Key Takeaways:
- The Middle Corridor has emerged as a secure and strategic trans-Eurasian trade route, prompting extensive government efforts to modernize and digitalize infrastructure across the region. Government-led digital transformation strategies, including automation, real-time cargo tracking, and smart logistics platforms, are being deployed to enhance trade efficiency, cargo flow optimization, and integration into global transport networks.
- Azerbaijan has made significant progress through initiatives such as the Unified Center for Transit Freight Management and digitized procedures at the Port of Baku, creating standardized, transparent, and harmonized freight processes. Kazakhstan’s Tez Customs platform, launched in 2024, exemplifies a broader regional shift toward digital customs clearance, drastically reducing paperwork and clearance times while enhancing transparency and interconnectivity.
- To ensure long-term competitiveness and resilience, Middle Corridor states must continue investing in interoperable digital platforms, green technologies, and policy coordination mechanisms. These measures, taken together, will position the Middle Corridor as a future-ready trade route that is not only technologically advanced but also environmentally sustainable and geopolitically resilient in the face of evolving global supply chain challenges.
With the Middle Corridor emerging as a secure and strategic land- and sea-based trade route, major stakeholders are making extensive efforts to develop the necessary infrastructure for further modernization and digitalization of such a complex multimodal trans-regional pathway. Nevertheless, government-led digital transformation strategies have enabled the political leadership of the involved states to implement advanced digital solutions, seamlessly integrating multiple services and optimizing cargo flows within the Sino-European trade network in a secure and intelligent manner. To meet international market demands and strengthen integration into the global transport network, the development of technologically advanced facilities has become a top priority in ensuring both the resilience and sustainability of the Middle Corridor. As geopolitical and economic dynamics continue to evolve dramatically, a strategic focus on digital transformation, automation, and intergovernmental coordination will become increasingly instrumental in positioning the Middle Corridor as a key pillar of trans-Eurasian trade, reinforcing its role as a secure, efficient, and future-ready trade and transportation corridor.
The adoption of emerging technologies gradually enables the Middle Corridor to solidify its position as a digitally advanced and integrated transportation link across the wider Silk Road region. Intensified cooperation among regional governments, multilateral financial institutions, and private sector stakeholders has accelerated the development of strategic transport hubs, dry ports, and cross-border customs harmonization. Member states are implementing eTIR, ePermit, and eCMR systems to simplify customs procedures and enhance transparency in trade operations at all levels through comprehensive modernization plans. The integration of advanced data-sharing platforms, improved risk management systems, and real-time tracking mechanisms ensure seamless multimodal connectivity via the Middle Corridor. It is worth mentioning that, thanks to tangible steps toward large-scale digitalization initiatives, the volume of cargo transportation along the Middle Corridor increased by 68% to 3.8 million tons from January to October 2024.
In this context, the Ankara Declaration signed on January 29, 2025, by Azerbaijan, Türkiye, and Uzbekistan emphasized the widespread promotion of digitalization policies along the transportation corridors connecting these Turkic countries. The parties highlighted the benefits of the e-permit mechanism in the digitalization of transport operations, particularly in eliminating challenges arising from the loss or misuse of paper permits. They also welcomed the implementation of the e-Permit system, which is currently running in a test phase between Türkiye and Azerbaijan and between Türkiye and Uzbekistan. In the meantime, the signatories expressed their commitment to strengthening intergovernmental cooperation to further develop multimodal transport infrastructure, construct proper facilities, modernize rail and road networks, and expand digital connectivity between their territories.
The latest intergovernmental consensus, reached in June 2024 between Azerbaijan and China, is another case in point. Particularly, the “Memorandum of Understanding between the Government of the Republic of Azerbaijan and the Government of the People’s Republic of China on the development of Trans-Caspian International Transport Routes for the China-Europe Railway Express,” as well as the “Memorandum of Understanding between the Ministry of Economy of the Republic of Azerbaijan and the National Development and Reform Commission of the People’s Republic of China on the joint acceleration of the formation of a cooperation plan for the Belt and Road Initiative,” mark a new phase in the collaborative advancement of transport and logistics with respect to the interstate modernization projects.
