Kazakhstan Seeks German Support for Trans-Caspian Transport Route

The Trans-Caspian International Transport Route (TITR), commonly known as the Middle Corridor, took center stage at the meeting of the heads of state of Central Asia and the Federal Chancellor of Germany Olaf Scholz in Astana on Tuesday.

Kazakh President Kassym-Jomart Tokayev underscored the potential of the Middle Corridor in driving economic growth. He expressed optimism that Germany would assist in integrating the TITR with the Trans-European Transport Network (TEN-T) and the Global Gateway strategy. President Tokayev stressed that modernizing and digitalizing Caspian Sea ports and constructing new cargo terminals would open up substantial investment opportunities.

"Further integration of the transport and logistics systems of Central Asia and Europe remains an urgent task," Tokayev said, highlighting the need for closer cooperation between the two regions.

He welcomed the European partners' decision to allocate 10 billion euros ($11.1 billion) through the Global Gateway program to support the development of the Middle Corridor.

“We rely on Germany’s assistance in connecting this route with the Trans-European Transport Network (TEN-T) and the Global Gateway,” Tokayev said.

President Tokayev also touched upon the prospect of increasing trade between Kazakhstan and Germany, voicing Kazakhstan's readiness to increase exports to Germany across 100 commodity categories, amounting to $850 million. Additionally, Tokayev made it clear that Kazakhstan is ready to boost oil exports to the German market.

"Acting as a reliable and one of the major suppliers of energy resources to Germany, Kazakhstan is ready to increase its oil exports to the German market," Tokayev stated. "We are counting on further support from German partners to ensure long-term and stable supplies of hydrocarbons."

In 2023, Kazakhstan delivered 993,000 tonnes of oil to Germany through the Druzhba pipeline. Kazakhstan's KazTransOil plans to ship up to 1.2 million tonnes of Kazakh oil to Germany via the Transneft pipeline system towards the Adamowo-Zastawa oil delivery point in 2024.

The Druzhba pipeline, one of the world’s longest oil pipelines, has played a pivotal role in Kazakhstan’s emergence as a key player in the European oil market.

In October 2023, Kazakh Energy Ministry said that the country might increase its oil exports to Germany via Druzhba from 1.2 million tonnes to 2 million tonnes per year, with the final volume to be determined after further negotiations.

The Middle Corridor offers a faster and more economical trade route compared to the Northern Corridor, shortening the journey by approximately 2,000 kilometers. Spanning around 4,250 kilometers of rail and 500 kilometers of seaway, this route connects China, Kazakhstan, Uzbekistan, Turkmenistan, the Caspian Sea, Azerbaijan, Georgia, the Black Sea, and Türkiye, ultimately reaching Europe. This corridor's effective use is expected to unlock significant economic opportunities for South Caucasian and Central Asian nations, tapping into the massive $600 billion annual China-Europe trade. Plans are underway to increase the route's capacity from 6 to 10 million tons of cargo by 2025.

Kazakhstan’s strategic location and access to the Caspian Sea strengthen its ability to support East-West transport projects. By May 1, 2024, cargo transport via the TITR had increased by 14 percent compared to the previous year, reaching 1.4 million tonnes. This included equipment, consumer products, and agricultural goods.

President Tokayev also discussed environmental issues, acknowledging Germany's long-standing support for Central Asian countries in addressing climate change, improving environmental conditions, and enhancing water and energy sector efficiency. He emphasized the importance of cooperation in the green transition and the conservation of water resources.