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Azerbaijan, Turkmenistan Join Hands to Ramp Up Middle Corridor Potential

By Ilham Karimli June 27, 2024

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Delegations from railway administrations of Azerbaijan and Turkmenistan hold meeting in Ashgabat, Turkmenistan, June 24, 2024 / Azerbaijan Railways

Azerbaijan and Turkmenistan are ramping up collaborative efforts to enhance rail freight transportation across Eurasia, particularly through the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor.

On his recent trip to Turkmenistan, Rovshan Rustamov, Chairman of Azerbaijan Railways (ADY), held comprehensive discussions with Azat Atamuradov, Leader of Turkmenistan's Railway Agency, and a top delegation from the Turkmenistan Maritime Agency.

The talks held on Monday focused on fortifying relations in the field of railways between the two countries and boosting the volume of freight traffic, especially through multimodal transport along the Central Asia-Europe-Central Asia and China-Europe-China routes, recognizing the vast potential for collaboration and the need to promote these opportunities in the European market.

Additionally, during his visit, Rustamov met with executives from Turkmenistan's top oil and gas companies, detailing Azerbaijan's initiatives to expand the capabilities of the Middle Corridor.

TITR or the Middle Corridor, initiated in 2013, is seen as the main pivot for realizing the high transit potential of the Central Asian and South Caucasus nations. Azerbaijan, Bulgaria, China, Georgia, Kazakhstan, Poland, Romania, and Türkiye are the TITR International Association member states.

Compared to the Northern Corridor, the Middle Corridor, consisting of about 4,250 km of rail lines and about 500 km of seaway, provides a more cost-effective and faster trade route, cutting travel distance by 2,000 kilometers.

Additionally, the Middle Corridor passes through more favorable climate conditions and reduces travel time by 15 days compared to sea routes. The Middle Corridor also presents immense opportunities for cargo traffic in Asia, enabling goods to reach the Middle East, North Africa, and the Mediterranean region by integrating port connections in Türkiye.

The strategic location of the Middle Corridor is expected to create significant economic opportunities, enabling South Caucasian and Central Asian countries to benefit from the $600 billion China-Europe trade annually.

The development and deepening of Trans-Caspian cooperation will be facilitated by the establishment of logistics centers and free trade zones at the ports of Azerbaijan, Kazakhstan, and Turkmenistan, providing a boost to regional economies. By leveraging the benefits of the Middle Corridor effectively, the countries in the region can reap the rewards of increased trade and economic growth.

Azerbaijan has been increasingly investing in the Middle Corridor’s development by upgrading its multimodal transport grid, including railways. In May, ADY announced the completion of the project for the expansion of the Baku-Tbilisi-Kars railway. The 184-km Georgian section of this line has been modernized allowing to increase annual throughput volume from 1 million tons to 5 million tons.

After resumption of freight operations, the first train on the upgraded BTK left Azerbaijan for Türkiye, completing the journey on May 25. Since its launch in 2017, BTK transported nearly 1.5 million tons of freight, according to the railway administration of Türkiye.

The Middle Corridor and Turkmenistan

Turkmenistan has been consistently seeking effective pathways for exporting its primary commodities, including oil and natural gas. Consequently, it has been a proactive advocate for the Middle Corridor from an early stage.

In 2023, Turkmen officials explored the idea of a transnational highway stretching to China. Demonstrating its commitment to the Middle Corridor, Ashgabat invested $1.5 billion during the 2010s to enhance its principal intermodal transshipment hub at Turkmenbashi port. With expectations of increased trade via the Caspian Sea, the expansion aimed for Turkmenbashi’s facilities to manage up to 17 million tons of cargo annually, including 400,000 shipping containers.

In April, Chairman of Turkmendenizderyayollary (Turkmen Sea and River Routes), Batyr Annaev, said integration of the Turkmenbashi port into the Middle Corridor would contribute to the growth of the economies of Central Asian countries and strengthening their position in the world market.

He highlighted Turkmenistan's uninterrupted measures to boost activity at the Turkmenbashi port. Efforts include implementing incentives such as reductions in port fees and maritime transport discounts. The port maintains regular ferry services with the Baku Sea Trade Port and feeder transportation with dry cargo ships.

“It (Turkmenbashi port) plays an important role in the transit system of Central Asia, being a link in the East-West corridor. With a throughput capacity of 17 million tons per year, the port can process the entire range of goods in demand in the region. Regular cargo transportation is carried out along the route Turkmenbashi - ports of the Caspian states," Annaev stated.