Issue 511 - 26.11.2025
26.11.2025

China starts co-funding Caspian transportation corridor as demand crawls up

A subsidiary of China State Railway Group has invested in Middle Corridor Multimodal, a joint venture formed by the railway companies of Kazakhstan, Azerbaijan, and Georgia in 2023, to jointly develop the Trans-Caspian International Transport Route.

China Railway Container Group will become a shareholder of Middle Corridor Multimodal, China Railway announced on Nov. 18. The JV integrates and coordinates different transportation resources and provides customers with freight transport services along the TITR.

The TITR, also known as the Middle Corridor, is the shortest transportation route between China and Europe. It starts in China’s Xinjiang Uygur Autonomous Region, crosses Kazakhstan, passes through the Caspian Sea to Azerbaijan, and reaches Turkey through Georgia or other European countries through the Black Sea. It consists of 4,256 kilometers of railroads and 508 km of shipping routes.

Through rail-sea intermodal transport, the China-Europe Railway Express can extend to the Caspian Sea, the Black Sea, and countries on the coasts of the Mediterranean Sea via the TITR.

After the Russia-Ukraine conflict broke out in February 2022, the proportion of China-Europe freight train services to Europe gradually dropped to 15 percent from 45 percent due to the European Union’s ban on trains transiting through Russia. The TITR was put on the agenda last year to address this issue.

According to data from the Ministry of Transport of Kazakhstan, about 4.1 million tons of cargo were transported along the TITS in the first 11 months of last year, up 63 percent from a year earlier. Among that, container transportation surged 2.6-fold to 50,500 twenty-foot equivalent units, demonstrating the rapid development and potential of the Middle Corridor.

Currently, there is an urgent need for an alternative route that would ensure safer and faster freight transport between China and Europe amidst increasing global tensions and trade conflicts. The Middle Corridor can be considered as such a route. The Asian Development Bank's Time-Cost-Distance methodology was used as the basis for assessing the Middle Corridor. The calculation of the Logistic Performance Index (LPI) helped to identify the main challenges which face this corridor. The future value method was used to evaluate potential road construction projects across the Caspian See. By comparison this corridor with the Northern Corridor and the Maritime Corridor, this article demonstrates its role as the shortest and reletively safe route between China and Europe and analyses its prospects. The importance of the Middle corridor will steadily increase due to geopolitical circumstances, as well as more favorable geographic and climatic conditions compared to the Northern corridor. The article examines the current situation regarding the further development of this corridor, measures taken by various participants, assesses their consequences, and also proposes the construction of a semi-submersible floating bridge in the event of an increase in cargo flows in the future, when this will be justified from the point of view of traffic safety, ecology and economic efficiency.

In recent years, land trade routes between Asia and Europe have faced a few disruptions to transit goods, ranging from port closures, COVID-related congestion, and various sanctions imposed by the West against Russia due to its military aggression in Ukraine. In addition, the EU has imposed a ban on the transit of sanctioned goods, including dual-use and military goods, through Russia to third countries. This has made the delivery of goods through Russia unsafe.

On the other hand, due to the Israeli bombing of the Gaza Strip, the Houthis began to attack ships carrying goods for Israel, making shipping through the Suez Canal unsafe. Because of this, ships from China to Europe and back must go around Africa, which takes more than 10 days of transit time for shipments and costs 2.5 times more money. If earlier the price for transporting a 40-foot container from Asia to the Mediterranean was $2,900, now when going around Africa it has risen to $7,100. The introduction of trade tariffs on many countries by US President Trump on April 2, 2025, could also help boost mutual trade between Europe and Asia.

Thus, there is an urgent need for freight shippers to find an alternative route, if any, that would allow them to transport their cargo safely and at low cost. The Trans-Caspian International Transport Route (TITR) or the “Middle Corridor” could be considered as such a route. The route provides access to global markets for Central Asian and Caucasus countries and is also an important alternative route for shippers from Europe and China, allowing for diversification of trade routes and increased economic resilience by reducing dependence on corridors through Russia.

TITR began operating in 2017. The length of the route is 7.0 thousand km. A single tariff is set on the entire route, the “single window” principle is implemented, and container trains are running successfully. The current throughput is 6 million tons per year. In a short time, this route has become in high demand among shippers, as it meets the requirements for the speed and cost of cargo delivery in comparison with alternative routes. In 2024, compared to 2017, the volume of cargo transportation along the TITR increased by 2.5 times and reached 3.3 million tons.

Container shipping grew 3.7 times from 2017 to 2022. However, in 2023, they plummeted by 40% for two main reasons: high tariffs and a slowdown in freight transport due to increased demand and insufficient road capacity in narrow sections. But these problems were temporary and are now being resolved. Therefore, from 2017 to 2024, container shipping volumes increased by 6.2 times.

The Middle Corridor competes with other corridors connecting Europe and Asia. For European and Asian companies, this corridor allows goods to move between Europe and Asia either much faster or with much less risk than is currently the case via the Northern, Southern, or Maritime Corridors. For EU countries, it also provides an opportunity to secure supplies of natural resources, including fossil fuels and minerals, from Central Asia, which is very important given the restrictions it has imposed on imports from Russia. This not only gives the EU greater security in terms of raw materials supplies but also gives it some leverage in its often tense relations with Russia. For China, this land corridor provides access to energy resources, which determines the survival of its economy in crisis conditions, in contrast to the Maritime transport route, where the United States and its allies have obvious military dominance. For the countries of Central Asia and the Caucasus, this corridor offers them the opportunity to develop freely and successfully in the future by diversifying their trade away from the Russian-dominated Northern Corridor. This is of particular importance for these countries, which are seeking to reduce geopolitical risks and have chosen the Middle Corridor for its potential to improve infrastructure and boost intra-regional trade. It also allows them to earn more revenue from transit trade.

Its main competitor is the Northern Corridor, which passes through Russia. Previously, it was the main land road between Europe and Asia. Now it is experiencing problems related to the ban by European countries on the import of sanctioned goods, including dual-use goods and military goods, through Russia to third countries. The use of the Southern land Corridor is complicated by sanctions against Iran. The use of the Maritime Corridor, due to attacks by the Houthis, who demand an end to Israeli bombing of Gaza, has led to the need to go around Africa, which takes 2.5–3 times longer and accordingly increases the cost of transporting goods. Under these conditions, the Middle Corridor began to develop rapidly, as it assumed safer and faster movement of goods due to a significantly shorter route. At the same time, the cessation of imports of cheap Russian energy resources to Europe increased its demand for the countries of Central Asia, rich in energy resources and minerals.

