TITR - The Times Of Central Asia

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China Officially Joins the Middle Corridor

It was announced during the 8th International Silk Road Expo in Xi’an in September 2024 that China will formally join the Middle Corridor under the guise of participation by the China Railway Container Transport Corporation (CRTC). This move signals a growing reliance on Central Asia’s trade-route infrastructure potential. China's shift to overland routes is part of a broader strategy to diversify away from traditional maritime routes through chokepoints like the Strait of Malacca, which carry geopolitical risk. Kazakhstan's strategic geographic location naturally makes it indispensable to China’s trade, and infrastructure projects currently underway represent a key component of the Middle Corridor’s potential. In July 2024, Kazakh President Kassym-Jomart Tokayev ratified agreements with China aimed at further developing the Middle Corridor, enhancing both road and rail infrastructure. The country has already been upgrading its rail infrastructure, modernizing dry ports like Khorgos on the Chinese border, and expanding transit facilities at the Caspian Sea port of Aktau. The increased flow of goods through Kazakhstan is evident: over 212 container block trains have passed through the country by September 2024, with the number projected to exceed 300 by the year’s end. These build-outs, and particularly Kazakhstan’s modernization of its railways, go hand-in-hand with the recently finished improvements along the Baku-Tbilisi-Kars (BTK) line, which connects Azerbaijan to Turkey via Georgia. The expansion of the BTK line's capacity from 1 million to 5 million tons per year has now been completed. As a result of all these efforts, the travel time for goods from China to the Black Sea has been reduced to just 10–12 days, highlighting the efficiency of the corridor. Azerbaijan also plays a crucial role in this economic ecosystem. Baku’s port of Alat serves as a critical transit point for cargo crossing between Central Asia and the South Caucasus. Azerbaijan’s collaboration with Kazakhstan, Georgia, and Turkey has led to significant investments in expanding port facilities and upgrading railway systems beyond the crucial BTK link mentioned above. The result is a smoother, more reliable flow of goods from China to Europe. Azerbaijan is winning its bet to become a regional logistics hub. In addition, a Chinese consortium recently secured the contract for the construction of the Anaklia deep-sea port in Georgia, a strategically important site on the eastern edge of the Black Sea. The project was initially awarded to a Georgian-American consortium, but was cancelled in 2020 due to political and legal disputes. Following a new tender process this year, the Chinese consortium emerged as the sole bidder. If supporting infrastructure is adequately developed and the Black Sea’s cargo transit capacity can be significantly enhanced, then the Anaklia port could become a critical node in the Middle Corridor, enhancing its role in Eurasian trade and bolstering regional connectivity. China’s increased reliance on Central Asian, trans-Caspian, and South Caucasus routes is not just about efficiency. It is also a strategic diversification to mitigate the risks posed by geopolitical instability in other regions. Traditional sea routes through maritime choke-points as well as overland routes like...

Multimodal Transport Corrdior Railways Trans-Caspian International Transport Route railroads multimodal transport corridor New rail routes Rail cargo TITR

