Expert: Trans-Caspian corridor shows good dynamics

The Trans-Caspian route has demonstrated impressive dynamics in recent years, political scientist Eduard Poletaev told the Kazakhstan bureau of Report.

"The recent changes in the vectors of trade and economic relations on the Eurasian continent have intensified the activities of a number of countries that saw a window of opportunity in the current situation. One of these countries is Kazakhstan, which has transport and logistics potential due to its geographical location in the heart of Eurasia," Poletaev said. He supported his opinion with specific figures.

Thus, in 2023, the volume of transportation along the Trans-Caspian International Transport Route (TITR) increased by 65%, reaching 2.76 million tons. And in the first seven months of 2024, transportation volumes reached 2.56 million tons, which is 63% more than in the same period last year. By the end of 2024, cargo handling along the TITR is expected to be 4.2 million tons.

"Today, the TMTM is a reliable alternative to the traditional sea route across the Indian Ocean. For the key countries through which it passes, namely China, Kazakhstan, Azerbaijan, Georgia and Türkiye, the route offers favorable opportunities," the political scientist noted.

Poletaev noted that the countries of Southeast Asia, the Persian Gulf and Europe are also interested in developing the TITR.

"The Government of Kazakhstan is working to implement the Roadmap to eliminate bottlenecks and develop the Middle Corridor until 2027 between Kazakhstan, Azerbaijan, Türkiye and Georgia, which will increase the capacity of this route to 10 million tons per year," the press service of the Kazakh cabinet noted in a statement.

According to Poletaev, for now, the Trans-Siberian Railway is an important land channel connecting Northeast Asia and Europe. More than 90% of cargo is still delivered by sea, however, it will take more than a month for cargo from Shanghai or Hong Kong to reach the Old World countries by sea, and the capacity of the Suez Canal is approaching its maximum.

The development of land transit coincides with the tactical tasks of implementing the "Silk Road Economic Belt" and the interests of the countries through which the transport route runs. The expert reminded that in previous years, serious work was carried out to justify the need to overcome the transport isolation of Kazakhstan and the Central Asian countries.

Landlocked countries trade 30% less than maritime powers. In addition, the role of land routes has increased significantly since 2020 due to the COVID-19 pandemic. More than 80% of Chinese goods for European buyers are delivered in containers.

He added that the countries of the continent are eager to participate in container transit, since in addition to profit, this helps to modernize their own transport and logistics networks. Thus, the agreements signed in November 2023 between Kazakhstan and China became the basis for strengthening transit flows from East to West. The ratification of these agreements in July 2024 accelerated the process of implementation and digitalization of container trains on the China-Europe route.

"The creation of a single multimodal service for the entire route significantly increased its efficiency. Digitalization played a key role. The Middle Corridor Multimodal Ltd joint venture, created on the basis of the Astana International Financial Center, united the railway administrations of Kazakhstan, Azerbaijan and Georgia, which made it possible to more effectively manage the route, simplifying logistics operations on the 'single window' principle," noted Eduard Poletaev. There is already a platform, thanks to which the information systems of the railways of Kazakhstan and Azerbaijan are integrated.

"The next stage will be the connection of Georgian railways," the political scientist summarized.