The Middle Corridor thus represents more than just an alternative for cargo transit; it offers a unique opportunity to change the geopolitical and economic landscape of the Eurasian region. Achieving this vision requires concerted efforts by all stakeholders—be they national governments, private investors, or regional and international organizations. By addressing the complex challenges ahead, the Middle Corridor has the potential to serve as a catalyst for regional stability and a facilitator of global economic cooperation.

The purpose of this study is to identify the reasons for the increasing role of the Middle Corridor as an important transport artery connecting Europe and Asia, assess the transport potential of the corridor, its strengths and weaknesses, compare it with alternative transit corridors, such as the Northern Corridor through Russia and the Maritime Corridor bypassing Eurasia, increase its attractiveness, as well as identify and neutralize the factors hindering its successful future development.

The TITR is one of the routes being developed under the Central Asia Regional Economic Cooperation Programme (CAREC), which was adopted in 2017. However, it wasn’t until 2020 that the first train utilizing the Middle Corridor trade route reached China from Türkiye.

Transit between Asia and Europe via and from Central Asia has always been a viable commercial option but has long struggled to compete with other already established routes like the Northern Route and shipping routes through the Red Sea and Suez Canal. The low interest in this direction to date can be attributed to the fact that the capacity of the corridor is insufficient to provide the entire volume of cargo, and the Middle Corridor passes through the territory of many countries. However, in the face of increasing demand, countries have become more active in improving the infrastructure of the route and facilitating many customs processes.

In the rapidly evolving geopolitical landscape, the TITR stands as a transformative force, reshaping traditional trade and connectivity routes. It will profoundly shape the geopolitical dynamics of the region. Its importance has increased in recent years due to the rapid change in the geopolitical situation.

Despite differences in approach, many authors agree that the TITR is of crucial importance in Asia-Europe trade . The route not only reduces transit time but also addresses issues related to the EU ban on cargo transit through Russia, making it an attractive choice for companies exploring new trade routes and markets. The role of this route is to improve regional integration and stimulate economic growth through increased trade.

Russia’s invasion of Ukraine and Houthi attacks on merchant ships have led to a significant shift in cargo flows from northern to southern routes in an East–West direction, making traditional transport routes such as the Northern Corridor less relevant and creating demand for alternative transport routes such as the TITR, also called the Middle corridor. By the end of 2023, transit via the Northern Route had been reduced by approximately 40%, while Red Sea capacity had been reduced by 20%.

Another reason for the increasing role of the TITR is the tariff policy of US President Donald Trump, who in April 2025 introduced high tariffs against EU countries (20%) and prohibitive tariffs against China (145%). This could lead to a reorientation of trade between Europe and China towards more mutual trade. However, this process will not be quick. It is complicated by the fact that China’s exports exceed the EU’s imports by €300 billion in 2024.

Of course, the impact of these short-term factors will largely cease when the situation or current policies change. However, there are also long-term factors at work. Not only the states through whose territory the routes pass are interested in implementing such large-scale initiatives, but also key external players, depending on the directions. The corridor has become a point of intersection of economic and political long-term interests of China, the European Union, Turkey, the countries of Central Asia and the Caucasus.

Despite Russia’s suspicions and hostility towards routes that bypass it, the Middle Corridor has every chance of success, as the project is led, invested in and actively supported by China. From a European perspective, it also offers access to the growing markets of Central Asia and the Caucasus region, as well as faster access to the Middle East, North Africa and the European Mediterranean region via the ports in Georgia and Turkey. Also, the EU views TITR as an important project that can provide the Union with direct access to key resources in Central Asia, increase the resilience of European supply chains and diversify European energy supplies. Strengthening Eurasian connectivity would also work to balance Russian, Chinese, and Iranian influence in Central Asia. The Middle Corridor can not only facilitate interregional trade between China and Europe but also promotes trade development within Central Asia, Caspian and adjacent regions. In fact, the project helps landlocked Central Asian countries gain access to external markets, Caucasus countries receive needed investments, and Turkey strengthens its role as a regional leader.

The growing importance of the Middle Corridor is that it has a transformative impact on regional trade and transport dynamics. The corridor improves connectivity, reduces trade costs and promotes economic growth. It can be seen as a strategic tool for economic diversification and job creation. While the Middle Corridor will not be able to fully replace the Northern Corridor, regional integration along the Trans-Caspian International Transport Route is likely to increase its potential at the expense of Russia in the long-term.

Although this trade route has been under development for some time, its full potential remains largely untapped.

The biggest challenge is its low capacity, which is currently estimated to be only about 5% of the capacity of the Northern Corridor. There is a shortage of transport vessels on the Caspian Sea and locomotives and wagons in Azerbaijan and Georgia. The increased volume of traffic has led to delays that jeopardise the time advantage over alternative routes. Another challenge is the unstable price development. Due to the increased demand, transport prices have risen sharply.

Therefore, to fully exploit the potential of the Middle Corridor, it is necessary to address infrastructure, capacity and logistics bottlenecks along this multi-modal route spanning several countries, including the vulnerability of the Caspian section to weather conditions and climate change. The development of this corridor requires a careful assessment of all factors affecting its effectiveness. This requires good governance, trade facilitation, and infrastructure development. The overall picture of the geographical features of the Central Asian countries shows the need to develop as many alternative transport routes as possible.

Despite these obstacles, the potential development prospects for the corridor are also encouraging. The World Bank expects that trade volumes along the Middle Corridor could triple by 2030, from 3.7 million tons in 2022 to 11 million tonnes, largely due to improved infrastructure and policy coordination

The transit transport corridors are selected based on the following criteria:

• Ability to link key economic regions,

• Current traffic volumes,

• Projected growth in freight flows,

• Potential to reduce traffic delays,

• Economic and financial sustainability.

The following indicators are commonly used to compare different routes. For freight transport, these are route length, transit time, traffic volumes, and capacity utilization. For container transport, an important indicator is also added to measure the capacity of freight vehicles, such as traffic volumes in thousands of twenty-foot equivalent units (TEU). These indicators made it possible to draw a conclusion about the comparative advantage of a particular transport route. However, there are certain difficulties in obtaining data reflecting changes in travel times, the state of transport infrastructure and other additional indicators.

