Trade Routes - The Times Of Central Asia

Viewing results 1 - 6 of 22

Middle Corridor

Aral–Caspian Highway Project Advances Kazakhstan’s Bid for Eurasian Logistics Leadership

Kazakhstan has begun building an 800-kilometer highway that will give freight moving east and west a shorter road connection to the Caspian ports of Aktau and Kuryk. The government says the project could cut nearly 1,000 kilometers and up to three days from journeys between Europe and China, while improving Kazakhstan’s access to European and regional markets. President Kassym-Jomart Tokayev launched construction of the Beineu–Saksaulsk highway on August 3, and ordered its completion by 2029. He proposed calling it the Aral–Caspian Highway because it will run from Saksaulsk, near the Aral Sea, west to Beineu and the road network serving Kazakhstan’s Caspian ports. At Saksaulsk, three routes meet. The Kyzylorda road runs southeast to the Western Europe–Western China highway. The Ulgaysyn road continues northwest toward Aktobe. The new highway will run west to Beineu, from where roads lead to Aktau and Kuryk. The result is a more direct connection between southern Kazakhstan, the Aktobe corridor, and the Caspian coast, as outlined in the government’s wider road program. The government is reconstructing and expanding the Kyzylorda–Saksaulsk and Ulgaysyn–Saksaulsk sections alongside the new highway. The three projects cover a combined 1,574 kilometers. The authorities expect annual freight volumes along the routes to rise 2.5-fold to 13.2 million tons and say construction will create more than 10,000 jobs. Tokayev described the change as adding “horizontal connections” to Kazakhstan’s historically “vertical transportation networks.” His stated goal is to transform Kazakhstan into “one of the leading logistics hubs connecting Europe and Asia.” The road will feed into the Trans-Caspian International Transport Route, or Middle Corridor. Goods can move west from Kazakhstan across the Caspian, Azerbaijan, Georgia, and Türkiye, or east along the same route into Central and East Asia. The corridor gives European companies another path into Central Asian markets and gives Kazakhstan additional options for reaching Europe. The corridor is often presented as a China–Europe land-bridge, but the World Bank’s analysis expects most of its future traffic to be generated within the corridor region. Its modeling projects trade between Kazakhstan, Azerbaijan, and Georgia and the European Union to rise by 28% by 2030, while intercontinental freight remains below 40% of total volume. The commercial case therefore includes Kazakh exports moving west, European goods moving east, and regional cargo that never travels the full distance between Europe and China. Europe is already supporting parts of the network. The EU’s €30 million Trans-Caspian transport program backs preparatory work for the modernization of the Beineu–Saksaulsk road and improvements at Aktau. In June, Kazakhstan and European partners announced $462 million in transport agreements, including financing for the Aktobe–Ulgaysyn road and cooperation with A.P. Moller-Maersk on container shipping along the Middle Corridor. Kazakhstan also enters the competition with infrastructure already in use. It has a direct border with China, established railways carrying freight across the country, and operating Caspian ports. Uzbekistan is advancing the China–Kyrgyzstan–Uzbekistan railway and other routes, but The Times of Central Asia has previously reported that Kazakhstan retains the stronger position for now because several of...

