Economic Expansion Drives Increase in Cargo Transport Throughout Central Asia
The economic development of Central Asian countries is fueling a significant increase in cargo transportation, driven by various factors, as reported by Kazinform on March 13. Investments in infrastructure, such as roads, railways, ports, and cargo terminals, alongside trade agreements, are boosting cargo transportation and transit throughout the region.
Political stability in Central Asia is also playing a crucial role in ensuring the safety and predictability of cargo transportation. Geopolitical developments have opened doors for Central Asian countries to attract new sources of investment and forge transport agreements with the European Union (EU). These agreements cover not only transport issues but also insurance, security, information support, and other areas of collaboration.
In 2023, the transit of goods through Kazakhstan saw a 21% increase compared to the previous year, totaling 29 million tons. Overall cargo transportation in the region reached 980.7 million tons in 2023, a 4.4% rise from the previous year. Investments in the industry soared to 1.8 trillion tenge ($3.9 billion), focusing on infrastructure development to enhance transportation volume and quality.
All Central Asian countries have witnessed a surge in cargo transportation, with Uzbekistan, the Kyrgyz Republic, Tajikistan, and Turkmenistan all reporting increases in freight volumes. Major Western companies have relocated production activities to Kazakhstan and Uzbekistan, attracted by affordable gas and electricity. European companies are also drawn to the region, with giants like Samsung, Nestle, and Glock establishing or planning production ventures.
Azerbaijani political scientist Ilgar Velizade highlighted the growing interest of European and Chinese companies in the Middle Corridor, traversing Central Asian and South Caucasian territories. The Trans-Caspian International Transport Route (TITR) serves as a key link in this corridor, witnessing a significant increase in transportation volume and formalizing partnerships between Azerbaijan, Georgia, Kazakhstan, and Türkiye to boost transport infrastructure development.
Container transportation along the Central Asia, South Caucasus, and Anatolia (CASCA+) route is also on the rise, with representatives from several countries meeting to enhance corridor efficiency. Plans are in place to increase container transportation and broaden the range of goods transported along both the North-South and East-West transport corridors.
The EU closely monitors developments in Central Asia, recognizing the growing transit importance of Kazakhstan, the Kyrgyz Republic, and Uzbekistan in global trade networks. The TITR is expected to transport up to 120,000 containers annually, reflecting the rapid growth and development in the region’s freight transportation sector. Experts attribute the 2-3-fold increase in the Central Asian freight market to the rising transit significance of these countries within the global trade landscape.
