BAKU, Azerbaijan, December 26. Several measures, including the introduction of digital solutions, improvement of transport infrastructure, optimization of routes, as well as the provision of tariff preferences and the unification of transport documentation, can significantly boost trade growth and have a beneficial effect on the state of the economies of the Middle Corridor parties, Deputy Minister of Transport of Uzbekistan Mamanbiy Omarov told TurkicWorld.

The Middle Corridor’s digital transformation

The deputy minister said that the introduction of digital transformation in the exchange of data and documents along the Trans-Caspian International Transport Route (TITR of the Middle Corridor) is a time requirement and can give a powerful impetus to the development of this corridor, as well as contribute to the automation of customs clearance processes, cargo tracking, monitoring location, and management of the transport route infrastructure.

"This will reduce time delays and improve the overall efficiency of cargo transportation. Important incentives for the introduction of digital data exchange include the provision of secure and transparent cargo tracking systems and the legal exchange of information between participants in this corridor.

A successful example of the introduction of this system can be the introduction by Uzbekistan and Türkiye of the electronic E-PERMIT system and the E-TIR e-book to countries such as Kazakhstan, Kyrgyzstan, and Tajikistan," he said.

The minister explained that within the framework of these initiatives, on November 17, 2020, the first pilot road transport between Uzbekistan and Kazakhstan using electronic guarantees (E-TIR) took place.

"Later, similar shipments were tested between Uzbekistan and Tajikistan, and in March 2022, from the Kyrgyz Republic. In December 2022, the world's first E-TIR transportation took place in full compliance with the 11th Annex to the Convention TIR between Uzbekistan and Azerbaijan. Thus, Uzbekistan's full readiness for the full and speedy introduction of advanced electronic TIR instruments and the transition to regular work based on them. On August 22 of this year, a protocol was signed between the Ministry of Transport of the Republic of Uzbekistan and the Ministry of Digital Development and Transport of the Republic of Azerbaijan on cooperation in the field of implementing the e-Permit information system," he added.

Omarov noted that the transition to electronic data exchange in order to simplify road transport is especially important for landlocked countries, such as Uzbekistan, as it allows the development of land-based routes to improve access to seaports and global markets.

Solutions for boosting the Middle Corridor’s capacity

Omarov noted that in recent years, the Trans-Caspian International Transport Corridor has become the focus of attention for the entire world community.

"President of the Republic of Uzbekistan Shavkat Mirziyoyev, speaking at the meeting of the leaders of the Central Asia-European Union in June this year in Kyrgyzstan, stressed the importance of uniting the efforts of countries in order to develop transport and communication interconnectedness in Central Asia and Europe, primarily through the formation of a Middle Corridor," he said.

The minister stressed that despite this, problems remain with delivery times, high transportation costs, and limited route capacity.

"Today, Uzbekistan is one of the users of the Middle Corridor. So, if in 2022 the volume of cargo transportation more than doubled, amounting to about 1 million tons, then for 9 months of this year, unfortunately, volumes decreased by 22 percent, amounting to just over 500,000," he noted.

As measures to eliminate the above-mentioned problems, the minister listed the following solutions:

- to develop a joint mechanism for using the potential of the Corridor and organize regular meetings of representatives of transport departments of the countries of the region and the European Union;

to make efforts to increase the capacity of the infrastructure as well as the number of ships in the Caspian Sea;

use a flexible tariff policy along the entire route;

to strengthen dredging operations in the coastal ports of the Caspian Sea;

- accelerate the implementation of digitalization of customs clearance procedures for goods and shipping documents such as E-Permit, E-TIR, and E-Transit.

Benefits of Uzbekistan’s Middle Corridor Integration

Uzbekistan’s deputy transport minister stressed that in the case of the development of an additional overland branch and the Uzbek connection to the Middle Corridor, the delivery time of goods can be shortened by 2 to 3 times compared to the current sea transportation from South Asia to the EU.

"Several measures, including the introduction of digital solutions, improvement of transport infrastructure, optimization of routes, as well as the provision of tariff preferences and the unification of transport documentation, can significantly reduce the delivery time and the share of costs in the transportation of goods.

