Uzbekistan, Azerbaijan deepen Middle Corridor ties

Uzbekistan and Azerbaijan used a high-level meeting in Tashkent on Aug. 23 to expand trade, investment and transport cooperation around the Middle Corridor. The move could help turn the Caspian from a chokepoint into a link between Central Asia, the South Caucasus and Europe.

Why it matters: - Uzbekistan and Azerbaijan are building more than a trade relationship. They are creating a broader economic link that could connect Central Asia with the South Caucasus, Türkiye and Europe. - For landlocked Uzbekistan, better transit access is an economic security issue because export costs and delivery reliability depend on neighboring countries and border capacity. - The Middle Corridor could become a larger alternative to traditional routes between Asia and Europe if infrastructure, customs and digital systems keep improving.

What happened: - Presidents Shavkat Mirziyoyev and Ilham Aliyev met in Tashkent on Aug. 23 for the third meeting of the Supreme Interstate Council. - Uzbekistan and Azerbaijan signed a Treaty on Eternal Friendship. - The two countries approved a program to increase trade and launched joint projects. - The presidents also backed deeper development of the Trans-Caspian route, also called the Middle Corridor.

The details: - Bilateral trade has tripled over the past five years, according to official data. - The next trade target is $1 billion a year, supported by a separate program of specific measures. - Uzbekistan and Azerbaijan previously created a $500 million investment company to fund projects in both countries and other markets. - The August meeting launched projects in banking, modern building materials, fuel infrastructure, residential and tourism complexes, mineral processing and horticulture. - The cooperation is shifting from shipping goods across the Caspian to joint production, financing and asset creation. - On Aug. 21, Uzbekistan and Georgia moved to electronic permits for international road transport, replacing paper documents for bilateral, transit and third-country transport. - The Caspian route still faces operational friction, including cargo transfers between rail and ship, different customs systems and tariffs, and limited port coordination.

Between the lines: - Alona Lebedieva, owner of Aurum Group, argues the partnership is important because it links trade, investment and transport into one industrial ecosystem. - That matters because transport corridors compete on speed, predictability and paperwork as much as on rail lines and ports. - The Middle Corridor’s growth after 2022 shows businesses are actively looking for alternatives to longer or less reliable routes between China and Europe. - If regional countries align tariffs, customs procedures and digital tools, the Caspian could stop functioning mainly as a barrier and start acting as a connector.

What's next: - Kazakhstan estimates the Middle Corridor’s current capacity at about 6 million tonnes and up to 182,000 containers a year, with a goal of 10 million tonnes by 2030. - The World Bank estimates the route’s trade volumes could triple by 2030 if investment and reforms continue, while transit times could be cut in half. - Uzbekistan plans to connect the Middle Corridor with the China-Kyrgyzstan-Uzbekistan railway now under construction. - The railway from Kashgar to Andijan is expected to run about 526 km, with construction costs estimated at $4.7 billion. - The Kyrgyz section is planned at 304 km, with about 40% of the route on bridges and through tunnels. - If those links materialize, Uzbekistan could evolve from a freight endpoint into a key hub between China, Central Asia and the Caucasus.

The bottom line: - The Uzbekistan-Azerbaijan partnership is no longer just diplomatic. It is becoming the backbone of a wider trade-and-transport system that could reshape how goods move between Asia and Europe.