Middle Corridor - The Times Of Central Asia

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Trade Logistics

World Bank Says Middle Corridor Needs More Than $55 Billion by 2040

Developing a transport corridor linking China and Central Asia with Europe across the Caspian Sea will require more than $55 billion in investment through 2040. But the World Bank’s recent report, Integration: World-Class Trade Logistics Along the Trans-Caspian Transport Corridor, argues that infrastructure alone will not resolve the difficulties of moving freight across borders and between rail and ships. The route is the Trans-Caspian Transport Corridor, better known as the Middle Corridor. Trains typically travel from China through Kazakhstan to the Caspian ports of Aktau and Kuryk, where containers are transferred to ships. In Azerbaijan, they return to rail and continue through Georgia and Turkey toward Europe. The report covers nine countries with a combined population of nearly 200 million. With targeted investment, the World Bank estimates that trade volumes along the corridor could more than triple and travel times could be halved. GDP across those countries could be around 3.3% higher by 2040, with about 2 million additional jobs. If infrastructure investment is combined with reforms to make trade and transport more efficient, corridor volumes could quadruple compared with 2023 and travel times could fall by about two-thirds. At least $25 billion would be needed to relieve bottlenecks on railways and at Caspian ports. Another estimated $30.5 billion would improve connections between the main corridor and local economies, including terminals and digital systems. In February, the World Bank approved an $846 million guarantee from the International Bank for Reconstruction and Development, alongside a $564 million co-guarantee from the Asian Infrastructure Investment Bank. The package is intended to help mobilize $1.41 billion in long-term commercial financing for rail infrastructure along Kazakhstan’s section of the Middle Corridor. One of the principal projects is the roughly 322-kilometer Mointy-Kyzylzhar railway. The new line is expected to shorten the route by 149 kilometers and relieve pressure on the existing rail network. But hours saved on the Kazakh rail leg could still be lost waiting for a ship or crossing a border. The World Bank proposes a single digital corridor system built around a Transport, Transit, and Trade (T3) document. A carrier would enter cargo information once, allowing transport and customs authorities in different countries to use the same data. The bank also proposes a joint venture between railway and Caspian shipping operators. It would allow customers to buy a single container freight service for the route rather than arranging rail and maritime transport separately. During a September visit to Kazakhstan, World Customs Organization Secretary General Ian Saunders called for common international data standards and closer coordination between neighboring customs administrations. The Middle Corridor is often described as an alternative route for Chinese goods traveling to Europe. Its railways and ports also need to carry goods produced by Central Asia’s own economies. The five Central Asian countries exported $8.1 billion worth of goods to one another in January-July 2026, up 25.4% from a year earlier. The World Bank expects cheaper and more predictable transport to help local producers sell to neighboring countries and more distant...

CAMCA

At CAMCA, Uzbekistan Revives Push for a Stronger Regional Body

Uzbekistan has renewed its call for a stronger regional institution, with senior senator Sodiq Safoev urging Central Asian leaders to move beyond their consultative meeting format. His remarks in Baku return attention to a proposal President Shavkat Mirziyoyev outlined last November, when he called for a Community of Central Asia. Safoev, first deputy chairman of Uzbekistan’s Senate, told the CAMCA Regional Forum on October 1: “I think the time has come to transform the Consultative Meeting … into another institutional structure, not simply a Consultative Meeting, but something more.” S. Frederick Starr, chairman of the Central Asia-Caucasus Institute, also called for stronger regional institutions at the forum, arguing that institutional development needed to support the expansion of transport and commercial links across the region. At the November 16, 2025, summit in Tashkent, Mirziyoyev proposed a rotating secretariat and stronger rules governing the leaders’ meetings. He also proposed making national coordinators special presidential representatives, giving them greater political authority. The secretariat would coordinate work between summits. The machinery for regular cooperation is already developing. The Council of National Coordinators held its first meeting in Tashkent on January 30–31, 2025, where foreign ministry representatives from all five Central Asian states discussed preparations for Uzbekistan’s chairmanship and a schedule of joint events. Mirziyoyev returned to the institutional argument at the July 31 informal summit in Cholpon Ata, calling for closer contacts between government departments and long-term joint programs, alongside effective cooperation institutions. His agenda included further work on common digital services and investment platforms, as well as industrial links connecting production across national borders. He also urged stronger coordination in the Central Asia Plus diplomatic formats through which the region engages outside powers. Azerbaijan’s participation has widened the scope of those discussions. The five Central Asian presidents accepted Azerbaijan as a full participant in November 2025, extending the format across the Caspian. The six-country grouping, increasingly described as C6, connects Central Asian producers with a country whose ports and onward transport links provide access through the South Caucasus to European markets. At an August 12 discussion in Washington, Uzbekistan’s ambassador Furqat Sidiqov emphasized market access and called for further digitalization of the Middle Corridor. He said Uzbekistan had about 1,500 joint ventures with neighboring states, compared with close to 300 involving Central Asian countries in 2017. Turkmenistan’s ambassador, Esen Aydogdyyev, stressed simpler customs procedures and argued that his country’s permanent neutrality was compatible with deeper economic cooperation. The commercial ambition also extends to joint production. In Baku, Azerbaijan’s minister of the economy Mikayil Jabbarov urged countries to build regional value chains in sectors where their economies complement each other. “We should increasingly produce together,” he said, pointing to companies and financial institutions already operating in one another’s markets. Moving freight across the Caspian requires countries to coordinate customs procedures and transport services. The World Bank’s new Trans-Caspian corridor study identifies fragmented governance and uneven policy implementation as problems that compound infrastructure bottlenecks. It estimates that at least $25 billion is needed through 2040...