In addition, one should not forget about the limitations of the B3D methodology, which limits the measurement of transport corridors to time and cost factors only. Therefore, to obtain a more complete picture, it is advisable to consider other complementary factors, such as reliability of transit corridors; stability, frequency and quality of service; competition among service providers; balance of freight flows by direction (frequency of empty return runs); predictability of costs; informal controls and checkpoints; transport safety. Other factors may be used to assess the performance of rail transport such as railway safety, infrastructure, equipment, operational efficiency and green development. However, this requires the collection of additional data and information. In our current study, such opportunities were not available, so we focused on assessing the main indicators for key transport corridors for which relevant information was available.

Another important method for identifying the challenges and opportunities that countries face in their trade logistics activities, and the steps they can take to improve their performance, is the Logistics Performance Index (LPI) developed by the World Bank. The LPI is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics, covering 139 countries.

The logistics performance index (LPI) is the weighted average of the country scores on the six key dimensions:

1. Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs.

2. Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology).

3. Ease of arranging competitively priced shipments.

4. Competence and quality of logistics services (e.g., transport operators, customs brokers).

5. Ability to track and trace consignments.

6. Timeliness of shipments in reaching their destination within the scheduled or expected delivery time.

The use of this index reveals the strengths and weaknesses of road logistics. To do this, it is necessary to calculate the average weighted index for countries using a particular transport corridor, based on six dimensions. A higher score will indicate the corridor’s competitiveness in this parameter, and a low score will indicate its absence.

The Convention on the Legal Status of the Caspian Sea, signed on August 12, 2018, is of great importance for determining the delivery routes of the underwater tunnel or semi-submersible bridge. It makes it possible to access new energy projects, including underwater gas and oil pipelines, to be planned and executed on a bilateral basis in the agreement with the state the infrastructure or facility would cross, although the details of the project should be communicated to the other parties. Compliance with environmental standards is a mandatory condition for laying underwater pipelines along the bottom of the Caspian Sea.

The Trans-Caspian International Transport Route (TITR) was created in 2017 with the participation of Azerbaijan, Kazakhstan, and Georgia. Later, Ukraine, Romania, and Poland joined the project. The “Middle Corridor” is the shortest route from the Pacific coast of China to Europe. It crosses China, Kazakhstan, the waters of the Caspian Sea, Azerbaijan, Georgia, and then extends to Turkey and European countries.

Based on the above criteria and proposed indicators, three alternative corridors were selected linking Europe and Southeast Asia: The Northern Corridor via Russia, the Middle Corridor via Central Asia, the Caspian Sea and the Caucasus, and the Maritime Corridor bypassing Eurasia.

As the results of our analysis show, the main corridor between Europe and Asia is currently the sea corridor, through which 91.4% of all cargo is transported, along the Northern Corridor—8.5%, along the Middle Corridor—0.1%.

As for time used, cargo transportation by sea is the slowest—approximately 40–50 days, along the Northern Corridor—15–20 days, and along the Middle Corridor—14–18 days. All three corridors are economically and financially stable.

Different transport corridors are focused on different types of cargo. The Sea Corridor is more focused on high tonnage and cheap cargo, the Northern and Middle Corridors—on medium-tonnage cargo with faster delivery times.

However, it should be noted that today the Middle Corridor cannot be considered a serious competitor to the Northern Transit Route in the near future (5–10 years), as it currently accounts for only about 1.5 million tons or about 1% of the volume of cargo transported along this route. Even in 2030, the situation will not improve dramatically, as the Middle Corridor will account for only 35 million tons or 5% of the volume of cargo transported along the Northern Corridor.

The situation is similar with container shipping. In 2022, the Middle Corridor accounted for 33.6 thousand TEU or 2.6% of the volume of container cargo transportation along the Northern Corridor, and in 2030 it will account for 100 thousand TEU or 3%.

This means that the Middle Corridor is now complementary to all main routes between Asia and Europe. It cannot yet become an alternative to the Maritime or the Northern Corridors, where incomparably larger volumes of cargo are transported. But it is a good option for cargo owners who want to diversify their supply chains. TITR is still in the process of revealing its potential.

Thus, in the short term (10 years), the Middle Corridor can still be considered as an auxiliary route, which accounts for a small share of transit land transportation between Europe and China. Its use does not introduce significant changes to the existing structure of land transportation in this direction, where the main route continues to be the Northern Corridor through Russia.

In this regard, it is also worth noting an econometric study conducted by Uzbek researchers. Based on the model of transport services exports for 2005–2022, they found that with an increase in the total GDP of Eurasian countries by $1 billion, the total volume of transport services exports of Eurasian countries grows by an average of $0.16 billion.

Maritime transport via the Southern Maritime Corridor is the most important mode of transport in international logistics, and about 90% of China’s total import and export volume is carried by sea.

Source: developed by the author.

The Advantages and Drawbacks of the Southern Maritime Corridor

The advantages of the Maritime Corridor include the possibility of transporting non-standard cargo, the minimum number of cargo transshipments, and low transportation costs. The main advantage is the low cost of transportation at $1,500 per ton of cargo, which is several times lower than via alternative land corridors. The disadvantages of the Maritime corridor are the long delivery time of cargo. Transportation from the port of Dalian to the port of Rotterdam (Netherlands) through the Suez Canal requires 26 days of travel.

However, if the weight of the vessel exceeds 210,000 tons, then it must round the Cape of Good Hope in Africa. In this case, transportation will require 36 days. Due to Israel’s bombing of Gaza and the Houthi attacks on merchant ships in the Red Sea, at least 90% of the container ships that had been going through the Suez Canal are now rerouting around the tip of Africa.

As a result, the length of the Maritime Corridor from Lianyungang to Istanbul has grown from 16,000 to 30,000 km. The cost to ship a standard 40-foot container from China to Northern Europe has jumped from $1,500 to $4,000, according to the Kiel Institute for the World Economy in Germany.

Based on the analysis of the LPI 2023 index, it can be concluded that the Middle Corridor has the following key weaknesses: customs, infrastructure, tracking and tracing, which need to be addressed first.

