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Economy 17/05/2024 Participants of KazanForum 2024 discuss the development of the North-South corridor
Participants of KazanForum 2024 discuss the development of the North-South corridor

Tashkent, Uzbekistan (UzDaily.com) -- Logistics in Eurasia is accelerating. New routes have appeared on the continent, along which cargo is already moving from Russia and Central Asia to the countries of the Persian Gulf and Southeast Asia.

Details of the corridor were announced on 17 May at the XV International Economic Forum “Russia – Islamic World: KazanForum”.

“Last year we completed part of the Europe – Western China route, which will pass through Russia. This is the section from Moscow to Kazan - 810 km high speed road.

We continue it towards Samara, Orenburg, Kazakhstan. We have signed an agreement with our colleagues from Kazakhstan that we are gradually synchronizing plans for road construction. We are expanding the roads on our side, and they are expanding them on theirs. Ultimately, we will have an additional good road that will connect both China and Central Asia with Russia,” Deputy Prime Minister of the Russian Federation Marat Khusnullin said about one of the new routes.

In parallel, he said, work is underway to set up highways connecting Russia, Uzbekistan, Tajikistan with Afghanistan and Pakistan.

Transport is already on this route. “We see great prospects in this. We now need to synchronize and speed up the reconstruction of checkpoints so that they quickly pass through products. We are working on the issue of electronic seals so that you can enter from one country to another without inspection,” said the Deputy Prime Minister of the Russian Federation.

“We consider it extremely important to sign a memorandum in 2023 on the development of a new corridor through the Russian Federation, Kazakhstan, Uzbekistan, Afghanistan, and Pakistan. And now, two weeks ago, in the city of Termez [Uzbekistan], a road map with specific measures for the development of this corridor was signed. The first loads have already flown along it. Now this is a car route. And a multimodal route with the possibility of transshipment in Uzbekistan or Kazakhstan, depending on demand. Turkmenistan joins it in order to use the Caspian component. This is the first step towards “rolling out” a new corridor, justifying the needs of the construction of the Trans-Afghan Railway. A corresponding agreement is being prepared. The memorandum has been signed,” said Deputy Minister of Transport of the Russian Federation Dmitry Zverev at KazanForum 2024.

Rail freight around the Caspian Sea will also go through Azerbaijan and Iran along the new Rasht-Astara line. “We hope that in June we will begin the first survey work, an executive contract will be signed, and this year construction work will begin in parallel with design in order to launch a through line in 2028,” Zverev said.

To develop routes, starting this year, Russia will launch two mechanisms: subsidizing the costs of logistics operators and supporting the creation of points of industrial presence along these routes. These will be industrial parks, trade and logistics centers, port infrastructure, warehouses, etc., said First Deputy Minister of Industry and Trade of the Russian Federation Vasily Osmakov.

The business advantage of new routes is speed, says Sultan Ahmed bin Sulayem, chief executive officer of DP World (one of the world’s largest port operators):

“Regardless of the cost, delivery times are important to everyone. From Kazan along the Volga to the Caspian Sea you can deliver cargo in 7 days. Via Pakistan, Iran or Afghanistan and Uzbekistan - also 7-8 days. Having such alternatives is very important. These are new ways that did not exist in the past. Today these paths are available. And we use them."

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