The World Bank has revealed the investment needs in Azerbaijan required to unlock the full potential of the Trans-Caspian International Transport Route (TITR), or the Middle Corridor, APA-Economics reports.
According to the World Bank's report, the priority investment need for the Middle Corridor in Azerbaijan is estimated at $1.16 billion through 2040.
According to the report, these investments cover three main areas.
According to the World Bank's estimates, $260 million is required to complete the modernization of the Baku–Alat–Boyuk Kesik railway line. This project is intended for the short term and is currently at the implementation stage. As part of the project, the renewal of the electrification system on the main Middle Corridor line and the installation of modern signaling equipment are planned.
Another area is the creation of a network of dry ports in Azerbaijan. The World Bank estimates the investment need for this project at $300 million. The project envisages the establishment of a dry port at the Boyuk Kesik border crossing point to serve routes toward the Black Sea and Türkiye, a logistics center as an expanded terminal of the Port of Baku, and a southern logistics hub for a new Middle Corridor route heading to Kars through the territories of Azerbaijan and Armenia.
The report notes that opportunities to attract private capital in partnership with Azerbaijan Railways CJSC are also being considered in this area.
The World Bank said that $600 million in investment is required to increase the capacity of the Baku–Alat–Boyuk Kesik railway line in the long term. The project is expected to be implemented in the 2030s and is intended to accommodate growing freight flows.
Overall, the World Bank estimates that $30.5 billion in priority complementary investments will be required through 2040 for the Middle Corridor to become a fully-fledged economic corridor across the region.
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