BAKU, Azerbaijan, July 18. The Middle Corridor
should become not just a transport but also an economic route.
This was announced in an article by the President of PMCG
consulting company, Aleksi Aleksishvili.
According to him, the Middle Corridor (Trans-Caspian
International Transport Route) has a chance to become not only an
alternative transport route linking Europe and Asia but also a
fully-fledged economic corridor capable of attracting investment,
fostering industrial development, and integrating the region into
global supply chains,
"The rapid rise of the Middle Corridor has been driven by
profound geopolitical and economic shifts, including the disruption
of traditional trade routes following the COVID-19 pandemic, supply
chain reconfiguration, and the consequences of Russia's war against
Ukraine. These developments have significantly increased
international interest in an alternative route connecting Europe
and Asia through the South Caucasus and Central Asia.
Asia accounts for approximately 30-35 percent of global exports,
while Europe represents around 35-40 percent of global imports. For
decades, trade between the two regions has relied primarily on the
Suez Canal and the Northern Route. However, rising geopolitical
risks and supply chain vulnerabilities have prompted governments
and businesses to seek more resilient trade corridors.
The author stressed that the key challenge today is not simply
increasing cargo volumes but transforming the transport route into
an economic corridor.
"Transport corridors move goods. Economic corridors create
value. They attract investment, stimulate industrial development,
support integration into global supply chains, and generate
employment and prosperity.
The region has already made considerable progress, with trade
among Central Asian economies expanding significantly over the past
decade and commercial ties between Central Asia, China, Türkiye,
the South Caucasus, and the European Union continuing to
deepen.
Nevertheless, the Middle Corridor remains significantly
underutilized. According to the article, it accounted for only
around 1 percent of EU–China trade volume and approximately 5
percent of trade value in 2023, while its capacity remains below 10
percent of that of the Northern Route.
At the same time, World Bank projections suggest that trade
along the corridor could increase by as much as 4.5 times by 2040
if operational and regulatory bottlenecks are addressed," he noted
in the article.
Aleksishvili expressed the opinion that infrastructure
development alone will not guarantee the corridor's success. He
identifies differences in customs procedures, trade regimes,
regulatory frameworks, and institutional capacities as major
obstacles. In addition, only five of the eight countries along the
corridor are members of the World Trade Organization, meaning a
fully rules-based trading environment has yet to be established
across the entire route.
"Another widely spread error is the perception of the Middle
Corridor as a project of single countries. The corridor is only as
competitive as its weakest link," he writes, emphasizing that its
efficiency depends on the coordinated performance of all
participating countries, ports, railways, border crossings,
logistics operators, and institutions.
The sustainable development of the Middle Corridor is impossible
without the active participation of the private sector. Along with
public investments, the development of competitive logistics
markets, access to trade finance, insurance instruments, and modern
commercial institutions is also essential.
The importance of the Middle Corridor extends well beyond the
countries it crosses, offering Europe and Asia a more diversified,
resilient, and geopolitically balanced connection at a time when
supply chain security has become a strategic priority.
The current momentum surrounding the Middle Corridor represents
a rare opportunity. The challenge now is to move beyond
infrastructure construction and focus on building institutions,
harmonizing regulations, and strengthening regional cooperation.
Only then can the Middle Corridor evolve from a transit route into
a genuine economic corridor that generates long-term prosperity
across Eurasia," the author concluded.
Earlier, the PMCG told Trend in an exclusive interview that Azerbaijan
occupies one of the key strategic positions in the Middle Corridor
not only due to its geographical location, but also due to its
growing role in regional coordination, development of railway
connectivity, and promotion of stability in the South Caucasus,
The company noted that, as an important transit country
connecting Central Asia with the South Caucasus and further with
Europe, Azerbaijan, together with Georgia, is a critical hub where
sea and rail transport between the Caspian and Black Seas
intersect.
"In this context, an effective link between the port of Baku on
the Caspian Sea and the Georgian ports on the Black Sea, primarily
Batumi and Poti, is of particular strategic importance. These ports
serve as the main maritime gateways for cargo flows from the Middle
Corridor to European markets, complementing land routes such as the
Baku-Tbilisi-Kars railway. Recent positive developments in
relations between Azerbaijan and Armenia have also improved the
prospects for long-term stability and transport connectivity in the
South Caucasus. Azerbaijan's constructive role in promoting
regional cooperation is an important factor in the sustainable
development of the Middle Corridor," PMCG noted.
The company stressed that close operational cooperation between
Armenia, Azerbaijan, Georgia, and Türkiye remains the cornerstone
of increasing capacity, synchronizing logistics operations, and
reducing transit times.
"Increasing the capacity and security of the Middle Corridor
requires a focus on developing multimodal transport and further
modernizing infrastructure, especially between the Caspian and
Black Seas. Additional investment is required in the railway
infrastructure connecting Azerbaijan with Georgia's Black Sea
ports, as well as in the development of port infrastructure.
Equally important is greater private sector participation in rail
freight transport and the strengthening of corporate governance in
state-owned enterprises. Enhanced coordination between the
transport ministries of Armenia, Azerbaijan, and Georgia, supported
by digital platforms and unified procedures, will significantly
improve the corridor's efficiency," PMCG said.
The company noted that the Middle Corridor creates significant
opportunities for attracting foreign investment in port
infrastructure, railway logistics hubs, and value-added services in
supply chains.
"Growing international interest in supply chain diversification,
including U.S. initiatives in the field of critical minerals and EU
strategies for developing interconnectivity, further enhances
Azerbaijan's investment attractiveness. PMCG plans to support the
development of the Middle Corridor by conducting technical and
economic studies, promoting regulatory policy reforms, building
institutional capacity, and assisting in mobilizing international
financing. The company intends to promote closer regional
coordination and integrated planning between the Caspian and Black
Sea segments of the corridor," PMCG added.
The Middle Corridor is a multimodal trade route connecting Asia
and Europe through several countries in the region and serving as
an alternative to the traditional Northern and Southern corridors.
The route begins in China and passes through Central Asian
countries before crossing the Caspian Sea, Azerbaijan, Georgia, and
Türkiye, ultimately reaching Europe. It is a land-based transport
route that bypasses longer maritime routes, linking the eastern
parts of Asia, including China, with European markets.
