The strategic importance of the Middle Corridor: growth of investment along the Trans-Caspian route and Azerbaijan’s regional role

Agil Asadov

Head of the Strategic planning division

01 December 2025, 00:00

 The strategic importance of the Middle Corridor: growth of investment along the Trans-Caspian route and Azerbaijan’s regional role

Modern transport and logistics networks enhance countries’ economic strength and accelerate international integration by developing trade, import-export activities, transit, and regional cooperation. The views expressed at the Investors’ Forum on the Trans-Caspian Transport Corridor (TCTC) held in Tashkent on 27 November 2025-with the participation of the European Union, South Caucasus and Central Asian countries, Türkiye, international development banks, the private sector, and regional partners-once again underscore the priority importance of transport connectivity.

The speeches delivered at the forum reaffirm that “reliable stability + favorable geography + strong transport and transit potential” is regarded as the key formula for gaining competitive advantage in the global economic space. In the 21st century, characterized by accelerating integration processes, the optimization of flows of goods and services, the modernization of logistics services, and “green/logistics sustainability” driven by Sustainable Development Goals are fundamental to long-term economic stability and dynamic growth. Precisely for these and many other reasons, the transport sector-especially international transport and transit links-is becoming a strategic priority for many countries worldwide.

 

Regional and global trends – The Middle Corridor

The Trans-Caspian International Transport Route (TITR / “Middle Corridor”) has gained significant importance in the international logistics and transport arena in recent years. The development of this corridor accelerates trade and transport links between Asia and Europe, while also contributing to a more balanced distribution of resources across countries worldwide. On a global scale, prioritizing infrastructure projects, logistics corridors, and freight transportation optimization-spanning Africa, Asia, Europe, and other regions-further increases attention to the transport sector and enhances its investment attractiveness.

At the above-mentioned forum, participants once again confirmed the strategic importance of the Middle Corridor as a fast, safe, and reliable route between Europe and Asia. During the discussions, the need to strengthen transport, trade, energy, and digital connectivity between the EU and Central Asia via the South Caucasus and the Black Sea region was highlighted. Participants unanimously emphasized the need for the elimination of logistical barriers, harmonization of regulations, and the further expansion of infrastructure projects.

According to the forum’s outcomes, the European Union will implement a special project to develop Trans-Caspian transport links. Under a €15 million program, “Team Europe” aims to improve trade procedures, increase customs efficiency, harmonize transport regulations, and develop multimodal logistics. Support is also being provided for public–private partnerships, tariff systems, and asset management. The investment package includes feasibility studies, environmental assessments, and the identification of priority infrastructure projects. The implementation of all these activities will amount to a total of €10 million. At the same time, with €5 million, the EU and the EBRD will finance technical and pre-investment studies to accelerate the modernization of transport corridors and the transition to low-carbon transport infrastructure.

In addition, at the “Investors’ Forum on the Trans-Caspian Transport Corridor” (TCTC), it was announced that the EU will allocate €10.4 million and the EBRD will provide a €35 million loan to Kazakhstan’s Aktau port. The project includes expanding berths, installing energy-efficient cranes, and increasing container-handling capacity. At the forum, investors also stated that nearly €300 million in total will be invested in road construction and infrastructure development projects in Kyrgyzstan, Kazakhstan, and Uzbekistan.

In his official speech at the investors’ forum, Uzbekistan’s Minister of Transport highly appreciated active cooperation with the European Union in developing the Trans-Caspian Transport Corridor, noting that the Middle Corridor is a priority for Uzbekistan. EU representatives, in turn, described the Middle Corridor as the flagship of the EU’s Global Gateway strategy. “The Middle Corridor offers geopolitical and economic benefits to all countries along this route. It connects China, Central Asia, the South Caucasus, and the Black Sea with Europe through a network of railways and ports,” said the European Commissioner.

 

The Middle Corridor: Azerbaijan’s achievements and expectations

Over the past 20 years, significant structural reforms have been carried out in Azerbaijan’s transport sector: modernization of the transport system, improvement of governance and infrastructure provision, renewal of the transport fleet, expanded use of digital technologies, enrichment of the regulatory and legal framework, accession to international conventions, and development of the carrier market, among others. As a result of state policy and the successful implementation of programs and projects, Azerbaijan has become a leading transport and logistics hub in the region. The construction of the Alat International Sea Trade Port, the intensive work toward opening the Zangezur Corridor, the adoption of consecutive programs to utilize transport and transit potential, along with Azerbaijan’s nine international airports and the region’s largest air cargo fleet, further strengthen the country’s position as a transport and logistics hub. Moreover, strategic projects such as the Baku–Tbilisi–Kars railway, the Middle Corridor, and the North–South Transport Corridor have secured Azerbaijan’s leading position on the global transport map, with continued efforts underway in this direction.

It should also be noted that the holding of the founding general meeting of the International Association “Eurasian Transport Route” in Baku on 26 November 2025 will further expand the potential of the Middle Corridor. The organization, which brings together the railway administrations of Azerbaijan, Uzbekistan, Kyrgyzstan, and Tajikistan, was established at Azerbaijan’s initiative. This joint body aims to strengthen cooperation in transregional transport. At the same time, dynamics in international freight transportation remain positive. One notable fact is that Kazakhstan Temir Zholy (KTZ) has recently increased grain supplies to Azerbaijan by 25 times, reaching 600,000 tons—an illustrative example of the significant growth in freight transportation in the region.

On 25 November 2025, Azerbaijan Railways (ADY) and Russian Railways JSC signed a Memorandum on the formation of competitive direct tariffs and the development of logistics services along the western route of the North–South Corridor, as well as an Agreement on bilateral electronic data exchange. Both documents envisage harmonizing tariff approaches, organizing regular block trains, exchanging information, and improving transportation procedures. The implementation of these mechanisms will enable the establishment of a more flexible and economically efficient logistics chain among Azerbaijan, Russia, and Iran.

All of this once again demonstrates that Azerbaijan’s transport strategy is not limited to building modern infrastructure and generating higher transportation revenues, but also aims to contribute to overall regional development by adhering to key principles such as “green development,” environmental sustainability, and digital governance. This, in turn, is important for all countries covered by the transport links, not only for logistics and trade but also for economic development, regional integration, strategic transit positioning, and geopolitical influence.