EU, South Caucasus, and Central Asian countries join forces in Trans-Caspian Route project

By Sabina Alizade

In a landmark development, Turkmenistan, Azerbaijan, Georgia, and Romania are set to sign a historic intergovernmental agreement in Bucharest in 2024. This agreement aims to establish the international transport corridor known as the "Caspian Sea - Black Sea" route . Also known as the Trans-Caspian Route, this project is of immense strategic importance in the current global economic and political landscape.

The Trans-Caspian Route is envisioned as a crucial transport corridor that will connect Southeast Asia with Europe, passing through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Romania. This route is designed to open new trade pathways and enhance the geopolitical relevance of the participating nations amidst the backdrop of shifting regional dynamics and international sanctions. The establishment of this route is anticipated to provide a safer, more cost-effective, and faster alternative to existing trade routes, particularly those that currently traverse Russia.

The European Union has recognized the potential of the Trans-Caspian Transport Corridor and has committed to making substantial investments to develop high-tech and eco-friendly transport connections. The EU plans to invest up to €300 billion by 2027 in various sectors, including digitization, energy, healthcare, education, and research, which will benefit from the improved connectivity provided by the Trans-Caspian Route.

Professor Elshad Mammadov, a Doctor of Economics, emphasized the growing importance of regional economic cooperation in light of global economic trends. He highlighted the necessity of collaboration in the transport and logistics sectors for developing effective regional routes. According to Professor Mammadov, "This process is intensifying, and we can expect these trends to take shape in our region as well.

Numerous initiatives aimed at deepening regional economic cooperation are already visible. Azerbaijan plays a central role in these initiatives, which is crucial. Historically cautious about regional economic initiatives, Turkmenistan now shows signs of increased participation due to evolving circumstances. Exclusion from these processes could lead to significant economic challenges for any state."

Professor Mammadov also pointed out that the economic and social problems of countries that do not actively engage in regional economic cooperation are likely to worsen. "Azerbaijan's substantial investments over the decades in transport and logistics are now yielding economic and political dividends. More countries, especially within the region, are expected to join these transport and logistics routes. This participation is vital for their own development, and I believe Turkmenistan will also take part in these processes," he added.

To ensure the success of the Trans-Caspian Route, Professor Mammadov stressed the need for a well-grounded tariff policy, the removal of bureaucratic barriers, and the enhancement of customs checkpoints' efficiency along the transport-logistics route. "These issues have been actively discussed among regional states. Active discussions and decisions are essential to elevate cooperation to a level where the effectiveness and competitiveness of international transport and logistics routes are significantly improved. The current trends indicate a highly competitive environment emerging around the development of transport logistics lines. States along these routes must reach agreements and make appropriate decisions to sustain and enhance their competitive advantages," the expert explained.

On June 12, the European Commission and Kazakhstan launched the Coordination Platform for the Trans-Caspian Transport Route . This initiative follows the agreements reached at the Global Gateway Investor Forum on transport connectivity between the EU and Central Asia, held in Brussels in January 2024. The EU has committed €10 billion to developing sustainable transport connections in Central Asia, with a particular focus on the Trans-Caspian corridor. The "Caspian Sea-Black Sea" international transport route project represents a pivotal step towards strengthening international cooperation and economic integration. Its implementation not only contributes to the development of transport infrastructure but also creates new opportunities for sustainable economic growth and cooperation among Central Asia, the Caucasus, and European countries.

This historic agreement marks a significant milestone in regional cooperation and economic integration. As the geopolitical landscape continues to shift, the Trans-Caspian Route stands as a beacon of connectivity, fostering new trade opportunities and strengthening ties between Southeast Asia and Europe. The collaboration between Turkmenistan, Azerbaijan, Georgia, and Romania not only paves the way for a more connected and prosperous future but also highlights the crucial role of strategic partnerships in navigating the complexities of the modern world.

News.Az