Realizing the full potential of the Trans-Caspian International Transport Route (TITR), or the Middle Corridor, could make an additional contribution to Azerbaijan’s economic growth.
“Elchi” reports that according to the World Bank’s report titled “Integration: High-Level Trade Logistics along the Trans-Caspian Transport Route,” fully utilizing the opportunities of the Middle Corridor could provide an additional 1.84% increase in GDP for Azerbaijan.
This growth is estimated at approximately 1.3 billion US dollars at current prices.
The report notes that the development of the Middle Corridor could also allow for a 1.5% increase in total employment in Azerbaijan.
According to World Bank estimates, the main contribution to economic growth in Azerbaijan will come from increased revenues from transit freight, expanded activity in the port and railway sectors, and the deepening of trade relations with Central Asian and European countries.
Bank analysts state that to achieve this potential, in addition to the development of transport infrastructure in Azerbaijan, it is essential to accelerate customs procedures, implement digital solutions, and continue reforms in state transport companies.
According to the report, the development of the Middle Corridor could increase the total GDP of the participating countries along the route by 3.3%, or approximately 58 billion US dollars at current prices, in the long term. Total employment in these countries is projected to rise by 2.9%.
According to World Bank calculations, additional economic growth for Azerbaijan in another scenario is expected to be at the level of 326 million US dollars or 0.43% of GDP. The report notes that, in relative terms, the largest economic benefits could be gained by small landlocked economies, including Kyrgyzstan and Georgia.
The World Bank emphasizes that realizing the full potential of the Middle Corridor is not limited to infrastructure investments alone. It also requires the digitalization of logistics systems, the improvement of border procedures, and the implementation of institutional reforms.