BAKU, Azerbaijan, March 18. Azerbaijan held discussions this week on the prospects of developing the Middle Corridor (Trans-Caspian International Transport Route - TITR), Trend reports.
During the second session of the Azerbaijan-Kazakhstan Business Council, Vice Minister of Transport of Kazakhstan, Satzhan Ablaliyev said that besides cargo transportation between Kazakhstan and Azerbaijan having increased one and a half times—up to 4.3 million tons—transit of cargo along the TITR has significantly increased—up to 2.8 million tons in 2023, and in 2024 the forecast on transit is 4.2 million tons.
Ablaliyev emphasized that several companies receive discounts on rail transportation, increasing transportation volume. There has also been an increase in the transportation of Chinese containers three times. He stressed that Kazakhstan is taking measures to eliminate "bottlenecks" on the route of the Trans-Caspian corridor. In a conversation with Trend detailing these works, he noted that the construction of a new road on the border with China with the opening of a new checkpoint has begun. Also, a bypass railroad is being built in Almaty, which shortens the journey by about a day. Work on expanding the technical category of several highways is underway.
Ablaliyev also noted in a conversation with Trend that at the end of the year, a joint enterprise created between Kazakhstan, Azerbaijan, and Georgia, Middle Corridor Multimodal, a single operator of transport communication along the Middle Corridor, will start working, which will provide customers with a single window for registration of transportation. Work is also underway on the digitalization of the Middle Corridor. Eventually, Türkiye will also join this joint venture.
According to him, considering the high rates of transit of cargoes from China since the beginning of 2024 and the planned growth of cargo transportation in Kazakhstan itself, it is quite easy this year to fulfill the task set in connection with the Middle Corridor—to provide it with cargoes in the amount of 4.2 million tons.
Ablaliyev informed me that an agreement was reached with China to send 10 container trains per month (with 20-foot containers) through TİTR.
Azerbaijani Ambassador to Kazakhstan Agalar Atamoglanov, during the second session of the Azerbaijan-Kazakhstan Business Council in Baku on March 11, noted that the potential of TİTR attracts the attention not only of investors in the region but also of investors outside the region.
Alport Baku manager Vahdettin Keles noted during an event this week that Türkiye's Albayrak Holding (managing the port of Baku since 2022) sees Azerbaijan as a key pillar of the Middle Corridor. He recalled that the port, where Albayrak Group's operations in Baku take place, has a capacity of 150,000 TEU/year (15 million tons of cargo per year—current transshipment capacity), two closed warehouses, and a dock length of 2,250 meters. The fertilizer transshipment terminal and the container terminal at the Port of Baku make a significant contribution to the Middle Corridor's logistics activities.
During the same week, Croatian Ambassador to Azerbaijan Branko Zebić told Trend that Croatia, as part of the EU, is very interested in the development of the Middle Corridor, the importance of which is growing every year. He described this route as very important for the EU countries.
Supporting this, EBRD Director for Kazakhstan Hüseyin Özhan told Trend that the European Bank for Reconstruction and Development has signed several projects in Kazakhstan in 2023, which contribute to the regularity of cargo flows in the country and the Trans-Caspian International Transport Route, and plans new loans.
In the same week, the Association "Trans-Caspian International Transport Route" announced tariff rates for container transportation of cargo on two sections of TITR in Kazakhstan to attract additional transit cargo traffic from and to China. Attractive tariff rates for the transportation of containers in sections Dostyk-Aktau and Aktau-Dostyk were approved.
In the opinion of the President of Kazakhstan, Kassym-Jomart Tokayev, expressed on March 15 during the meeting of the National Kurultai, the new transport and logistics center in the Chinese city of Xi'an will significantly increase cargo traffic through the Trans-Caspian international transport route.
Counselor of the Azerbaijani Embassy in Kazakhstan, Rovshan Kazimov, said during the round table at the third session of the Azerbaijan-Kazakhstan Expert Council that the most important element of the Middle Corridor is the Zangezur corridor, and Azerbaijan is actively engaged in opening this transport artery, which will serve the economic prosperity of all countries in the region.
To note, cargo transit plays a big role in the work of Azerbaijan Railways (AR). This week, AR reported that the volume of transit cargo transportation through Azerbaijan from January through February 2024 amounted to 1.251 million tons, which is 15 percent more than in January through February 2023.
Hakki Ozer, Trade Manager of Alport Baku, said during the event dedicated to the presentation of Albayrak Holding's activities this week that the region of Central Asia and Azerbaijan are ideal places for freight forwarding and logistics companies, and this region is extremely active and promising for the development of cargo transportation.
The manager of Alport Baku, Vahdettin Keles, in turn, said that the investments of this Turkish holding in Azerbaijan have already reached the mark of $20 million. The purpose of the capex is to develop a logistics route linking China, Kazakhstan, Uzbekistan, the Caspian Sea, Azerbaijan, Türkiye, and Europe. Keles said these investments are aimed at strengthening the Middle Corridor.
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