MILAN, Italy, May 6. Latest external shocks have elevated the strategic importance of the Middle Corridor, Yingming Yang, ADB Vice President (South, Central and West Asia), said, addressing the seminar on Trans-Caspian Connectivity: Unlocking Transport and Energy Corridors held as part of the 58th Annual Meeting, Trend’s special correspondent reports from Milan.
“Connectivity is vital for regional sustainable economic development and integration into global markets. Recently, external shocks, including the pandemic, geopolitical tensions, and the right-seat crisis, have significantly disrupted the traditional trade routes. These events have elevated the strategic importance of the Middle Corridor, as a viable alternative connecting Europe and Asia,” he said.
However, Yang noted that the corridor is operating well below its potential, carrying only about 10% of the potential non-energy trade that could flow through this route.
“Let me share three thoughts on how regional cooperation can help unlock the full potential of these corridors. First, we need coordinated investment in infrastructure modernization. Strategic investments in rail networks, port facilities, and energy transition systems are essential. These investments must be aligned with regional policies and harmonized technical standards,” he said.
ADB VP noted that second, improving coordination among multiple rail and port operators, streamlining customer procedures, upgrading digital systems, and addressing technical bottlenecks will significantly enhance the competitiveness of the CAREC Corridor 2.
“Fully digitalizing the trade process could substantially reduce costs and cover emissions. Third, mobilizing finance for regional projects requires innovative approaches. To help bridge the financing gap for the preparation of regional projects, ADB established a CAREC Climate and Sustainability Project Preparation Fund in November last year. With the initial combined contribution of $5 million from the People's Republic of China and the Republic of Australia, the fund will support the development of backbone regional projects focusing on sustainability and resilience,” he added.