By Raza Syed
Middle Corridor also known as Trans-Caspian International Transport Route is a historic mega trade project aimed at connecting Europe and central Asians estates via Caspian sea as Eurasians states remained economically connected for centuries with Silk Route.
The transport route starts from Southeast Asia and China, runs through Kazakhstan, the Caspian sea, Azerbaijan, Georgia and further to European countries.
The Corridor eyes the greater Eurasian partnership like China’s Belt and Road Initiative curtailing central Asian states reliance on Russia and Iran. The project links Caspian and Black Sea ferry terminals with rail systems in China, Kazakhstan, Azerbaijan, Georgia, Turkey, Ukraine, and Poland.
The route can prove a lynchpin for possible future success as Central Asia and Caucasus Middle Corridor states’ containerized rail freight infrastructure development exists.
The project will create a uniform transport bloc that will ultimately find the prospects for continued economic development, transport expansion and institutionalized trade growth for the Central Asia, Caucasus and Turkey economies.
Except Turkey, the Middle Corridor countries are all post-Soviet economies, and the development of Middle Corridor ultimately connects China through this post-Soviet economic geography to the advanced, developed markets of the European Union.
The Corridor is the shortest route between western China and Europe, compared to the Northern Corridor through Russia and sea lanes through the Suez.
With the rise of Houthi attacks in the Red Sea and international sanctions levied against Russia, the most popular global shipping routes have become increasingly unreliable. Some companies are avoiding the Suez route altogether.
A lesser-known route, the Middle Corridor, could prove to be a viable alternative for international markets moving forward.
The Red Sea and the Suez Canal are vital junctures for international shipping and trade. It is estimated that up to 15 percent of global trade goes through the Suez Canal. Since November, the Houthis have launched nearly 60 attacks on commercial and military ships in the Red Sea and Gulf of Aden.
Other companies are taking steps to avoid the Suez route altogether, even if it incurs more transit time and higher costs.
Analysts claim that about 70 percent of the usual container capacity transiting through the Red Sea and Suez Canal has been rerouted around the Cape of Good Hope in South Africa.
For deliveries from East Asia to Europe, this can add up to 10 more days of transit time. Some companies have even taken to air freight as a means of moving their cargo.
Sanctions against Russia and an increased aversion to using Northern Corridor have seen shipping volumes drop substantially along the route. During 2023, westbound shipping volumes were down 51 percent along the Northern Corridor route compared to the previous year. Given the situation, the Middle Corridor could offer safer, shorter, and more affordable alternative to both routes which is an important artery linking the markets of China, East Asia, and Europe. The Middle Corridor is the shortest route between western China and Europe, compared to the Northern Corridor through Russia and sea lanes through the Suez.
The Middle Corridor roughly follows the route of the ancient Silk Road. While the historic trade route navigated south of the Caspian Sea and through Persia (modern-day Iran), the Middle Corridor bypasses Iran by leveraging ports in Kazakhstan and Turkmenistan to transport goods across the Caspian Sea and into Azerbaijan. From there, cargo makes its way to Europe from Georgian ports, or across the Turkish interior.
The Middle Corridor is not a singular transportation route, but rather, a network of interconnected road, rail, and sea routes. A variety of infrastructure projects in the past three decades have helped modernize the Middle Corridor and reduce transit times for shipping.
Besides massive investment from China under Belt and Road Initiative, the European Union has also invested substantial amounts into the Middle Corridor.
Earlier this year, European and international financial institutions pledged to invest roughly $10.8 billion into developing the TITR in Central Asia. The EU’s renewed interest in the route was spurred by Russia’s attack on Ukraine, as the EU seeks to reduce its reliance on Russia’s Northern Corridor route for international trade from East Asia.
The Eurasian countries that constitute the Middle Corridor have put considerable time and resources toward improving the existing infrastructure as well. In late 2022, foreign affairs and transportation ministers of Kazakhstan, Georgia, Azerbaijan, and Turkey vowed to identify ways for accelerating development along the route and expanding cargo throughput.
The ministers announced a five-year plan that focused largely on railway modernization, expected to double rail capacity once completed. By 2027, the countries expect to have throughput capacity of 10 million tons per year, and transit times of 14-18 days.
Moreover, compared to Red Sea route, the Middle Corridor offers a variety of advantages for international shipping. For starters, the relative security of cargo traveling along this route is safer than cargo passing through the Red Sea. Furthermore, a huge selling point of the Middle Corridor is its potential for dramatically reduced transit times. The projected 14-18 days of transit time makes the Middle Corridor an attractive alternative for commercial shipping. At the beginning of 2023, cargo transported through the Middle Corridor totaled over 1 million tons, a nearly 65 percent increase compared with the previous period in 2022.
In addition to added security and reduced transit times, the Middle Corridor has the potential to improve economic opportunities throughout Central Asia, where labor migration is a common theme.
The Middle Corridor is not a singular transportation route, but rather, a network of interconnected road, rail, and sea routes. A variety of infrastructure projects in the past three decades have helped modernize the Middle Corridor and reduce transit times for shipping.
In addition to massive investment from China’s Belt and Road Initiative, the European Union has invested substantial amounts into the Middle Corridor. Earlier this year, European and international financial institutions pledged to invest roughly $10.8 billion into developing the TITR in Central Asia. The EU’s renewed interest in the route was spurred by Russia’s full-scale invasion of Ukraine, as the EU seeks to reduce its reliance on Russia’s Northern Corridor route for international trade from East Asia.
The Eurasian countries that constitute the Middle Corridor have put considerable time and resources toward improving the existing infrastructure as well. In late 2022, foreign affairs and transportation ministers of Kazakhstan, Georgia, Azerbaijan, and Turkey convened to identify ways for accelerating development along the route and expanding cargo throughput. The ministers announced a five-year plan that focused largely on railway modernization, expected to double rail capacity once completed. By 2027, the countries expect to have throughput capacity of 10 million tons per year, and transit times of 14-18 days.
