BAKU, Azerbaijan, June 19. Improving the reliability, predictability and operational efficiency of the Middle Corridor is essential to attracting more investors and cargo operators to the trade route, according to a senior official at the Asian Infrastructure Investment Bank (AIIB), Trend's correspondent reports from the event.
Speaking at the 14th Islamic Development Bank Group Private Sector Forum in Baku, AIIB Director General Xiaohong Yang said countries along the corridor have already begun taking steps to enhance transport efficiency, but additional improvements are needed.
"Infrastructure and operational efficiency remain key challenges," Yang said. "The most important thing for us is the reliability and predictability of the route."
She noted that these factors are increasingly influencing decisions by investors and shippers considering the corridor as an alternative trade route between Asia and Europe.
According to Yang, cargo transit times along the Middle Corridor have been reduced from about one month to 18 days in recent years, though she said further reductions would help strengthen the route's competitiveness.
Yang also highlighted Azerbaijan's efforts to modernize its transportation infrastructure, citing the activities of the Azerbaijan Caspian Shipping Company (ASCO) and other government agencies.
During a recent visit to ASCO, she said she was impressed by plans to modernize the company's fleet, expand port capacity and develop digital platforms to improve logistics operations.
"I was also impressed by the level of coordination with Kazakhstan aimed at strengthening regional supply chains," Yang said.
The AIIB official stressed that developing Middle Corridor projects will require a comprehensive financing framework that combines public investment, state-owned enterprise participation and blended finance mechanisms.
Support instruments such as grants and blended financing can play an important role during the project preparation stage, she said.
"Successful implementation of initiatives requires a combination of sovereign financing, guarantee instruments, credit support and other financial mechanisms," Yang added.
She noted that the long-term success of infrastructure projects depends not only on financing but also on strong institutions and a modern transportation network.
The Middle Corridor, also known as the Trans-Caspian International Transport Route, connects China and Central Asia with Europe through the Caspian Sea, the South Caucasus and Türkiye.
