The establishment of new cargo routes from China to Azerbaijan’s Alat port is a significant development, primarily driven by the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. This route is gaining increasing prominence as a viable and efficient alternative to the traditional Northern Corridor (through Russia) and longer maritime routes via the Suez Canal.
The key aspects:
1. Growing Importance of the Middle Corridor:
– Alternative Route: Geopolitical factors and disruptions in traditional supply chains have led Chinese freight operators to increasingly utilize overland routes, particularly the Middle Corridor.
– Faster Transit Times: The Middle Corridor offers significantly reduced transit times from China to Europe (20-25 days by train), which is roughly half the time needed for maritime shipping through the Suez Canal.
– Increased Cargo Volume: Cargo transit along the TITR has surged dramatically, from 600,000 tonnes in 2021 to 4.5 million tonnes in 2024, with projections reaching 5.2 million tonnes in 2025 and 10 million tonnes annually by 2027. Chinese container block trains using the corridor also skyrocketed from 10-12 trains in 2023 to 390 in 2024.
2. Alat Port’s Central Role:
– Strategic Location: The Port of Baku in Alat is a critical hub within the Middle Corridor, ideally positioned at the intersection of various road, rail, and sea transit routes connecting Central Asia, the Black Sea, and Turkey.
– Infrastructure Development: Azerbaijan has heavily invested in modernizing and expanding its logistics infrastructure, including the Alat Port and its railway network.
– Capacity Expansion: The Alat Port’s annual cargo capacity is being expanded from 15 million tonnes to 25 million tonnes, with a focus on increasing container handling capacity (from 100,000 TEUs to 500,000 TEUs in the second phase of expansion). This includes the construction of new container terminals, additional berths, and improved rail intermodal facilities.
– Intermodal Terminal: Azerbaijan, Kazakhstan, and China have signed an agreement to establish an intermodal cargo terminal at the Port of Baku in Alat. This terminal will cover 40 hectares and include a universal cargo area, a 5,000 square meter indoor warehouse, and a container yard for over 1,000 containers, designed to handle various cargo types across maritime, rail, and road transport.
3. Recent Developments and Future Outlook:
– New Routes Launched: A new cargo route linking Jinhua (China) to Turkmenistan’s port of Turkmenbashi has recently been launched. Goods from there are transported across the Caspian Sea to Baku, integrating seamlessly with Azerbaijan’s westward transit channels.
– Trial Shipments and Regular Services: Trial shipments from various Chinese cities like Jinan, Qingdao, and Xi’an have successfully reached Baku via this multimodal route, saving considerable time. There are plans to significantly increase freight train traffic, with projections of exceeding 1,000 block trains annually from China to Azerbaijan and Europe by 2025.
– Collaboration and Partnerships: There’s enhanced collaboration between Azerbaijan, China, and other regional players (like Kazakhstan and Georgia) to streamline operations, harmonize customs procedures, and attract further investment in the corridor. Chinese Railway Container Transport Corp. Ltd. (CRCT) has even joined “Middle Corridor Multimodal LLC,” a joint venture co-founded by Azerbaijan, Kazakhstan, and Georgia, to facilitate regular container block train shipments.
– Comprehensive Strategic Partnership: Azerbaijan and China have signed a “Comprehensive Strategic Partnership,” which emphasizes transport and logistics as essential components, with Azerbaijan committing to boosting the Middle Corridor’s capacity.
In essence, the establishment and rapid development of new cargo routes from China to Azerbaijan’s Alat port are a cornerstone of the broader Middle Corridor initiative, reflecting a strategic shift in East-West trade toward a faster, more secure, and increasingly efficient land-sea route that bypasses Russia and offers a robust alternative to traditional maritime shipping.
