Şerafettin Aras – UND Chairman of the Board

The rapid change and transformation process in world trade and global supply chains, which began especially after the pandemic crisis, continues unabated in the face of ongoing crises in our region. In this transformation process, the importance of international transport corridors, which all stakeholders are trying to shape in Europe-Asia trade, which is increasingly gaining weight in the global economy, is also increasing.

THE POTENTIAL AND UTILIZATION RATES OF THE MIDDLE CORRIDOR

The Russia-Ukraine war, the Suez Crisis, and the subsequent escalating tensions in the Middle East, which have spread to regional countries, along with increasing security concerns along the routes designated as the northern and southern corridors of this trade, highlight the potential of the Trans-Caspian International Transport Corridor, also known as the Middle Corridor, as a reliable alternative.

The Middle Corridor, which is based on the “Modern Silk Road” project that dates back to the early 1990s and encompasses routes and projects that overlap with China’s Belt and Road project, offers a significant option for European economies to access the Caucasus and Central Asia via Turkey, and from there to the Chinese market, reducing transit time by almost one-third compared to the northern and southern corridors. We consistently emphasize that the rapidly developing EU-Central Asia logistics cooperation, based on the European Union’s Global Gateway program, must also be increased between Türkiye and European Union member states to develop the Middle Corridor, which, according to reports from global organizations such as the OECD and the World Bank, has the potential to handle a 30% increase in trade by 2030. However, the same research shows that despite all these developments and the rapprochement between the EU and Central Asia, the Middle Corridor’s potential has still not been realized five years after the pandemic.

Indeed, according to current transportation figures, despite all the challenges, particularly security concerns, the utilization of the Northern Corridor, which connects Central Asia to Europe via Russia, remains at 55%, and the Southern Corridor, which connects via Iran, remains at 40%. While the Middle Corridor remains at 5%, utilization remains at 5%.

TURKIYE’S ROLE AND LOGISTICS VISION

We believe that the inadequate appreciation of the role and importance of Türkiye and Turkish transporters in this corridor, as well as the disregard for the impact of restrictions and discriminatory practices imposed on Turkish transporters in the supply chain disruptions extending from Europe to Central Asia, are among the reasons for this situation.

In fact, at the Global Transport Corridors Forum held in our country in June under the patronage of our President, Türkiye officially demonstrated its full support for all projects and initiatives aimed at supporting the development of international transport corridors being formed throughout our region, and our call for increased cooperation with all countries in the region.

As UND, we are working focused on the rapid implementation of the vision of making our country a regional logistics center, transit hub, and global logistics superpower through intense public-NGO-private sector dialogue and cooperation.

CHALLENGES FACED BY TURKISH CARRIERS

Our goal in these efforts is not only to increase our exports by reaching distant regions, but also to further increase our share in global trade and international supply chains. Meanwhile, by contributing to the increase in transit trade passing through our region with our competent logistics capabilities and advanced logistics capacity, we will generate billions of dollars in additional logistics service revenue for our country in transit trade.

Of course, in this process, we believe that the more we can strengthen and diversify the logistics connections between all the economies with which we have built logistics bridges, including our own exports, the faster we can achieve this vision and goals.

As a side note, it’s difficult to forget how difficult it was for Turkish carriers to maintain transportation to Central Asia via Iran due to Turkmenistan’s long-term closure of its borders during the pandemic. It’s also difficult to forget the discriminatory practices in Iran during that period, as well as other challenges caused by the increased congestion at our border crossings.

ZENGEZUR CORRIDOR: NEW ALTERNATIVES AND OPPORTUNITIES

For these reasons, we welcome the recent developments regarding the Zangezur Corridor, which we have long supported. Putting political concerns aside, the fact that the agreement, which had been unsuccessful for a long time between the parties Azerbaijan and Armenia, regarding the implementation of this corridor, was finalized under the leadership of the United States, which accounts for 44% of world trade and whose political power is indisputable, could be a very important gain for the international trade world.

Thanks to this corridor, Türkiye will be directly connected to Azerbaijan via Nakhchivan, while the new line to be offered to regional trade will provide a shorter, safer, and more economical alternative to the transportation route passing through Georgia.

This will also alleviate the serious difficulties that Turkish transporters have been experiencing in Georgia, which has been the busiest transit route for Central Asian transport for many years, as a result of the increasing sanctions against Russia in recent years.

SOLUTION SEARCH IN THE FACE OF REGIONAL RESTRICTIONS

More importantly, in every regional or global crisis, new and discriminatory restrictions and practices (or those with a hidden competitive aim) imposed on Turkish carriers by some regional countries under various pretexts may provide relief to our carriers as alternative routes become available.

Essentially, the Zangezur Corridor, which will complement the Middle Corridor trans-Caspian in the logistics of trade from China to Europe, should be supported by rational projects and investments, particularly by preventing the difficulties stemming from bureaucratic and discriminatory practices that Turkish transporters experience daily at border crossings.

THE IMPORTANCE OF TRADE FACILITATION AND DIGITALIZATION

As UND, we consistently emphasize in our meetings with international organizations and on international platforms we participate in; the greatest benefit in facilitating trade and transportation is, perhaps even more so than simply building infrastructure and superstructures, the efficient use of infrastructure. First and foremost, the bureaucratic and burdensome practices that create long waits and losses in cross-border crossings must be improved through digitalization and simplification.

COOPERATION AND COMMON GOALS IN THE CORRIDORS

In the shadow of restrictions that hinder trade, such as the recently re-ignited trade wars and increased tariffs imposed by the US, we hope that the ideal of “expedited border crossings and the necessary facilitation of transit transportation” we advocate will now be realized through the Corridors in this region. It will now be clear to all states that the continuation of non-tariff restrictions will negate the benefits of logistics investments in the Corridors.