(MENAFN- AzerNews)
Nazrin Abdul
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The Trans-Caspian International transport Route, commonly
referred to as the Middle Corridor, is a significant logistics
initiative that commences at the China-Kazakhstan border and
traverses Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia,
ultimately reaching Europe. This strategic corridor establishes
Azerbaijan as a pivotal transport hub within the Eurasian region,
enhancing connectivity and facilitating trade across multiple
borders.
Expanding railway routes in the Middle
Corridor
Significant progress is being made on the Middle Corridor, which
is the shortest and most convenient route for cargo transportation
from Central Asian countries to Europe and Africa. Currently,
Azerbaijan Railways (ADY) and China are discussing ways to increase
the number of railway services to Europe. Emil Mammadov, Chairman
of Azerbaijan Railways (ADY) JSC, made this announcement during his
speech at the "Black and Caspian Freight Forum 2024" on September
18.
Mammadov stated, "For the past year, we have been focused on the
maintenance of the Baku-Tbilisi-Kars (BTK) corridor. We have
completed work on the main operational and maintenance aspects, and
the key connection has been restored, which will be operational
from June 2024. As a result, the transmission capacity of the line
has increased from 1 million tons to 5 million tons."
This significant increase in carrying capacity further enhances
the importance and attractiveness of the Middle Corridor. According
to data from the past five years, there has been an increase of
over 110% in the volume of cargo transportation along the Middle
Corridor. In the first six months of this year, there was a 15%
increase in transportation compared to the same period last year,
with more than 20% growth in transit transportation.
Mammadov also noted that increasing the number of railway routes
to Europe would create opportunities for China to enter the
European market. "In terms of the connections between Azerbaijan,
the Central Asian region, and Turkey, this is the shortest land
route. It enables not only traditional cargo transportation but
also continental rail supply. We are discussing with our Chinese
partners the possibility of increasing the number of rail routes to
Europe, which would provide an additional opportunity for China to
access the European market," he added.
Increasing the number of railway routes within the Middle
Corridor project would significantly enhance China's ability to
enter and compete in the European market. By improving connectivity
and reducing transit times, this expansion not only benefits China
but also promotes regional cooperation and economic growth along
the corridor. As infrastructure investments and strategic
partnerships develop, the Middle Corridor is set to become a key
artery for trade between Asia and Europe.
Northern Corridor faces decline amid geopolitical and
economic shifts in Eastern Russia
Speaking at the event, Kanat Kobessov, co-chairman of the
Supervisory Board of Kazakhstan's NurZhol Company and head of the
National Exporters' Association "KazGrain," noted that the Middle
Corridor is experiencing a significant increase in cargo flow.
According to him, despite current economic difficulties, global
trade is projected to grow each year in the coming years.
"In recent years, the Eurasian region has become an increasingly
important part of the global transport system. Three main corridors
play a critical role in this process. The Northern Corridor,
passing through Eastern Russia, is losing its position due to
geopolitical and economic changes. In contrast, the Middle
Corridor, which runs through Kazakhstan, is showing active growth.
Additionally, the newly formed Southern Corridor connecting Central
Asia and Kazakhstan should also be highlighted. The railway
connection is vital for developing this infrastructure, and it is
expected that new routes will be added to expand the railway
network," he stated.
It should be noted that the Northern Corridor through Eastern
Russia represents a significant opportunity for enhancing trade and
economic cooperation across continents. With ongoing investments
and strategic initiatives, it aims to become a vital link in the
global supply chain, promoting sustainable economic growth while
addressing environmental concerns.
Geographic significance:
- The Northern Corridor primarily runs through Eastern Russia,
linking key cities and regions, and extending towards Europe and
Asia.
- It connects the Arctic Sea routes with rail and road networks,
promoting trade with both neighboring countries and global
markets.
Transport infrastructure:
- Railways: The Trans-Siberian Railway plays a crucial role,
facilitating efficient freight transport across vast distances.
Ongoing upgrades aim to improve capacity and speed.
- Roads: Major highways and new road projects enhance connectivity
between remote areas and urban centers, ensuring smoother logistics
operations.
- Ports: Development of Arctic ports like Murmansk and Vladivostok
enables year-round shipping, crucial for trade with Europe and
Asia.
Economic impact:
- The Northern Corridor enhances trade routes, making Eastern
Russia a pivotal hub for the export of natural resources, including
oil, gas, and minerals.
- It opens up opportunities for economic collaboration with
countries along the route, boosting local economies and
industries.
Strategic initiatives- Belt and Road Initiative: The Northern
Corridor is aligned with China's Belt and Road Initiative, aiming
to create efficient trade routes between Asia and Europe. Regarding
the "One Belt, One Road" initiative, it is important to note that
Azerbaijan was the first country in the Caucasus region to support
this initiative proposed by China. In this context, Azerbaijan
serves as a logistics center, hub, and bridge in the implementation
of the "One Belt, One Road" strategy.
Investment projects: Various infrastructure projects are
underway to modernize the transport network, supported by both
Russian and international investments.
Despite these favorable conditions, the Northern Corridor faces
several challenges:
- Harsh climatic conditions and remote geography pose challenges
to infrastructure development and maintenance.
- Political and economic factors, including sanctions and
international relations, can impact trade dynamics.
Azerbaijan's Middle Corridor has emerged as a key
transit route
It should be noted that the Middle Corridor was established in
February 2014 with the participation of relevant structures from
Azerbaijan, Kazakhstan, and Georgia. Later, Ukraine, Romania, and
Poland joined the project. Currently, the route begins at the
China-Kazakhstan border and extends to Europe through Kazakhstan,
the Caspian Sea, Azerbaijan, and Georgia. A single tariff has been
implemented along the entire route, and the "single window"
principle is applied.
With its unique geographical position, Azerbaijan serves as a
bridge connecting Central Asia with the South Caucasus, the Black
Sea, Eastern Europe, and the Mediterranean basin. Azerbaijan's
strategic role as a transit corridor between Europe and Asia
supports the efforts of Asian countries to diversify trade routes
and enhance regional connectivity.
Cooperation in transport connections between Azerbaijan and
Central Asian countries has gained new significance, with the
Middle Corridor emerging as an important and successfully
developing transport and logistics route.
In 2023, approximately 2.8 million tons of cargo were
transported through the Middle Corridor, marking an 86 percent
increase from 2022. In 2024, the volume of cargo transportation is
expected to exceed 4 million tons, with plans to send around 250
container block trains through the corridor by the end of the
year.
Notably, in the first six months of 2024, the volume of cargo
transported on the Trans-Caspian International Transport Route
(Middle Corridor) increased by 65 percent, reaching 2.1 million
tons.
The Middle Corridor is experiencing active growth as it
establishes itself as a vital trade route connecting Asia and
Europe. With ongoing investments in infrastructure and strategic
partnerships, it offers significant opportunities for economic
development, enhancing trade efficiency while addressing
sustainability concerns. Its expansion not only supports
Azerbaijan's and others economic ambitions but also strengthens
regional cooperation and integration.
Overall, international transport corridors are crucial for the
development of the global economy in the context of global
integration. These corridors facilitate the establishment and
operation of stable international transport links. As an integral
part of global economic processes, Azerbaijan plays a leading role
in developing international transport corridors and implementing
various regional projects.
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