New transport links opportunities created after Second Karabakh War to lead to significant gains for South Caucasus – World Bank

By Trend

Opportunities for new transport links and unblocking regional economic connections created following the Second Karabakh war are expected to lead to new economic opportunities for the South Caucasus, the World Bank official told Trend.

The official said that South Caucasus is a crossroads of historic trade routes between Asia and Europe. In the past few decades, this route had not been as economically viable as other alternative transit routes; however, with an increased focus on the so-called Middle Corridor, the development of transport networks in the South Caucasus has become increasingly relevant and attractive.

“Following the November 2020 ceasefire between Armenia and Azerbaijan, the opportunities for new transport links and unblocking regional economic connections have increased significantly. This is expected to lead to significant gains in transport and logistics efficiency, greater incidence of rail as an alternative to road-based transport, gains in freight and passenger flows, and avoidance of GHG emissions – as well as new economic opportunities for the South Caucasus in transport related sectors, such as freight management and logistics,” the official said.

The official emphasized that Middle Corridor continues to be a dynamic route that is increasing in importance, thanks to the efforts of regional governments and other stakeholders.

“The multimodal transport route comprises ports, railways, and roads that connect Central Asia and the South Caucasus with Europe and China. To promote the corridor’s development, the countries it serves formed the Trans-Caspian International Transport Route Association in 2017 and infrastructure upgrades continue to improve connectivity and streamline the transportation of goods, increasing the economic viability of this trade corridor,” the official added.

The Trans-Caspian International Transport Route starts from Southeast Asia and China, and runs through Kazakhstan, the Caspian sea, Azerbaijan, Georgia, and further to European countries.