Russia's War in Ukraine

How the Russia–Ukraine War Is Reshaping Central Asia’s Geopolitical Balance

More than four years after Russia launched its full-scale invasion of Ukraine, the conflict continues to alter political and economic relations across the former Soviet space. In an interview with The Times of Central Asia, Uzbek political scientist Mukhtor Nazirov examined Moscow’s evolving regional role, Central Asia’s search for wider external partnerships, and the areas in which Russia remains difficult to replace. “The war changed Russia,” Nazirov said. “It became more closed, more militarized, and its political logic increasingly became military. Central Asian countries suddenly found themselves dealing with a Russia that was no longer the same as it had been before the war.” Before 2022, Russia’s relations with Central Asia rested on long-established political, economic, and security ties. Since the invasion, international isolation and wartime pressures have complicated that relationship. “The war consumed everything,” Nazirov explained. “It influenced not only politics and the economy, but also public thinking, the country’s openness, its ideology, and the overall direction of the state. As Russia changed during the war, its dialogue with Central Asian countries became increasingly difficult.” “Central Asian states gained a moral justification to look for other options,” he said. “Russia is no longer the Russia it used to be.” Russia nevertheless remains deeply embedded in the region’s economy. Infrastructure, logistics networks, export routes, and labor migration still bind Central Asian states to the Russian market. Kazakhstan exports most of its oil through Russia’s Novorossiysk port, while trade from Uzbekistan and other countries continues to rely heavily on northern corridors. Millions of Central Asian citizens also work in Russia. “The economic foundation still exists,” Nazirov told TCA. “Much of Central Asia remains part of an economic structure that was formed during the Soviet period. Infrastructure is shared, and many export routes still pass through Russia.” However, the durability of Moscow’s influence is under closer scrutiny as other powers expand their regional presence. “Political closeness alone is not enough,” Nazirov said. “Any partnership eventually comes down to economics. If Russia wants to remain influential, it must have a strong economic foundation. If it cannot provide that, then others will naturally begin filling the gap.” China and the European Union have expanded their economic engagement as sanctions and wartime demands have constrained Russia. Interest has also grown in the Middle Corridor, or Trans-Caspian International Transport Route, which offers an alternative to routes through Russia. “The rhetoric surrounding the Middle Corridor became much stronger during the war,” he said. “The project already existed, but the war created momentum.” The EU’s Global Gateway initiative and new connectivity financing have given Central Asian governments additional channels for trade, investment, and transport. “This space is being filled partly by China and partly by the European Union,” he said. “They are proposing alternatives, and naturally Central Asian countries are turning toward those opportunities.” Russia remains the main destination for Central Asian labor migrants, although governments are pursuing employment opportunities in South Korea, Europe, and the Gulf states. “I would not say diversification has already taken place,” Nazirov...

Middle East Crisis

The Fragile U.S.–Iran Truce: What Central Asia Stands to Gain and Lose

The preliminary memorandum signed in mid-June between the United States and Iran, followed by renewed talks between Washington and Tehran, has extended a U.S.–Iran truce and opened a 60-day window for negotiations on a final agreement. The nuclear terms remain unresolved, while Israel’s continued military presence in southern Lebanon, despite U.S. pressure for a withdrawal, underscores how fragile the broader regional de-escalation remains. At the end of this period, the parties may sign a final agreement, return to hostilities, or mutually agree to extend the interim arrangement. Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan, along with neighboring Azerbaijan, have welcomed efforts to de-escalate the conflict between the United States and Iran. The fighting briefly boosted demand for alternative routes through Central Asia, but prolonged instability would disrupt trade, raise transport and insurance costs, and increase security risks. The question now is what the region could gain if the pause holds. Those effects would vary across the region. Turkmenistan and Uzbekistan stand to benefit most directly from safer southern rail access through Iran to the Persian Gulf and Türkiye. Kyrgyzstan and Tajikistan, which are less directly connected to these corridors and less exposed to oil price swings, would feel the consequences mainly through freight costs, fuel prices, and wider regional trade. For Azerbaijan, a sustained pause would reinforce its role as the Caspian link between Central Asia, the South Caucasus, and Türkiye, while renewed instability would push more freight toward Trans-Caspian alternatives. That interest is not merely theoretical. Tajik-Iranian trade reached $119.6 million in the first quarter of 2026, while Tajikistan and Kyrgyzstan are developing access to Iranian maritime infrastructure through Uzbekistan and Turkmenistan. The opportunity, however, is conditional. A truce can reduce military risk, but it does not by itself remove the banking, insurance, and compliance problems that have long complicated trade through Iran. For Central Asian exporters and logistics companies, the question is not only whether routes are physically open, but whether carriers, lenders, insurers, and buyers are prepared to use them during a temporary 60-day window. Analysts interviewed by Deutsche Welle said the framework leaves several important provisions unresolved, making a final agreement uncertain. For Central Asia, the most immediate economic variable is the Strait of Hormuz. Kazakh historian and political analyst Sultan Akimbekov identifies its reopening as the key to easing global supply fears. A durable reopening, combined with the temporary U.S. waiver allowing Iranian oil sales through August 21, could put downward pressure on global energy prices. The effects would vary across Central Asia: weaker prices could strain hydrocarbon revenues, while lower fuel, fertilizer, and freight costs could ease imported inflation in Uzbekistan, Kyrgyzstan, and Tajikistan. For Kazakhstan, lower global oil prices would have significant implications. National Bank Governor Timur Suleimenov has said oil generates more than 50% of the country’s export revenues and over 30% of the state budget and National Fund revenues. That would reverse one of the conflict’s few short-term economic benefits for Kazakhstan. Higher crude prices had briefly improved the outlook for export revenues,...

