Azerbaijan, Kazakhstan to Launch Joint Venture to Cut Caspian Shipping Costs by Half

Azerbaijan’s Minister of Digital Development and Transport Rashad Nabiyev has said that Azerbaijan and Kazakhstan reached an agreement to establish a joint venture aimed at eliminating transport bottlenecks in the Caspian Sea, a strategic initiative expected to cut shipping costs by 1.5 to 2 times.

While speaking at the fifth Tbilisi Silk Road Forum, Nabiyev stressed the importance of regional coordination in infrastructure development to enhance the efficiency of cross-border transport corridors, The Caspian Post reports via local media.

“We have already reached an agreement with Kazakhstan to create a joint venture that will address bottlenecks in the Caspian. As part of this initiative, new ferry systems will be introduced, which will significantly reduce transport costs-by approximately 1.5 to 2 times,” he said.

The minister revealed that the financing structure for the new route has already been established and that tariff agreements between three involved parties are in place, ensuring favorable terms for both partners and clients.

Nabiyev reiterated that the goal of the Middle Corridor-also known as the Trans-Caspian International Transport Route (TITR)-is not just to serve as an alternative to the Northern Corridor, but to become the primary and most reliable trade route connecting East and West.

“If current progress continues, the Middle Corridor will soon emerge as not only a reliable but also a highly competitive transit route,” he said.

The Middle Corridor links China to Europe via Central Asia, the Caspian Sea, and the South Caucasus, and has gained strategic significance amid evolving global supply chain dynamics.