Middle Corridor - The Times Of Central Asia

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Middle Corridor Trans-Caspian Corridor Uzbekistan Transport and Logistics

What Will Uzbekistan’s Role in Central Asia’s Connectivity Be?

By Robert M. Cutler A new World Bank report on Central Asian connectivity published in April 2024 highlights the importance of the Middle Corridor, a trade route spanning Central Asia, the Caspian Sea, and the Caucasus, connecting China and East Asia with Georgia, Turkey, and Europe. This corridor is seen as a critical alternative to Russian-controlled routes, especially in light of recent geopolitical tensions. The World Bank identifies ten steps to address bottlenecks in the Middle Corridor, aiming to increase trade volumes by tripling them by 2030. This would significantly reduce travel times and increase trade volumes to 11 million tons, with proper investment and efficiency measures in place. Uzbekistan and the Middle Corridor The report emphasizes the need for a "holistic" approach to improving transport connectivity in Central Asia. By this, it means a comprehensive and integrated strategy that combines improvements in infrastructure and logistics improvements with a reduction in border delays and tariffs, along with the harmonization of standards across countries. This includes improving both physical and digital infrastructure, enhancing governance and efficiency and addressing productivity issues amongst the state-owned enterprises that dominate the transport sectors in the region. The World Bank notes that Uzbekistan would profit from better rail connections with Kazakhstan; yet it does not identify any potentials for such projects. That is likely because a report by the Bank identified the Trans-Caspian International Trade Route (TITR) through southern Kazakhstan as the preferred program for international support. Uzbekistan's participation in the Middle Corridor is still in a developmental stage. Tashkent has an active interest and a strategic geographic location, but concrete actions and project details are still emerging. There have been no public announcements about specific infrastructure projects or investments that Uzbekistan is undertaking within the Middle Corridor framework. It can be foreseen, however, that railway modernization should be high on the list of programs. There is, however, a new railway project - the Darbaza–Maktaaral line - currently underway in Kazakhstan that could be extended to improve connectivity with Uzbekistan. It is projected for completion in 2025. A second phase including an extension to Kazakhstan's Syrdarya station could then facilitate a further branch line from Syrdarya to Zhetysai, on the border with Uzbekistan. This project would reduce congestion at the existing Saryagash border crossing between the two countries and thus increase the capacity for transporting goods between the two countries by as much as 10 million tons per year. The Middle Corridor and improvements to digital connectivity At present, the region has only limited connectivity. The Central Asian countries have heavily invested in infrastructure since the turn of the century, but the region still lags behind middle-income countries in both investment and maintenance. Most areas continue to suffer from insufficient infrastructure and expensive services. These in turn hinder the potential for internal and external trade. The World Bank's report also provides a comprehensive analysis of the challenges and opportunities for enhancing connectivity in Central Asia. For this purpose, it focuses on both physical and...

TITR Middle Corridor

The New Silk Road

In light of the current geopolitical situation in the world, many countries are puzzled by the search for new alternative transport routes. One of these is the Trans-Caspian International Transport Route (TITR), which runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and further to Turkey and European countries. New transport corridors through which goods and raw materials can be exported by all modes of transport are a vital task for many countries, today. Such routes must first of all be safe, beneficial to all partners, and economically feasible. The TITR, or the “Middle Corridor”, as it is also called, falls into these criteria. It was conceived more than ten years ago and began operating in 2017. In recent years, this route has been experiencing a new round of development, and this is not surprising since it connects East and West whilst bypassing Russia. Today, this is a flagship cooperation project for many states. This transport artery, connecting China, Central Asia and Europe, can become a continental bridge of the Belt and Road, halving the time of cargo transportation and significantly reducing transport costs. The route encompasses 11,000 km of rail, and includes ten seaports. It originates in China at the port of Lianyungang, passing through Xi'an to Urumqi, through Kazakhstan - from the dry ports of Khorgos and Dostyk - to the ports of Aktau and Kuryk, the Azerbaijan (port of Alyat), Georgia (Tbilisi), and then through the Black Sea it continues onto Europe. It is noteworthy that this route is multimodal, that is, rail, sea and road transport can be used. The current capacity of the Trans-Caspian international transport route is 6 million tons per year. By 2025, it is planned to reach a level of 10 million tons per year. So, the potential is great. Assessing all possibilities, interested states intend to invest financial resources in the further development of this corridor and the expansion of its port and railway infrastructure, which will have a positive impact on the quality of services provided and reduce transportation times. Each side – China, Turkey, Azerbaijan and Kazakhstan – has its own benefit, and these countries have something to offer each other in much larger volumes than the current supplies. China intends to develop its western provinces, providing them with access to regional markets. Azerbaijan sees an opportunity to strengthen its transit role and become the largest transport hub. Türkiye, in turn, continues to extend its influence in Azerbaijan and Central Asia. As for Kazakhstan, there are fears that attacks by the Ukrainian Army on Russian oil refineries could lead to a blockage of the Caspian Pipeline Consortium (CPC), which supplies Kazakh oil to international markets. In this regard, a huge amount of work is being done to diversify, and the Trans-Caspian International Transport Route comes in handy here. The Kazakh company, KazMunaiGas has already purchased tankers, and there are agreements with Azerbaijan on access to the Baku-Supsa and Baku-Tbilisi-Ceyhan pipelines, through which Kazakhstan can transport about 2 million tons...

