Amid the Global Gateway Investors Forum for EU-Central Asia Transport Connectivity, taking place in Brussels on 29-30 January, European and international financial institutions committed to €10 billion in support and investments towards the development of the Middle Corridor.
Also called the Trans-Caspian International Transport Route (TITR), the Middle Corridor is a multilateral institutional development linking the containerized rail freight transport networks of China and the EU, passing through Central Asia, the Caucasus, Türkiye and Eastern Europe. The multilateral, multimodal transport institution links Caspian and Black Sea ferry terminals with rail systems in the Asian and European countries.
The route starts from Southeast Asia and China, runs through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and Türkiye before moving forward in Europe, depending on the destination. The initiative started in 2013 but has gained a lot more attention since the war in Ukraine started, as it became the alternative connecting route from Asia to Europe, bypassing Russia.
The €10 billion commitment, announced by European Commission Executive Vice President, Valdis Dombrovskis, at the opening of the event, is a mixture of ongoing and planned investments which, following extensive consultations with international partners present at the Forum, the European Commission foresees to be mobilised for sustainable transport development in Central Asia in the short term.
“A modern Trans-Caspian Transport Connecting the Central Asian countries is the cornerstone of our efforts to promote increased regional economic integration and further growth in the region, as well as better connections with Europe”, said European Commissioner for Transport, Adina Vălean. “We have identified 33 physical infrastructure investment needs, ranging from modernising railways to increasing port capacity and fleet renewal. Today’s Investor’s Forum demonstrated the large interest from both institutional and private investors in supporting these projects.”
Among the total investment, the European Investment Bank (EIB) signed agreements totalling €1.47 billion with the Governments of Kazakhstan, Kyrgyzstan and Uzbekistan, as well as the Development Bank of Kazakhstan. The European Bank for Reconstruction and Development (EBRD) also signed an agreement with Kazakhstan, with an investment pipeline worth €1.5 billion with projects already under preparation for the overall development of transport connectivity in the Central Asian region.
In the spirit of collaboration and progress, the Investors’ Forum marks a pivotal step towards realising the ambitious vision of the Trans-Caspian Transport Corridor.
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People
“Together, we strive to achieve a faster, more reliable connection between Europe and Central Asia, fostering stronger ties and opening new avenues for cooperation and trade”, said Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People. “I am very pleased to see that international partners present today are committing to provide €10 billion in investments to develop sustainable transport connectivity in Central Asia, including new European Commission and European Investment Bank commitments of €1.5 billion, with more to come through the Commission’s open architecture for investment guarantees.”
Several agreements were reached for the concrete short-term development of the corridor, among which an EU-funded Regional Transport Program, to be adopted in 2025.With this new program the EU will offer technical assistance to advance existing and future transport related projects. This contributes to the overall €1.5 billion devolved by the European Commission and the European Investment Bank to progress the transport infrastructure agenda in Central Asia.
The establishment of a Coordination Platform, to monitor progress, enhance cooperation and ensure that development of the Trans-Caspian Transport Corridor stays on track was also agreed. Moreover, a Regional Prosperity-focused Programme will start delivering in 2024. The programme will be implemented by the International Trade Centre and the OECD and geared towards the practical operationalisation and usage of the trans-Caspian transport networks.
Lastly, a senior Resident Twinning Advisors instrument in which advisors will be embedded in the Ministries of Transport of all five Central Asian countries will be launched this year, with the coordination and organisation of dedicated meetings on soft connectivity starting in the following months.
