By Sabina Alizade
Starting in July, regular container train services will commence along the Trans-Caspian transport corridor, known as the Middle Corridor, between the Chinese city of Xi'an and the capital of Azerbaijan, Baku. This new route marks a significant step in developing trade and economic cooperation between China and European countries through Central Asia.
The first container train carrying household appliances, cars, and parts departed from Xi'an on July 1st. The trains pass through the Khorgos border crossing in China's Xinjiang Uyghur Autonomous Region, then through Kazakhstan, cross the Caspian Sea, and arrive in Baku. The journey is expected to take around 12 days, making this route a fast and efficient option for cargo delivery.
According to an agreement between the relevant railway operators, trains will run daily on the Xi'an-Baku route, providing stability and predictability for international trading companies.
This new route also holds significant geopolitical importance in the context of China's Belt and Road Initiative. It fosters deeper economic ties and cooperation between Asian and European regions, offers more efficient cargo transport routes, and expands opportunities for mutually beneficial exchanges.
The first cargo trucks from China, transported through the Middle Corridor, have already arrived in Azerbaijan on a vessel operated by the Azerbaijan Caspian Shipping Company (ASCO). The initial convoy of 26 trucks was loaded onto the ASCO fleet's "Merkur-1" ferry at the port of Kuryk in Kazakhstan on July 3rd and sent to Azerbaijan. The delivered vehicles will be transported to European countries through Georgia and Turkey.
Previously, in May, China tested sending 80 tons of cargo by three trucks through the Middle Corridor to Europe from Kuryk.
The Middle Corridor, operational since 2014, passes through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and further to Turkey and European countries. In 2023, around 2.8 million tons of cargo were transported via this route, an 86% increase compared to 2022. The volume of transport is expected to exceed 4 million tons in 2024. By the end of the year, about 250 container trains are planned to be dispatched through the Middle Corridor. Starting in June, container trains will also be sent from the port of Lianyungang and Xi'an to Baku.
Economics expert Azer Badamov stated that transporting goods from China to Europe and back via the Middle Corridor is more cost-effective than all existing traditional routes. "It is advantageous in terms of both time and cost. Currently, one container train is dispatched daily from Xi'an through the Middle Corridor due to its active operations. Container train transport is more cost-effective. In this context, the prospects for the Middle Corridor are significant," emphasized the expert.
A. Badamov noted that given the trade turnover between Asia and Europe of $2 trillion and the cargo transport volume of 240 million tons, the prospects for the Middle Corridor are vast, and Azerbaijan continues to invest in increasing its capacity.
"We have invested an additional $100 million in the Baku-Tbilisi-Kars railway section passing through Georgia, increasing its capacity from 1 million tons to 5 million tons. The capacity of the Baku International Trade Port, part of the Trans-Caspian transport corridor, is planned to be increased from 15 million tons to 25 million tons. In the near future, the launch of the Zangezur corridor will further increase the capacity of the Middle Corridor. Azerbaijan will strive to take a larger share in the transit cargo transport from Asia to Europe and back," noted Badamov.
The expert added that to increase the capacity of the Middle Corridor, it is necessary to create a single operator to manage the transport. He emphasized that currently, cargo transport is carried out through the transfer of information between the relevant transport companies. "However, if transport is digitized and managed from one center, it will allow for more prompt and efficient organization of cargo transport through the Middle Corridor," noted the economist.
Doctor of Economics, expert Fikret Yusifovnoted that China has a particular interest in the South Caucasus region, where Azerbaijan is located.
"This interest is linked to the Middle Corridor passing through Azerbaijan, making it an important country for China. The total volume of China's foreign trade is $6.5 trillion, and today only about 20% of this cargo is transported by land routes, which are economically much more advantageous. Most of the land route connecting China with Europe today passes through the territory of Russia, which is under Western sanctions, limiting the prospects of this route. In this situation, the significance of the land route passing through Azerbaijan increases significantly.
Azerbaijan has long been establishing connections with China in the field of cargo transport. The launch of the Baku-Tbilisi-Kars railway is an important step in this direction. There is no doubt that in the near future, there will be significant expansion of land routes connecting East and West through Azerbaijan. The opening of the Zangezur corridor will allow for even more efficient transport in this direction. A short land route in modern transport means greater benefits. China intends to invest $8 trillion in the Belt and Road project, announced 10 years ago, to increase these benefits. Over $1 trillion has already been spent on routes passing through the territory of 60 countries within the project," noted the expert.
Transport expert Yasin Mustafayev stated that cargo transport from China to Europe is becoming increasingly relevant in light of recent global events. He added that serious steps are also being taken regarding the Zangezur corridor.
"If this corridor is opened, cargo transport from Azerbaijan through the territory of Armenia to Turkey and further to Europe promises great prospects. Now, container transport from China to Baku by rail takes 8-12 days. Transport via the Persian Gulf and the port of Bandar Abbas took 35-40, and sometimes 50 days. This route has great potential, as time is crucial in cargo transport. The Middle Corridor is the most suitable route for cargo delivery," noted the expert.
Yasin Mustafayev added that Armenia already understands that it too can play a role in cargo transport through the Middle Corridor, and this corridor can be beneficial for it as well. According to him, steps are already being taken in this direction.
"The Middle Corridor is the optimal route for cargo transport from East to West, from Beijing to London. If this route works, and the Zangezur corridor is opened, we can achieve very successful results. At the same time, serious steps are being taken on the North-South routes. Currently, Russia and Iran are under serious sanctions, limiting the possibility of cargo transport through these countries. However, the Middle Corridor, passing through Central Asia, the Caspian Sea, and Azerbaijan, is more optimal and not subject to sanctions," noted the expert.
Mustafayev also emphasized the importance of digitization and centralized management of transport through the Middle Corridor to increase its efficiency and promptness. "Creating a single operator to coordinate transport is a necessary step for further development," he added.
Additionally, the expert noted that international cooperation and investment in infrastructure play a key role in the successful implementation of the project. "Now, more and more international companies are showing interest in the Middle Corridor, indicating its significance and potential," concluded Mustafayev.
Yasin Mustafayev also pointed out the possibility of Armenia participating in the Middle Corridor project. "Armenia already realizes its potential within the Middle Corridor, and steps are being taken to participate in this project," he stated. "The Middle Corridor is the optimal route for cargo transport from East to West, from Beijing to London. If this route works and the Zangezur corridor is opened, we can achieve very successful results."
The expert also noted that serious steps are being taken on the North-South routes. Currently, Russia and Iran are under serious sanctions, limiting the possibility of cargo transport through these countries. However, the Middle Corridor, passing through Central Asia, the Caspian Sea, and Azerbaijan, is more optimal and not subject to sanctions.
Thus, the launch of regular container trains along the Middle Corridor between China and Azerbaijan opens new prospects for trade and logistics in the region. This route is not only economically advantageous but also has strategic significance for future cooperation between Asia and Europe within the Belt and Road initiative. In the coming years, further growth in transport volumes, increased infrastructure investments, and expanded international cooperation can be expected. The Middle Corridor promises to become a key link in the global logistics chain, connecting East and West and providing more efficient and reliable routes for cargo transport.
