Marat Karabayev

Opinion | How the Trans-Caspian Middle Corridor can help revive Asia-Europe trade

As disruptions send shipping costs surging and trade volumes slow, the overland Trans-Caspian International Transport Route offers a cheaper, more sustainable option

Kazakhstan is playing a key role by improving its infrastructure and cooperating with others to cut bottlenecks but more development investment is needed

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A China-Europe freight train leaves for Kazakhstan from Xian port in northwest China’s Shaanxi province on July 29, 2022. Photo: Xinhua

Marat Karabayev

Published: 8:30pm, 5 Jun 2024

Global trade is facing several challenges. Last year, global trade volumes initially rebounded but the overall trend showed a slowdown compared to the robust growth of 2022. The trade in goods in particular was down sharply last year by nearly US$2 trillion.

These headwinds are a result of geopolitical tensions, including conflicts and supply chain disruptions. Trade between Asia and Europe has not been immune to this, as reflected in the slower growth last year. As global trade is vital for economic development, all countries need to take steps to restore its growth.

Kazakhstan can play a key role here. As the largest country in Central Asia, situated between Asia and Europe, it serves as an important transit hub for trade between the two continents. Kazakhstan accounts for an estimated over 80 per cent of all land transit traffic from China to Europe, offering faster and more efficient alternatives to traditional maritime routes.

In 2022, over 23 million tonnes of goods were transported via rail between Kazakhstan and China, a figure that has since increased by 22 per cent. This shows the importance of overland routes through Central Asia for China’s trade with Europe.

For many years, Kazakhstan has been pivotal to China’s Belt and Road Initiative, which was first announced by Chinese President Xi Jinping in Kazakhstan and which marked its 10th anniversary last year. Over the past 10 years, this mammoth project has been instrumental to enhancing trade and investment flows through improved infrastructure.

However, new geopolitical realities call for additional transit routes to boost trade between Asia and Europe. The Trans-Caspian International Transport Route, also known as the Middle Corridor, is crucial in this regard.