Trans-Afghan Rail Corridor

Kazakhstan, Uzbekistan, and UAE Study CASA Rail Route to Indian Ocean

Kazakhstan, Uzbekistan, and the United Arab Emirates have agreed to study a proposed railway corridor through Afghanistan to Pakistan’s seaports. The transport ministries of Kazakhstan and Uzbekistan and the UAE Ministry of Energy and Infrastructure signed a memorandum on the Central Asia-South Asia (CASA) project on September 30. They agreed to study its technical and economic feasibility and examine possible financing. The memorandum leaves the route and construction timetable open and provides no cost estimate. Kazakhstan and Uzbekistan are both landlocked, and Uzbekistan is one of only two countries worldwide that must cross at least two national borders to reach the open sea. Kazakh authorities estimate that CASA could eventually carry up to 10 million tons of freight a year toward Karachi and Gwadar. Uzbekistan is working with Afghanistan and Pakistan on a railway from Termez through central Afghanistan to Kharlachi on the Pakistani border. The three countries agreed in July 2025 to prepare a feasibility study. Estimates put the cost at around $7 billion, although some have been higher. Kazakhstan is involved in a separate proposal from Torghundi on the Turkmen border through Herat and Kandahar to Spin Boldak near Pakistan. In April 2025, Kazakhstan and Afghanistan signed a protocol of intent, with the Torghundi-Herat railway and a logistics center in Herat envisaged as an initial stage. A new 43-kilometer section of the Khaf-Herat railway connecting Afghanistan with Iran was inaugurated on September 28. Kazakhstan’s Integra Construction KZ helped build it, and Afghan authorities say work is under way on further links from Herat toward the Turkmen and Pakistani borders. A study by the Moscow-based Institute of World Economy and International Relations (IMEMO) found that Afghanistan’s Taliban-led authorities had signed more than 15 railway-related agreements by March 2026. By then, no new mainline track had entered service under those initiatives, and active projects represented less than 1% of the estimated cost of the announced plans. Dauren Ilesaliev, a professor at Tashkent State Transport University, points to the need for steady freight. “Having railway infrastructure does not guarantee that it will work,” Ilesaliev said. Countries along the route would also need to agree on a through-tariff. Kazakhstan’s trade with Afghanistan could provide some of that freight. Bilateral trade reached $581.1 million in January-July 2026, with Kazakh exports accounting for $572.9 million. Flour accounted for $215.6 million and wheat for $122 million of those exports. Kazakhstan has also explored prospective mineral deposits in Afghanistan’s Nuristan Province and is discussing exports of locally assembled vehicles. In an interview with Novastan, Uzbek analyst Aziza Mukhammedova said a corridor’s value to Afghanistan would depend on the jobs and investment it generates there, alongside transit freight. She also cited unresolved financing as a challenge. The UAE sits outside the proposed route, and the memorandum names neither an Emirati company nor a possible investment amount. If a trans-Afghan line is built, Uzbekistan’s China-Kyrgyzstan-Uzbekistan railway could form part of a rail route from China to Pakistan. For Kazakhstan, CASA would provide an Indian Ocean outlet alongside the...

Railway Digitalization

EBRD Provides €38.4 Million for Digital Transformation of Uzbekistan Railways

The European Bank for Reconstruction and Development (EBRD) will provide a loan of up to €38.4 million to O’zbekiston temir yo’llari (UTY), the country’s national railway operator, to digitalize transport management and improve cybersecurity. According to the EBRD, UTY owns and operates a 6,950-kilometer railway network and is responsible for up to 40% of freight transported in Uzbekistan. Some dispatching and scheduling work remains manual, as do parts of operational control. The financing will allow UTY to introduce modern digital traffic and transportation management systems and upgrade cybersecurity protections for its IT infrastructure. The EBRD said the changes should improve the safety and reliability of railway operations while allowing UTY to manage train movements and network capacity more efficiently and reduce costs. The planned cybersecurity measures will be aligned with international best practices. The Bank also links the project to the development of the Trans-Caspian Transport Corridor, also known as the Middle Corridor, which connects Central Asia with the South Caucasus and onward to Europe. Landlocked Uzbekistan connects to the corridor through neighboring countries before cargo crosses the Caspian Sea. The project is the EBRD’s first public-sector initiative of this kind in Uzbekistan and is specifically focused on the digital transformation of the national railway operator. As previously reported by The Times of Central Asia, the EBRD has also provided a loan of up to €20 million to Uzbek pharmaceutical manufacturers Samarkand England Eco-Medical and Bayan Medical to expand production. To date, the EBRD has invested almost $6.9 billion (€6 billion) in Uzbekistan through 210 projects, with most of the funds supporting private entrepreneurship. Uzbekistan has been the largest recipient of EBRD funding in Central Asia for each of the past six years.

