The World Bank has announced the investment needs required in Azerbaijan to unlock the full potential of the Trans-Caspian International Transport Route (TITR), or the Middle Corridor.
elchi reports that, according to the World Bank’s report, the priority investment need for the Middle Corridor in Azerbaijan is estimated at 1.16 billion USD by 2040.
According to the report, these investments cover three main directions.
Based on the World Bank’s calculations, 260 million USD is required to complete the modernization of the Baku–Alat–Boyuk Kesik railway line. This project is intended for the short term and is currently in the implementation phase. Within the framework of the project, it is planned to upgrade the electrification system and implement modern signaling equipment on the main Middle Corridor line.
Another direction is the creation of a network of dry ports in Azerbaijan. The World Bank estimates the investment need for this project at 300 million USD. The project envisages the creation of a dry port at the Boyuk Kesik border crossing point to serve the Black Sea and Turkish directions, a logistics center as an expanded terminal of the Port of Baku, and a southern logistics hub for the new Middle Corridor route heading towards Kars via Azerbaijani-Armenian territories.
The report notes that opportunities for attracting private capital in partnership with Azerbaijan Railways CJSC are also being considered in this direction.
The World Bank stated that 600 million USD in investment is required to increase the capacity of the Baku–Alat–Boyuk Kesik railway line in the long term. This project is intended to be implemented in the 2030s and serve to accommodate increasing cargo flows.
In total, the World Bank estimates the volume of priority complementary investments required by 2040 for the Middle Corridor to become a full-fledged economic corridor across the region at 30.5 billion USD.