By Tural Heybatov
The International North-South Transport Corridor (NSTC), which had long shown little activity, has recently begun to revive, as if experiencing a second wind.
In Moscow, an intergovernmental agreement was signed to cooperate in developing transit freight traffic along the NSTC. The goal of the agreement is to enhance transport links and boost the potential of the corridor's western route. According to Azerbaijan’s Ministry of Transport, the agreement aims to increase rail freight volumes while ensuring a balance between infrastructure development and the pace of transport growth.
The NSTC consists of three branches: the western route (via Azerbaijan and Iran), the central route (connecting Russia and Iran through the Caspian Sea), and the eastern route (passing through Kazakhstan, Turkmenistan, and Iran).
Simultaneously with the western route, activity has begun on the eastern route. According to Kazakh media, Kazakhstan, Russia, and Turkmenistan are jointly creating a unified operator to develop the NSTC. Plans include tariff discounts of up to 50% to boost freight volumes. Currently, 10 million tons of goods are transported annually along the eastern route, with expectations that this figure will double once tariff reductions are implemented. The corridor will also adopt a unified customs and tariff policy, implement cargo tracking mechanisms along the entire route, and provide "single-window" services. Additionally, discussions are underway to expand railway infrastructure in the countries along the route.
Most transit along the corridor flows from north to south, with freight on the eastern route primarily destined for Gulf countries, while Kazakhstan and Turkmenistan act as transit hubs.
On July 19, Russia, Kazakhstan, Iran, and Turkmenistan signed a roadmap for the synchronized development of the eastern route's potential for 2024-2025. They also agreed to use the western branch of the Trans-Afghan railway. The roadmap envisions an increase in the eastern branch’s capacity to 15 million tons per year by 2027 and up to 20 million tons by 2030. The agreement was signed during the first Transport Trade and Export Forum "North-South," held in Aktau.
Initially, the eastern route of the NSTC was intended to link India with Europe as an alternative to the Suez Canal. Russia showed little interest at first but has become significantly more active following sanctions related to the conflict in Ukraine. This route provides Russia with an additional maritime outlet and connects it with friendly countries in Asia and the Middle East, an especially valuable advantage in the current geopolitical climate.
Unlike the other routes, the eastern branch relies primarily on rail transport. Synchronizing development efforts between Russia, Kazakhstan, and Turkmenistan is expected to increase the route’s capacity from 23 to 33 trains per day. By the end of 2023, 2.1 million tons of cargo were transported along the eastern branch, a 4% increase from the previous year.
Russia's recent focus on promoting the corridor underscores its need for reliable trade routes through allied countries. Access through Iran to the Persian Gulf region opens up broad opportunities, free from Western sanctions-an invaluable benefit for Russia.
Turkmenistan has also intensified its efforts to participate in transit corridors. Historically cautious about international cooperation, the country has shifted its approach and is now actively engaging. Kazakhstan and Turkmenistan have announced plans to create a unified tariff system for all joint transport corridors, including the China-Kazakhstan-Turkmenistan-Iran route and the NSTC’s eastern branch.
In August, representatives of the two countries' governments discussed measures to optimize the eastern route. Kazakhstan expressed readiness to partner with Turkmenistan and Afghanistan in constructing sections of Afghanistan’s railway, including Turgundi-Herat-Kandahar-Spin Boldak, by supplying railway infrastructure materials produced in Kazakhstan.
The Kazakhstan-Turkmenistan-Iran railway, part of the NSTC, was built between 2009 and 2014. The old route passes through Karakalpakstan (Kazakhstan, Uzbekistan, Turkmenistan) and connects to Iran’s railway network via the Tejen-Serakhs border crossing. A new branch, launched in 2014, connects to Iran via the Etrek-Gorgan border crossing. This route optimizes the NSTC and shortens the distance between China and Iran by 500 kilometers through Kazakhstan.
The intergovernmental agreement to establish the NSTC was signed in 2000 by Russia, India, and Iran. Today, 12 countries participate, including Tajikistan, Kazakhstan, Azerbaijan, Belarus, and Oman.
The NSTC stretches 7,200 kilometers, linking St. Petersburg to the Indian port of Mumbai.
