BAKU, Azerbaijan, October 7. The creation of a Private Sector Advisory Council (PSAC) could improve the efficiency of the Middle Corridor, the International Finance Corporation (IFC) said.
The IFC made the statement in a publication on the role of the private sector in unlocking the potential of the Trans-Caspian Transport Corridor, also known as the Middle Corridor.
According to the publication, the recommendation to establish a PSAC is included in a new flagship World Bank report on the Trans-Caspian Transport Corridor. The council is intended to bring together private-sector representatives, government authorities and corridor users on a single platform to identify bottlenecks and develop relevant reforms.
“How can we make the Middle Corridor perform better? Listen to the companies that use it. Private sector advisory councils are intended to bring together businesses, governments and corridor users to work together on the corridor’s problems and develop appropriate reforms,” said Sakshi Varma, senior operations officer at the IFC.
Martin Voetmann, global head of land transportation at KENKO Logistics, noted that intergovernmental cooperation is needed to ensure such coordination.
“This is where mechanisms such as the PSAC can be useful and become an effective instrument for ensuring coordination and alignment among countries in the Caspian region,” he said.
Varma also emphasized that involving the private sector in decision-making would allow the real needs and challenges faced by transport operators to be taken into greater account.
“When the private sector has a seat at the table, solutions are more likely to reflect real-world needs and problems. This would make the Middle Corridor more efficient and more attractive for investment,” she said.
The Middle Corridor is a multimodal trade and transport route connecting Asia and Europe through Central Asia, the Caspian Sea, Azerbaijan, Georgia and Türkiye. The route begins in China and runs through Central Asia before crossing the Caspian Sea and continuing through Azerbaijan, Georgia and Türkiye to European markets.
The Middle Corridor is being developed as an alternative to traditional northern and southern transport routes, providing connectivity between Asian markets, including China, and Europe. The World Bank says targeted investments and reforms along the corridor could significantly increase trade volumes and reduce travel times by 2040.
