Key Developments and Future Potential of the Middle Corridor Highlighted at COP29

Key Developments and Future Potential of the Middle Corridor Highlighted at COP29

Last week, Azerbaijan, China, and Kazakhstan signed an agreement to establish an intermodal cargo terminal at the Port of Alat in Baku. This initiative aims to enhance the port’s cargo-handling capabilities and boost container train traffic along the China-Europe-China route via the Middle Corridor.

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During the high-level Ministerial Roundtable on the Sustainable and Digital Middle Corridor at COP29 this week, significant growth in freight traffic along the Middle Corridor was highlighted, underscoring the route’s expanding role in East-West transportation, The Caspian Post reports citing foreign media.

Kazakhstan’s Vice Minister of Transport, Talgat Lastayev, revealed that total freight volume on the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, reached 3.8 million tons in the first 10 months of this year – a 68% increase compared to the same period last year.

Container transportation surged to 46,300 TEU (twenty-foot equivalent units), nearly tripling last year’s figures. Of this, the China-Europe-China route accounted for 27,600 TEU – a staggering 25-fold year-on-year increase. Additionally, Kazakhstan has secured agreements to increase the frequency of container trains from China to 600 annually, further attracting freight volumes.

Lastayev emphasized advancements in road freight transport, highlighting the importance of a permit exchange system with 42 countries in enhancing the Middle Corridor. He noted that Kazakhstan launched a pilot electronic permit exchange project with Uzbekistan this year and plans to digitize 60% of transportation permits with China by the end of the year.

COP29, held in Baku, Azerbaijan, has fostered new milestones for cooperation, leveraging the Middle Corridor’s potential.

Last week, Azerbaijan, China, and Kazakhstan signed an agreement to establish an intermodal cargo terminal at the Port of Alat in Baku. This initiative aims to enhance the port’s cargo-handling capabilities and boost container train traffic along the China-Europe-China route via the Middle Corridor.

According to Kazakhstan Railways, the new terminal will include a multi-purpose cargo yard, a 5,000-square-meter indoor warehouse, and a container yard capable of handling over 1,000 containers. The project aims to reduce delivery times, lower transport costs, and minimize transshipment durations, ultimately cutting transport time to just 15 days.

As of November 2024, Azerbaijan Railways had received over 250 block trains from China, including more than 110 transit cargo trains via the Middle Corridor. By year-end, over 300 block trains are expected to traverse the route. In 2024, block train shipments from China increased by 20%.

The Middle Corridor spans approximately 4,250 kilometers of railway and 500 kilometers of sea routes. Its primary goal is to facilitate access for Chinese and Central Asian goods to European markets via the Caspian Sea, Azerbaijan, Georgia, Türkiye, and the Black Sea.

Beyond its efficiency, the Middle Corridor benefits from favorable climatic conditions, reducing travel time by 15 days compared to traditional sea routes. It also presents significant opportunities for cargo movement across Asia, enabling goods to reach the Middle East, North Africa, and the Mediterranean region through integrated port connections in Türkiye.

During COP29 roundtable discussions, Maja Bakran Marcich, Deputy Director-General of the European Commission’s Directorate-General for Mobility and Transport, emphasized the Middle Corridor’s growing importance in light of the Russia-Ukraine war, highlighting its strategic potential.

She noted that the Middle Corridor offers a shorter alternative to the Northern Corridor, significantly reducing transportation times. Over the past six years, cargo volumes on this route have tripled, with a doubling of volumes since the conflict began.

Marcich further explained that an estimated €18.5 billion (USD 19.2 billion) investment is required for key infrastructure projects across five Central Asian countries. This investment could enable the Middle Corridor to handle approximately 1.3 million TEU container shipments annually by 2040.

Meanwhile, at COP29, PSA International (PSA), Global DTC (GDTC), and the International Association “Trans-Caspian International Transport Route” (TITR) signed a Statement of Collaboration to make the Middle Corridor digitally integrated. The partnership will focus on initiatives to transform the route into a “Green Corridor,” leveraging digital technologies to optimize operations and reduce environmental impact.

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Last week, Azerbaijan, China, and Kazakhstan signed an agreement to establish an intermodal cargo terminal at the Port of Alat in Baku. This initiative aims to enhance the port’s cargo-handling capabilities and boost container train traffic along the China-Europe-China route via the Middle Corridor.