BAKU, Azerbaijan, September 28. The cost of 16 priority infrastructure projects for the Middle Corridor, also known as the Trans-Caspian Transport Corridor, is estimated at $25.1 billion, according to a World Bank report titled Integration: World-Class Trade Logistics Along the Trans-Caspian Transport Corridor.
The World Bank said the Middle Corridor is gradually emerging as a viable trade route for bulk supply chains. Against the backdrop of growing trade barriers between Eurasian countries in recent years, the Trans-Caspian Corridor has attracted increasing attention from governments, according to the report.
“This is accompanied by significant infrastructure development initiatives by the countries along the corridor, often with support from international financial institutions, including the World Bank,” the report said.
Of the 16 most urgent or significant infrastructure investments currently needed along the Trans-Caspian Corridor, with a combined estimated cost of $25.1 billion, 75% are already underway or are expected to be launched in the near future, according to the report.
“These necessary investments are targeted and therefore have a sound economic basis,” the World Bank said.
At the same time, the World Bank noted that additional investments will be required beyond the 16 priority projects, while new investment opportunities may emerge for the countries along the corridor. The report also identifies some of the most significant ones.
The current pace of infrastructure investment suggests that the main constraint on further development of the Trans-Caspian Corridor is likely to be operational efficiency rather than a lack of infrastructure, according to the World Bank.
The bank said the most pressing, although long-term, task for the corridor is to become a competitive and resilient route for container transportation. Achieving this will require significant changes aimed at improving the corridor’s efficiency.
“Serving container markets requires regular services with fixed schedules, a high degree of reliability, built-in transparency, rapid management of disruptions and secure digitalization,” the report said.
The World Bank also called for a review of the transport, transit and trade processes governing the corridor’s logistics system, as well as mechanisms for cross-border cooperation.
The report emphasized the need for a new approach to integration covering data, documentation, decision-making, investment and services.
“At present, the Trans-Caspian Corridor lacks this level of integration,” the World Bank said.
At the same time, the bank concluded that international experience from the development of other trade corridors shows that achieving such a level of integration is possible through targeted action, coordinated cooperation and a long-term approach, while also requiring immediate measures.
