International Transit - The Times Of Central Asia

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Middle Corridor Container Transit Through Kazakhstan Showing Dramatic Growth

Kazakhstan’s national railways company Kazakhstan Temir Zholy (KTZ) has announced that the volume of container transportation through the country is growing rapidly. In the first seven months of this year, rail container transportation from China to Europe through Kazakhstan along the Trans-Caspian International Transport Route (TITR) grew 14-fold compared to the same period last year, The TITR is a multimodal transport corridor connecting China and Europe by bypassing Russia, also known as the Middle Corridor. To develop it, Kazakhstan Temir Zholy, together with other stakeholders, is working to increase transportation volumes, improve services, and speed up cargo delivery. To date, the transportation time from Altynkol railway station on the Kazakh-Chinese border to Absheron (Azerbaijan) has been reduced to 9 days, to Poti/Batumi (Georgia) to 12 days, and to Constanta (Romania) via Poti/Batumi to 20–22 days. In 2023, KTZ and the railway administrations of Azerbaijan and Georgia established the Middle Corridor Multimodal Ltd. Joint Venture to improve multimodal services along the route. The joint venture provides a 'one-stop shop' service and guarantees delivery times and costs. KTZ is developing Kazakh port infrastructure in the Caspian Sea with the involvement of large international logistics companies.

North-South International Corridor Transport and Logistics Transport cooperation International Transit

Indian Companies Interested in Turkmenistan’s Seaport

Issues concerning the establishment of cooperation in the field of maritime transportation, as well as the possibility of cargo transit through Turkmenbashi International Sea Port, were recently discussed by representatives of the Agency Turkmendenizdaryaollary with the Ambassador of the Republic of India in Turkmenistan, according the Agency's website reports During the meeting, the excellent potential for cargo transit offered by the Turkmenbashi port, which occupies a crucial location in the North-South transport corridor, was noted and encouraged a proposal by representatives of “Turkmendenizdaryaollarya” to assist the Indian side in establishing an exchange of expertise in port management. In its summary of the meeting, the report stated, "The Indian Ambassador said that more than 30 Indian companies are interested in visiting Turkmenistan and familiarizing themselves with the opportunities of Turkmenbashi port. Following the meeting, the parties agreed to make every effort to develop cooperation in maritime transportation.”

Investments Transport China Security Export/Import Economy Trans-Caspian Corridor International Transit Strategy

How the Trans-Caspian Corridor will Revitalize Trade between Asia and Europe.

Kazakhstan's Transport Minister, Marat Karabayev has stated that geopolitical tensions are disrupting traditional logistics chains and jeopardizing global trade. As reported in an article published in the Chinese business publication, "South China Morning Post, " he claimed that developing the Trans-Caspian transport corridor is essential for increasing transit potential. Karabayev believes the Trans-Caspian international transportation route is an effective alternative to traditional maritime routes. The overland corridor connects Southeast Asia and China with Europe, crossing Kazakhstan, Azerbaijan, Georgia, and Turkey. Last year, cargo traffic along this route exceeded 2.7 million tons, up 86%. "Kazakhstan can play a key role here. As the largest country between Asia and Europe, it is an important transit hub for trade between the two continents. Kazakhstan accounts for about 80% of all land transit traffic from China to Europe,” said Karabayev. He noted that the Trans-Caspian corridor has undergone a steady development over the past decade. In recent years, geopolitical changes have given it additional impetus, especially since the number of container ships crossing through the Suez Canal in 2023, decreased by 67% and the cost of sea transportation from Shanghai to European countries has almost tripled in recent months. Given that overland transit would reduce costs and become a more viable logistical option, Kazakhstan is committed to improving infrastructure and terminal facilities, increasing rolling stock, removing administrative barriers, and creating favorable carrier conditions. "However, for the Middle Corridor to achieve its goals, we need the support and participation of other countries," advised Karabayev. "Austria, Germany, Latvia, Latvia, Lithuania, Estonia, and Hungary have expressed interest in joining the Trans-Caspian International Transport Route Association. The EU recently announced an investment of 10 billion euros ($10.85 billion). In addition, a roadmap for development until 2027 has been agreed with Azerbaijan, Georgia, and Turkey.”

International Transit Air Transport

Uzbekistan’s Soaring Air Transit Potential

Located at the heart of Central Asia, Uzbekistan offers great potential for air transit. According to the Transport Ministry of Uzbekistan, the country’s airspace transit routes comprise a 60% flow between Southeast Asia and Europe; 20% between the Middle East and China, Korea, and Japan; 10% between the Middle East and Russia; and 10% between Southeast Asia and Canada and the USA. The State Unitary Enterprise Uzaeronavigation, operating under the Ministry of Transport and responsible for air traffic control in Uzbekistan, currently serves over 500 airlines from around the world. As evidenced by the growth of traffic in the Uzbek airspace, routes through Uzbekistan are becoming increasingly profitable for many countries’ air carriers. Last year, Uzaeronavigation served 188 thousand flights, including 143 thousand by foreign airlines. Between January and April 2024, over 74 thousand flights were serviced in Uzbekistan’s airspace, an increase of 30% compared to the first quarter of 2023. Flights operated by Uzbek airlines rose by 42% to over 17 thousand, and those operated by foreign airlines increased by 26% to 56 thousand.

Agricultural Export International Transit

Rise in Grain Exports from Kazakhstan to China

As announced last week at the first Kazakh-Chinese grain forum in China, the volume of cargo transportation between Kazakhstan and China in 2023 increased by 22% compared to 2022. Reaching a record high of over 28 million tons, the total includes 12.6 million tons of Kazakhstan’s export, 35% more than in 2022. During their visit, the Kazakh delegation toured China’s new terminal in the bonded zone of the Alashankou station for unloading grain and vegetable oils, and according to Kazakhstan’s Ministry of Transport, agreements were reached by both sides regarding transportation technicalities and increasing the throughput of Kazakh agricultural products. Nurzhan Kelbuganov, Deputy Chairman of the Committee of Railway and Water Transport at the Ministry of Transport of Kazakhstan, commented, “Today, the main crops supplied by Kazakhstan to China are barley and wheat. In 2023, after the pandemic, it was possible to resume transportation to China, which allowed for a 2.5-fold increase in Kazakh grain exports. Hence, in 2021, about 347 thousand tons were exported [to China], in 2022 — 747 thousand tons, and in 2023 — over 2.2 million tons.”

CASCA + Transport Corridor International trade International Transit Freight transit

CASCA+ Transport Corridor Freight Transit

Representatives of the railway administrations of Uzbekistan, Kyrgyzstan, Turkmenistan, Azerbaijan, Georgia, and Turkey convened in Tashkent on May 28 and 29 to discuss the development of freight transportation along the CASCA+ transport corridor. CASCA+ is a joint initiative of the state railways of Azerbaijan, Georgia, Kyrgyzstan, Turkmenistan, Turkey, and Uzbekistan. The “+” sign indicates a willingness to accept new potential participants in achieving the goal to connect transport routes to Southeast Asia, particularly China, with Europe. As reported by Uzbekistan’s Ministry of Transport, the agenda focused on projects to develop the CASCA+ transport corridor, with representatives of all railway administrations supporting the Uzbekistan Railways’ initiative to create a consortium to coordinate related activities. Proposals were also forwarded to establish the safe transportation of perishable goods such as fruit and vegetables in refrigerated containers along the CASCA+ corridor and to create an online monitoring system for the location of wagons and containers travelling along the route. The emphasis on refrigerated transportation aligns with recommendations made in March by President Shavkat Mirziyoyev at a government meeting on increasing Uzbek agricultural exports.