However, the average scores do not reflect the overall picture, but they become evident when analyzing the scores of individual countries. For example, Kyrgyzstan and Tajikistan received very low scores for customs services, Georgia, Kyrgyzstan, and Uzbekistan for infrastructure, Kyrgyzstan and Tajikistan for international transport, Kyrgyzstan for logistics competence, and Tajikistan, Kyrgyzstan, and Uzbekistan for tracking and tracing.

The index identifies key areas that are hindering further development of the corridor and that countries need to work on.

In 2020, Russian Railways managed to achieve an average daily speed for container trains at the level of 1,231 km/day. The plans include 1,400 km/day in 2024 and 1,600 km/day in 2035. This is achieved through a whole range of measures: a special schedule for container trains, the introduction of a paperless document processing system, and the modernization of the railway track, which allows it to maintain high speed even for very long and heavy trains (up to one hundred 40-foot containers).

The cost of delivering a container from Asia through the ports of the Far East to the west of Russia is now 30% lower than through the Suez Canal, and the transportation speed is twice as fast. Reducing the number of cargo shipments to a minimum decreases the costs of cargo owners and prevents the risk of accidental damage to cargo during transportation. The growth of container transportation was also facilitated by the development of technology for loading them into gondola cars, the renewal of the locomotive fleet and the organization of double trains. According to calculations, CO2 emissions during transportation by rail are approximately five times lower than during sea transportation.

Transportation along this corridor is subsidized by the governments of Russia and China. State support for the domestic segment of container transportation in the form of a program to subsidize the railway transit of container cargo was adopted in Russia in August 2020. The cost of transporting a 20-foot cargo container from Xi’an to the UK by rail is approximately $4,500, but considering subsidies, it will cost carriers $3,000. And by sea, such a container can be sent along the same route for $1,250.

Disadvantages of the Northern Corridor include permafrost, short summers, marshy soils, rocky ground, complex logistics, and remoteness from large settlements, which slows down the speed of expansion of the route. Russia is now solving these problems by using new technologies, building second tracks, and populating the territories. But this requires significant time and huge investments. The construction is also complicated by the active traffic on the existing railway, even though builders have learned to carry out work during breaks in train traffic.

Another problem is bottlenecks on this route, which increases delivery times and reduces competitive advantages over sea transport. The Trans-Siberian Railway operates at the limit of its capacity, the length of the “bottlenecks” is measured in thousands of kilometers. The infrastructure of the ports of the Far East was not ready for the growing volume of cargo coming from China to Europe. Due to excess demand, ships are processed longer, which causes accumulation of cargo at the ports of departure. The fastest shipment is carried out in 10 days, at the busiest terminal—more than 30 days.

Due to the imbalance of export-import transportation and the limited capacity of the Trans-Siberian Railway, empty containers, and railway platforms began to accumulate in the center of the country, while in the Far East there was an acute shortage of them for the export of imported goods.

Infrastructure development requires significant investments in terminals, border crossings, and receiving terminals at destinations.

The Middle Corridor is the shortest route connecting Europe and Southeast Asia. Its length is only 7 thousand km, which is almost 3 thousand km shorter than the Northern Corridor and almost 3 times shorter than the Southern Maritime Corridor. This creates good potential for reducing cargo delivery times, increasing average speed and reducing transportation costs. The corridor passes through peaceful countries and mainly on flat terrain with a low population density, which reduces the cost of construction and its subsequent expansion many times over, compared to the Northern Corridor.

This route allows for the diversification of trade routes and increased economic resilience by reducing dependence on corridors through Russian territory. The return of the historical territories of Karabakh to Azerbaijan, Russia’s forced withdrawal from the Caucasus, the high interest of China and the EU in mutual trade along safe routes, as well as the great interest of the countries of Central Asia and Kazakhstan in a safe and shortest route for exporting their goods solves many political and economic problems that previously seriously hindered the development of this corridor.

Kazakhstan, a key player on the Middle Corridor, saw significant growth in cargo volumes, more than doubling compared to 2022 and reaching 1.5 million tons. In stark contrast, the Northern Corridor has seen a 34% decline in traffic due to increased geopolitical instability around Russia. In 2024, it amounted to 3.3 million tons, which is 2.5 times more than in 2017.

The rate of transportation of standard 20-ton containers along this corridor is also growing quite quickly. During 2015–2022, the volume of container transportation along the “Middle Corridor” increased from 4.9 to 33.6 thousand containers. After the completion of the second tracks on the Jinghe–Khorgos section, its throughput capacity will be 56 million tons of cargo. The launch of the Bakhty–Tacheng checkpoint will increase the capacity of the border railway infrastructure to 76 million tons of cargo.

The increase in freight traffic leads to a decrease in tariffs. Since 2017, tariffs on the TITR have been reduced by 60% from the base level for wagon transportation (10 items), for container transportation by feeder vessel (23 directions) and ferry service (11 directions) from China, Kazakhstan, Central Asian countries to Turkey, Romania, Ukraine, and Poland, and in the opposite direction. Today, a significant part of the cargo flow is represented by a wide range of Kazakhstani export products, namely petrochemical products, ferrous and non-ferrous metals, coal, ferroalloys, grain, oilseeds, legumes, and many other types of cargo.

The specific investment in expanding this corridor per kilometer of the route is significantly lower than in the Northern Corridor, since the route runs through flat terrain and, as a rule, does not experience extreme operating conditions such as permafrost, marshy terrain, numerous rocky soils, extremely low temperatures, etc.

This corridor is beneficial for all countries located along the corridor. For example, before the pandemic, Kazakhstan received about a billion dollars a year from Chinese transit. Now these transit revenues have increased by about twofold times. With the growth of cargo transportation, income from transit can increase many times over, which is very important for oil-producing countries that need to diversify their revenue base.

The prospects for the Middle Corridor are very promising and encouraging, but their implementation requires large-scale systematic work by all participating states to expand and modernize the corridor, bring it into line with modern technological requirements, and eliminate existing bottlenecks.

