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Source: Trend
In today’s world, where logistics serve as a key strategic asset and a cornerstone of economic influence, every new transportation route transcends being merely a line on a map; it embodies national security, energy accessibility, sustainable development, and geopolitical positioning.
One of the pivotal results of President Radev’s discussions with Kazakh President Kassym-Jomart Tokayev was the signing of a Memorandum of Understanding (MoU) regarding the development of the Trans-Caspian International Transport Route (TITR), commonly referred to as the Middle Corridor. This agreement signifies a broader geoeconomic shift towards creating alternative trade and transit routes between East and West, addressing the changing dynamics within the Eurasian region.
The TITR functions as a multimodal transport corridor linking China to Europe via Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and onward to Black Sea ports. The significance of this route has surged following disruptions to northern transit pathways caused by geopolitical tensions and sanctions.
President Tokayev emphasized that Kazakhstan represents 85% of all overland trade between Europe and China. He noted that enhancing Middle Corridor infrastructure presents new opportunities for more efficient connectivity between East and West.
As of 2024, cargo volumes along the TITR have surged by 62%, reaching 4.5 million tons. However, the corridor’s current capacity is only around 50% utilized. Plans are underway to increase throughput to 10 million tons by 2028. In Kazakhstan, significant infrastructure projects are already in progress, including the establishment of a new container hub at the Port of Aktau, which will elevate handling capacity from 140,000 to 240,000 TEUs.
Bulgaria, positioned on the Black Sea, naturally aligns as a partner for Kazakhstan within the Middle Corridor framework. The Port of Burgas, one of the largest logistics hubs on the Black Sea, has the potential to serve as a key transit point for TITR cargo flows. President Radev described Kazakhstan as a strategic ally for Bulgaria in Central Asia, highlighting that both nations are favorably located at the intersection of major trade routes.
The MoU on the TITR goes beyond being a mere symbolic gesture; it signifies Bulgaria’s entry into one of Eurasia’s most crucial emerging transit corridors. This opens up new avenues for Bulgarian ports and logistics firms to integrate into the expanding freight flows from Central Asia and China to Europe.
The revitalization of diplomatic relations is supported by increasing economic activity. In 2024, Kazakh exports to Bulgaria skyrocketed 11-fold to $303.6 million, largely driven by crude oil, which saw a remarkable 48-fold increase (an additional $242.2 million), along with aluminum, ferroalloys, and electronic components. Imports from Bulgaria also rose by 5.5%, hitting $71.6 million, primarily led by pharmaceuticals.
Investment flows are also on the rise. In 2024, Bulgarian investment in Kazakhstan soared by 86.5%, amounting to $7.8 million. Since 2005, cumulative gross investment has reached $76.3 million, indicating sustained interest from Bulgarian enterprises in the Kazakh market.
Currently, 107 companies with Bulgarian capital are registered in Kazakhstan, with 61 actively operating — a testament to the partnership’s evolution beyond formalities into a solid economic foundation.
In light of disruptions to the Caspian Pipeline Consortium (CPC) and the impact of sanctions, Kazakhstan has accelerated its efforts to diversify its oil export routes. A key development was the agreement with Azerbaijan’s SOCAR to transport 1.5 million tons of oil annually via the Aktau–Baku–BTC route, with plans to scale this up to 5–7 million tons.
Beyond oil, the Middle Corridor is now being utilized for exporting uranium, lithium, and rare earth elements to Europe. A recent Declaration of Intent signed in Samarkand between the EU and Central Asia includes efforts to develop logistics for transporting clean hydrogen and battery technologies.
For the first time, the Downstream Central Asia and Caspian Summit will be co-located with the inaugural Go Net Zero Energy Summit on 8 September at the same venue, bringing together downstream stakeholders from across the Caspian and Central Asia regions under one roof. This unique convergence creates a full week of strategic dialogue and delivers unparalleled opportunities for cross-sector collaboration, knowledge sharing, and the formation of strategic partnerships across the entire energy value chain.
Uzbekistan has announced an extension of zero customs duties on the import of 82 types of industrial raw materials and semi-finished products. According to a report from the Ministry of Justice via its Telegram channel, referencing a presidential decree signed.
The world’s largest chemical manufacturer is set to inaugurate its new facility in China by the end of March, generating a blend of optimism and skepticism about growth prospects.