BAKU, Azerbaijan, June 10. Leading European logistics companies, including Danish Mærsk, Austrian Rail Cargo Group, Finnish Nurminen Log are working on attracting cargo to the Middle Corridor, Trend reports.
According to the World Economic Forum (WEF) data, the trade volume between China and Europe is estimated to be $600 billion per year.
"The Middle Corridor, stretching through Central Asia, the Caspian Sea, and the South Caucasus, is the shortest route from China's Pacific coast to Europe. Transporting goods from Shanghai to Europe can take 10 days via the Middle Corridor compared to 20 days via the Northern Corridor. In addition to time savings, this can also stimulate trade among transit countries, strengthen regional integration, and contribute to economic diversification," the WEF says.
The WEF analysts note that in 2022, the volume of freight transport on this route increased by 2.5 times, reaching 1.5 million tons.
"In the first quarter of this year, the volume of railway freight transport increased by over 60 percent, reaching 433,000 tons, and these figures are encouraging. It should be emphasized that freight transport via the Middle Corridor currently accounts for less than 10 percent of the total volume of goods transported via the Northern Corridor. To fully realize the trade potential of the Middle Corridor, some sections of the route need to be reconstructed, and new investments are required. The public and private sectors need to work together to address barriers in terms of technical and physical infrastructure and pay special attention to transitioning to green and digital technologies," the analysts say.
WEF experts highlight the expanding public-private partnership along this corridor with European logistics companies, including Danish Mærsk, Austrian Rail Cargo Group, Finnish Nurminen Logistics, and Dutch Rail Bridge Cargo.
"At the ministerial meeting on Trans-Caspian Connectivity in Aktau in November 2022, participants signed a roadmap to increase the capacity of the Middle Corridor to 10 million tons per year by 2025. The aforementioned organizations are working to increase the freight turnover on the route. Additionally, customs procedures need to be harmonized and simplified to make the route more attractive to new partners. The key here is the use of digital solutions. Introducing electronic queues at border crossings and seaports or implementing electronic transit documents are important measures to remove barriers," they added.
