Azerbaijan-Kazakhstan joint venture to cut Caspian freight costs

A joint venture to be established by Azerbaijan and Kazakhstan will help eliminate the bottleneck in the Caspian Sea and reduce cargo transport costs by 1.5 to 2-fold, Azerbaijan's Minister of Digital Development and Transport Rashad Nabiyev said at the 5th Tbilisi Silk Road Forum, Report informs.

Nabiyev emphasized the need for regional countries to coordinate infrastructure investments more closely to ensure efficiency in developing transport routes. "Instead of hesitating to invest, we are now focusing on better coordination of infrastructure spending. With the participation of the presidents of Kazakhstan and Azerbaijan, we agreed to create a joint venture to resolve the Caspian bottleneck. This project will introduce super ferry systems and significantly reduce freight costs," he said.

He added that the newly established joint venture is focused on tariff regulation, and that tariffs among the three parties have already been aligned: "These steps are aimed at meeting the interests of our partners and customers. As trust in the system grows, the routes will become more efficient and competitive."

Nabiyev underlined that the goal of the Middle Corridor is to become the primary and reliable choice for East-West freight transport, not just an alternative to the Northern Route. "Our goal is to make the Middle Corridor the first choice, as it reflects the interdependence and shared interests of regional countries. It's no longer about competition but mutual reliance and cooperation."

He also noted that diversifying routes within the Middle Corridor will offer greater reliability for clients. "If I'm a customer from China aiming for timely delivery to Europe, I need various options-KTG, Georgian Railways, Azerbaijani Railways. That's why diversification and route compatibility within the corridor are crucial, and competition should be properly directed."

Nabiyev concluded that if these principles are followed, the Middle Corridor will soon emerge as a reliable and competitive transit route.