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Azerbaijan aims to boost trade along China Turkey corridor

Azerbaijan's government expects the freight volume along the "Middle Corridor", a trade route, to rise 17% this year to 5.5 million tons before rising to 7 million tons in 2027.

The Trans-Caspian International Transport Route, also known by the name of the corridor, connects China to European countries via Kazakhstan and Azerbaijan. It also passes through Georgia, Turkey, and Georgia.

Containers containing clothing, electronics, and other consumer products, as well grain, coal, ore and fertilisers are transported along this route.

The corridor, with its annual capacity of over 15 million tons is still a tiny part of the rail traffic between China & Europe.

Baku, however, is expanding its port and rail infrastructure in order to gain a greater share of this trade. This is because many global logistics companies are diversifying away from Russia as a result of the war it has fought in Ukraine. The Iran war also disrupts other routes.

Aytan turabova, the head of the Transport Policy Department in Azerbaijan’s Ministry of Digital Development and Transport, stated that Azerbaijan’s total transit volume rose 10.1% on an annual basis during the first half of this year. Middle Corridor Freight grew by 13.1%.

Turabova stated that "we see sustained growth in the cargo flows, and expect this trend will continue as infrastructure, digitalisation of transport, and regional co-operation advance." The European Union has pledged up EUR200 million (229 million dollars) in grants to support transport, energy, and digital links throughout the South Caucasus. Meanwhile, the United States wants to promote a transit corridor from Azerbaijan to Turkey, which would cross Azerbaijan, Armenia, and other long-time enemies who signed an initial peace accord last year.

Around 87% of these projects are already in implementation or covered by short-term plans.

Rauf Agamirzayev is a Baku based transport analyst who said that the strategic importance of the corridor has increased 'in the last?years.

He said that the Middle Corridor route has seen a two-to-three-fold increase in cargo volumes since it was first introduced nine years earlier. "This momentum will continue through 2030."

Turabova stated that increasing the Middle Corridor’s capacity would require coordinated investment, harmonised tariffs and simplified border procedures.

She said that the expansion of Baku International Sea Trade Port would increase handling capacity from 15 to 25 millions tons and container capacity to 500,000 Twenty-foot Equivalent Units (TEU) from 150,000 TEU. Baku is looking to increase regional cooperation in order to mitigate the risks of these plans. The Caspian Sea has shrunk by approximately a metre since 2005.

(source: Reuters)