WB offers ways for Azerbaijan, Kazakhstan and Georgia to increase efficiency of Middle Corridor

To improve the efficiency of the Middle Corridor (Trans-Caspian International Transport Route), the World Bank (WB) recommends that Azerbaijan, Kazakhstan and Georgia provide the ability to track cargo along the entire transport network.

According to the WB’s report, to ensure the transition to a unified electronic document flow, covering both rail transportation and transportation across the Caspian Sea is proposed for this purpose, Report informs.

"It would be advisable to promote cargo consolidation, shift to rail transportation and improve the balance of cargo flows between East and West by creating logistics hubs. Apart from that, it is necessary to ensure transparency and predictability of final transportation tariffs," the report says.

The WB recommends that Azerbaijan and Kazakhstan reduce the time spent by cargo in the port, increase container transportation capacity on the Baku-Aktau and Aktau-Baku routes, and reduce freight rates and port tariffs for containers. In addition, Azerbaijan needs to improve the efficiency of cargo transshipment from ships to shore, and Kazakhstan - to review the parameters of port closure and ensure non-discriminatory access to port services for all market participants. Georgia, in turn, the WB proposes to increase the efficiency of port-railroad/road transport transshipment, improve the condition of the navigation channel, and reduce port tariffs for containers (currently they are the highest in the entire Black Sea region).

Regarding railroads and border crossing points, the Bank's analysts suggest Kazakhstan to ensure availability of rolling stock, improve efficiency of shunting operations, and Azerbaijan and Georgia to ensure availability of rolling stock, especially at border crossing points between Georgia and Azerbaijan, and improve efficiency at the railway-sea port transshipment stage.

"These activities have the potential to have a significant impact with limited investment and can be considered high priority and require immediate attention," the WB notes.

The Bank expects that by 2030, traffic volumes along the Middle Corridor could grow three times faster than in 2021 and travel time could be halved.

"Thanks to the right combination of investments and operational improvements, the corridor will be able to contribute to the economic and political sustainability of transcontinental trade, develop the potential of Central Asia and the South Caucasus, ensuring a reliable route to China, Europe, and other parts of the world through access to seaports," the report added.

The Trans-Caspian International Transport Route runs through China, Kazakhstan, the Caspian Sea water area, Azerbaijan, Georgia and further to Türkiye and European countries.