China Partners with Kazakhstan, Azerbaijan, Georgia on Middle Corridor Initiative

China Railway Container Transport Corporation (CRTC) is set to join the Middle Corridor Multimodal joint venture, marking a significant step in China’s efforts to enhance its trade routes with Europe and Central Asia.

The decision comes after months of talks and was confirmed during the 8th International Silk Road Expo held in Xi'an from September 19-20, 2024.

CRTC first expressed interest in joining the Middle Corridor project in July 2024, following a series of discussions with transport officials from Kazakhstan, Azerbaijan, and Georgia. The Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), serves as a vital trade link between China and Europe, passing through several Central Asian and South Caucasian countries.

The Middle Corridor Multimodal joint venture was established in 2023 at the Astana International Financial Center (AIFC) and offers a “one-stop-shop” service for cargo delivery along this route. Its main goals are to improve transport coordination, provide transparent tariffs, and ensure consistent delivery times.

Year-to-date, 212 container block trains have traveled through Kazakhstan, Azerbaijan, and Georgia. The route has reduced the travel time from China to the Black Sea ports of Georgia to just 10-12 days. This efficiency highlights the potential of the Middle Corridor to become a major alternative to the traditional Northern Corridor, which is longer by about 2,000 kilometers.

In July, a Chinese railway delegation visited Tbilisi to meet with Georgian officials. They discussed upgrading Georgian railways and the future operation of the Baku-Tbilisi-Kars line, as a part of the Middle Corridor route. During these talks, CRTC reaffirmed its desire to partner in the joint venture.

China’s participation in the Middle Corridor aligns with Kazakhstan’s efforts to encourage more Chinese companies to use this route. Construction of key infrastructure in Xi’an and the Georgian port of Poti is already underway. Other projects, such as dry ports on the Kazakh-Chinese border and terminal expansions in the Georgian Black Sea ports, are also progressing.

CRTC’s decision also comes at a time when China is gearing up to construct a new railway line connecting Kyrgyzstan and Uzbekistan. This line is expected to facilitate faster cargo delivery from China to Central Asia, the Middle East, and eventually Europe. The route will enhance the connectivity between China, Kyrgyzstan, and Uzbekistan, further strengthening the Middle Corridor.

The Middle Corridor offers an economical and faster alternative to the Northern Corridor, spanning 4,250 kilometers of rail and 500 kilometers of sea routes. By passing through China, Kazakhstan, Uzbekistan, Turkmenistan, the Caspian Sea, Azerbaijan, Georgia, and Türkiye, it provides an important connection to European markets. As China-Europe trade exceeds $600 billion annually, this corridor presents major opportunities for Central Asian and South Caucasian countries to capitalize on this massive economic flow.