From China To Europe & Back Again: The World Bank Predicts Middle Corridor Freight Capacity Could Triple In Volume By 2030
By Chris Devonshire-Ellis November 28, 2023
The Trans-Caspian International Transport Route (TMTM or Middle Corridor) could significantly increase its freight capacity in the near future, according to Victor Aragones, a Senior Transport Economist of the World Bank, in a new study.
Moving Exports from China to Europe, showing Middle Corridor and Alternative routes
The World Bank has completed a report around the potential for expanding the Middle Corridor. This study was focused on three countries: Kazakhstan, Azerbaijan and Georgia. In it, the World Bank made recommendations for further assistance in the development of this route, with Aragones stating that “The key takeaways are – that if the right investments and strategic decisions are made, trade could triple by 2030 to 11 million tons.” He noted, the development of the Middle Corridor will also contribute to the diversification of trade in Kazakhstan, Azerbaijan, and Georgia. The Middle Corridor is a transportation and trade route that connects Asia and Europe, passing through several countries in the region. It is an additional expansion to the Northern Transport Corridor (Russia-Caspian) and Southern Corridor (Caspian and beyond). Both Georgia and Azerbaijan are looking to expand their freight flows to include eastbound and westbound traffic to and from Asia, including traffic to and from the EU and China. As part of this process, both countries have invested and continue investing in developing and modernizing their freight infrastructure, and have made efforts to address nonphysical barriers to corridor performance.
Most
China-European trade is currently transported in containers (which are
of significant importance to the global economy). Because these are
standardized, they offer a harmonized way to transport all varieties of
goods and cargo, including pallets, bags, bulk, and liquids. They can be
switched easily from one mode to the other and offer a flexibility that
conventional transport options (trailers, wagons, tankers) do not
offer. The share of containers in the global transport industry
(particularly international transport) has increased dramatically. The
Bank also released an action plan illustrating expected progression of
the route: