IS IT POSSIBLE FOR GLOBAL TRADE TO SLIDE TO THE MIDDLE CORRIDOOR?

Date: 2022.03.24

An article titled "Is it possible for GLOBAL TRADE TO SLIDE TO THE CENTRAL CORIDOR?" was written on the corporate website of the Association of International Forwarding and Logistics Service Providers Utikad.

In the article, he evaluated  Turkey is in a strategically very valuable place in the present case.

In the article; It is stated that as a result of the withdrawal of foreign brands from Russia, the demand for Turkish products in Russia and the sales of some brands that have stores in Russia have increased nearly twice in the last week.

It was stated that Europe can technically sell the goods it produces, but there is no way to send it. In this case, it was pointed out that the cargo from the European Union would reach Central Asia and then Russia, bringing Turkey to the fore.

The following points were mentioned in the said article.

The blockage in the Georgia-Russia line disrupted not only the transportation to Russia, but also the transit transportation to Central Asia through this country. Central Asia is one of Turkey's most important export markets. Approximately 40 thousand export trips are made annually to Uzbekistan, Kyrgyzstan, Tajikistan and Kazakhstan. Before the pandemic, Turkish transporters were making 90 percent of their Central Asian flights to Turkmenistan via Iran and then to other countries. However, due to the epidemic, Turkmenistan closed the transit passage to the whole world. Logisticians want the authorities to take action to reopen this door. In case this line is reopened, it is aimed to prevent the losses due to the blockage in the Georgia-Russia line due to the war.

For Turkey, the shift of global trade to the Middle Corridor is currently on the agenda. Trade and transportation between Asia and Europe are carried out through three main corridors. The "Northern Corridor" in which Russia is located, the "South Corridor" passing through Iran and the "Middle Corridor" including Turkey. However, Russia's attack on Ukraine, security problems in the northern corridor means that the goods produced or currently sold in the European Union cannot find a technical way to go. This situation made the Middle Corridor, which reaches from Turkey to the Caucasus, and from there to Central Asia and China, which crosses the Caspian Sea and includes Turkmenistan and Kazakhstan, even more valuable. Logistics centers in Turkmenistan, Kazakhstan and Azerbaijan ports in particular. and the establishment of free trade areas will contribute to the development and deepening of the Trans-Caspian cooperation.

Implementation of the developing sanctions and embargo against Russia will also increase the risk of all transportation routes from here to Europe. The importance of transport via the Middle Corridor may increase based on multilateral cooperation.

A study was initiated some time ago in order to eliminate this problem, which also affects the freight transportation via Turkey, and to accelerate the freight transportation between Asia and Europe. For this purpose, a new line is being built between Kars Logistics Center and Ahılkelek, where trains from Asia arrive. With the completion of this harmonization, the costly bogie replacement process will also come to an end.

In addition, we must harmonize our customs systems and further increase the functionality of the Middle Corridor. However, while increasing the operability of the Middle Corridor, we also need to prepare our capacity and infrastructure for this increase. In order to maintain uninterrupted transportation from Asia to Europe, it seems essential to increase the number of Marmaray crossings and to provide a railway crossing over the Yavuz Sultan Selim Bridge.

Transit revenues will increase, domestic production will be encouraged, and when our customs systems and taxes are compatible with each other, our export expenses will decrease. The strategic importance of the countries on the Middle Corridor route, especially Turkey and Azerbaijan, will increase. As a result, it seems that our probability of becoming an international hub in transit transportation, which we have been targeting for many years as the logistics sector, will increase. Source:Utikad

Back All News