01 May
2025
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The race for transport routes: Who will dominate the new Silk roads?

The race for transport routes: Who will dominate the new Silk roads?

Central Asia and the Caucasus are racing to position themselves as vital transit hubs as global trade routes shift, Euronews reports.

As noted, since the start of Moscow’s war in Ukraine in early 2022, Europe has been searching for alternative trade routes that bypass Russia.

This search has placed unprecedented attention on the strategic location of Central Asia and the South Caucasus.

Countries including Azerbaijan, Armenia, Georgia and Turkmenistan are investing heavily in railways, highways and ports to attract east–west trade flows.

Yet, while some of their ambitions align, others compete — creating a dynamic mix of collaboration, competition and geopolitical tension.

In the race for transport routes, those who have ports on the Caspian Sea have the upper hand. In that sense, Azerbaijan holds the ultimate card, with Baku being the only port on the western coast of the Caspian Sea.

The Middle Corridor, the North-South Corridor, TRACECA, the Caspian-Black Sea route, and the Lapis Lazuli Corridor – all go through Azerbaijan.

Together with Georgia, Azerbaijan forms a direct line from Central Asia to Europe.

Georgia’s advantage here is its two major Black Sea ports of Poti and Batumi and its shared border with Turkey. However, Iran, which also shares a border with Turkey, can divert some of the trade flow.

Georgia’s position can also be weakened if Azerbaijan and Armenia find a way to reconcile. The progress is slow in this department as the peace agreement hasn’t been signed yet.

The nations also cannot reach an agreement on a path between Azerbaijan and its exclave Nakhijevan, separated by Armenian territory.

Armenia, sandwiched between Azerbaijan and its close ally Turkey, heavily depends on Georgia for trade with Russia.

Prisoners of war