Baku:The World Bank has proposed the creation of a joint asset-light company involving major state-owned transport companies from Azerbaijan, Georgia, Kazakhstan, and Turkey. This initiative aims to coordinate container transportation along the Trans-Caspian International Transport Route, also known as the Middle Corridor.
According to Azeri-Press news agency, the proposed operator would be owned by the national railway carriers and shipping companies of these countries, functioning as a unified logistics provider. Its main responsibilities would include setting through tariffs, optimizing routes, organizing dispatch management, quickly addressing operational incidents, and integrating with international logistics companies at cargo origin and destination points in China and the European Union.
The World Bank's assessment highlights that the main constraint on the Middle Corridor's development is not infrastructure capacity, but rather low service levels and institutional barriers typical of state-owned transport enterprises. The report also details the varying stages of development among the region's railway operators. Kazakhstan's Kazakhstan Temir Zholy, with the largest network at 16,000 kilometers and a freight turnover of 303 million tons, is noted for its high asset utilization and move towards commercial financing. Georgian Railway, although smaller with a 1,400-kilometer network, is recognized for its mature corporate governance and financial practices.
Uzbekistan and Azerbaijan's railways serve as key transit links, with networks of 6,100 kilometers and 2,100 kilometers respectively, and freight turnovers of 103 million tons and 18.5 million tons. Systemic changes in tariff policy and management are being implemented in these countries.
Turkey's TCDD, with a 13,000-kilometer network, primarily focuses on passenger transport, resulting in a freight transportation volume of 26 million tons. The World Bank also suggested reforms to tariff systems to enhance the Middle Corridor's efficiency, including transitioning to a cost-to-serve pricing model, introducing long-term contracts for public service obligations, and attracting commercial financing for the viability of transport enterprises.