BAKU, Azerbaijan, February 28. The World Bank (WB) sees the implementation of the Middle Corridor project (Trans-Caspian International Transport Route - TITR) as positively impacting trade between the TITR member countries themselves, Trend reports via World Bank.
"The biggest trade potential opportunities lie in increasing exports from TITR countries to new markets previously virtually inaccessible due to high trade costs. With the development of the Middle Corridor, trade across the Caspian Sea between the member countries of this Corridor could cumulatively account for more than 60 percent of these countries' mutual trade by 2030, up from 40 percent in 2021," the WB forecasts.
The research emphasizes that through targeted policies, Kazakhstan, Azerbaijan, and Georgia (these three countries are referred to as the backbone of TITR) can increase export volumes and value-added products by promoting the accumulation of productive activities.
"The cumulative potential increase in the freight base of the three countries between 2021 and 2030 is 90 million tons (44 percent growth). Out of this, 70 million tons are possible additional exports from Kazakhstan," the WB estimates.
The Bank's experts recommend that these three countries, which are creating a single operator on the TITR route, forge a strong partnership with an international container operator (overseeing cargoes from China) to take responsibility for container operations as a special and dynamic category of transportation.
"These countries need to improve coordination between border agencies, and customs administration. Coordination is also important between the railroads of the three countries, as this is a particularly important mode of transportation for TITR operations," the WB notes.
The three countries also need to digitize the processes of the Corridor as soon as possible and use digital data flows to ensure fast and accurate information exchange between service providers and shippers or their agents.
"It is important to continue to improve infrastructure and equipment along the corridor. This applies to connectivity between Caspian ports and railroads. Adaptation to the falling Caspian Sea level is also needed. The drop in sea level may require engineering solutions from Azerbaijan and Kazakhstan - dredging of ports or purchase (creation) of new generation vessels with shallower draft. Investments are also needed in modern navigation and traffic control equipment for port ships, as well as improvement of pilotage procedures", - the WB recommendations noted.
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