To eliminate multiple cargo checks, coordinate the interaction of various infrastructure elements such as railways, warehouses, ports, barges, customs, borders, simplify processes and procedures, and reduce delivery times, it was necessary to implement a single, coordinated logistics policy along the entire route between all participating countries and companies. In this regard, Kazakhstan, Azerbaijan, and Georgia have established in 2023 a single operator operating on the “one-stop shop” principle and registered a joint venture Middle corridor Ltd. In essence, this is like the creation of the United Transport and Logistics Company with Russia and Belarus in 2013, which made the Northern Corridor a leader in land transportation between China and Europe. China Railway Container Transport Corporation (CRTC) joined this joint venture in 2024.

To simplify trade procedures and e-business management standards, the EU Electronic Cargo Information Regulation was implemented as the best practice in all TMTD countries, so that by 2027 all economic operators can submit all cargo information in a standard form. This measure helps to overcome the fragmentation and uncoordinated digitalization efforts in different countries.

The Middle Corridor is still in its infancy. The main line is usually single-track and non-electrified. The state of wear of the tracks reaches 57%. There are bottlenecks in some sections of the corridor. For example, in the Caucasus in Georgia, the minimum throughput capacity is 4.5–5 million tons per year, while in other sections it is 10–12 times greater. All these factors sharply reduce the capacity of the entire corridor, reduce speed, and increase the risks and cost of transporting goods.

The modernization of the corridor requires major investments in expanding its capacity, eliminating bottlenecks and updating existing infrastructure. According to the European Bank for Reconstruction and Development estimates that 18.5 billion euros in investment are needed for overcoming the Middle Corridor’s logistical and infrastructural bottlenecks. These range from developing high-capacity freight terminals to modernizing existing railway systems, and implementing advanced tracking and monitoring technologies.

The small capacity of the corridor makes it difficult to actively use and quickly leads to its overload. According to expert estimates, up to 1.6 billion tons of cargo are transported annually from China to Europe by sea. Only 0.1% of all sea cargo in this direction is transported through Kazakhstan. In comparison, this is only 1% of the cargo transported along the Northern Corridor.

Even for Kazakhstan, this route is not the main one. In 2023, only 14% of all cargo from China to Europe and back was transported through it. It is estimated that the corridor’s capacity will increase 6-7 times in the future. However, even in 2030, the Middle Corridor will account for only 5% of the cargo volume and 6.7% of the number of containers transported along the Northern Route.

The features of the corridor that hinder its future development are its multimodal nature, where two main types of transport are involved including rail and sea, and the presence of many participating countries, which implies multiple border crossings, customs control, and multiple changes of transport. This significantly increases the cost and time of transporting goods compared to the case where all transportation is coordinated by one participant and there is no change in transport modes. For all these reasons, the Middle Transport Corridor is not a competitor to other transit routes between Europe and China. This corridor only complements the Southern Maritime and Northern Corridors, providing new opportunities for all participants in transportation, but does not replace other corridors.

Different roads are intended for different types of cargo and different economic entities. The presence of different routes is beneficial to all participants, allowing them to meet their needs for the transportation of different types of cargo from different places in the best and most economical way. The presence of many corridors gives them the opportunity to transport cargo - with minimal costs and risks. For neighboring countries, this means that at present the TMTR transport corridor does not pose a significant threat: neither economic nor political but only brings them economic benefits.

Unlike the Northern Corridor, there are virtually no restrictions on the expansion of the Middle Corridor’s capacity, except for some mountainous road sections in the Caucasus, as almost the entire corridor runs through flat areas. Consequently, expanding the capacity of the main part of the corridor requires significantly less investment per kilometer of road, as the route runs mainly through flat terrain in northern latitudes with favorable natural conditions and low building density. According to EBRD estimates, the expansion and modification of the Middle Corridor would make freight transportation 35% faster and 40% cheaper than along the Northern Corridor, creating an attractive alternative.

The only serious obstacle that currently significantly limits and slows down the transportation of goods along this corridor is the need to transship goods across the Caspian Sea. It requires a change in the mode of transport from rail to sea and back, which significantly slows down and increases the cost of cargo movement. In addition, the unsatisfactory state of the port and ferry infrastructure: the ports of Aktau and Kuryk in Kazakhstan, Baku and Aliyat in Azerbaijan, Turkmen Bashi in Turkmenistan, Batumi and Poti in Georgia, Ro-Ro rail and car ferries and an insufficient number of modern heavy-duty tankers require significant investment in their modernisation or construction.

The EBRD estimates that the immediate investment needs for upgrading the Middle Corridor infrastructure are around 18.5 billion euro. Investments are needed to modernize the railway infrastructure, including the development of the railway network, which is not always optimal, the creation of second tracks and their electrification, deepening and increasing the capacity of ports, and purchasing modern heavy-duty tankers, which will substantially increase the speed and reduce the cost of transportation.

In January 2024, at the Global Gateway Investors Forum for the European Union – Central Asia Transport Connectivity in Brussels, the European financial institutions expressed their readiness to invest around 10 billion euros (US$10.2 billion) in the development of the TITR. As part of this, the European Investment Bank Global has signed memorands of understanding for project co-financing with Kazakhstan, the Kyrgyz Republic, Uzbekistan, and the Development Bank of Kazakhstan worth 1.47 billion euros (US$1.6 billion). This includes the modernization of container handling equipment and the development of a container terminal at the Aktau Port, double tracking, the electrification of the national railway network, and the development of key roads.

Due to the future shallowing of the Caspian Sea, constant dredging of ports and sections of the sea will be required. The Caspian Sea basin loses 7 cm of water every year, so by the end of the century the Caspian Sea will be 9 to 18 m lower.

As an alternative, it is possible in the future to build a road across the Caspian Sea, which will significantly reduce the transit time of goods.

Sources: Historical inflation data are taken from the World Development Indicators (2025).

Given the width (193 km) and depth of the sea (about 200 m) at the narrowest point of the sea, two options for its construction are possible in the future: a submerged floating tunnel and a floating bridge.

Both options will not impede shipping in any way and will not have negative environmental consequences. Therefore, they do not violate the provisions of the Convention on the Legal Status of the Caspian Sea (2018).

The first way is to build a submerged floating tunnel. However, it is very expensive. There are two already implemented projects of interest here.

The world’s longest tunnel is an underwater segment of Seikan. It connects the Japanese islands Honshu and Hokkaido. The length of this tunnel is 53.85 km, and the underwater part is 23.3 km. The tunnel goes down to a depth of about 240 m (100 m below the seabed). The tunnel was designed for 9 years and built for 24 years from 1964 to 1988.

