Middle Corridor Looks to Insulate Global Supply Chains from Geopolitical Risk

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Global logistics is currently facing major challenges, including geopolitical tensions and supply chain disruptions. The situation underscores a growing need for alternative trade routes that are both resilient and sustainable. In this context, the Middle Corridor, officially known as the Trans-Caspian International Transport Route (TITR), offers a solution for stabilizing global trade. Spanning from China to Europe via Kazakhstan, the Caspian Sea, and the South Caucasus, the Middle Corridor hopes to provide a viable alternative to traditional routes, traversing regions that are relatively free from geopolitical risk. This makes the Middle Corridor an attractive option for businesses seeking reliable transit solutions.

 

A Route on the Rise

The Middle Corridor has witnessed significant growth in recent years, with cargo transport increasing by 68% in the first ten months of this year to 3.8 million tons. A major milestone is the surge in container shipping along the China-Europe-China route, reaching 20,000 TEUs (twenty-foot equivalent units), a twenty fold increase compared to previous years.

Just this month, Kazakhstan, Azerbaijan, and China established a joint venture to build a 40-hectare intermodal cargo terminal in Baku port, announced during COP29. The terminal aims to boost container traffic along the China-Europe-China route via the TITR. With completion expected by 2025, the project aims to enhance the corridor’s efficiency by reducing delivery times, costs, and transshipment delays. Moreover, China and Kazakhstan have begun exchanging digital foreign permit forms (FPFs), which allow carriers to go overseas with cargo.

Kazakhstan has been a longtime backer of the project, and announced recently its intention to increase the number of container trains to 600 annually to meet rising demand. Astana’s investments in logistics infrastructure are geared toward reducing transit times and minimizing environmental impact. The construction of double tracks on the Dostyk-Mointy section, for instance, aims to increase capacity fivefold and raise transport speed to 1,500 km per day, up from the current 800 km. This project, which covers a length of 836 km and is set to be completed by 2025, will enhance the efficiency of the Middle Corridor, making it a more competitive option for global shippers. Another initiative is the development of intermodal transportation, which integrates rail and road networks to streamline cargo movement. The planned construction of a bypass railway line at the Almaty station, located in southeastern Kazakhstan, is expected to reduce the load on the city’s transport hub by 40% and cut delivery times by 24 hours. Such strategic investments not only boost the capacity of the corridor but also contribute to more sustainable logistics by reducing energy consumption and emissions associated with prolonged transit.

Kazakhstan is also expanding the Middle Corridor with port developments along the eastern shore of the Caspian Sea at Aktau and Kuryk. At Aktau, plans are underway to create a 300,000 TEU container hub in collaboration with China’s Lianyungang Port Group, enhancing container capacity and international trade links. Meanwhile, Kuryk is constructing the multifunctional Sarja terminal to accommodate diverse cargo, such as grain and oil, further diversifying the country’s logistics capabilities and strengthening its global connectivity.

 

Implications for Global Supply Chains

The rapid development of the Middle Corridor has the potential to reshape global supply chains. This diversification of trade pathways improves the resilience of global logistics and offers businesses more flexibility in choosing transit options that best suit their needs. Moreover, TITR reduces transit times, with goods typically taking 10 to 15 days to travel from China to Europe, compared to 35 to 45 days via maritime routes. From a European perspective, it provides access to the expanding markets of Central Asia and the Caucasus, along with quicker connections to the Middle East, North Africa, and the European Mediterranean region through ports in Georgia and Türkiye. Additionally, the corridor’s reliance on rail transport helps reduce carbon emissions, offering a practical solution for companies seeking to meet sustainability targets in line with increasing global environmental demands.

Of course, challenges still exist, including the relatively low capacity of the Middle Corridor, which can lead to delays and bottlenecks. However, the route’s ability to accommodate a twenty fold increase in container shipping on the China-Europe-China route demonstrates its readiness to meet modern supply chain demands. A railway bypass around Almaty and upgrades to the Dostyk-Mointy section will boost capacity and reduce congestion, while the expansion of the Aktau and Kuryk ports will allow for increased cargo handling.

Additionally, efforts are underway to streamline border-crossing procedures and harmonize customs regulations. The establishment of a ‘Single Window’ system through a joint venture between Kazakhstan, Azerbaijan, and Georgia aims to simplify administrative procedures for cargo transit. Lastly, the 2022-2027 roadmap signed by Kazakhstan, Azerbaijan, and Türkiye outlines a strategy to address critical bottlenecks, including targeted investments in transport infrastructure, with the goal of increasing cargo volumes along the corridor to 10 million tonnes by 2027, up from the current 6 million.

Ultimately, as the world navigates shifting trade dynamics and heightened geopolitical risk, the Middle Corridor can serve as a sustainable and stable alternative to traditional shipping routes. The rapid growth in cargo transport through the Middle Corridor, along with strategic investments in infrastructure, signals that the Trans-Caspian International Transport Route is ready to play a more central role in international trade.

 

Emil Avdaliani is a professor of international relations and the history of diplomacy at European University in Tbilisi, Georgia. His research focuses on the Silk Road and the interests of world powers in the Middle East and the Caucasus.

The views expressed in this article belong to the author(s) alone and do not necessarily reflect those of Geopoliticalmonitor.com.

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