The EDB has identified ten systemic elements of the Eurasian Transport Network Concept. This concept aims to establish and enhance sustainable, accessible and efficient transport links across Eurasia. The concept is detailed in a report that reviews the current situation, provides development projections for five key transport corridors in Eurasia and presents key projects and initiatives for the further advancement of the Eurasian Transport Network.
The Eurasian Transport Network is a system of interconnected latitudinal and longitudinal international transport corridors and routes, facilitating intra- and trans-continental connectivity for Eurasian countries. It builds upon over 50,000 km of international east-west and north-south transport corridors, linking Asia, Europe and the Middle East. Their interconnection generates synergies resulting in up to 40% of additional freight traffic.
Almaty, 27 June 2024. The EDB has analysed the transport routes in Eurasian countries and released a report titled The Eurasian Transport Network based on the findings. This report introduces a new conceptual approach to future developments within the Eurasian Transport Network and outlines key projects and initiatives aimed at improving transport connectivity in Eurasia.
The Eurasian Transport Network consists of five key international transport corridors: the Northern, Central and Southern Eurasian Corridors, TRACECA, and the International North-South Transport Corridor (INSTC), along with branch lines and regional routes.
According to EDB analysts, in 2023, international freight traffic along these five corridors of the Eurasian Transport Network totalled 260 million tonnes, including 3.6 million 20-foot containers (TEU). Compared to 2013, the volume of international container traffic has more than tripled. The most dynamic growth has been driven by foreign trade and transit container transit with China. Since 2013, the number of container trains to and from China via the EAEU and Central Asia has increased by a factor of 200.
The growth in transportation is fuelled by increased trade, major infrastructure projects, the commissioning of new railroads, highways and border crossing points, improvements in transport and logistics infrastructure, and the launch of efficient container services that have shifted some freight traffic from deep-sea routes to Eurasia’s land transport links.
The EDB introduced the concept of a Eurasian Transport Network in 2021, and this report presents its detailed framework. The concept emphasises the importance of interconnectedness and complementarity of Eurasian transport corridors to enhance transport connectivity, reduce trade-related costs and facilitate access to international markets, especially for land-locked developing countries (LLDCs) and inland areas.
Three years ago, the EDB released a report titled The International North–South Transport Corridor: Promoting Eurasia’s Intra- and Transcontinental Connectivity, which estimated that connecting international transport corridors would yield a 40% increase in freight traffic. In 2024, this projection was fully confirmed by the dynamic development of the INSTC and its linkage to TRACECA.
The advancement of the Eurasian Transport Network is paving the way for the establishment of a transport hub in Central Asia. The development of multimodal transport and transit corridors is the only viable solution for Central Asian countries due to the significant distances between trade partners. Establishing a transport hub will facilitate an increase in international traffic, including transit. The EDB projects that freight traffic along the three main corridors running through Central Asia will increase by 1.5 times to 95 million tonnes by 2030. Container traffic is expected to grow even more rapidly, by almost two-thirds, reaching 1.7 million TEU.
The Eurasian Transport Network holds particular importance for Central Asian countries. Enhanced intra-regional economic connectivity will lead to lower transportation costs between countries along the corridor and to seaports.
Evgeny Vinokurov, EDB Chief Economist, underlines that “at present, transportation costs for landlocked countries are 1.4 times higher than for coastal states. Even during the time of the Silk Road, trade routes in Central Asia were predominantly latitudinal, in the east-west direction. Building new north-south transportation links is a historic opportunity for Central Asia. This is an opportunity to become the continent’s transport hub, unlock new production niches and improve conditions for foreign trade, especially with West and South Asia.”
Research has confirmed that the Eurasian Transport Network will help reduce imbalances in the geography of trade across Eurasia. For example, calculations using the International Trade Center gravity model estimate that the untapped trade potential between India and Central Asian countries is twice the five-year average of actual trade between them, primarily due to poor transport connectivity and high transport costs.
Improved transport connectivity will also create momentum for realising the region’s agro-industrial potential. The Eurasian region is one of the world’s breadbaskets and can provide food for 600 million people through agricultural exports (EDB Report “Food Security and Agro-Industrial Potential of the Eurasian Region”). However, to achieve this, the region’s countries must properly develop their transportation and logistics infrastructure. Of particular importance is the development of soft infrastructure within the Eurasian Transport Network. Specifically, integrated logistics services can shift the focus from competition between corridors and modes of transport to interaction between them. Implementing integrated multimodal logistics technology can reduce transportation costs by 15%.
The benefits of improving soft infrastructure are comparable to those of developing physical infrastructure. Improving soft infrastructure is based on three principles: harmonisation, coordination and digitalisation. For example, exports from Central Asian countries could grow by 18% as cargo and vehicle downtime at border crossings is halved. Transitioning to digital technologies and shipping documents can save up to four days at border crossings for international freight traffic.
The role of the Eurasian Transport Network is also crucial at the international level. Eurasian land routes provide a backup for global trade and logistics chains in case of maritime shipping disruptions. For example, between May 2021 and August 2022, when volatility in the maritime container market servicing shipments between Asia and Europe soared due to COVID-19, land Eurasian corridors were three times cheaper and three times faster.
EDB analysts emphasise the need to focus on “nerve” clusters –junctions of corridors and routes, transport hubs, border crossing points and key seaports. Thus, an indispensable condition for the functioning and further successful development of the Eurasian Transport Network is the development of approaches to transport hubs and seaports, coupled with the construction and upgrading of border crossings and essential auxiliary infrastructure, primarily dry ports and logistics hubs.
The EDB has initiated the establishment of the Observatory of Transport Projects for the Eurasian Transport Network – a database of projects to construct, modernise, rehabilitate and develop transport infrastructure along the network’s corridors and routes. This database is scheduled to be made public by the end of 2024 and will be regularly updated.
Given the limited investment opportunities facing most developing countries in Eurasia, especially those with middle or lower-middle income levels, a key area of cooperation to develop transport links in Eurasia is boosting the number of projects attractive to international development banks and private investors. This includes projects implemented through public-private partnerships (PPPs) and cross-border PPPs.
The report on The Eurasian Transport Network is available on the EDB’s website. The webpage also contains a presentation, a one-page executive summary, videos and high-resolution maps and schemes of the Eurasian Transport Network.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB’s charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations. ///EDB, 28 June 2024