At that time, its value was $3.6 billion. In modern prices, this is about $4.4 billion. Considering that the length of the Caspian Sea from Baku to Turkmenbashi is 193 km, a similar project would cost about $37 billion at current prices.

Another project is the Eurotunnel, that is, a two-track railway tunnel about 51 km long connecting France and Great Britain, of which 39 km pass under the English Channel. The average depth of the strait is 50 m; the maximum is 75 m. The tunnel under the English Channel consists of three parts: two railway tunnels almost 8 m in diameter at 25 m from each other and one service tunnel almost 5 m in diameter. Each section is about 50 km long. In general, this is a complex project in terms of its technological implementation and operation. It was built in 1994 and cost investors $22.4 billion. In today’s prices, it would cost $40 billion. Considering the length of the Caspian section of the road, the cost of its construction could rise to $198 billion in current prices, which would put a big cross on its implementation.

The second method is the construction of a semi-submersible floating bridge (Floating Bridge). The project was developed by Norwegian companies Reinertsen, Olsen, and others. In Norway, this method was proposed for the construction of the E39 highway from Kristiansen to Trondheim. It is 1,100 km long, which means the time to cover it is 21 h and cross 7 ferry crossings. The Norwegian government would like to reduce this time to 11 h, which would cut transport costs by 50%. The cost of the project itself is estimated at €40 billion at current prices.

The realization of the project involves using technology from the Norwegian offshore industry, especially the floating oil platforms, that make it possible to anchor a floating construction at depths up to 30–100 m below sea level. According to the developers, such a tunnel should consist of two concrete pipes—one for movement in each direction, securely fastened with strong cables. These cables are supposed to be attached either to the seabed or to massive pontoons floating on the surface. These pontoons will be located at a large distance from each other, without interfering with shipping. The idea is that waves and currents at a depth of 30 m are not as powerful as on the surface. And they cannot affect the speed of vehicles in any way. Floating tunnels also minimize the impact of the highway on the landscape. Much of its infrastructure is underwater, out of sight, and, unlike traffic on a bridge, it does not create noise and is not affected by weather conditions.

Considering the length of the Caspian Sea from Baku and Turkmen Bashi, it will cost investors approximately $7.9 billion in the current 2024 price. This option is much cheaper than the first but will only pay for itself with significant volumes of cargo transportation. However, questions arise about the safety and maturity of technology. Therefore, this option can only be implemented if the Norwegian experience proves successful.

The construction of such a floating bridge across the Caspian Sea, the construction of second lines and their electrification along the entire Middle Corridor, as well as the construction of new modified and straightened routes will significantly increase the capacity of the corridor and the average speed of freight movement along it. Under these conditions, it will be able to compete much more successfully with the Northern Corridor, as well as attract a significant portion of sea transit cargo from the Maritime route.

Thus, if the above conditions are met, this corridor can become a powerful catalyst for the development of not only countries participating in international trade between Europe and Asia, but primarily countries located along the Middle Corridor, such as Turkey, the countries of the North Caucasus, Central Asia, and Kazakhstan.

These predominantly landlocked countries will finally get a direct, shortest, and cheapest route not only to the markets of Europe and Asia but also to the markets of neighboring countries. All this can dramatically accelerate the pace of their economic development and will also contribute to a significant increase in volumes and more balanced supplies of goods in both directions. In turn, the scale effect will reduce the cost of transportation and further increase the attractiveness of the corridor.

Nowadays, the Middle Transport Corridor cannot be considered as a competitor to other alternative routes between Europe and China. Rather, it simply complements other transit corridors, providing new transport options for all participants, but does not replace them. The corridor creates more competitive conditions for shippers, as they can use different transport corridors to deliver cargo depending on their preferences, capabilities, and customer requests.

However, the situation may change dramatically in the longer term. A detailed analysis of the advantages and disadvantages of various corridors between Europe and Asia shows that the Middle Corridor has high growth potential in the medium and long term. This is because it runs mainly through flat terrain in favorable natural conditions with a low degree of space population, which allows the use of modern technologies, optimization of the route location and significant reduction in subsequent costs for expanding its capacity.

The importance of the Middle Corridor will grow steadily due to geopolitics. The war between Russia and Ukraine does not seem to have a quick solution and threatens to escalate into a long, slow war. This also applies to the conflict in Gaza. Israel’s bombing of Gaza civilians and the razing of their settlements to the ground will not lead to a quick end to the conflict, but to its intensification. In addition, the unpredictable foreign trade policy of the current administration is reducing the attractiveness of the United States as a reliable trade and financial partner, which can lead to the formation of global free trade zones without the direct participation of US companies. All this will force shippers and carriers to increasingly use the Middle Corridor for the fast and safe delivery of goods between Europe and Asia. This will lead to a rapid increase in cargo flows, especially transit, along this route.

In the medium term, it is necessary to modernize the railway infrastructure, including through the development of the railway network, which is not optimal, the creation of second tracks and their electrification, deepening, and increasing the capacity of ports, as well as the purchase of modern heavy-duty tankers, which will significantly increase the speed and reduce the cost of transportation. This is quite realistic, given the previously stated readiness of various trading partners to invest additionally in the development of this road.

In the long term, with sufficient traffic volumes, there may be a need to build a tunnel or bridge across the Caspian Sea. One of the economically feasible options could be the construction of a semi-submersible floating bridge across the Caspian Sea, which would allow for a multiple expansion of the corridor’s capacity, a significant increase in the average speed of cargo movement along the corridor, and a substantial reduction in the cost of cargo transportation.

Reported by the Journal of Eurasian Studies; introduction by Yicay.

China, Pacific

26.11.2025

Steady growth forecast for China's export sector

Since the beginning of this year, despite multiple pressures including uneven global economic recovery, rising geopolitical uncertainties and especially the US imposition of high tariffs on Chinese goods, China's exports maintained relatively high growth year-on-year, showing resilience well beyond market expectations.

In the first three quarters, China's total exports reached $2.8...

Since the beginning of this year, despite multiple pressures including uneven global economic recovery, rising geopolitical uncertainties and especially the US imposition of high tariffs on Chinese goods, China's exports maintained relatively high growth year-on-year, showing resilience well beyond market expectations.

In the first three quarters, China's total exports reached $2.8...

