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EU and Turkmenistan Launch Coordination Platform of Trans-Caspian Transport Corridor

On October 3 in Ashgabat, the European Union and Turkmenistan launched the Trans-Caspian Transport Corridor Coordination Platform. The platform aims to strengthen connectivity by developing transport routes within Central Asia and the European Union. The event brought together the European Union, representatives of the countries along the Trans Caspian Transport Corridor in Central Asia, the South Caucasus, and Türkiye, and international financial institutions. The European Union delegation was led by European Commissioner for International Partnerships Jutta Urpilainen. As reported by the EU Delegation to Turkmenistan, the Trans-Caspian Transport Corridor is a flagship of the EU’s Global Gateway investment strategy, and the establishment of the Coordination Platform is one of the key deliverables of the Global Gateway Investors Forum for EU-Central Asia Transport Connectivity held in January 2024. European and international financial institutions at the Forum committed to mobilizing €10 billion for sustainable transport connectivity in Central Asia. The EU aims to work with partners towards a modern route that boosts trade and facilitates the flow of goods between Central Asia and Europe while driving economic development and regional integration. The platform's main role will be to promote the corridor and coordinate efforts to implement priority projects in hard and soft infrastructure in Central Asia. It will also coordinate with investments and activities in the South Caucasus and Turkey that are relevant to strengthening operational efficiency and seamless connections across the Trans-Caspian Transport Corridor. Urpilainen said: “Central Asia, as a region at the crossroads of Europe and Asia, plays a pivotal role in the EU Global Gateway investment strategy and connectivity vision. The Trans-Caspian Transport Corridor is a critical artery linking Europe and Asia, boosting trade, facilitating exchanges, and driving prosperity across our regions while ensuring improved connectivity, cooperation, and economic growth between all Corridor countries. Harnessing this potential will require massive infrastructure investments in the coming years; I am pleased to see governments from countries along the Corridor, key International Financing Institutions, EU Member States, G7 countries, and other partners coming together.” Urpilainen said that to the European Union, Turkmenistan is an important partner in Central Asia. She also emphasized the European Union's commitment to supporting Turkmenistan's transition to a sustainable, green economy while enhancing its business environment. The EU has further allocated €18 million to strengthen its partnership with Turkmenistan, highlighting its dedication to fostering sustainable development and economic growth.

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...

Kazakhstan and China to Build Container Hub in the Port of Aktau

Kazakhstan’s national railways company, Kazakhstan Temir Zholy (KTZ), has announced that KTZ Express (a subsidiary of KTZ), China’s Lianyungang Port, and Kazakhstan’s Aktau Sea Trade Port have signed the founding documents of a joint venture to construct a container hub in the port of Aktau. The documents were signed on September 20 in the Chinese city of Xi'an. The project has received support from the governments of Kazakhstan and China as part of China’s Belt and Road initiative. The project will strengthen Kazakhstan's position in the international logistics system. The planned container hub's location on the Trans-Caspian International Transport Route (TITR), or the Middle Corridor, will further increase the route's attractiveness and the volume of transit traffic. The Lianyungang Port is a longstanding partner of KTZ Express. Over the past ten years, they have implemented two joint projects: the Kazakh-Chinese terminal in the Port of Lianyungang and Khorgos Gateway, the largest dry port in Central Asia located on the Kazakh-Chinese border. Also on September 20, a container train departed along the TITR from Xi'an on the route Altynkol—Aktau (Kazakhstan)—Baku (Azerbaijan)—Poti (Georgia)—Burgas (Bulgaria)—Belgrade (Serbia)—Hamburg/Duisburg/Budapest. The heads of the railway administrations of China, Kazakhstan, Azerbaijan, and Georgia attended the departure ceremony. The train, consisting of 55 40-foot containers, was assembled at the Kazakh-Chinese Xi'an terminal. It will travel about 7,000 km to Baku in 8-11 days and then reach its final destination in Budapest in 25 days. The reduced delivery time was made possible by the cooperation of the railway and port administrations of the TITR member countries. The Kazakh-Chinese terminal in the dry port of Xi'an was opened in early 2024. Today, 30% of all container trains from China to Europe via Kazakhstan are formed in the dry port. According to KTZ, thanks to the terminal in Xi'an, cargo transit along the TITR increased 20-fold in the first eight months of this year compared to last year. The delivery time to Azerbaijan has been reduced to 11 days and to Georgia to 14 days.

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.

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.