The re-emergence of the Middle Corridor transit route, extending from China, through Kazakhstan, across the Caspian Sea to Azerbaijan and Georgia, and onward to Europe has evolved into an essential transcontinental alternative, reducing dependency on northern routes, particularly after February 2022. Largely promoted by Kazakhstan and Azerbaijan, two leading regional states possessing critical land and sea infrastructure, the route has attracted broad support from international financial institutions, including the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), and the World Bank. The Middle Corridor thus represents more than just an alternative for cargo transit; it offers a unique opportunity to reshape the geopolitical and economic landscape of the Eurasian region.
Indeed, for European and Asian companies, the Middle Corridor allows goods to move between Europe and Asia either significantly faster or with far less risk than is currently the case via the Northern, Southern, or Maritime Corridors. According to available data, the recent growth in container volumes via the Middle Corridor, driven by global shifts in trade policy and rising geopolitical risks, is expected to reach 5.2 million tons, while by 2027 the corridor’s capacity could expand to 10 million tons per year. This growth strengthens Azerbaijan’s and Kazakhstan’s transit potential and creates conditions for new infrastructure investments.
Private sector participation has been crucial in the development of the corridor. Continued efforts exist to enhance regional supply chains, improve logistics, and strengthen interregional trade have positioned several local players as frontrunners. For example, Kusto Group and its subsidiary Kusto Logistics, led by prominent Kazakh businessman Yerkin Tatishev, have emerged as major players offering logistics solutions not only in Kazakhstan but also in Uzbekistan and the wider region.
In 2024, Kusto Group announced the launch of its logistics business project and the development of an integrated logistics ecosystem. As part of the implementation of this strategy, Kusto Logistics company was established, to provide multimodal transportation services by rail and road, and invested in the acquisition of its own rolling stock in the form of fitting platforms. During 2025–2027, the company led the construction of a logistics terminal in the Almaty region. The project involves the development of a state-of-the-art logistics hub comprising a container terminal for the receiving, handling, and storage of cargo, a cross-docking facility, and two temporary storage warehouse (TSW) zones with integrated customs services. In addition, the company will construct a modern 15,000-square-meter warehouse to support the expansion of 3PL (third-party logistics) services.
Reportedly, Kazakhstan currently boasts over 3,500 kilometers of strategic railway infrastructure linking China to Caspian Sea ports. This efficiency has also been enabled by key infrastructure improvements such as the upgrade of the Dostyk–Moyinty railway section, development of the Khorgos logistics hub on the Kazakh–Chinese border, and the implementation of digital customs technologies. Kazakhstan’s extensive efforts also include the ongoing upgrade of the Aktau and Kuryk ports and the establishment of a new container hub with the support of the European Union (EU), which allocated 10.4 million euros for modernization. Kazakhstan’s enthusiasm for deepening partnerships with other states along the Middle Corridor and investing in related infrastructure appears to be a rational choice, as the country views the corridor as a foundation for industrial development and sustainable integration into global supply chains.
Recent increasing positive dynamics in bilateral and multilateral partnerships between Kazakhstan and Western actors are paving the way for additional foreign direct investments. Kazakhstan continues to enhance its appeal for global investment flows. As for the EU, trade volume with Astana from January to October 2025 reached $41.2 billion, an increase of 23% compared to the same period last year. Such positive trends have enabled Kazakhstan to present itself as a stable partner in economic development, logistics, and security, thereby consolidating its influence in Central Asia.
Furthermore, in an effort to double cargo volumes transported via the Middle Corridor, Kazakh authorities have announced plans to develop additional sophisticated infrastructure, including the Darbaza-Maktaaral railway, the Shalkar-Beineu road between Kyzylorda and Aktau, and a new bypass railway project for the Almaty station. The latter is designed to reduce shipment travel times and alleviate up to 40% of cargo traffic currently handled at Almaty station. These plans also include the purchase of additional modern locomotives and rolling stock to attract more private investment into this strategically important sector, as part of a long-term goal to expand capacity to 10 million tons of goods transiting through Kazakhstan’s territory by 2030.
[Photo by Kabelleger / David Gubler (http://www.bahnbilder.ch), CC BY-SA 3.0, via Wikimedia Commons]
Fuad Shahbazov is a policy analyst with a particular focus on regional security, energy diplomacy, and interregional partnership issues. He regularly appears with expert commentaries on various international outlets and think tanks covering the Caucasus, Middle East and Central Asian regions. He tweets at: @fuadshahbazov. The views and opinions expressed in this article are those of the author.
