The Trans-Caspian Corridor, a trade route unlocking EU-Central Asia opportunity [Advocacy Lab Content]

3 months ago 16

Launching the Trans-Caspian Corridor Coordination Platform strengthens vital trade routes linking Central Asia to Europe. Euractiv spoke with the European Commission’s Henrik Hololei, Hors Classe Adviser, Directorate-General for International Partnerships, about the road ahead.

Against the backdrop of the new trade Corridor, Hololei spoke of the challenges and opportunities inherent in this transformative endeavour. From addressing longstanding inefficiencies to fostering regional cooperation, he underscored the strategic significance of the Trans-Caspian initiative and the evolution of promises to unlock new avenues for economic growth and innovation.

EV: Could you tell us a bit about the Trans-Caspian Corridor’s operational history?

HH: The Corridor has been operational for many years now. However, it hasn’t been competitive or affordable and has faced numerous bottlenecks. Today, there is a significant amount of unpredictability in its operations.

EV: Can you provide some specifics on this unpredictability?

HH: For instance, a pilot project shows that goods can be [transported] between 12 and 18 days, but it can also take between 20 and 25 days. This inconsistency is not ideal for logistics companies and hampers predictability.

EV: What is your goal for the Trans-Caspian Corridor’s efficiency?

HH: Our aim is to transform this Corridor into a highly efficient and modern trade route, capable of transporting goods from Central Asia to Europe in less than 15 days.

This is achievable, but it requires removing bottlenecks, ensuring robust infrastructure investments, and providing more physical solutions along with improved efficiencies at border crossings and in other identified areas of congestion.

EV: How has the relevance of the Trans-Caspian Corridor changed recently?

HH: The Corridor has become much more relevant recently, especially as many goods have shifted away from the Northern Corridor due to sanctions.

This isn’t just a substitution but a new, competitive trade route that’s here to stay. It is a network of different corridors connecting Central Asian countries and building connectivity between Central Asia and Europe.

EV: What are some positive outcomes you’ve seen so far?

HH: One positive outcome is the launch of the Coordination Platform, which has garnered strong engagement. All Corridor countries, European Member States, the United States, and many financial institutions have participated. This demonstrates a strong willingness to collaborate for the Corridor’s benefit.

Additionally, we’re focusing on high-priority projects and devising pilot projects for the coordination platform to work on and bringing financing to these projects.

EV: How will the Corridor impact innovation and regional cooperation?

HH: The Corridor will drive innovation, ideas, and collaboration among countries. It not only connects Central Asia to Europe and beyond but also fosters regional cooperation and economic development. This will bring more prosperity and opportunity to a fast-developing region with a large, young population eager for economic growth and development.

EV: What are the next steps in the development of the Trans-Caspian Corridor?

HH: We’ve done substantial groundwork through cooperation, discussions, writing papers, and setting up structures. Now, it’s time to see progress on the ground.

We expect advancements in digitalisation, which doesn’t require much money but does need will and cooperation. We’re also preparing hard infrastructure projects to address current bottlenecks and make the Corridor more efficient.

EV: What main impact do you expect from this initiative?

HH: The key impact will be establishing a well-functioning, modern, smart, sustainable, and affordable multimodal economic corridor. This new trade route will be competitive with any other in the future. We’ve missed this link for a long time.

Personally, 12 years ago, I spoke about the need for a land corridor through Central Asia and the Caspian Sea at the Diplomatic Academy of Azerbaijan. It’s gratifying to see that over the past 12 months, we’ve not only rekindled this hope but are also making it a reality.

EV: What will this mean for companies and innovation?

HH: It will undoubtedly bring new opportunities. Our efforts have significantly increased attention on Central Asia, a region previously seen as distant and misunderstood by many in Europe.

Developing this Corridor will boost knowledge about the region and attract more investments. It also aligns well with our strategic partnerships with Kazakhstan, Uzbekistan, and other Central Asian countries, particularly in the area of critical raw materials and minerals.

To realise this potential, efficient transport means are essential, which complements our broader goals. I’m confident we’ll see intensified cooperation in this area.

[By Nicole Verbeeck I Edited by Brian Maguire | Euractiv’s Advocacy Lab ]