Modernization of the Middle Corridor: Kazakhstan and Azerbaijan on the way to new records

The operator of Kazakhstan's principal railway network, Kazakhstan Temir Zholy, currently facilitates rail freight transportation along the Middle Corridor across the Caspian Sea for most of the route. It is also worth noting the significance of the Aktau (Kazakhstan) – Alyat (Azerbaijan) ferry crossing. The duration of cargo transportation across the sea is contingent upon meteorological conditions and ranges from 18 to 24 hours, inclusive of loading and unloading, to a maximum of 30 hours. This crossing forms part of the trans-Caspian transport route, part of the international initiative known as 'One Belt, One Road'. It represents a key link in the Middle Corridor, which runs from China through Kazakhstan, Azerbaijan, Georgia and Turkey to Europe.

Consequently, the speed and capacity of the Middle Corridor are contingent upon the performance of Kazakhstan. In his approval of Kazakhstan's national development plan until 2029, the country's President Kasym-Jomart Tokayev stated the following:

By 2029, Kazakhstan will have significantly strengthened its role as a major regional trade and logistics hub, with the contribution of transport and warehousing services to GDP exceeding 9 per cent. The primary objectives are the advancement of multimodality and the Trans-Caspian International Transport Route, in addition to expanding the North-South direction to increase transit traffic and export opportunities for Kazakh enterprises. It is anticipated that the volume of transit traffic through Kazakhstan will increase from 26.7 to 43 million tonnes, and from 1.1 to 2 million twenty-foot equivalent units (TEUs) by 2029.
Furthermore, the document emphasised the necessity for the expansion and modernisation of infrastructure, the reduction of transport losses, the enhancement of operational efficiency, cross-country collaboration, the promotion of competition, and the curtailment of government involvement.

In the year 2023, the volume of cargo traffic along the Middle Corridor reached 2.8 million tonnes, representing an 86% increase compared to the preceding year (up 1.5 million tonnes). It is anticipated that the volume of traffic will reach 10 million tonnes. It is anticipated that transit time along the Trans-Caspian International Transport Route will be reduced from 18-23 days to 12-18 days in 2024, including on the territory of Kazakhstan, from 6 to 5 days. In order to achieve this, the government of Kazakhstan is actively investing in the development of its railway network and port infrastructure, as well as coordinating with other operators.

In 2025, a container hub will be commissioned at the Aktau seaport, with the capacity to handle containers up to 300,000 TEU. A further significant development was the construction of a cargo terminal in the dry port of the Chinese city of Xi'an, which was carried out as part of the joint venture known as the 'China-Kazakhstan Trade and Logistics Company'.

In order to enhance the capacity of the Middle Corridor, Kazakhstan has entered into agreements with Azerbaijan, Georgia and Turkey, with the objective of eliminating bottlenecks along the route by 2027. The primary objective is to enhance the capacity of the corridor to 10 million tonnes per annum.

The formation of the Middle Corridor Multimodal Joint Venture in 2023 constituted a pivotal advance in the administration of the route. It brought together the railway administrations of Kazakhstan, Azerbaijan and Georgia with the objective of effectively managing the corridor on a parity basis. Significant progress has been made, including the establishment of a unified multimodal service and the implementation of the single window approach. The information systems of the railways of Kazakhstan and Azerbaijan have been incorporated into the Tez Customs platform. A comparable integration with the Georgian railway system is anticipated at a future date, which will notably streamline customs procedures. These projects have a beneficial effect on the economies of all countries through which the transit route passes.

Gulnara Safarli
Azerbaijan-Georgia-Turkey Strategic Partnership Information Support Centre

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