Dredging the Caspian Sea: Boosting Trade Between Europe and China
Drilling operations in the Caspian Sea by Kazakhstan, facilitating trade between Europe and China
In an exciting development, Kazakhstan is set to delve into the Caspian Sea, specifically targeting areas around its main port, Aktau. This ambitious project aims to enhance the trans-Caspian transport route, a critical artery connecting China and the European Union (EU), by boosting its shipping capacity, according to a spokesperson from Kazakhstan's Ministry of Transport.
The timing of this venture couldn't be more strategic, given the ongoing geopolitical landscape. The EU, seeking alternative trade routes following Russia's invasion of Ukraine and subsequent Western sanctions, is moving to bypass Moscow. Coined the "Middle Corridor," this route snakes through Central Asia, the Caspian Sea, the Caucasus, and Turkey.
In early 2022, the EU announced a whopping ten billion euros in investments to fortify the Middle Corridor. The dredging of the Caspian Sea is a significant step towards enhancing the efficiency and capacity of this alternative trading route.
By deepening the seabed by 1.5 to 2 meters, this dredging initiative will enable larger ships to safely access and load/unload at Aktau port, thereby supporting higher cargo volumes and more efficient maritime transport through the Middle Corridor. This essential expansion supports the growing demand for this route, with freight volumes projected to triple by 2030 to about 11 million tonnes, assuming infrastructure improvements like dredging proceed as planned.
However, the decline in the Caspian Sea's water level poses a significant challenge. If the sea's water level continues to plummet, shipping may remain inefficient, potentially undermining the benefits of this project. Concerns about the long-term sustainability of the Middle Corridor, both economically and ecologically, loom large if the issue of declining water levels isn't properly addressed.
On the bright side, the Middle Corridor's development aligns with broader regional infrastructure projects and significant EU investments aimed at strengthening the corridor as a key alternative to Russian and southern maritime routes. New terminals, like the Sarzha Terminal at Kuryk port, have also been inaugurated to bolster handling capacity, providing a crucial link between the Caspian and Black Seas and further reinforcing the Middle Corridor's logistics chain.
[1] ntv.de[2] Курьинmediate[3] Sputnik news[4] World Bank Group. (2021). Central Asia Connectivity and Transport Services Report.[5] European Commission. (2022). Strengthening European connectivity in Central Asia: Proposed EU investment of up to €10 billion.
The dredging of the Caspian Sea, financed by Kazakhstan, aims to reduce environmental impact by ensuring safe passage for larger ships, thus promoting community aid and environmentally friendly transportation for the growing freight volumes along the Middle Corridor. Simultaneously, the EU's significant investments in the industry and business sectors, such as the Sarzha Terminal at Kuryk port, are essential for improving the Middle Corridor's infrastructure, ultimately fostering a more sustainable transportation and finance system between Europe and China.
