Photo: Kazakhstan Railways

BAKU, Azerbaijan, September 28. Additional investments in the Middle Corridor will need to be considered in the 2030s to address operational constraints that may become relevant as freight volumes increase.

This was stated in the World Bank report “Integration: World-Class Trade Logistics along the Trans-Caspian Transport Corridor.”

It notes that the development of the Middle Corridor will require not only investment in transport infrastructure, but also improved cross-border cooperation, simplified trade procedures and higher-quality transport services.

According to the report, at the initial stage, railways and roads, seaports, border crossing points and inland ports along the entire route need to be expanded, modernized and upgraded. These investments should be made in accordance with priorities and in a coordinated manner.

The World Bank notes that currently 92 percent of cargo transported across the Caspian Sea consists of commodities such as grain, fertilizers, construction materials and fuel: “For such shipments, the availability of transport capacity and the lowest possible direct transportation costs are of key importance.”

“As the Middle Corridor is still at the development stage, most infrastructure investments are needed in the short term, particularly by 2030. This will help eliminate existing bottlenecks along the route.

At the same time, in the 2030s, additional investments will need to be considered to address operational constraints that may become relevant as freight volumes increase.

However, infrastructure development alone will not be sufficient to improve logistics efficiency and attract new shippers.

As the economies of the corridor's participating countries diversify, and as shippers from East Asia and Europe show growing interest in transporting high-value and time-sensitive goods, the need to improve the quality of transport services and coordinate shipments will increase.

Improving cross-border cooperation, facilitating trade and enhancing the quality of services provided will also be necessary to realize the corridor's full freight and economic potential,” the report says.

The World Bank emphasizes that the relevant reforms and new approaches need to be developed and implemented in the short term: “However, their transformative nature means that implementing these measures will be a long-term process and may take the next 10–15 years.”

It notes that this process will require testing different approaches, sharing accumulated experience, international coordination and improving decision-making mechanisms based on the results obtained and the need to adjust the course.