The Future of Transit in Kazakhstan

Increasing the volume of transit cargo through Kazakhstan is a strategic priority for the nation as it aims to become a transportation and logistics hub in Central Asia and the Caspian region, with its railways at the forefront of this effort. TCA spoke with Asem Mukhamedieva, Managing Director for New Projects at KTZ Express JSC, about the company’s current capabilities, prospects, and new projects in this direction. Kazakhstan’s Role in Transit Cargo TCA: Kazakhstan, has become a vital land transportation corridor between Asia and Europe. How does Kazakhstan Temir Zholy (KTZ) contribute to further increasing transit cargo, and what trends have you observed? Mukhamedieva- The volume of transit handled by KTZ Express in the first eight months of this year reached approximately 350,000 twenty-foot equivalent units (TEU). The China-Europe-China route saw a 36% increase, while the China to Central Asia route grew by 17%. Notably, the Trans-Caspian International Transport Route (TITR) dispatched 220 container trains, a twenty-fold increase from last year. TCA: What new routes have been launched, and what is KTZ doing to increase them? - KTZ is continuously expanding its transportation network and logistics services. One significant development is the Trans-Afghan route, which was launched this May. Under a pilot project, containers with aluminosilicate hollow microspheres were shipped from Pavlodar to Jebel Ali Port via Uzbekistan, Afghanistan, Pakistan, and the UAE. Offering competitive terms and tariffs has encouraged more cargo traffic along this route. In July, we cut delivery times in half — down to just five days — on the Xi’an-Altynkol-Tashkent route, compared to the previous 10-12 days. This success is largely due to the new terminal in Xi’an, built by KTZ and its Chinese partners. The terminal consolidates cargo from various Chinese provinces, streamlining logistics processes and significantly improving efficiency. We also launched several new logistics services to boost cargo traffic and strengthen international links. For example, in June, we introduced a regular South Korea-China-Kazakhstan-Central Asia route. We also reopened a previously unprofitable route from China to Iran and back, reducing costs by collaborating with Chinese partners. The Growing Importance of the Trans-Caspian Route TCA: You mentioned the growth of the TITR. Could you elaborate on the regions of China involved, the types of cargo, and what steps are being taken to attract more shipments? - The Trans-Caspian International Transport Route (TITR) has become a critical link in Eurasian logistics. This year, the route achieved remarkable growth. In September, we welcomed the 200th train dispatched via TITR at the Port of Aktau. Transit volumes for the first eight months of this year surpassed annual totals from previous years. Xi'an province leads in shipments, accounting for 57% of the total volume on this route. Other key provinces include Yiwu, Chongqing, Sanping, and Henan. Major markets for these shipments are Azerbaijan (62%), Georgia (23%), Turkey (7%), and EU countries (9%). Over 200 different commodity items were transported, with automobiles, components, textiles, and electronics making up 56% of the total. To maintain this momentum, we are working...

Trans-Caspian Corridor Middle Corridor Transportation TITR multimodal transportation Trans-Caspian Trade Route Western Europe-Western China.

Kazakhstan and China to Increase Cargo Transportation Along Trans-Caspian Route

On September 25, Kazakhstan and China held the first meeting of a joint working group on cargo transportation along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, connecting China and Europe via Central Asia and the Caucasus. According to Kazakhstan’s Ministry of Transport, the members agreed on the projected volumes of cargo transportation from China to Europe and in the opposite direction along the TITR until the end of 2029. Kazakhstan and China will increase the volume of cargo transportation along the TITR to 600 container trains per year in 2025 and 2026. In 2027, there will be 1,000 container trains, and in 2029, there will be 2,000. Given the increase in transit container trains, the Kazakh side has committed to ensuring the appropriate infrastructure in its Caspian ports to ensure timely transportation and prevent delays. At least 50,000 standard containers will be handled (transshipped) at Kazakh ports in 2025. An increase to 85,000 containers per year is expected for 2026-2029. According to Kazakhstan's Ministry of Transport, in 2023, the volume of transit transportation between China and Europe through Kazakhstan amounted to 2.76 million tons, 65% more than in 2022 (1.7 million tons). Kazakhstan is now working to increase the transit capacity of the Aktau and Kuryk seaports. A container hub will be built in the port of Aktau, increasing transportation volume to 300,000 TEU (twenty-foot equivalent units) per year. A grain terminal will be launched in Kuryk's port later this year. Dredging of the Kuryk port is underway to ensure sufficient depth for ships to enter the harbor. Dredging works are also planned in the port of Aktau. Altogether, these measures will increase the throughput capacity of Kazakhstan’s ports by 10 million tons of cargo annually, to reach 30 million tons annually.

