Freight flows along the Trans-Caspian Transport Corridor (TCTC) are expected to increase 3.6-fold by 2040, stated in the World Bank’s report titled “Integration: World-Class Trade Logistics Along the Trans-Caspian Transport Corridor,” APA-Economics reports.
According to the report, under the development scenario, the total volume of freight transported via the Trans-Caspian Corridor could increase from 8.8 million tons in 2023 to 32.1 million tons in 2040.
The World Bank states that “the Trans-Caspian Transport Corridor has the potential to evolve from a transport route into an economic corridor.”
The report notes that “an economic corridor enables not only freight transportation, but also investment, productive economic activity, job creation, and the connection of businesses, workers, and markets through efficient logistics.”
According to the World Bank’s assessment, the development of the TCTC could increase GDP across the corridor countries by an average of 3.3% and employment by 2.9% in the long term.
The report emphasizes that “realizing the corridor’s full potential will not be possible through infrastructure investments alone.” This will require the development of logistics services, trade facilitation, digital systems, and cooperation between countries.
The World Bank notes that one of the main challenges for the development of the Trans-Caspian Corridor is “improving the corridor’s performance.”
According to the report, bulk commodities such as grain, fertilizers, construction materials, and fuel currently account for 92% of freight transported across the Caspian Sea.
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