The Caspian logistics axis – a new artery for trade

Access to maritime transport routes plays a key role in the development of international trade and the maintenance of foreign economic activity. Over the past decades, the global agenda has consistently included the issue of how to overcome trade, transport, and infrastructure barriers faced by landlocked developing countries (LDCs).

The lack of direct access to ports forces such countries to depend on transit states, which usually leads to increased transportation costs, longer delivery times, and reduced competitiveness of export goods. As a result, geographical isolation and transport constraints complicate the integration of LDCs into global supply chains and hinder their economic development.

At the same time, such countries often have significant demographic and economic potential that remains underutilized. In this regard, it is particularly important to develop effective solutions aimed at improving transport connectivity, expanding routes, and deepening international cooperation in the field of transit logistics.

Central Asia has no direct access to the sea, and it is widely known that Uzbekistan, located in its central part, is one of only two countries in the world that must cross the territories of at least two other countries to reach the sea coast.

Given this geographical specificity, Uzbekistan is actively developing and modernizing transport and logistics corridors aimed at reducing distances and delivery times to seaports. The priority is to create efficient multimodal routes that allow the country to be integrated into global trade networks as quickly and economically as possible and ensure sustainable access to world sea routes.

In addition, the rapid change in the geopolitical situation in the world requires comprehensive and coordinated work to improve transport infrastructure and diversify foreign trade routes for cargo transportation, as well as to develop new and sustainable transport corridors.

The intensification of geopolitical tensions in the Red Sea and Eastern Europe in recent years has necessitated the development of safe, sustainable, and mutually beneficial transport corridors between “Europe–China” and “Europe–Central Asia”.

Against the backdrop of these geopolitical changes, the Trans-Caspian International Multimodal Transport Corridor, or “Middle Corridor,” is the focus of attention of the entire world community.

An analysis of transport volumes shows that Kazakhstan leads the way in freight transport between Central Asian countries and the European Union, with a 93.3% share. It is followed by Turkmenistan with about 3%, Uzbekistan with 2.3%, Kyrgyzstan – 1.1%, Tajikistan – 0.3%.

In the first half of 2025, the volume of export and import cargo transportation of the Republic of Uzbekistan via the Caspian Sea (to Turkey, Europe, South America, Africa and other regions) amounted to about 500 thousand tons, which is 7% more than in the same period last year.

The ports of the Caspian Sea are actively increasing their throughput capacity. According to the President of Azerbaijan, the annual cargo turnover through the Baku International Sea Trade Port is expected to increase from 15 million tons to 25 million tons over the next 5-6 years.

Despite the positive dynamics of volume indicators, certain difficulties remain along the route, requiring coordinated efforts to eliminate them. In particular, problems with meeting delivery deadlines continue to arise, and restrictions related to the route's throughput capacity remain.

In addition, one of the key problems in recent years has been the shallowing of the Caspian Sea, which leads to higher transportation costs due to the inability to fully load ships. In this context, coordinated investment in the creation of appropriate infrastructure along existing transport routes is of particular importance.

In January 2024, the European Union announced the mobilization of €10 billion to support Central Asia in developing the Middle Corridor, including reducing cargo delivery times to 15 days. In April 2025, an expanded investment package worth €12 billion was presented in Samarkand, covering four priority areas, one of which is the development of the Trans-Caspian transport route.

The European Investment Bank is allocating an additional €365 million, with the potential to increase to €1 billion, to finance green and transport projects in the region. Tajikistan will receive €100 million for the development of sustainable transport infrastructure along the Trans-Caspian transport corridor. In recent years, Uzbekistan has been taking practical steps to form new and develop existing land and multimodal transport corridors covering the entire Eurasian region.

These routes include: “China – Central Asia – Caucasus – Europe”, “China – Kyrgyzstan – Uzbekistan – Turkmenistan – Iran – Turkey – Europe”, “CIS countries – Uzbekistan – Afghanistan – Pakistan” with access to the Indian Ocean, “Southeast Asian countries – Pakistan – Afghanistan – Uzbekistan – Kazakhstan – Azerbaijan – Georgia (Black Sea ports) – EU,” which will undoubtedly strengthen the transport and logistics potential of the region, developing trade between the countries of Europe, the CIS, the Caucasus, and South Asia.

In addition, Uzbekistan is interested in joint shipbuilding projects with Azerbaijan, which could contribute to the creation and development of the Uzbek fleet in the Caspian Sea. Having its own ships will allow Uzbekistan to speed up cargo delivery, reduce its dependence on foreign carriers, and gain full control over the logistics chain.

The overall picture of the geographical features of the Central Asian countries shows the need to develop as many alternative transport routes as possible, but the priority of developing these routes is determined by a number of geopolitical and geo-economic factors.

The Caspian corridor has serious potential, but a number of institutional, technological, information and communication, infrastructure and environmental problems and barriers reduce its competitiveness compared to alternative routes.

Removing these barriers requires a comprehensive approach based on mutual consideration of the interests of participating countries and respectful dialogue between both the countries participating in the corridor and neighboring countries.