WB suggests ways for Azerbaijan, Kazakhstan and Georgia to improve efficiency of Middle Corridor

To improve the efficiency of the Middle Corridor (Trans-Caspian International Transport Route), the World Bank (WB) recommends that Azerbaijan, Kazakhstan and Georgia provide the ability to track cargo along the entire transport network.

Report informs citing WB that for this it is proposed to ensure a transition to a unified electronic document flow, covering both railway transportation and transportation along the Caspian Sea.

It would be advisable to promote the consolidation of cargo, the transition to rail transport and improve the balance of cargo flows between East and West through the creation of logistics hubs. In addition, it is necessary to ensure transparency and predictability of final transport tariffs, the report says.

The WB recommends that Azerbaijan and Kazakhstan reduce the time spent by cargo in the port, increase capacity for transporting containers on the Baku-Aktau and Aktau-Baku routes, and reduce freight rates and port tariffs for containers. In addition, Azerbaijan needs to improve the efficiency of cargo transshipment from ships to shore, and Kazakhstan needs to review the parameters of port closures and ensure non-discriminatory access to port services for all market participants. For Georgia, in turn, the WB proposes to increase the efficiency of port-rail/road transshipment, improve the condition of the navigation channel, and reduce port tariffs for containers (currently they are the highest in the entire Black Sea region).

Regarding railways and border crossing points, the bank's analysts suggest that Kazakhstan ensure the availability of rolling stock, increase the efficiency of shunting operations, and Azerbaijan and Georgia - the availability of rolling stock, especially at border crossing points between Georgia and Azerbaijan, increase efficiency at the stage of transshipment "railway - sea ​​port".

These activities can produce a significant effect with limited investments and can be considered a priority and requiring immediate attention, the WB notes.

The Bank expects that by 2030, traffic volumes along the Middle Corridor could triple compared to 2021, and travel times could be halved.

Thanks to the right combination of investments and measures to improve operational activities, the corridor will be able to make a certain contribution to the economic and political sustainability of transcontinental trade, will develop the potential of Central Asia and the South Caucasus, providing a reliable route to China, Europe and other regions of the world through access to seaports, says the report.