Central Asia-U.S. Relations

Opinion: Central Asia Is More Than Minerals

For years, Central Asia was one of those regions that Washington periodically rediscovered and then forgot. Officials visited and announced new initiatives, but the relationship hardly changed. That is no longer the case. Many pundits see the current surge of American interest in Central Asia through the lens of transactional foreign policy: nowadays the focus has been on critical minerals, supply-chain security, and competition with China. Valid so far as it goes, this approach misses the larger story. Central Asia is not suddenly important because of its minerals or because Washington has decided that it is. Increasingly, Washington must pay attention to Central Asia because the region itself is changing, and in largely positive directions. Over three decades, American investors largely dismissed the region as too poorly governed and too distant. Now the region itself is working to change the conditions that made it unattractive. The transformation is far from complete, but it is real. When the Central Asian states emerged from the Soviet Union in 1991, they faced grave disadvantages. State enterprises dominated their economies, and they fell short of Western investors’ expectations in both the rule of law and transparency. While such problems have not disappeared, they are everywhere being worked on. Uzbekistan provides the clearest example. Since 2017, Tashkent has undertaken reforms to liberalize its economy and improve the environment for private investment. The World Bank now describes Uzbekistan as one of the world's top reformers. Kazakhstan has also built more sophisticated financial and regulatory institutions. Its goal is to position itself as a regional hub for logistics, energy, and finance. The World Bank's new 2026–31 country strategy emphasizes a "business-ready Kazakhstan," with greater private-sector participation, improved infrastructure, and better natural-resource management. The pace of change in Kyrgyzstan, Tajikistan, and Turkmenistan has been slower, for understandable reasons. Kyrgyzstan’s early political reforms long left the government rudderless, Tajikistan endured a five-year civil war, and Turkmenistan was stymied by Russia’s total control of its gas industry. Now these countries, too, are belatedly advancing. Central Asia has not become Switzerland. Corruption, political interference, and governance problems still afflict the countries’ economies, and the OECD continues to identify these as important obstacles to investment. The question is not whether Central Asia has solved these problems but whether it has changed enough to become investable. The answer increasingly is yes, it has. Moscow's offensive in Ukraine accelerated changes Washington had sought for decades. Secondary sanctions compelled Central Asians to develop new commercial avenues not subject to international restrictions. While Central Asian governments maintain important relations with Russia, they all seek pragmatic alternatives that reduce their former reliance on Moscow. The countries are expanding regional cooperation while reaching across the Caspian to the South Caucasus and beyond. The resulting Middle Corridor promises direct access to global markets. The measure of its success will be whether Kazakhstan and Turkmenistan gain trans-Caspian pipelines to transport their resources directly to Europe. In short, Central Asia is doing what Washington has long wanted it to do: become more...

Investment Forum

Ashgabat Hosts Turkmenistan Investment Forum This Week

Turkmenistan’s government says it expects more than 800 participants from dozens of countries to attend an investment conference in Ashgabat this week. A diverse group of more than 100 speakers is expected to participate in the Turkmenistan Investment Forum on October 1–2, including Saudi Prince Mansour bin Mohammed Al Saud, Deputy Trade Minister Mahmut Gürcan of Turkey, and Economy Minister Gevorg Papoyan of Armenia. The forum is being organized by Turkmenistan’s finance and foreign ministries, in partnership with Turkmen Congress, a company that organizes international forums and other events. It aims to highlight the country as a place of untapped economic potential, endowed with “the world’s fourth-largest natural gas reserves, a steadily diversifying economy, and major infrastructure modernization underway,” according to conference organizers. Turkmenistan is seeking to expand its role as a transit point on the Middle Corridor, a trade network linking China and Central Asia to Europe via rail and marine infrastructure. Even so, foreign investors have long had concerns about tight government controls, opaque bureaucracy, and other challenges in the Central Asian country. Delegates to the forum at the Yyldyz Hotel in Turkmenistan’s capital will discuss diversification of export routes for oil and gas, development of the Trans-Caspian Transit Corridor, public-private partnerships, agriculture, and the efficient use of natural resources. Representatives from the World Bank, the Asian Development Bank, and other international institutions will participate.