Middle Corridor: Partners in Trans-Caspian region invest in terminals Caliber.Az review

Interest in cargo transportation along the Trans-Caspian International Transport Route (TITR) is rapidly growing due to the relatively short delivery distances, convenience, and security of logistics. Against the backdrop of dynamic growth in cargo transportation along the Middle Corridor, Azerbaijan and its partners are increasing investments in port development and the modernization of other transport communications along the entire route. Specifically, Azerbaijan and Kazakhstan, with the support of China, are preparing to build an intermodal terminal at the Baku International Sea Trade Port (BISTP) in Alat. During a recent meeting between the foreign ministers of Kazakhstan and Azerbaijan, it was noted that funding for the terminal will be provided through a joint investment fund.

The significance of Trans-Caspian container and road cargo handling for Central Asian countries and China, as well as for Türkiye and the EU along the Middle Corridor, cannot be overstated. Azerbaijan, with its strategic geographic location and well-developed logistics and transport infrastructure, plays a central role in this project. In collaboration with regional partners—Kazakhstan, Georgia, and Türkiye—Azerbaijan is working to optimize regional logistics by modernizing and implementing digital technologies in transport infrastructure, standardizing transportation tariffs, and harmonizing customs regulations. This concerted effort has led to favorable cargo transportation rates, particularly through Azerbaijan's main seaport, the Port of Alat.

According to data from BISTP, the total cargo turnover at Baku Port reached 7.6 million tons in 2024, with container traffic rising by 73%. Last year, 310 block trains were transported along the Middle Corridor, and by January 2025, an additional 40 block trains were expected. For comparison, container handling through the port amounted to 44,272 TEUs in 2023, while in 2024, this figure increased to 76,775 TEUs. The scale of logistical progress is particularly striking when compared to the figures from seven or eight years ago, when annual container turnover was around 15,000-20,000 TEU—representing a 4-5-fold increase over this period.

Khudayar Hasanli, Head of the Strategic Planning and Development Department of BISTP, predicts that 600 block trains will be launched along the Middle Corridor route in 2025. These figures underscore the growing importance of BISTP as a key intermodal transport hub, not just for Azerbaijan, but for the entire region.

To further increase cargo transportation volumes, participants in the TITR project must expand their transport logistics. To this end, they are investing hundreds of millions of dollars into the development of railway and port infrastructure. This is critical, as the China-Kazakhstan border often faces significant congestion during cargo handling. Additionally, the "bottleneck" effect is also observed at the Port of Aktau due to infrastructure limitations and harsh weather conditions that hinder navigation.

To address these challenges, Azerbaijan and Kazakhstan signed a Roadmap two years ago to synchronize the elimination of "bottlenecks" and develop the Middle Corridor from 2022 to 2027. This includes joint efforts to digitize TITR logistics, carry out dredging works at the Kazakh port of Kuryk, develop railway infrastructure, and increase the number of locomotives to facilitate the loading and unloading of train cars. Plans also involve expanding the throughput capacity of the modernized Aktau port.

Planned projects include the construction of a bypass railway line around the Almaty railway junction, which will redirect cargo flows to the new Zhetigen–Kasym-Korpesh–Zhaiyk railway route, the construction of a new railway line from Bakhti to Ayagoz, and the opening of a third border crossing with China at "Bakhti–Chuguchak."

Azerbaijan is carrying out similar work, having completed the modernization of the Georgian section of the Baku-Tbilisi-Kars (BTK) railway last year, which increased its capacity from 1 million to 5 million tons of cargo per year. Even more ambitious projects have been underway at the Alat Port for several years. As President Ilham Aliyev mentioned in an interview with the Chinese television channel CGTN (China Global Television Network) in Davos, Azerbaijan has developed a modern and advanced transport infrastructure, and today, a key area of development is the implementation of transport connectivity projects in partnership with China and Central Asian countries.

"Our target was to have a handling capacity of 15 million tons at our trade sea port, and that would have been enough for decades. But now we expect 25 million tons within probably 5 or 6 years. So, what are we doing at the moment? We are financing the expansion of our trade sea port and our railroad infrastructure," the president emphasized.

Notably, the capacity of the first phase of Baku Port is 100,000 TEU, and currently, over 76% of the container terminal's capacity is being used. The next step is to increase this figure to 150,000 TEU, and in the longer term, container capacity will be expanded to 500,000 TEU. These initiatives are planned to be implemented with the help of additional infrastructure projects and the potential of new terminals. A key step in this direction was the signing of an agreement between Azerbaijan, Kazakhstan, and China to create a joint venture (JV) for the construction of an intermodal cargo terminal at the BISTP port. The document was signed in Baku during the UN climate conference COP29 in November last year. The agreement was signed by the leadership of SK-AIH Investment Fund (JSC "Samruk-Kazyna," Azerbaijan Investment Holding), Kazakhstan Temir Zholy (KTZ), BISTP, and Xi’an Free Trade Port Construction and Operation (China).

Last year, Baku and Astana established a joint investment fund with an initial capital of $300 million. The primary objective of this fund is to finance infrastructure projects in both brotherly countries. The fund’s first project is expected to be the investment in the construction of an intermodal terminal at Alat Port. This was recently confirmed by Kazakhstan's Minister of Foreign Affairs, Murat Nurtleu, following talks with Azerbaijan's Minister of Foreign Affairs, Jeyhun Bayramov, in Astana.

According to preliminary data, the new terminal will include a universal cargo area, a covered warehouse complex of 5,000 square meters, and a container yard with a capacity of over 1,000 containers. Initially, the intermodal terminal will handle between 330,000 and 350,000 containers annually, measured in TEU equivalents. This facility will not only boost container throughput but will also create warehouse infrastructure for cargo storage. The future terminal will feature a warehouse area designed to receive and store goods as part of multimodal transportation, where goods are delivered by various companies or transport modes at different time intervals.