As both countries continue to align their transport and economic policies, the implementation of these MoUs is expected to foster new opportunities for technology transfer and industrial cooperation between Azerbaijani and Chinese enterprises in critical technological areas. In particular, digital solutions in customs automation, smart logistics, and e-governance are set to enhance trade efficiency and transparency along the Middle Corridor, given China’s rich expertise in digitalized supply chain management and intelligent transportation systems. Indeed, the adoption of China’s advanced technological capabilities is not a new practice for Baku at all. As a key player in the implementation of cross-border digital solutions and one of the main initiators of interconnectivity projects, Azerbaijan has proactively pursued region-wide modernization strategies through practical partnerships with technologically advanced nations. Therefore, amid increasing diplomatic and commercial bonds between Baku and Beijing, Azerbaijan’s high-tech industry is increasingly turning to China for collaboration, spanning areas such as the digitization of transportation systems and the deployment of next-generation mobile internet networks.
In this regard, back in 2019, Azerbaijan’s State Customs Committee reached an agreement to establish a long-term collaboration with China’s telecommunications conglomerate, Huawei, to modernize and automate the country’s customs system using cutting-edge technologies. This partnership led to the implementation of an integrated customs management system for international trade and transport operations, incorporating Single Window systems that enhance connectivity and digitization across border crossings and customs ecosystems. By leveraging automation, Azerbaijan has significantly improved the efficiency, accuracy, and transparency of its customs operations, reducing processing times and minimizing the risk of errors or fraudulent activities in trade transactions.
Similarly, in 2022, the Ministry of Digital Development and Transport of Azerbaijan set up the so-called Unified Center for Transit Freight Management to form a centralized administrative system for managing transit freight operations. The center’s primary objective is to systematically digitize and synchronize transit processes at border checkpoints in order to streamline procedures and facilitate smoother trade flows. Simultaneously, the Ministry of Digital Development and Transport of Azerbaijan adopted standardized procedures for managing transit cargo at the Port of Baku. These so-called “Procedural Rules” set guidelines for handling cargo; more precisely, they define the order of operations and deadlines for required documentation. The goal is to ensure efficiency, consistency, and predictability in transit freight operations in the maritime segment of the Middle Corridor. Additionally, the government is planning to introduce similar regulatory frameworks at other border-crossing points to ensure a harmonized and fully digitized approach to Azerbaijan’s expanding transit freight sector.
Speaking of the Port of Baku, since 2019, the port authority has been providing an integrated e-service under the region-wide project “Digital Route” for businesses and stakeholders involved in trade, transport, and logistics along the Middle Corridor. One of the project’s distinctive features is its broad impact, benefiting not only Azerbaijan but also all Middle Corridor members, including Türkiye, Georgia, and Kazakhstan, as well as peripheral nations such as Turkmenistan, Afghanistan, and Pakistan. This multifunctional web-based platform envisages enhanced connectivity, improved efficiency, and strengthened coordination mechanisms among private businesses, transport companies, customs authorities, and government agencies. This significant step toward digitization makes a major contribution to building a more competitive transit system across both the South Caucasian and Central Asian portions of this vital trade link.
Furthermore, due to its large-scale advancements in emerging green technologies, particularly in energy efficiency, waste management, and air quality, the Port of Baku has held the title of the first Green Seaport in the Caspian Basin since 2019. This recognition highlights the port’s commitment to sustainability, eco-friendly operations, and innovation-driven modernization policies along the western shore of the Caspian Sea. Through the successful integration of smart logistics solutions, renewable energy sources, and environmentally responsible waste management systems, the Port of Baku has significantly reduced its carbon footprint and enhanced operational efficiency along the Middle Corridor. Notably, the port’s leadership aims to achieve net-zero emissions by 2035 through the implementation of revolutionized technologies and the adoption of sustainable green logistics practices. Consequently, by reducing the use of fossil fuels and implementing green technology solutions, the Middle Corridor aims to ensure that all modes of transportation are environmentally friendly. Ostensibly, the primary objective of establishing eco-friendly ecosystems and greening the transport process is to enhance the corridor’s competitiveness as a low-carbon trade route in the immediate future.