26.11.2025

China’s shipping industry on course for greener future

China is leveraging its dominance in shipbuilding and renewable energy to drive the decarbonization of the global maritime sector, a shift industry executives say is vital for meeting international climate targets.

While the global shipping industry faces steep challenges in cutting emissions, Patrick Kettschau, managing director of Everllence China, points to...

China is leveraging its dominance in shipbuilding and renewable energy to drive the decarbonization of the global maritime sector, a shift industry executives say is vital for meeting international climate targets.

While the global shipping industry faces steep challenges in cutting emissions, Patrick Kettschau, managing director of Everllence China, points to...

26.11.2025

Early warning system secures cargo throughput at China river port

A sophisticated early warning system is helping the world's largest port by cargo throughput cut weather-related downtime and keep global supply chains moving, officials said.

Ningbo-Zhoushan Port — the first port in the world to surpass 1 billion metric tons in annual cargo throughput — has held the top global ranking,...

A sophisticated early warning system is helping the world's largest port by cargo throughput cut weather-related downtime and keep global supply chains moving, officials said.

Ningbo-Zhoushan Port — the first port in the world to surpass 1 billion metric tons in annual cargo throughput — has held the top global ranking,...

26.11.2025

China applies master plan to upgrade economy

In the first three quarters of 2025, China's economy maintained steady performance despite a complex external environment and domestic structural adjustment pressures. According to data released by the National Bureau of Statistics, China's gross domestic product grew by 5.2 percent year-on-year. This rate not only surpasses most major economies, but...

In the first three quarters of 2025, China's economy maintained steady performance despite a complex external environment and domestic structural adjustment pressures. According to data released by the National Bureau of Statistics, China's gross domestic product grew by 5.2 percent year-on-year. This rate not only surpasses most major economies, but...

26.11.2025

China Eastern launches cargo flight between Shanghai and Paris

A direct all-cargo air route linking Shanghai in East China and Paris, France, was launched on Thursday by Eastern Air Logistics Co, the freight unit of China Eastern Air Holding Co Ltd, according to the Shanghai-based carrier.

The route establishes a vital new link between China and France, which is expected...

A direct all-cargo air route linking Shanghai in East China and Paris, France, was launched on Thursday by Eastern Air Logistics Co, the freight unit of China Eastern Air Holding Co Ltd, according to the Shanghai-based carrier.

The route establishes a vital new link between China and France, which is expected...

26.11.2025

Maersk opens flagship logistics center in Shanghai

AP Moller–Maersk, the Danish shipping and logistics group, officially unveiled its flagship logistics center in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone on Thursday, marking one of its largest global warehousing investments.

Representing an investment of over $140 million, the facility spans 113,000 square meters and offers...

AP Moller–Maersk, the Danish shipping and logistics group, officially unveiled its flagship logistics center in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone on Thursday, marking one of its largest global warehousing investments.

Representing an investment of over $140 million, the facility spans 113,000 square meters and offers...

26.11.2025

Over 13,000 Chinese investors operate in Russia

Over 13 thousand Chinese investment companies currently operate in Russia. Calculations between the two countries are almost entirely transferred to national currencies. This was stated by Boris Titov, Special Representative of the President of Russia for Relations with International Organisations for Achieving Sustainable Development and Co-Chairman of the Russian-Chinese Committee for Friendship, Peace and Development (RCCFPD).

"As...

Over 13 thousand Chinese investment companies currently operate in Russia. Calculations between the two countries are almost entirely transferred to national currencies. This was stated by Boris Titov, Special Representative of the President of Russia for Relations with International Organisations for Achieving Sustainable Development and Co-Chairman of the Russian-Chinese Committee for Friendship, Peace and Development (RCCFPD).

"As...

26.11.2025

Russia, China readying 80 joint investment projects worth up to $200 billion

Russia and China are preparing an estimated $200 billion of joint investment projects, Boris Titov, co-chairman of the Russian-Chinese Committee for Friendship, Peace, and Development, announced.

"Russia and China are getting ready to launch more than 80 joint projects worth some $200 billion. New opportunities for business are expanding," said Titov,...

Russia and China are preparing an estimated $200 billion of joint investment projects, Boris Titov, co-chairman of the Russian-Chinese Committee for Friendship, Peace, and Development, announced.

"Russia and China are getting ready to launch more than 80 joint projects worth some $200 billion. New opportunities for business are expanding," said Titov,...

Eurasia

26.11.2025

Russia-China transports with stopover in India via North-South corridor to become regular in 2026

The launch of transportation on the Russia—Iran—India and Russia—Iran—China routes within the framework of the North—South International Transport Corridor is planned for 2026.

Andrey Tarasenko, Head of the Federal Agency for Maritime and River Transport (Rosmorrechflot), designated this deadline as the target for the start of regular services, emphasising that preparatory work is already close to completion and is...

The launch of transportation on the Russia—Iran—India and Russia—Iran—China routes within the framework of the North—South International Transport Corridor is planned for 2026.

Andrey Tarasenko, Head of the Federal Agency for Maritime and River Transport (Rosmorrechflot), designated this deadline as the target for the start of regular services, emphasising that preparatory work is already close to completion and is...

26.11.2025

China strengthens position in Central Asia transport corridors and energy

China intends to maintain and strengthen its strategic influence in Central Asia, especially against the backdrop of growing US diplomatic activity in the C5+1 format. Beijing demonstrates that the region remains one of its key foreign policy priorities, and it is increasing its presence in two crucial areas—transport routes and energy, reports Asia Today.

Central Asia has long been a focal point...

China intends to maintain and strengthen its strategic influence in Central Asia, especially against the backdrop of growing US diplomatic activity in the C5+1 format. Beijing demonstrates that the region remains one of its key foreign policy priorities, and it is increasing its presence in two crucial areas—transport routes and energy, reports Asia Today.

Central Asia has long been a focal point...

26.11.2025

Digital yuan used in trade bypassing SWIFT, digital rouble next

The digital yuan is already actively used in China’s international settlements, allowing transactions to be completed in seconds without using the SWIFT system, Boris Titov, Russian presidential envoy for relations with international organizations to achieve sustainable development goals, told TASS, adding that Russian businesses are exploring the potential of this...

