Azerbaijan, Kazakhstan, and China are implementing a large-scale infrastructure project aimed at developing the Trans-Caspian International Transport Route, also known as the Middle Corridor. As part of this collaboration, an intermodal cargo terminal will be constructed in the Port of Alat, near Baku, serving as a critical link in the transportation chain between Asia and Europe. This new facility will significantly enhance the route’s capacity, reduce delivery times, and lower logistical costs.
The creation of the terminal addresses the rapid growth in freight volumes along the Middle Corridor. Over recent years, cargo traffic on this route has increased dramatically, highlighting the urgent need to modernize infrastructure. In the first eight months of 2023 alone, over 1.7 million tons of freight were transported via this corridor, an 85.3% increase compared to the same period the previous year. This surge underscores the corridor’s growing importance as an alternative route for shipping goods from China to Europe.
The agreement to construct the new terminal was signed in November 2024 during the COP29 international conference in Baku. The project involves the Kazakhstan-Azerbaijan SK-AIH Investment Fund, Kazakhstan Railways (KTZ), the Baku International Sea Trade Port, and the Chinese Xi’an Free Trade Port Construction and Operation Company. Spanning 40 hectares, the terminal will feature modern infrastructure, including a universal cargo yard, a 5,000-square-meter warehouse, and a container yard capable of handling over 1,000 TEUs. Emphasis will be placed on digital technologies and automated systems to optimize operations and boost efficiency.
This project benefits all stakeholders. For Kazakhstan, it strengthens its position as a vital transit hub between Asia and Europe. Azerbaijan will solidify its role as a key logistics center in the Caspian region. For China, the terminal provides a reliable and efficient route for exporting goods to European markets. The initiative also aligns with Kazakhstan’s national railway development strategy adopted in 2024, which prioritizes the establishment of a network of modern cargo terminals both domestically and internationally.
The Port of Baku is actively expanding its capabilities as part of its second development phase, which aims to increase throughput capacity to 25 million tons annually, with a particular focus on containerized freight. As volumes of goods transported from China to Europe via the Middle Corridor continue to grow, Port Director General Taleh Ziyadov noted that the new terminal would enable the handling of up to 300,000 containers per year. This marks a significant step in enhancing Azerbaijan’s position on the global logistics map.
The construction of the intermodal terminal at the Port of Alat will serve as a catalyst for attracting investments and stimulating regional economic growth. The project will strengthen ties among participating nations, reduce logistical costs, and make the Middle Corridor more appealing to international carriers. Ultimately, it will establish a modern transportation system capable of meeting the growing demands of global trade while driving economic development across member countries and neighboring regions.
