BAKU, Azerbaijan, September 28. Additional
investments in the Middle Corridor will need to be considered in
the 2030s to address operational constraints that may become
relevant as freight volumes increase.
This was stated in the World Bank report “Integration:
World-Class Trade Logistics along the Trans-Caspian Transport
Corridor.”
It notes that the development of the Middle Corridor will
require not only investment in transport infrastructure, but also
improved cross-border cooperation, simplified trade procedures and
higher-quality transport services.
According to the report, at the initial stage, railways and
roads, seaports, border crossing points and inland ports along the
entire route need to be expanded, modernized and upgraded. These
investments should be made in accordance with priorities and in a
coordinated manner.
The World Bank notes that currently 92 percent of cargo
transported across the Caspian Sea consists of commodities such as
grain, fertilizers, construction materials and fuel: “For such
shipments, the availability of transport capacity and the lowest
possible direct transportation costs are of key importance.”
“As the Middle Corridor is still at the development stage, most
infrastructure investments are needed in the short term,
particularly by 2030. This will help eliminate existing bottlenecks
along the route.
At the same time, in the 2030s, additional investments will need
to be considered to address operational constraints that may become
relevant as freight volumes increase.
However, infrastructure development alone will not be sufficient
to improve logistics efficiency and attract new shippers.
As the economies of the corridor's participating countries
diversify, and as shippers from East Asia and Europe show growing
interest in transporting high-value and time-sensitive goods, the
need to improve the quality of transport services and coordinate
shipments will increase.
Improving cross-border cooperation, facilitating trade and
enhancing the quality of services provided will also be necessary
to realize the corridor's full freight and economic potential,” the
report says.
The World Bank emphasizes that the relevant reforms and new
approaches need to be developed and implemented in the short term:
“However, their transformative nature means that implementing these
measures will be a long-term process and may take the next 10–15
years.”
It notes that this process will require testing different
approaches, sharing accumulated experience, international
coordination and improving decision-making mechanisms based on the
results obtained and the need to adjust the course.
