Azerbaijan as a Key Link in the New Global Trade Landscape

Amid growing geopolitical instability, the Middle Corridor — a trans-Caspian transport route — is gaining strategic importance in global trade. Highlighted by The Economist, this route offers a faster, safer alternative for East-West cargo flow. Azerbaijan plays a pivotal role through major infrastructure investments, enhancing the corridor’s efficiency and aligning with China’s Belt and Road Initiative.

Caspian - Alpine Team
Caspian - Alpine Team
Diesel locomotives TE33A-0293 and 0786 at the inauguration of the Baku–Tbilisi–Kars railway line on October 30, 2017. Photo by Vugar Amrullayev / President.az

The topic of safe and rapid cargo transportation, which has become particularly relevant against the backdrop of developments in the European and Middle Eastern regions and the “turbulence” in the system of international trade, is now at the center of attention of influential global media outlets.

The renowned publication The Economist has also dedicated an article to the prospects for the development of the Trans-Caspian transport route — the Middle Corridor — and the role of Azerbaijan in increasing its efficiency.

A key message running through the article is the special significance of this route in the context of geopolitical crises. This once again highlights the timeliness and strategic foresight of official Baku, which, more than two decades ago, prioritized the development of transport communications and the modernization of infrastructure, including the launch of the Baku–Tbilisi–Kars railway line.

The article draws attention to a major new railway project through Kyrgyzstan and Uzbekistan that will become part of the Middle Corridor. In light of current geopolitical tensions — from the war in Ukraine to instability in the Red Sea region — Beijing is reportedly reassessing its logistics strategies. According to the publication, these developments are pushing China to strengthen the resilience of its international trade links, particularly in view of rising insurance costs, higher risks, and extended delivery times.

In this context, the Middle Corridor, which runs through Caspian Sea ports, is emerging as a practical alternative. The addition of the new railway segment is expected to further shorten and streamline the route. The article notes that China — as the initiator of the Belt and Road Initiative — continues to prioritize exports as a key economic driver. In this regard, alternative land routes are viewed as a way to improve delivery times for time-sensitive goods, enhance China’s regional presence, and ensure greater supply chain stability.

The increase in attacks by Yemeni Houthis on vessels in the Red Sea is described as another factor prompting China to reduce its dependence on maritime trade routes and to mitigate exposure to regional instability — even though sea transport still dominates in terms of volume. This shift is one of the reasons why both China and its partners are actively working to modernize the Middle Corridor’s infrastructure.

Although the Middle Corridor traverses more borders and includes the Caspian Sea crossing, it is noted in the article that the route is significantly shorter. Since the beginning of the conflict in Ukraine, Beijing has reportedly shown greater interest in upgrading this transport pathway. The importance of the Middle Corridor was also underscored during the first China–Central Asia summit held in Xi’an in 2023.

The Economist points out that the volume of cargo transported via the Middle Corridor continues to grow. Improvements in Caspian Sea ports, infrastructure upgrades along the route through Azerbaijan and Turkey, as well as streamlined customs procedures, have significantly reduced transit times — reportedly from over 38–53 days to just 18–23 days. Between 2021 and 2024, the amount of cargo shipped through this route is said to have doubled, reaching around 55,000 standard TEU containers. At the same time, rail trade between China and Europe has seen a sharp increase in value — rising from $8 billion in 2016 to $57 billion in 2023. Total trade between China and the EU reached €518 billion ($568 billion) last year.

The European Union is also paying closer attention to land-based transport routes. According to the publication, Brussels views the Middle Corridor as consistent with the goals of the EU’s Global Gateway initiative, which seeks to establish strategic global infrastructure. The topic was also reportedly discussed during the first EU–Central Asia summit held in early April.

This heightened international media interest in the development of the Middle Corridor — and its growing significance amid ongoing geopolitical shifts — once again reflects the success of Azerbaijan’s long-term strategy. As one of the earliest supporters of the Belt and Road Initiative, Azerbaijan has firmly established itself as a key segment of global trade routes and has made timely and substantial investments in the modernization of its transport infrastructure.

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