investors Forum held in Brussels, the European Commission announced a €10 billion investment support package for the Trans-Caspian corridorThe World Bank has also published research detailing the advantages and challenges of the corridor, noting issues such as high costs and low transparency in operationsExperts recommend reforms to streamline border procedures, improve digital infrastructure, and attract private investment to enhance service quality.

While the Middle Corridor is still emerging and cannot yet rival the established routes like the Russia-Europe bridge, its rapid growth holds significant implications for diversifying and stabilizing trade routes for numerous countries at both ends of the Eurasian continentAs the Belt and Road Initiative and the development of the Trans-Caspian International Transport Corridor continue to evolve in accordance with each other, the strategic location, central significance, and economic potential of the Central Asia and Caucasus regions will increasingly be realized, fostering higher levels of Eurasian trade and cultural exchange