Kazakhstan, Turkmenistan and Russia to create new company for transportation along North-South corridor

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Kazakhstan, Russia, and Turkmenistan are joining efforts to develop the transit potential of the "North-South" transport corridor and will establish a joint venture to optimize logistics on this route, the press service of the Ministry of Transport of Kazakhstan informed.

The primary goal of the new company is to enhance service, reduce delivery times for goods, and implement a "single window" principle for document processing.

What are the routes of the "North-South" transport corridor?

The eastern branch of the "North-South" corridor passes through the Mangystau region of Kazakhstan. In 2023, the volume of freight transportation on this route reached 2.1 million tons, an increase of 4% compared to the previous year.

By 2027, the plan is to increase the capacity of this route to 10 million tons per year, providing a lucrative alternative to traditional "East-West" directions.

Another important transit project of the three countries is the Trans-Caspian International Transport Corridor. In 2023, its capacity increased to 2.76 million tons of cargo, a 65% increase from the previous year.

It was previously announced that Yerevan wants to join the "North-South" corridor.

Armenian Prime Minister Nikol Pashinyan stated the readiness to provide a land corridor through the country, connecting Azerbaijan and Nakhchivan.

It is worth noting that the outcome of 2023 for the countries of Central Asia and Kazakhstan was the establishment of transport flows, including through Georgia and Iran, as well as the expansion of border crossings with China, using the "North-South" project.

During a recent meeting of the transport business dialogue of the CIS countries, experts discussed the prospects for the development of two key transport corridors in Central Asia, closely related to this project.

The discussion focused on the multimodal route "Kabul Corridor" (Uzbekistan - Afghanistan - Pakistan) and the "China – Kyrgyzstan – Uzbekistan" corridor.

The new routes will facilitate direct communication between Kyrgyzstan and Uzbekistan with the countries of the Asia-Pacific region and significantly reduce the time and cost of cargo delivery.

Thus, Central Asian countries are actively increasing cooperation to realize the transit potential of the region.

In turn, the creation of a unified logistics operator for Kazakhstan, Russia, and Turkmenistan will elevate these processes to a new level.

The North-South Multimodal Transport Corridor is 7200 km long, connecting Europe, countries of the Persian Gulf, and the Indian Ocean through the Suez Canal. Currently, the main cargo flow passes through the Iranian port of Bandar Abbas.

CentralasianLIGHT.org

February 27, 2024