The Middle corridor: reliability in an era of instability

A branch of the Global Center for Innovation and Knowledge in the Field of Sustainable Transport operating in China may be opened in Azerbaijan. This was discussed at meetings within the framework of the Global Forum on Sustainable Transport in China. The opening of the branch, as noted, will be of great importance for the promotion of research and innovation in the transport sector of Azerbaijan.

The Global Center for Innovation and Knowledge in the field of Sustainable Transport has been operating in China since October 2022. In his greeting on this occasion, Chinese President Xi Jinping stressed that promoting sustainable development in the field of global transport and promoting global connectivity are essential to ensure the stable and smooth functioning of global logistics supply chains and stimulate the development of the global economy. China, he noted, is ready, together with other countries, to make full use of this platform to promote global cooperation in the field of transport and thereby contribute to the promotion of the Global Development Initiative, the implementation of the UN 2030 Agenda for Sustainable Development and the building of a community of common destiny for humanity.

China is one of the most important links in global supply chains, in many cases even the initial link. For some time now, Azerbaijan has also become one of the hub centers on international logistics routes. Although the scale of Azerbaijan and China is not comparable, our country has taken a very important position in continental logistics, and now, making plans, such a giant as China knows that it can count on Azerbaijani transit. Azerbaijan has created the conditions for this to be possible, and today it plays an indispensable role in the implementation of Beijing's plans for the sustainable development of transport links.

The sustainability of transport and logistics is one of the pillars of the sustainability of the economic situation. The need for stability in this area has been once again proved by the situation developing in recent years in the Eurasian space. Wars and conflicts, including those of an economic nature, have had and are having a negative impact on supply chains. Traditional logistics routes have been particularly affected.

Azerbaijan has to some extent managed to compensate for these losses by offering an alternative. In light of the geopolitical turbulence, the Middle Corridor has proven to be the most stable and safest route from East to West. While the United States, in the logic of economic wars with China, forced European countries to abandon their partnership with the One Belt, One Road project, Azerbaijan continued to build bridges, and did not lose.

"The parties highly appreciate the cooperation between the two countries in the transport sector and express their readiness to continue contributing to the development of transport infrastructure, improving the efficiency of logistics and transportation, contributing to regional interconnectedness," reads a joint statement by Azerbaijani President Ilham Aliyev and Chinese President Xi Jinping, signed in Beijing on April 23 this year.

During the visit of the Azerbaijani leader to China, agreements on international multimodal transportation were signed.

On June 30, a block train left Beijing's Fangshan district for Baku on a new line. At the Beijing branch of the Chinese State Railway Corporation (CGCC) The media reported that the transportation of goods from Beijing to Baku involves the use of a multimodal railway-sea-railway method. The cargo will cover a distance of more than 8,000 km and is expected to arrive in Baku in 15 days. Upon arrival in Baku, some of the cargo will be transported to Georgia, Turkiye, Serbia and other countries.

According to Azerbaijan Railways CJSC, the commissioning of a new route providing cargo transportation between China and Azerbaijan once again emphasized the sustainable development of the Trans-Caspian International Transport Route (TMTM, Middle Corridor) and the strategic role of the Baku International Commercial Seaport as a transport hub. This route strengthens the Middle Corridor by offering a faster and more sustainable route, which is an alternative to the northern and sea routes, the railway department said.

Azerbaijan Railways faces the task of increasing the volume of cargo transportation along the Middle Corridor. At the end of last month, a new round of development of the Middle Corridor was agreed in Poland. On June 26-27, a visiting meeting of the TMTM Development Working Group was held in Warsaw. According to the International Association Trans-Caspian International Transport Route, drafts of key agreements aimed at deepening cooperation within the framework of the TMTM were agreed. Special attention was paid to measures to digitalize logistics processes, ensure stable navigation in the Caspian Sea and increase container traffic.

Last month, the Asian Development Bank (ADB) identified more than 10 specific investment projects to develop the potential of the Middle Corridor for 2025-2028, totaling $3.5 billion.

The first test transportation within the framework of the pilot project "Direct express transit China-Europe - Trans-Caspian test transportation" took place in May last year. The aim of the project was to obtain information on waiting times at the border, customs procedures, controls and inspections, as well as transport infrastructure in international road transport along the China-Kazakhstan-Azerbaijan-Georgia route.

It should be recalled that in 2024, for the first time, Azerbaijan and China exchanged permit forms for international freight transportation by road.

It should be noted that the route of the Middle Corridor begins in China and passes through the countries of Central Asia, the Caspian Sea, Azerbaijan, Georgia and Turkiye and further to Europe.

In the first half of this year, there was an increase in freight traffic between China and Europe. Overall, the number of freight train departures on the China-Central Asia route increased by 23 percent in the first five months. As of May, growth was observed in all types of transport. At the same time, Chinese cargo transportation via Russia agreed to 5-6 percent.

Cargo transportation from China to Europe includes various types of transport: sea, rail and air. Sea transportation usually takes 30-45 days, but it is a more economical option for large shipments. Rail transportation is shorter, but more expensive and is not capable of providing such volumes. However, global maritime supply chains are linked to unstable regions, which poses serious security challenges for suppliers. Let us recall the concern that has gripped international trade actors due to Iran's statements about the possibility of closing the Strait of Hormuz during the escalation of the Iranian-Israeli conflict. It did not reach the closure of the strait, as the fighting was stopped. Or take the situation in the Red Sea, the actions of the Yemeni Houthis in the Bab el-Mandeb Strait. Both of these waterways are in fact the only outlets to the ocean from Asia for the transportation of goods to Europe. Although the sea route is cheaper and more extensive, there is no need to talk about its safety and stability today.

Nowadays, when there are many gaps in the system of international relations, including in the system of international trade, reliability and security are becoming the most valuable points in the description of a particular logistics route. It is no coincidence that such a pragmatic partner as China pays so much attention to TMTM and is personally involved in its development.

This is another tick in the long list of reasons why the Middle Corridor is important and necessary.