CORRIDORS, where global commerce takes place, do not only facilitate the logistics but also profoundly affect regional development. Therefore, participating in trade corridors is among countries’ economic and geopolitical priorities. The most recent example of this case was witnessed at the G20 Leaders’ Summit in India’s capital city, New Delhi, in September 2023. 

A memorandum of understanding on the establishment of the India-Middle East-Europe Economic Corridor (IMEC) was signed by India, USA, Saudi Arabia, United Arab Emirates (UAE), France, Germany, Italy and the European Union (EU) at the summit. 

DISTANCE ADVANTAGE

Trade activities between Europe and Asia are primarily carried out over the Northern, Southern and Middle Corridors. The Northern Corridor ties China to Europe over Russia and has an average distance of 20 days. The Middle Corridor starts from China, reaches Europe over Türkiye, and can be passed in an average of 12 days. The Southern Corridor, on the other hand, runs Europe via the sea from China and takes approximately 30 days. The Middle Corridor, starting from Türkiye, reaching the Caucasus region, then crossing over the Caspian Sea and reaching Central Asia and China after Turkmenistan and Kazakhstan, is one of the most critical components of the project on the revitalization of the historical Silk Road. The Middle Corridor also features a multiple-mode transport network comprising land transportation, container rail transport and ferry routes.

JUST IN TIME

As a result of the lower distance availed by the Middle Corridor, the emissions are lower in this corridor compared to the Northern and Southern Corridors. Besides, it is the most suitable corridor for the Just in Time production model, which gained more prominence during the pandemic. The pandemic, the Suez Canal crisis of 2021, the war between Russia and Ukraine, and the Red Sea crisis revealed the importance of the Middle Corridor. Strengthening the alternative trade routes bears excellent significance in risk management and reducing the vulnerability in the supply chains. Asian countries hold 53 per cent of the global trade of goods, and developing land and railway alternatives are just as important as sea freight in Asian countries’ connection to Europe. In this context, the Middle Corridor is expected to gain more importance in the years to come.

INFRASTRUCTURAL INVESTMENTS

The countries related to the route continue to improve their infrastructure to increase the Middle Corridor’s advantages in terms of capacity. In this context, Türkiye initiated the Caravanserai Project in cooperation with customs. The country launched Marmaray, which connects Asia and Europe directly via railway in 2013, opened the Eurasia Tunnel in 2016, and the Yavuz Sultan Selim Bridge - the third bridge over the Bosphorus Strait in 2016. The Baku-Tbilisi-Kars Railway Route opened in 2017 and also rectified the Middle Corridor’s infrastructure. The 1915 Çanakkale Bridge opened in 2022 and was also a step towards this end. Türkiye has been continuing to conduct new railway, land and port projects.

DEVELOPMENT ROAD PROJECT

Another route to rectify the Middle Corridor in global commerce will be the Development Road Project. To this end, in March 2023, Türkiye and Iraq signed the Ankara Declaration that demonstrated the joint will to cooperate in this area. This project is a strategically critical project for both Türkiye and Iraq and the entire region. The investment value of the Development Road Project is foreseen as US$ 17 billion, and the project comprises a 1200 meter’ 1200-meter-long railway and highway that plans to connect Türkiye to the Grand Faw Port at the Persian Gulf over Iraq. The Development Road Project aims to affect a wide area extending from Europe to Gulf countries and generate common interest.

Marmaray’s impact on the Development Route

The experts underline that the objective of the Development Road Project is to build an alternative to the route from the Suez Canal and, therefore, bring forth a more rapid and affordable option. The Development Road Project is projected to play a critical role in transferring raw materials and goods delivered to the Grand Faw Port at the Persian Gulf from countries such as China and India. A good handled at the Faw Port can directly reach Europe via Türkiye, thanks to Marmaray. Moreover, in the future, through the railway connection planned to be built over the Yavuz Sultan Selim Bridge, a second railway alternative to Marmaray will be available. The Development Road Project is projected to be the shortest and most affordable route among the international south-north corridors that connect the Far East, South Asia and the Middle East to Europe.

Türkiye with a position to become a logistics center

Sixty-seven countries that host nearly 1.4 billion people and bear a trading volume of US$ 8.6 trillion can be accessed from Türkiye by just a 4-hour flight. Based on such advantages of its position, transportation and communication strategies are being redefined according to global and regional conditions. Prof. Dr. Mehmet Tanyaş, Head of the International Trade and Logistics Management Department at Maltepe University, stated that Türkiye, at the junction of three continents, could become a logistics base especially for South Europe, North Africa and Middle East countries in the Iron Silk Road and said: “Türkiye has considerable interests in the TEN-T, TRACECA, VIKING, Iron and Maritime Silk Road as well as the Northern-Southern Corridors. The Iron and Maritime Silk Road is also known as the Road and Belt Road project. The Iron Silk Road, also called the Middle Corridor, passes over Türkiye and bears a critical advantage for the country. However, to benefit from this opportunity, the national logistics corridors need to be clarified, their capacity and quality should be enhanced, logistics centers need to be formed over such corridors and seaports and airports have to be positioned over the convenient locations of the corridor.”

The win-win model in the Zangezur Corridor

Similar to the Development Route Project, another step to strengthen the Middle East will be the Zangezur Corridor. Direct transportation will be available between Azerbaijan and Türkiye via Nakhchivan through land and railways with the launch of the Zangezur Corridor Project. As an alternative to the existing Baku-Tbilisi-Kars route, the Zangezur Corridor is projected to become a critical route for the Middle Corridor with increasing importance in terms of European and Asian commerce.

Pointing to the advantages to be achieved upon opening the Zangezur Corridor, Assoc. Prof. Dr. Sabri Öz, a Member of the Faculty at the Logistics Department of the Faculty of Business Administration of the Istanbul Commerce University, said: “The alternative routes of the land and railway starting from Wuhan are quite distant and challenging after Baku in the routes outside Armenia. The land route over Iran to Türkiye from Baku and the railway to Türkiye over Georgia from Baku are 1200km and 850km, respectively. Such distances will fall to approximately 540km with the completion of the Zangezur Corridor. Additionally, a crucial advantage will be gained in time and energy. Finally, constructing the Zangezur Corridor and its launch to service based on agreements will bring multiple win-win advantages to all countries.”