Through its “Bright Road” strategy, Kazakhstan is clearly focused on being the leading transit hub in Eurasia. This goal has evolved quite a bit over the last ten years. With shifting geopolitical realities, the role of Central Asia’s transport corridors has quickly become a matter of great strategic importance. The figure is truly staggering with 85% of goods journeying from China to the EU using Kazakhstan as their entry point. The picture is changing as new, competing corridors, many more nimble than entrenched routes long controlled by Russia, begin to come into play.
Of these potential alternatives, the Middle Corridor route that goes from Asia to Europe through the Caucasus is increasingly emerging as a key alternative. If political stability can be maintained and infrastructure developments come to fruition, it has the potential to redesign trade routes in the region. Countries like Azerbaijan, Georgia, Uzbekistan, and Turkmenistan are investing heavily in their transport capabilities to capitalize on this potential shift.
Kazakhstan’s Strategic Positioning
Kazakhstan has invested over the last decade and more building up this country’s infrastructure. Their stated aim is to make the country a top international transit center between Asia and Europe. The country has invested heavily in its railways, highways and logistics facilities. These improvements have significantly improved the flow of goods across its borders.
Indeed, with 85% of all goods moving from China to the EU transit Kazakhstan’s territory, Kazakhstan’s importance cannot be understated. Additional advantages The nation’s geographic positioning can sometimes be overlooked, but it is a major asset for firms that are seeking to penetrate European markets. Transport Corridor Europe-Caucasus-Asia (TRACECA) is one example illustrating Kazakhstan’s goal of establishing other routes that circumvent historic Russian networks.
Kazakhstan’s ambitions are not all that modest—it aspires to be the logistical backbone of all Eurasian trade. The government’s commitment to improving infrastructure has attracted international attention and investment, setting the stage for a potential economic boom as trade routes evolve.
The Emergence of the Middle Corridor
The Middle Corridor thus has the potential to become a strong competitor to Russia’s already developed transport corridors. This trade route between China and Turkey—and by extension, all of Europe—via Azerbaijan and Georgia. It offers a different route that does not come with geopolitical discord.
Azerbaijan’s strategic location gives it a key role in this corridor. Baku is the only port on the western shore of the Caspian Sea. In this regard, its location has made it a jumping off point for maritime commerce and trade. Meanwhile, Georgia enhances this connectivity with its two major Black Sea ports, Poti and Batumi, as well as its shared border with Turkey.
Uzbekistan too is angling themselves strategically within this framework. The country has been focusing on implementation of alternative routes, including the Trans-Caspian International Transport Route (TITR), and is strongly advocating for the China-Kyrgyzstan-Uzbekistan Railway. This railway is to a new branch of the Middle Corridor that transits through Turkmenistan. This bolsters Uzbekistan’s geopolitical importance in Central Asian and perhaps wider Eurasian trade.
Regional Investments and Competition
Countries across Central Asia are investing heavily in their transport infrastructures to enhance their appeal as transit routes for east-west trade flows. Just to the north, Azerbaijan, Armenia, Georgia and Turkmenistan are all engaging in major new investments in railroads, highways and port facilities.
Only Turkmenistan with its port on the east coast of the Caspian Sea at Turkmenbashi is completely immune from this logic. This new port allows Turkmenistan to fully engage in competitive regional trade. Today, the country is breathing new life into the Lapis Lazuli Corridor, which links Afghanistan to Turkey. This important route could eventually stretch all the way to Europe through Azerbaijan and Georgia.
Not all countries are equally positioned or prepared. Kyrgyzstan is economically dependent on trade with Russia and relies on Kazakhstan as an important transit hub. Uzbekistan, meanwhile, is opening up its own routes to Europe, in partnership with Azerbaijan and Georgia. On the other hand, it opens an eastern corridor connecting it to Turkey through Iran and increasing its access to India through Afghanistan and Pakistan.
Competition between Kyrgyzstan and Tajikistan over which route transit routes should take adds another layer of complexity to the regional landscape. Countries are blatantly racing against one another to gain dominance over the future transportation climate. Over the next ten years, we will discover which countries emerge as standards-setters in the Eurasian trading system.
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