EU stresses strategic importance of cooperation with Kazakhstan on developing Trans-Caspian International Transport Corridor

The meeting was chaired by Kazakh Prime Minister Olzhas Bektenov, EU Ambassador to Kazakhstan Kestutis Jankauskas and heads of diplomatic missions of EU countries.

In Kazakhstan's view, the Trans-Caspian Transport Corridor can provide highly competitive delivery times (12-15 days), ensuring maximum attractiveness for trade flows. It is an important link between the East and the West, connecting the world's two largest economies, China and Europe, through Kazakhstan.

As one of Kazakhstan's main partners, the EU contributes more than 40% of Kazakhstan's foreign investment and about 30% of the country's foreign trade. In the EU's view, Kazakhstan's strategic position and access to the Caspian Sea enhance Kazakhstan's ability to support East-West transit transport. About 85% of products shipped from China to the EU pass through Kazakhstan.

As of May 1, 2024, the volume of goods transported through the Trans-Caspian International Transport Corridor increased by 14% over the previous year to 1.4 million tons, with the main products including equipment, consumer goods and agricultural products.

Both the EU and Kazakhstan are very interested in this corridor and hope to maximize its huge potential. At present, the Central Corridor Multimodal Transport Joint Venture was established in Astana last year. In addition to providing integrated multimodal solutions for the China-Europe/Turkey route, it also plays a role in coordinating policy developments in countries along the route.

The EU is keen to closely bind Kazakhstan to its "Global Gateway" plan, which is a benchmark for China's "Belt and Road" initiative. EU diplomats stressed that Europe's "Global Gateway" plan is a key factor in promoting new investment opportunities in the transportation sector.

EU representatives praised "Kazakhstan's efforts to improve the business environment", pointing out that its "economic stability is highly attractive to European companies." Kazakh Prime Minister Olzhas Bektenov said: "The EU is an important investment and trade partner of Kazakhstan and we are committed to strengthening cooperation in all priority areas. The government values the EU's contribution and is open to proposals to further strengthen our partnership."

Compared with the traditional China-Europe land trade route, the Trans-Caspian International Transport Corridor provides a shorter transportation distance, including about 4,250 kilometers of railway routes and 500 kilometers of sea routes, connecting China, Kazakhstan, Uzbekistan, Turkmenistan, the Caspian Sea, Azerbaijan, Georgia, the Black Sea and Turkey, and finally reaching the European market.

Effective use of this corridor is expected to further serve the US$600 billion annual China-Europe trade and release huge economic growth opportunities for the South Caucasus and Central Asian countries. Improving the transportation timeliness of the Trans-Caspian International Transport Corridor, further reducing the transportation costs of the corridor, improving the transportation management process, strengthening information sharing, simplifying and coordinating the customs affairs of various countries, so as to truly improve the market competitiveness of the corridor, has become an important issue left to all stakeholders.

Of course, the EU's focus on the Trans-Caspian International Transport Corridor and strengthening cooperation with Kazakhstan are more complicated. The EU's own supply chain security and energy security, the emerging consumer market potential of countries along the route, especially Kazakhstan, and the geopolitical considerations that Kazakhstan can provide as a neighboring country and important partner of both Russia and China... are all important driving forces for the EU to participate in the development and construction of the Trans-Caspian International Transport Corridor.