The digital yuan is already actively used in China’s international settlements, allowing transactions to be completed in seconds without using the SWIFT system, Boris Titov, Russian presidential envoy for relations with international organizations to achieve sustainable development goals, told TASS, adding that Russian businesses are exploring the potential of this...

26.11.2025

Belarus and China plan transition to electronic exchange of permits

Belarus and China are interested in transitioning to the electronic exchange of permits for international road transport. This is stated in a message from the press service of the Ministry of Transport and Communications of the Republic of Belarus following a meeting of the relevant ministers of the two countries. The transition to an...

Belarus and China are interested in transitioning to the electronic exchange of permits for international road transport. This is stated in a message from the press service of the Ministry of Transport and Communications of the Republic of Belarus following a meeting of the relevant ministers of the two countries. The transition to an...

26.11.2025

Russian railway transport volumes with China grow in 10 months 2025

Transport volumes on the Russian Railways network in communication with China for the 10 months of 2025 amounted to over 155 million tonnes of cargo, which is 7% more than in the corresponding period of 2024.

Russian Railways, in its Telegram channel, reports that Sergey Pavlov, First Deputy Head of the company, presented this data at the CISTP round...

Transport volumes on the Russian Railways network in communication with China for the 10 months of 2025 amounted to over 155 million tonnes of cargo, which is 7% more than in the corresponding period of 2024.

Russian Railways, in its Telegram channel, reports that Sergey Pavlov, First Deputy Head of the company, presented this data at the CISTP round...

26.11.2025

Kyrgyzstan plans complete Barskoon–China border highway by September 2029

The construction of the highway from the shore of Issyk-Kul to the Bedel checkpoint on the border of Kyrgyzstan with China is planned for completion within three years and nine months. Minister of Transport Beknazar Bazaraliev stated this.

According to him, the construction of the technological road was completed in 2024 and a contract was concluded with the contractor—the Chinese state company China Road...

The construction of the highway from the shore of Issyk-Kul to the Bedel checkpoint on the border of Kyrgyzstan with China is planned for completion within three years and nine months. Minister of Transport Beknazar Bazaraliev stated this.

According to him, the construction of the technological road was completed in 2024 and a contract was concluded with the contractor—the Chinese state company China Road...

Europe

26.11.2025

L'Oréal stays bullish on China's market

Visitors check out cosmetic products on display at L'Oréal's booth in the consumer goods exhibition area at the eighth China International Import Expo (CIIE) in East China's Shanghai, on Nov 5. [Photo/VCG]

Beauty group L'Oréal's minority stake purchase in Chinese skincare brand Lan earlier this month marks the company's second investment...

Visitors check out cosmetic products on display at L'Oréal's booth in the consumer goods exhibition area at the eighth China International Import Expo (CIIE) in East China's Shanghai, on Nov 5. [Photo/VCG]

Beauty group L'Oréal's minority stake purchase in Chinese skincare brand Lan earlier this month marks the company's second investment...

26.11.2025

Easier access for Italian companies to Chinese market granted

Chinese Premier Li Qiang pledged on Saturday greater access for Italian companies to the Chinese market via expos and other platforms.

China encourages more Italian companies to enter the Chinese market through platforms such as the China International Import Expo, the China International Fair for Trade in Services, the China International...

Chinese Premier Li Qiang pledged on Saturday greater access for Italian companies to the Chinese market via expos and other platforms.

China encourages more Italian companies to enter the Chinese market through platforms such as the China International Import Expo, the China International Fair for Trade in Services, the China International...

26.11.2025

China's Sichuan province seeks partnerships in Bulgaria

A conference on economic, trade and cultural cooperation between southwestern China's Sichuan province and Bulgaria was held at the China Cultural Center here on Monday.

The one-day event, organized by the Sichuan NGO Network for International Exchanges (SNIE), gathered Sichuan institutions and companies, and their potential Bulgarian partners.

Liu Jie, vice president...

A conference on economic, trade and cultural cooperation between southwestern China's Sichuan province and Bulgaria was held at the China Cultural Center here on Monday.

The one-day event, organized by the Sichuan NGO Network for International Exchanges (SNIE), gathered Sichuan institutions and companies, and their potential Bulgarian partners.

Liu Jie, vice president...

South Asia, Middle East

26.11.2025

Digital economy, green transition, global Chinese diaspora to contribute to ASEAN’s growth

Chinese Ambassador to Malaysia Ouyang Yujing (second right), Malaysian Deputy Prime Minister and Minister of Rural and Regional Development Ahmad Zahid Hamidi (third right), and Malaysian Chinese Association President Wee Ka-siong (first left) respond during the opening of the Global Chinese Economic and Technology Summit 2025 in Kuala Lumpur on...

Chinese Ambassador to Malaysia Ouyang Yujing (second right), Malaysian Deputy Prime Minister and Minister of Rural and Regional Development Ahmad Zahid Hamidi (third right), and Malaysian Chinese Association President Wee Ka-siong (first left) respond during the opening of the Global Chinese Economic and Technology Summit 2025 in Kuala Lumpur on...

26.11.2025

BRI project helps improve rural living conditions in Indonesia

A landmark project of cooperation between China and Indonesia under the Belt and Road Initiative framework is helping bolster rural living conditions in local communities.

Since its inception in 2013, Indonesia Morowali Industrial Park (IMIP) has harnessed the region's abundant nickel reserves to grow into a large integrated industrial cluster, attracting...

A landmark project of cooperation between China and Indonesia under the Belt and Road Initiative framework is helping bolster rural living conditions in local communities.

Since its inception in 2013, Indonesia Morowali Industrial Park (IMIP) has harnessed the region's abundant nickel reserves to grow into a large integrated industrial cluster, attracting...

Africa, Americas

26.11.2025

China’s FAW Trucks paves Southern Africa's road to the future

Since its founding in 1953, China's First Automobile Works, better known as FAW, has been a pioneer of global commercial vehicle innovation. The automaker expanded its footprint into Southern Africa in 1994, introducing a range of commercial vehicles purpose-built for national conditions.

Over three decades later, FAW Trucks Southern Africa has...

Since its founding in 1953, China's First Automobile Works, better known as FAW, has been a pioneer of global commercial vehicle innovation. The automaker expanded its footprint into Southern Africa in 1994, introducing a range of commercial vehicles purpose-built for national conditions.

Over three decades later, FAW Trucks Southern Africa has...