Caspian Countries Create a New Artery for Trade with the South

Caspian Countries Create a New Artery for Trade with the South

Kazakhstan, Russia, and Turkmenistan are taking a major step toward enhancing regional connectivity and trade by joining forces to create a unified operator for the North-South International Transport Corridor. This ambitious initiative, announced by Kazakhstan’s Minister of Transport, Marat Karabayev, aims to streamline logistics and unlock the economic potential of the participating nations.

“Together with Russia and Turkmenistan, Kazakhstan will establish a single operator and introduce tariff discounts of up to 50% to boost transportation volumes from the current 10 million tons to 20 million tons annually,” Karabayev said during a government meeting at the Majilis. He noted that most cargo transported along this route originates in Russia and is destined for Persian Gulf countries.

Maxim Kramarenko, a political scientist and head of the Information and Analytical Center “Institute of Eurasian Politics” (Kazakhstan), described the project as a natural response to shifting geopolitical realities. According to Kramarenko, the West’s confrontation with Russia and efforts to isolate it economically have accelerated the search for alternative trade routes.

“This initiative brings much-needed investment into transport and port infrastructure, creates jobs, and fosters an increase in trade turnover among member states,” Kramarenko explained. For Russia, the corridor also carries political significance, aligning with its broader strategy to deepen economic and political ties with South and Southeast Asian nations such as India, Pakistan, and Bangladesh. “It not only boosts trade but also sends a strong message of independence and resilience to Western powers,” Kramarenko added.

To further strengthen the corridor’s potential, a synchronized development roadmap involving Russia, Turkmenistan, and Iran has been approved. The plan seeks to expand the corridor’s capacity from 23 to 33 trains per day, representing a 1.5-fold increase.

Russian political analyst and journalist Dmitriy Rodionov highlighted the transformative potential of the Eastern branch of the North-South Corridor. While acknowledging the project's promise, Rodionov pointed to the challenges it faces, including outdated infrastructure along the route, which has not seen significant modernization since the Soviet era.

Rodionov noted that the North-South Corridor includes three main branches, each with unique opportunities and hurdles. The Western branch, which traverses Russia, Azerbaijan, and Iran, suffers from infrastructure deficiencies in Iran. The Trans-Caspian route faces logistical hurdles such as limited port capacity and coordination issues. The Eastern branch, passing through Kazakhstan and Turkmenistan, similarly grapples with infrastructural challenges.

Despite these obstacles, Rodionov emphasized the corridor’s advantages over traditional shipping routes such as the Suez Canal, citing reduced transit time and cost savings. “This corridor not only reduces transit time but also saves costs, making it highly attractive to key global players like India and China,” he said. The vulnerabilities of the Suez Canal, exposed during the Ever Given incident, further underscore the need for alternative logistics networks.

“This project is not merely about trade; it’s about geopolitical independence,” Rodionov remarked. “By developing the North-South Corridor, countries like Russia and India signal their intent to reduce reliance on Western-controlled logistics and establish stronger ties within the BRICS framework.” He concluded that the successful realization of the Eastern branch could catalyze trade between India and Russia while boosting the economies of all participating nations.

The corridor’s development is also tied to the functionality of the Aktau and Kuryk seaports. Plans include enhancing the container-handling capacity of Aktau port from 140,000 to 550,000 containers within three years and constructing a multifunctional Sarzha terminal at Kuryk port to expand regional logistical capabilities.

In collaboration with the Chinese company Lianyungang Port, a container hub is under construction in Aktau. Additional discussions are ongoing with companies like Germany’s Renus, the American firm Wondernet, and France’s CMA CGM to build a terminal with a capacity of 300,000 containers.

The North-South International Transport Corridor reflects a strategic response by Caspian nations to shifting global trade dynamics. Its success will depend on addressing critical infrastructure challenges, ensuring competitive tariffs, and effectively coordinating between stakeholders. If these issues are managed, the corridor has the potential to become a vital trade route, reducing transit times and costs while offering an alternative to traditional shipping lanes such as the Suez Canal. However, the project's broader geopolitical implications, including its alignment with regional and global powers' interests, will likely influence its long-term viability and success.

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Kazakhstan, Russia, and Turkmenistan are taking a major step toward enhancing regional connectivity and trade by joining forces to create a unified operator for the North-South International Transport Corridor. This ambitious initiative, announced by Kazakhstan’s Minister of Transport, Marat Karabayev, aims to streamline logistics and unlock the economic potential of the participating nations.