These measures can, in turn, stimulate trade growth and have a beneficial effect on the state of the economies of the countries involved in the Middle Corridor. However, in order to achieve these goals, the active cooperation of all countries through which the routes pass is necessary," he stressed.

In addition, Omarov noted that Uzbekistan is currently pursuing an active policy on the formation of additional new alternative corridors at the intersection of two major North-South and West-East trade routes.

"Uzbekistan is actively promoting the initiative to organize cargo transportation along the new Belarus-Russia-Uzbekistan – Afghanistan – Pakistan multimodal transport corridor with access to the ports of the Indian Ocean. It is planned to carry out transportation by mixed modes of transport—from railway stations of the CIS countries to Afghanistan, then through Afghanistan by road with access to Pakistan and ports of the Indian Ocean," he said.

Further speaking, the deputy minister added that in 2022, the volume of transit cargo transportation from Uzbekistan through Afghanistan to Pakistan more than doubled, amounting to more than 600,000 tons.

"Moreover, cargo transportation in the China-Europe direction is developing rapidly, as in 2022, the volume of cargo transportation in this direction amounted to more than 220 million tons. At the same time, more than 96 percent of all cargo in the China-Europe direction is transported by sea.

To date, there is a large workload at the world's main ports, and therefore the actual delivery time to cargo owners is significantly increasing. Accordingly, there is huge potential in reorienting routes from the sea mode of transport to land—rail and road—and developing new alternative multimodal land transport corridors," he explained.

The Middle Corridor, a transportation and trade pathway, links Asia and Europe as it traverses numerous countries within the region. It provides an alternative to the conventional Northern and Southern Corridors.

Beginning in China, it spans across Central Asian nations like Kazakhstan, Uzbekistan, and Turkmenistan. Subsequently, it extends through the Caspian Sea, Azerbaijan, Georgia, and Türkiye before reaching the European continent.

This strategic Middle Corridor offers a land-based connection between the eastern regions of Asia, including China, and Europe, offering a shorter path compared to lengthy maritime routes.

Development of the China-Kyrgyzstan-Uzbekistan railway

Speaking of other prospective transport projects, Omarov said that the China-Kyrgyzstan-Uzbekistan railway line has several positive aspects, connecting the regions with one railway network.

"There are prospective transportation projects in Central Asia, the Caucasus, Europe, and Asia that could provide a significant boost to the development of the overall transportation system. The construction of the China-Kyrgyzstan-Uzbekistan railway, as well as the project promoted by Uzbekistan for the construction of the Pakistan-Afghanistan-Uzbekistan railway line, are both vivid examples of such project implementation. An examination of the corridor's potential reveals that the China-Kyrgyzstan-Uzbekistan railway line has various advantages, including connecting the regions with a single railway network," he said.

Omarov noted that the China-Kyrgyzstan-Uzbekistan railway will be an additional link between China and Europe along the route of Asia-Pacific countries: China-Kyrgyzstan-Uzbekistan-Turkmenistan-Azerbaijan-Türkiye-EU.

"An alternative corridor will also help the development of exports and imports of Central Asian countries with China and the Asia-Pacific countries. Moreover, during the implementation of the Uzbekistan-Afghanistan-Pakistan railway construction project, it will also become possible to connect India and China along the India-Pakistan-Afghanistan-Uzbekistan-Kyrgyzstan – China route. The development of these projects will lead to an increase in the transit potential of the countries of the Central Asian region and the Caucasus," he explained.

"In the near future, with a properly structured strategy for the development of the transport industry and integration into the global network of railways and highways, the main indicators in the field of transport will be achieved, which will lead to a potential increase in cargo turnover, cargo delivery speed, an increase in the volume of transit cargo, passenger turnover, and, at the same time, the flow of transit cargo. This, in turn, will lead to an increase in the attractiveness of the Central Asian region and the competitiveness of transport routes in the region," he said.

Meanwhile, on November 1, 2023, within the framework of the 1st Transport Forum of the SCO member states, the Ministries of Transport of Russia, Kazakhstan, and Uzbekistan signed a Memorandum on the creation of a new Belarus-Russia - Kazakhstan – Uzbekistan – Afghanistan – Pakistan transport corridor.