Azerbaijan Middle Corridor TITR

Azerbaijan Is Bringing Uzbekistan into the Middle Corridor

The Treaty on Allied Relations between Azerbaijan and Uzbekistan, signed last month, formalizes their growing strategic partnership and signals a new phase in their deepening ties. Their relationship has gained momentum particularly as Azerbaijan has been prioritizing the expansion of its networks in the region since 2020. Uzbekistan now plays a significant role in Azerbaijan’s efforts to strengthen the Trans-Caspian International Trade Route (TITR, also known as the Middle Corridor), the key trade and infrastructure link among Central Asia, the South Caucasus, and Turkey. Uzbekistan and the Middle Corridor Within the last year and a half, many international financial institutions have published comprehensive studies on the implementation of the TITR project. One of the most influential was organized by the European Bank for Reconstruction and Development (EBRD) in June 2023, in collaboration with the European Commission. It was an in-depth examination of existing and potential infrastructure and logistical networks across the region. The goal of the report was to determine the “most sustainable option” for efficient transport connections between Central Asia and Europe. This report identified a route that it called the Central Trans-Caspian Network (CTCN), running principally through southern Kazakhstan. This route leverages the already well-established infrastructure and logistical systems there, making it the most viable option for trade and transport in the region. In a separate and complementary report, published in November 2023, the World Bank noted that Uzbekistan’s rail connections with Kazakhstan might be improved, but it did not identify any potential projects. Nevertheless, the Darbaza–Maktaaral project in Kazakhstan, projected for completion in 2025, could be extended first to Kazakhstan’s Syrdarya station, whence a further branch line could run to Zhetysai on the border with Uzbekistan. That project would reduce congestion at the existing Saryagash border crossing, which connects to Keles in Uzbekistan, in the north of the Tashkent conurbation. It could increase transport capacity by as much as 10 million tons per year. Still, the project focuses only on increasing the level of bilateral trade, largely in foodstuffs and agricultural goods, and does not target Uzbekistan’s integration into the Middle Corridor. On the other hand, Azerbaijan has been working actively with Uzbekistan to integrate it into the Middle Corridor, without relying on routes through southern Kazakhstan. Their cooperation includes significant efforts to enhance infrastructure and logistics. Examples include joint ventures in logistics centers and, notably, inter-modal transport links between Samarkand and Baku. Such efforts are designed to offer Uzbekistan direct access to the Caspian Sea and European markets via Azerbaijan, largely bypassing Kazakhstan and building a stronger trade partnership within the trans-Caspian framework. Uzbekistan’s Relations with Turkey Set the Context While this all started only a few years ago, a look back to 2016 when Uzbekistan’s President Islam Karimov died provides a more complete picture. After Shavkat Mirziyoyev succeeded Karimov, Uzbekistan began to open up from its diplomatic isolation. One of the first interested parties was Turkey. Both nations signaled interest in improving ties, and Turkish President Recep Tayyip Erdoğan began to take steps...

Trans-Caspian Trade Route Trans-Caspian International Transport Route multimodal transportation International transport TITR Middle Corridor

200th Container Train from China Arrives in Kazakhstan’s Aktau Port on Middle Corridor

A container train from China arrived last week in the port of Aktau on Kazakhstan’s Caspian coast. Kazakhstan’s national railway company, Kazakhstan Temir Zholy, announced that it was the 200th container train since the beginning of 2024. Last year, 11 container trains went through Aktau Port along the Trans-Caspian International Transport Route (TITR), known as the Middle Corridor. The Middle Corridor is an 11,000-kilometer international multimodal transport corridor that runs from China to Europe via Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, the Black Sea, and Turkey. The container train originally departed from the Kazakhstan terminal in Xi'an (China). From Aktau, it will depart for Azerbaijan on a barge across the Caspian Sea. The Kazakh terminal in Xi'an is an important logistics hub that consolidates cargo from various provinces of China. It has given a new impetus to the development of the TITR. In November 2023, Kazakhstan and China signed a number of agreements to develop the TITR, including a route for China-Europe container trains. Middle Corridor Multimodal Ltd. is a joint venture that was established at the Astana International Financial Center, bringing together the railway administrations of Kazakhstan, Azerbaijan, and Georgia to manage the route on a parity basis. The Kazakhstani terminal in the dry port of Xi'an opened in February 2024. It consolidates 40% of all container trains heading towards Kazakhstan, which has contributed to a significant increase in transit traffic along the TITR. Transportation along the TITR is growing steadily. In 2023, 2.8 million tons of cargo were transported along the route, compared to about 1.7 million tons in 2022. In the first seven months of 2024, the traffic totaled 2.56 million tons. By 2027, the capacity of the TITR is planned to increase to 10 million tons.

Export/import Transport and Logistics EU TITR Trans-Caspian International Transport Route Bulgaria

Uzbekistan and Bulgaria to Increase Middle Corridor Freight Transport

On 3-4 September, the Uzbek-Bulgarian Commission on International Road Transport met in Tashkent to discuss expanding bilateral cooperation in international freight transport by road and creating more favorable conditions for national carriers from both countries. As reported by the Uzbek Ministry of Transport, the agenda focused on increasing the volume of freight traffic to EU countries via Bulgaria, using the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, which connects China and Europe via Central Asia and the Caucasus. After the meeting, the parties exchanged additional permit forms for trucks entering their countries for the remainder of 2024, and agreed to increase the issue of mutual permit forms 15-fold in 2025. The Uzbek Ministry added that to enhance cargo transportation to EU countries, an agreement had been made with Romania to waive the requirement of permits from April 1, 2024.