BAKU, Azerbaijan, July 15. The participation of Azerbaijan and its Caspian neighbors in international transport projects was a focal point last week.
European Commission official Adalbert Jahnz told Trend that Azerbaijan has a significant role in the EU's regional coordination efforts on the Middle Corridor (Trans-Caspian Transport Route, TITR). He stated that this route has the potential to boost trade between Europe and Asia. However, Jahnz noted that key issues, bottlenecks, and other connectivity problems, such as customs, border crossing, and documentation, need to be addressed in coordination with all key partners involved. He emphasized that the European Commission's Global Gateway Strategy is focused on enhancing the operational efficiency and economic attractiveness of the TITR.
During the 15th meeting of the Kazakhstan-EU Dialogue Platform on July 10, chaired by the Prime Minister of Kazakhstan, Oljas Bektenov, Kazakhstan and the European Union discussed plans to develop the Trans-Caspian International Transport Route (TITR) as one of the most promising areas. It was noted that approximately 85 percent of goods from China to EU countries are transported through Kazakhstan, which serves as a transit hub between Europe and Asia. TITR offers the most competitive delivery time of 12–15 days, making it highly attractive for trade flows.
Amélie Schurich Rey, an economist and policy analyst at the Organization for Economic Cooperation and Development's (OECD) Eurasia Division, told Trend that with sufficient investment and more coherent procedures to reduce transport costs, TITR could further increase its attractiveness and stimulate regional trade.
Agil Asadov, Head of the Strategic Planning and Development Department at the Center for Analysis of Economic Reforms and Communication (CAERC), highlighted the significance of the Middle Corridor as reflected in the latest report by the international rating agency Moody's. Asadov expressed confidence that TITR will play a unifying role for Turkic states, which collectively have a GDP of over $1 trillion. He believes TITR will support the diversification of the region's economies and strengthen their credit profiles.
Fariz Aliyev, Department Head of the Ministry of Digital Development and Transport of the Republic of Azerbaijan, announced at a conference on promoting logistics and trade in Azerbaijan that 87 block trains carrying cargo from China have been sent along the Middle Corridor since the beginning of this year.
The importance of the Trans-Caspian International Transport Route is also recognized in the US. From July 14 through 19, Acting Special Coordinator for the Partnership for Global Infrastructure and Investment (PGI), Helaina Matza, is to visit Kazakhstan and Uzbekistan. According to the US State Department, this visit aims to advance ongoing US efforts to promote strategic infrastructure investments in the Middle Corridor.
One of the key segments of TITR is the Baku International Sea Trade Port (BISTP), which is certified as a Green Port by the UN International Maritime Organization. Last week, it was announced that the Brazilian National Confederation of Industry (CNI) will hold talks with the management of BISTP in November 2024 within the framework of COP29, focusing on its development using the latest technologies.
Last week, Bulgaria announced steps to develop the Middle Corridor through the planned resumption of a Black Sea ferry service with Georgia. Representatives of Bulgarian Railways (BDZ), Bulgarian P.N.A. Ltd. maritime company, and Georgian Railways signed an agreement in Tbilisi to re-establish the Black Sea ferry service. The document emphasized that "the re-establishment of the ferry service is vital in terms of increasing the efficiency of the Trans-Caspian International Transport Route."
Additionally, Belgium's Jan De Nul Group announced it is expanding its operations in Turkmenistan, anticipating increased cargo traffic along the Trans-Caspian International Transport Route.
Other significant transportation news last week included an interview with Elshad Nuriyev, Chairman of the Board of the Baku Shipyard, on Euronews. He highlighted three key performance indicators (KPIs) to optimize the shipyard's operations. The first KPI focuses on improving the production process, such as using augmented reality technology in welding. The second KPI aims to enhance employee qualifications through partnerships with local educational institutions. The third KPI emphasizes environmental sustainability.
Additionally, Clarksons Research shared a forecast last week predicting that by 2030, more than 20 percent of the world fleet will be powered by alternative, environmentally friendly fuels. This trend has led to growth in the portfolios of shipbuilding companies worldwide, including Baku Shipyard.