Middle Corridor

Kazakhstan at a Crossroads: Navigating Geopolitical Dynamics in Eurasia

Sharing borders with China, Kyrgyzstan, Russia, Turkmenistan and Uzbekistan, Kazakhstan is the largest landlocked country in the world and the ninth largest overall by land area. Its geography makes this country a pivotal transit hub and it is now in the process of reshaping its strategic role in Eurasia. A recent significant development is the announcement of a new railway to China, which will further enhance Kazakhstan’s position in global trade, including in China’s famous Belt and Road Initiative (BRI). Deepening its relationship with China is one way that Kazakhstan seeks to diversify its economic and political ties away from Russia. At the same time, Kazakhstan is also looking to reduce its relative dependency on China and trying to balance its relationships with other major powers. Although some Western states have lately recognised this, and various international financial institutions are also assisting in enhancing Kazakhstan’s connectivity, these actors still need to pay more focused attention to Kazakhstan and work with the country in a more constructive manner. Expanding infrastructure and regional connectivity In the past, Kazakhstan has strengthened its position as a transit corridor through investments of more than $3.5 billion in the Khorgos gateway on the Chinese border (for facilitating Chinese goods being shipped to Central Asia and Europe), and other significant investments in various railways (most recently, the Shalkar–Beyneu and Zhezkazgan–Saksaul lines), as well as in the Kuryk seaport on the Caspian Sea and in the Trans-Caspian International Transport Route (TITR). The TITR is a 6,500-km corridor that links Asia with Europe and passes through various countries including Kazakhstan, Azerbaijan, Georgia, and Turkey. The Kuryk seaport has direct access to railway tracks and is fast becoming an important multi-modal route for cargo transshipment. In May 2023, Kazakhstan and China signed 47 co-operation agreements worth $22 billion. At the time, Kazakhstan’s President Kassym-Jomart Tokayev underlined that “the full exploitation of our transport and logistics capacity is of strategic importance”. He named China, Europe, Russia, and Central Asia as targets for logistical expansion. Reviewing bilateral relations with China in October last year, Tokayev proclaimed that his initiatives “confirm Kazakhstan’s readiness to strengthen our ‘all-weather’ relations and multifaceted co-operation”. Kazakhstan’s new railways amid incipient geopolitical shifts Given the above context, the recent announcement of the third railway connection between Kazakhstan and China is an important development that will enhance freight capacity and reduce border congestion. The new 272-kilometre (km) line will run in a south-east direction from Ayagoz in eastern Kazakhstan to Bakhty on the Chinese border before continuing to Chuguchak in Tacheng prefecture. The double-track railway is expected to boost freight capacity between Kazakhstan and China by more than two thirds, raising annual carriage from 28 million to about 48 million tonnes per year after its completion in 2027. The connection is a part of the major investment in a total of 1,300 km of new railway lines that are expected to facilitate exports and contribute to the TITR’s development. In the meantime, Kazakhstan has recently flashed on the geopolitical...

Middle Corridor

Momentum builds for the Game-changing Trans-Caspian International Trade Route

The landscape of global trade is quickly evolving as international supply chains reconfigure themselves following the retreat of globalisation, driven by the deepening bifurcation of the international arena between U.S.-led and China-led subsystems. Such a time of rapid change calls for future-oriented leadership informed by strategic foresight and diplomatic acumen. This is particularly true for countries that may find themselves in delicate geo-economic positions. Responding to these challenges, Kazakhstan's President Kassym-Jomart Tokayev has positioned his country as a pivotal player on the Trans-Caspian International Trade Route (TITR), a project reshaping trade dynamics between Asia and Europe through a network of railways and seaways in order to facilitate faster and more efficient trade. Successful implementation of the TITR will bring significant economic benefits to Kazakhstan, boosting trade and attracting foreign investment. It will open new avenues for economic growth, create jobs, and foster innovation. The TITR will make Kazakhstan the most attractive destination for businesses seeking to install themselves in Central Asia so as to tap into the vast Asian markets. The TITR also has strategic geopolitical significance. It is not a programmatic part of the China's Belt and Road Initiative (BRI), which concentrates on a "northern" route through Russia and a "southern" maritime route. The new momentum behind the TITR comes at a time when the northern route suffers from the economic fallout of the Russia-Ukraine conflict. Beyond economics, the TITR has already elevated Kazakhstan's political stature. The European Union (EU) and European Bank for Reconstruction and Development (EBRD) have formally recognised this shift. At a recent joint conference in Almaty, with wide participation from many Central Asian players, these two entities selected what they call the "Central Trans-Caspian Network", running through southern Kazakhstan, as the most sustainable of three container-transit options for linking Central Asia and Europe. The EU and EBRD foresee a seven-fold increase in transit volumes from 18,000 "twenty-foot equivalent units" (TEUs, a standard industrial measure) to 130,000 TEUs by 2040. It is hardly a coincidence that this date coincides with the "Turkic World Vision" statement adopted by the Organisation of Turkic States at their 2019 summit in Baku. The EU and EBRD’s study is country-specific and proposes seven soft connectivity measures and 32 hard infrastructure investment needs across five Central Asian countries. The study provides for such practical measures as digitalisation of transport documents, improvement of interoperability, enhancement of the public-private partnership (PPP) environment, facilitation of trade, liberalisation of markets, improvements to tariff-setting mechanisms and the increase of funding for asset maintenance. Country-specific priority investment needs for Kazakhstan include Almaty-Khorgos and Aktau-Beyneu railway double-tracking, expansion of several terminals and railway stations, and Aktau port capacity expansion, amongst other projects. The involvement of the EBRD in this study also represents a "seal of approval" for international financial institutions to participate in building out the corridor. The detailed EU-EBRD work identifies specific projects in specific geographical regions and already represents a preliminary feasibility study for them. It outlines key actions for the development of the network and its...