The Caspian transport hub: from competition to cooperation The Middle Corridor – a driver of Eurasian integration

For countries located deep within the Eurasian continent, access to the sea remains a key factor in competitiveness on international markets. Uzbekistan, located in the geographical center of the region and lacking direct access to the coast, has been purposefully restructuring its transport and logistics strategy in recent years to minimize distances to maritime hubs and increase the reliability of transit chains. This transformation is particularly noticeable in the context of the intensification of trans-Caspian ties – the Caspian Sea is gradually transforming from a local water body into a regional hub capable of providing sustainable routes to Turkey, Europe, and distant markets.

In June 2023, President of the Republic of Uzbekistan Shavkat Mirziyoyev, speaking at a meeting of leaders of "Central Asia – European Union" leaders in Kyrgyzstan, emphasized the importance of consolidating the efforts of countries to develop transport and communication links between Central Asia and Europe, primarily through the formation of the Middle Corridor.

As a result of reforms aimed at developing this route, the volume of cargo transported between Uzbekistan and Europe via the Caspian Sea has increased fourfold over the past five years.

In turn, the growing role of the Caspian region is linked to several processes. First, there has been a significant expansion of port capacity on the shores of the Caspian Sea: the modernization of the Baku terminal and the increase in throughput capacity at Kazakh ports are increasing overall throughput capacity and enabling the establishment of more regular ferry and container services.

According to estimates, the throughput capacity of a number of Caspian terminals may increase significantly in the coming years, which opens up opportunities for the systematic integration of Uzbek exporters into multimodal routes.

The second factor is institutional and investment factors. International financial programs and initiatives aimed at developing the Middle Corridor are forming a long-term resource base. Investment packages and credit lines focused on infrastructure modernization and green projects provide an opportunity to synchronize the strategic plans of the countries in the region and implement large-scale projects to increase throughput capacity and digital compatibility.

For Uzbekistan, this means not only external injections, but also the opportunity to obtain the technological and institutional solutions necessary to reach the level of regular international services.

However, the transition to a real transport hub role is fraught with a number of challenges. Firstly, there is a discrepancy between potential and actual throughput capacity: in practice, overloading of individual links, bottlenecks in sea crossings, and uneven distribution of the fleet create queues and delays.

Second, environmental factors, including falling water levels in the Caspian basin, limit the effective loading of ships, which increases transportation costs and requires investment in dredging and coastal works.

Finally, institutional differences in procedures between corridor countries—different documentation, tariffs, and regimes—reduce the predictability of transit and increase transaction costs.

Research findings show that adverse weather conditions in the area of the Alat port terminal (Azerbaijan) lead to a buildup of international transport vehicles, with an average waiting time of up to 25 days. For the above reasons and in the context of a rapidly changing global environment, it is unacceptable to rely on a single route.

With the aim of further developing trade and economic ties and increasing the competitiveness of national transport corridors, the Ministry of Transport of the Republic of Uzbekistan is implementing a set of practical measures to develop international land transport routes, namely “China – Kyrgyzstan – Uzbekistan – Turkmenistan – Iran – Turkey” with a length of 5,430 km.

This route is one of the most promising land transport corridors. The route has a well-developed railway infrastructure, which allows for the delivery of goods from the city of Kashgar (PRC) to Turkey by rail. In addition to the traditional routes through Turkmenistan and Kazakhstan, alternative connections with Iran, Pakistan, and southern ports are being developed. Work is underway to create a fleet on the Caspian Sea, which will speed up cargo delivery and provide full control over the logistics chain.

A special role is assigned to digital integration, namely the introduction of electronic transport documents and the unification of customs procedures, which can radically reduce delays and bureaucracy. The Trans-Caspian route has significant potential for the development of transport, but its attractiveness compared to other routes is hampered by a combination of obstacles related to multimodality and insufficiently developed infrastructure.

Improving the competitiveness of this corridor is only possible through systematic work, including the coordination of the interests of all participating states and the establishment of constructive, respectful interaction both within the route itself and with neighbouring countries whose interests it affects.