Abu Dhabi:A new World Bank Group report suggests that Europe and Central Asia could experience faster growth, increased employment, and enhanced private investment by modernizing and integrating the Trans-Caspian Transport Corridor (TCTC). This corridor, also known as the Middle Corridor, connects East Asia, Central Asia, the South Caucasus, Trkiye, and Europe.
According to Emirates News Agency, The report, titled "Integration World-Class Trade Logistics Along the Trans-Caspian Transport Corridor," highlights that strategic investments in the TCTC could potentially more than triple trade volumes, cut travel times in half, boost GDP by 3.3%, and create two million jobs by 2040. Additionally, if infrastructure investments are complemented with reforms to improve trade and transport efficiency, the corridor volumes could quadruple, and travel times could decrease by two-thirds by 2040.
It is estimated that over $25 billion in infrastructure investments will be necessary by 2040, focusing on rail networks, maritime ports, and feeder roads. While many critical investments are already underway or in advanced planning stages, achieving sustained improvements in competitiveness, freight volumes, and economic impact also requires enhanced corridor performance, efficient services, and institutional reforms across the involved countries.
Moreover, approximately $30 billion will be needed for enabling investments, which include connecting road and rail links to local economies, developing logistics hubs and inland terminals for faster goods movement, and acquiring logistics equipment such as locomotives, railcars, cargo-handling gear, and digital systems to ensure smooth network operations.