Going forward, the thorough modernization of Azerbaijan’s nationwide communication networks and domestic telecommunication infrastructure is another key example of government-backed digitalization strategies toward improving the transshipment capacity and sustainable development of the Middle Corridor. More specifically, AzerTelecom, the country’s primary internet backbone provider, and Azerbaijan Railways, the state-owned rail transport operator, have been collaborating on the construction of commercial fiber-optic cable lines along railway tracks to enhance connectivity and support the region’s growing digital infrastructure under the wider framework of the Azerbaijan Digital Hub project. This initiative plays a crucial role in ensuring high-speed internet access for logistics centers, industrial zones, and border checkpoints along the Middle Corridor. The integration of fiber- optic networks along railway routes will also improve communication reliability for railway operations, enhance real-time cargo tracking, and facilitate the adoption of smart transportation systems. Against this backdrop, in October 2024, the Asian Development Bank (ADB) announced an infrastructure investment of approximately $47 million to further digitize Azerbaijan’s railway network as part of the broader Central Asia Regional Economic Cooperation (CAREC) Program.
As a critical link in the Middle Corridor, Kazakhstan is another major emerging player in the digital transformation of trade and logistics. Within the framework of the Middle Corridor, Astana has prioritized the adoption of digital platforms for supply chain coordination and the integration of predictive analytics to optimize logistics operations between East Asia and Europe. Like Azerbaijan, Kazakhstan has shown a growing interest in partnering with foreign high-tech vendors to advance its digital infrastructure and technological capabilities. A prime example of this strategic collaboration is the introduction of Tez Customs, a digital customs clearance platform developed by Kazakhstan Railways (KTZ) in partnership with Global DTC, a Singapore- based technology company. This state-of-the-art platform is designed to streamline customs declaration procedures for transit cargo along the Middle Corridor by eliminating paper-based processes and reducing clearance times to just 30 minutes after a train’s arrival. Tez Customs facilitates preliminary document preparation, automatic registration, and real-time issuance of transit declarations, significantly improving logistics efficiency and transparency.
Since its May 2024 launch, Tez Customs has fully automated customs clearance on the China–Central Asia route via Kazakhstan’s Altynkol-Saryagash section. In October 2024, the system was expanded to cover transit cargo along the Middle Corridor. By the end of 2024, Tez Customs had processed over 54,000 transit declarations for China-Central Asia shipments, further reinforcing Kazakhstan’s role as a pivotal transit hub. Kazakhstan’s commitment to digitalization is enhancing the speed, transparency, and efficiency of regional trade flows, strengthening the Middle Corridor’s position as a key trans-Eurasian trade route. As digital transformation accelerates, continued technological collaboration and infrastructure modernization will be essential for maintaining seamless connectivity and interoperability with global transport networks.
Extensive digitalization initiatives along the Middle Corridor are playing a transformative role in stabilizing global trade by optimizing logistics operations, enhancing supply chain transparency, and minimizing disruptions between East Asia and Europe. The continuous development of cutting-edge infrastructure and the modernization of communication systems have significantly improved customs procedures, ensuring greater efficiency and a seamless flow of trade for cargo forwarders and logistics operators. Amid shifting geopolitical and geoeconomic landscapes, global trade has witnessed a surge in technology partnerships along the Middle Corridor, driven by the increasing digitalization of supply chains, the expansion of smart infrastructure, and a strategic push for innovation-led economic integration. These advancements have bolstered operational capabilities and enhanced the resilience of the corridor against external disruptions, including geopolitical risks and supply chain bottlenecks. However, to sustain this momentum, Middle Corridor states must further invest in advanced digital technologies and synchronized logistics operations. Expanding real-time cargo tracking, enhancing interoperability with global transport networks through digital standardization, and integrating green logistics solutions will be crucial for ensuring uninterrupted connectivity and efficiency. Policy coordination among key regional stakeholders will further cement the Middle Corridor’s position as a vital component of the trans- Eurasian trade ecosystem, securing its role in the evolving global supply chain landscape.
* This article, authored by our center’s expert Vusal Guliyev — a Sinologist and Policy Analyst specializing in the geopolitical affairs of Eurasia and the Asia-Pacific region — was originally published in AIR Center Azerbaijan. He currently works as a Policy Advisor at the Center of Analysis of International Relations and also serves as the Head of Shanghai Office at AZEGLOB Consulting Group