Digital Transformation

Interview: Kazakhstan Turns to AI and Digital Platforms to Speed Eurasian Transit

Kazakhstan is moving more of its transit system online as it tries to reduce border delays, track freight earlier, and strengthen its position on routes linking China, Central Asia, the Caspian, and Europe. Officials and industry participants say such tools could shorten processing times and reduce delays across transport corridors. These and other issues were discussed during a thematic session on “Digital Solutions in Transport and Logistics” at the Fifth Eurasian Economic Forum in Astana in late May. Kazakhstan’s practical experience in digitizing transport and logistics was presented by Deputy Minister of Transport Damir Kozhakhmetov, who also spoke with The Times of Central Asia about the country’s key priorities in transforming the sector. Key Areas of Transformation Situated at the crossroads of major international transport corridors, Kazakhstan is prioritizing seamless logistics, electronic document management, and intelligent monitoring systems. According to Kozhakhmetov, the goal is to simplify transit procedures and accelerate cargo processing through the introduction of unified electronic standards and integration with international platforms. “We connect major transit routes and serve as a link providing services along alternative transport corridors,” Kozhakhmetov told The Times of Central Asia. “Our current priority is to ensure that countries across the region continue working together to simplify electronic document exchange and harmonize digital procedures.” Practical Cases and Measurable Results One of Kazakhstan’s most successful initiatives has been the integration of its railway freight systems with major Chinese logistics platforms serving the Middle Corridor. “This allows us to see the composition of cargo shipments three to five days before they arrive at the border and complete transit declarations in advance,” Kozhakhmetov said. “As a result, processing times at key railway stations have been reduced to as little as 30 minutes. Similar integration has already been implemented with the electronic railway platforms of Azerbaijan and Georgia.” He noted that similar projects are being introduced across other transport sectors, including the electronic exchanges of international transport permits, paperless processing of cargo documentation, and the implementation of e-Freight systems for air cargo operations. Kazakhstan is also participating in the development of the Digital Trade Corridor, a global multimodal platform designed to simplify, automate, and accelerate transit and logistics operations. Other initiatives include the introduction of the electronic international consignment note, e-CMR, and the Smart Cargo single-window logistics platform, which integrates customs and logistics services. “We pay close attention to the development of digital infrastructure in every mode of transport,” Kozhakhmetov said. “These efforts cover four main areas: roads, road transport, aviation, and railways.” Digital Roads and AI Monitoring In the road sector, Kazakhstan is developing the e-Joldar system, a unified platform designed to monitor the lifecycle of the country’s road network. The system combines road inventories, technical assessments, laboratory testing, and lifecycle management tools, enabling more effective allocation of infrastructure funding. “We can now see when a road was repaired, when the next maintenance cycle is scheduled, and when future rehabilitation work should be carried out,” Kozhakhmetov explained. According to the Ministry of Transport, Kazakhstan’s public road network...

