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Monday December 16 2024

Azerbaijan, Kazakhstan synergize efforts to enhance trade links via Middle Corridor

16 December 2024 08:30 (UTC+04:00)
Azerbaijan, Kazakhstan synergize efforts to enhance trade links via Middle Corridor
Nazrin Abdul
Nazrin Abdul
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The Trans-Caspian International Transport Route, also known as the Middle Corridor, is rapidly emerging as a central axis for trade between Asia and Europe. A recent announcement from Kazakhstan underscores the growing importance of the corridor, with Kazakhstan’s “Semurg Invest” LLC planning to deploy an additional cargo ship between the port of Kurik and the ports of Azerbaijan. This is just one of many developments that showcase how the Middle Corridor, with Azerbaijan at its heart, is becoming an increasingly vital trade route linking the two continents.

Azerbaijan's strategic role in the Middle Corridor

Azerbaijan plays a pivotal role in the success of the Middle Corridor. Its location, strategically positioned at the crossroads of Europe and Asia, makes it the key transit hub for cargo passing through Central Asia, the Caspian Sea, and into Europe. Azerbaijan’s infrastructure, particularly its seaports in Baku and Kurik, along with its strong logistical connections, are crucial to the functioning of the Middle Corridor.

One of the key developments in this regard is the continued expansion of Azerbaijan’s maritime and port infrastructure. Nurjan Marabayev, General Director of “Semurg Invest” LLC, recently confirmed that Kazakhstan will add a new cargo ship to the route connecting Kurik port with Azerbaijan’s ports. This new vessel, capable of carrying 240,000 tons of export cargo annually, will further cement Azerbaijan's role as the main gateway for trade between Central Asia and Europe.

Kazakhstan’s contribution to strengthening the Corridor

While Azerbaijan is central to the Middle Corridor’s operations, Kazakhstan is also making significant strides to enhance its maritime capabilities. Kazakhstan's “Semurg Invest” is adding a dry cargo ship with a capacity of 7,400 tons, which will be mobilized between the Kurik and Azerbaijan ports. The ship is expected to reach Kurik port by December 20. Marabayev noted that Kazakhstan is also working to expand its merchant fleet, with plans to add up to six vessels in the coming years.

This effort to boost maritime logistics is part of Kazakhstan's broader strategy to modernize its navy and develop more reliable and efficient cargo transport routes, particularly in the face of growing demand for the Middle Corridor. By strengthening its naval capacity, Kazakhstan aims to complement Azerbaijan’s key role in making the Middle Corridor a more robust trade route.

Surge in cargo volumes and strategic developments

The Middle Corridor's significance continues to grow, as evidenced by the latest data on cargo volume. In the first ten months of 2024, the volume of cargo transported via the Trans-Caspian International Transport Route increased by 68%. Container shipments alone surged by 2.7 times compared to the previous year. Kazakhstan's Transport Minister, Marat Kabayev, highlighted that 2.3 million tons of cargo were moved by rail, and 6.3 million tons were carried by sea, marking a steady increase in the flow of goods through the Middle Corridor.

Importantly, much of this traffic passes through Azerbaijan's vital ports, especially the Port of Baku, which serves as a major hub for transshipment in the Caspian region. Azerbaijan's long-term vision for its port infrastructure includes increasing container capacity, improving logistics opeations, and fostering greater regional cooperation, all of which enhance the Middle Corridor's ability to handle growing volumes of trade.

Investments in Azerbaijan’s maritime infrastructure

Azerbaijan is committed to expanding its maritime infrastructure to support the Middle Corridor’s increasing traffic. A comprehensive plan for the development of maritime infrastructure between 2024 and 2028 has been adopted, which focuses on upgrading the ports of Aktau and Kurik to handle growing cargo volumes. These improvements will include the creation of a large maritime transport and logistics cluster, the development of cargo terminals, and measures to reduce administrative barriers.

A key part of this plan includes the ongoing dredging works at Kurik Port, designed to ensure the safety of navigation and increase the port’s capacity. The dredging is being carried out by the renowned European company, Jan de Nul, and is expected to further increase Kurik Port’s annual capacity from 6 million tons to even greater levels. These efforts are part of a broader regional strategy to ensure the Middle Corridor can handle the surging demand for efficient, reliable trade routes.

The Port of Baku, which links Azerbaijan to the broader Caspian region, also plays a central role in this development. Azerbaijan’s strategic investments in expanding its port infrastructure are key to positioning the Middle Corridor as a leading route for cargo moving between Asia and Europe.

Azerbaijan’s growing role in regional connectivity

Azerbaijan's geographic position makes it the linchpin of several important regional transport corridors, including the East-West and North-South corridors. As the Middle Corridor becomes more integral to global trade, Azerbaijan’s role as a trade facilitator and logistics hub is only growing. The country’s ports, railways, and highways are increasingly interconnected, allowing for faster, more reliable transportation of goods between Europe, Central Asia, and China.

In addition to its role in facilitating cargo shipments, Azerbaijan is also focusing on the development of an integrated transportation network. This includes improving connections between sea, rail, and road transport systems, which will enhance the efficiency of logistics services across the region.

As Kazakhstan strengthens its maritime capabilities, Azerbaijan remains the central player in the Middle Corridor’s growth. With its strategic location, expanding port infrastructure, and significant investments in logistics and transportation, Azerbaijan is poised to continue playing a central role in the success of this vital trade route.

The ongoing developments in the Kurik and Baku ports, coupled with Kazakhstan's efforts to enhance its own maritime capacity, are paving the way for the Middle Corridor to become one of the most important trade routes linking Asia and Europe. Azerbaijan's leadership in this project underscores its growing influence in regional and global trade, positioning the country as a critical hub in the evolving global logistics network.

Through continued collaboration and investment, Azerbaijan and its partners are ensuring that the Middle Corridor remains a robust and reliable trade route for years to come.

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