The Middle Corridor is increasingly positioned as a critical trade alternative amid global logistical disruptions and geopolitical uncertainties. At a recent business event in Brussels, Stef Goris, Chairman of the Belgian-Azerbaijani Chamber of Commerce, articulated this sentiment, highlighting Azerbaijan’s unique role within this evolving trade landscape. He emphasised that Azerbaijan is the only viable overland corridor linking Europe to Central Asia, China, and the far East, asserting its geographic advantage to establish a regional hub for logistics, energy transition, high-tech manufacturing, and international investment.
The Middle Corridor, a vital trade route, traverses several key countries, beginning in China and winding through Kazakhstan, Uzbekistan, and Turkmenistan. From there, it crosses the Caspian Sea into Azerbaijan, eventually leading to Georgia and Türkiye before reaching Europe. One of the corridor’s standout features is its ability to provide a land route that considerably shortens the distance between Eastern Asia and Europe compared to traditional maritime routes. In fact, this corridor can reduce travel distances by approximately 2,500 kilometres, with transit times of just 10 to 15 days, significantly enhancing supply chain efficiency.
Kazakhstan is also making strides towards establishing itself as a central link within the Middle Corridor. Recent investments in port infrastructure, particularly in Aktau, aim to double oil exports and bolster trade, despite existing logistical challenges. With regional agreements and financial commitments from both China and the European Union, freight volumes through Kazakhstan are expected to surge, facilitating the broader aims of the corridor while simultaneously diversifying its economy to lessen reliance on Russia.
The economic impact of the Middle Corridor cannot be overstated. Recent data indicate an impressive 63% year-on-year increase in cargo volume, reflecting the corridor’s growing importance in global trade. Azerbaijan, in particular, reported an astonishing 86% increase in cargo transportation through the corridor in 2023, with projections suggesting around four million tonnes will be moved in 2024 alone. With developments in rail and port capacities, including a unified tariff system and the introduction of a ‘single window’ principle along the route, Azerbaijan is positioning itself as a key player in this burgeoning logistical network.
Moreover, the World Bank underscores the corridor’s potential to triple freight volumes and halve travel times by 2030, contingent upon timely investments and strategic policies. This projection not only signals the corridor’s significance for trade but also points to broader regional economic benefits, including job creation and enhanced infrastructure. Various countries are collaborating to cultivate the corridor’s infrastructure, marking a concerted effort to boost connectivity and trade efficiency in the region.
In an era where supply chains are under constant strain, the Middle Corridor presents a robust alternative that not only facilitates trade but also contributes to regional stability and economic resilience. For European businesses, particularly those in Belgium, Goris describes this initiative as an “invitation” to partake in shaping a modern logistical backbone, fostering trade links that extend from Antwerp to Almaty, and beyond.
As the geopolitical landscape continues to shift, the Middle Corridor emerges not merely as a route, but as a transformative platform that can redefine how trade flows between Asia and Europe, ensuring a more secure and reliable path for goods and services.
Reference Map
- Paragraphs 1, 2, 3: Source [1]
- Paragraph 4: Sources [2], [3]
- Paragraph 5: Sources [5], [6]
- Paragraph 6: Sources [5], [6], [7]
- Paragraphs 7, 8: Source [1], [5]
Source: Noah Wire Services
Subscribe to Industry Updates