TCA Interviews

Interview: Kazakhstan Pushes Middle Corridor as Global Trade Routes Shift

As war, sanctions, and disruption reshape trade between Europe and Asia, Kazakhstan is trying to turn the Middle Corridor from an alternative route into a more predictable logistics system. The route, formally known as the Trans-Caspian International Transport Route, links China and Central Asia with the Caspian Sea, the South Caucasus, Turkey, and Europe, bypassing Russia. For Kazakhstan, the project is both economic and geopolitical. It promises faster access to foreign markets, new transit revenue, and a stronger role for the country as a logistics hub between China and Europe. However, the corridor still faces practical constraints, including port capacity on the Caspian Sea, uneven digital systems, border procedures, tariffs, and coordination between several states and operators. The Times of Central Asia spoke with Alua Korpebayeva, Head of the Project Office for Transport and Logistics under the Presidential Administration of Kazakhstan, about what still needs to change and how Kazakhstan views the corridor’s long-term role. TCA: Why has the Middle Corridor become more urgent for Kazakhstan and Central Asia, and how much have the war in Ukraine and tensions around Iran and the Persian Gulf changed the calculation? Alua Korpebayeva: The government of Kazakhstan has assigned the national railway company, Kazakhstan Temir Zholy, a strategic objective of increasing total transit volumes to 55 million tons by 2026, representing a 65% increase compared to last year. This target reflects the scale of the country’s ongoing transport transformation. Achieving this goal is closely tied to the development of the Middle Corridor. The route is especially important because it is becoming a foundation for stable and predictable supply chains in global trade. The Middle Corridor provides Central Asian countries with an opportunity to strengthen connectivity with both Europe and China while increasing the region’s role as an independent transport and logistics hub. Geopolitical factors have undoubtedly increased business interest in alternative routes. For Kazakhstan, however, development of the Middle Corridor is primarily part of a broader effort to expand transport capacity and improve logistical resilience. That is precisely why deeper regional cooperation is so important. Unlocking the corridor’s full potential requires close coordination among all participants, from infrastructure modernization and tariff harmonization to end-to-end digitalization and simplified customs procedures. The World Bank has noted that a fully functioning Middle Corridor could strengthen supply-chain resilience and, if accompanied by investment and efficiency measures, could triple freight volumes and cut transportation times in half by 2030. TCA: Are Kazakhstan and its partners moving toward unified transit rules and tariffs along the corridor? What has already been agreed, and where do gaps remain? Alua Korpebayeva: Work on creating unified transit rules and coordinated tariff policies is ongoing. The current focus is shifting from fragmented national tariffs toward a unified through-route pricing system across the corridor. Within the framework of the Action Plan for Eliminating Bottlenecks along the Trans-Caspian International Transport Route, signed by the railway administrations of Kazakhstan, Azerbaijan and Georgia, the parties agreed to establish a single long-term tariff for the route. In practical terms,...

Chinese Investment

Tajikistan’s Rahmon Seeks Deeper Economic Ties During China Visit

More than 700 companies with Chinese capital are operating in Tajikistan, and about 12.5% of the nearly $7 billion in foreign investment that entered the Central Asian country’s economy last year came from China, according to Tajikistan’s presidency. Tajikistan’s President Emomali Rahmon shared the data after arriving in Beijing on Monday to push for even closer economic ties with China, which surpassed Russia last year to become Tajikistan’s largest trading partner. The Chinese Foreign Ministry said Rahmon was making the May 11-14 trip at the invitation of President Xi Jinping, who will then host U.S. President Donald Trump from May 13 to 15 China is expanding economic projects and investment across Central Asia, and the rapid pace of development is evident in numerous initiatives currently underway in Tajikistan. Last month, government and industry officials from the two countries met in Dushanbe to discuss “green minerals,” the materials – abundant in Tajikistan – that are used in clean energy technologies such as solar power and electric vehicle batteries. In February, the first container train from China arrived in Tajikistan’s capital after passing through Kyrgyzstan and Uzbekistan on what the Chinese embassy said was a new trade route. “The development of modern transport and economic corridors through Tajikistan linking China and South Asian countries with the Middle East was described as another factor promoting cooperation with neighboring China,” Tajikistan’s presidency said in a summary of Rahmon’s speech in Beijing on Monday. More than 50 agreements were signed between Tajik and Chinese companies during the presidential visit. The deals are projected to attract more than $8 billion in investment to Tajikistan, the presidency said. Despite the escalation in trade ties, some economists warn that Tajikistan is becoming more economically dependent on China and that its trade deficit is deepening that vulnerability. China has also expressed concern about the safety of its Tajikistan-based workers after attacks on Chinese installations from the Afghan side of the border in the last year.