Silk Road Digest | 15 Sep 2026

2026-09-15

Expansion of the Port of Baku

Azerbaijan plans to significantly increase the throughput capacity of the Baku International Port to strengthen the country's role as a Europe-Asia transport hub. The port's container capacity has already risen from 100,000 to 150,000 TEUs; it is projected to reach 200,000 TEUs by the end of 2026 and approximately 300,000 TEUs by the end of 2027. The integration of the Port of Baku with Azerbaijan Railways aims to accelerate rail-sea transport and increase regional freight flows.

Restoration of the Baku-Kuryk Ferry Service

Kazakhstan and Azerbaijan plan to resume passenger ferry services across the Caspian Sea between the ports of Kuryk and Baku. This route operated until 2020 but was suspended due to the COVID-19 pandemic; prior to its suspension, it served approximately 1,500 passengers annually. Transport agencies from both countries are already working to restore transport links, a move that will foster the development of tourism and passenger connections while expanding the capabilities of the "Middle Corridor."

“KazTransOil” Performance Metrics

Between January and August 2026, the transit of Kazakh oil through Georgia increased: 1.034 million tons of oil were transported via the Baku-Tbilisi-Ceyhan pipeline—a 12% year-on-year increase—while the transit volume of oil, petroleum products, and gas at the Batumi Oil Terminal reached 1.251 million tons, up 3% compared to the same period the previous year.

KTZ Digital Modernization

Kazakhstan Railways (KTZ) and Huawei are discussing cooperation on the digital modernization of railway infrastructure. The initiative involves implementing modern communication networks, data centers, and intelligent management systems to enhance train traffic efficiency and infrastructure management.

Particular emphasis is being placed on cybersecurity and the application of artificial intelligence. The goal is to transform Kazakhstan's railway system into a safer, more efficient, and technologically advanced infrastructure.

Kazakhstan and the Baku-Supsa Pipeline

Kazakhstan is holding consultations with the Azerbaijani side and oil companies to explore the possibility of using the Baku-Supsa pipeline for its oil exports. The parties are currently working on the commercial and technical terms for the route. In parallel, Kazakhstan plans to increase oil exports via the Baku-Tbilisi-Ceyhan (BTC) pipeline. The export target for this route in 2026 is 2.2 million tons, though volumes could reach 2.5–3 million tons by the end of the year. Between January and August, 1.034 million tons of Kazakh oil were transported via the BTC pipeline—a 12% increase compared to the same period last year.

Land Carriers Association

According to Irakli Nemsadze, the head of the association, expectations regarding the Middle Corridor have improved significantly compared to the last two years. The growth in cargo turnover is driven by increasing confidence among global cargo owners, cooperation with Georgia’s neighboring countries, and improvements—including digitalization—to the transport permit system. The corridor's key advantages are its political reliability and the alignment of interests among participating nations.

However, significant challenges remain, including insufficient infrastructure capacity, customs and border delays, and bureaucratic or corruption-related barriers—particularly along routes to Azerbaijan and Kazakhstan. Mitigating these obstacles could reduce shipping costs by approximately 20%, thereby substantially boosting the Middle Corridor's competitiveness.

Warehouse Boom

Since 2024, the pace of warehouse supply growth in Tbilisi has accelerated. According to Galt & Taggart, the country currently has 1.77 million square meters of warehouse space, with the vast majority concentrated in Tbilisi. The investment bank projects that warehouse supply in Tbilisi will rise to 1.45 million square meters by 2026 and to 1.65 million square meters by 2027. Georgia — A Logistics Hub

According to Nino Menteshashvili, Director of APB Logistics, Georgia’s strategic location offers an opportunity to strengthen its role as a regional logistics hub amidst global challenges and tensions in the Middle East. She notes that developing a major hub in Georgia would reduce long-distance cargo transport risks for businesses and establish the country as a reliable logistics anchor for the Middle Corridor and Eastern Europe.

Growth in Cargo Turnover in Georgia

Record figures for the last decade were recorded in Georgia’s transport and logistics sector during the period of January–August 2026. Seaports and terminals handled 13.7 million tons of cargo—a 24% year-on-year increase—while container volume reached 554,174 TEU.

Growth was also observed in rail transport: 9.7 million tons of cargo were transported over the eight-month period, an 11% increase compared to the same period the previous year. Notably, transit shipments rose by 14%, underscoring the growing importance of Georgia and the Middle Corridor. In the air cargo segment, airports handled 29.3 thousand tons of cargo; this figure exceeds the previous year's corresponding data by 30% and also marks a decade-long record.

Transport and Logistics Committee of the Kazakh-Georgian Economic Association

Committee Chairman Levan Sulaberidze: "The Middle Corridor cannot remain dependent on just two narrow railway lines in Poti that run right through the city center. A new railway station needs to be built so that, once Anaklia is constructed and the development of the Poti seaport begins, the railway infrastructure is up to the task.

Anaklia is a vital long-term project... However, we must enable businesses to develop where the infrastructure already exists. Poti offers great potential in this regard. Furthermore, the Poti seaport is owned by a global leader in port management; they possess the necessary financial resources and land to develop similar infrastructure. There is a readiness to build a deep-water port, though, to my knowledge, they are awaiting a government decision.

We will be able to simultaneously store large volumes of diverse cargo types, making Georgian seaports far more attractive to Central Asian businesses and allowing them to further diversify their trade routes." However, we currently lack the necessary logistical infrastructure—both on land and at sea—to fully handle the port's potential volume. This is already being felt in Poti; despite the presence of 20 container terminals there, capacity remains insufficient...

The situation is somewhat complex: Ukrainian actions within Russian territory have caused shortages of numerous products in Russia, prompting the country to ban the export of certain goods. Consequently, shortages of various commodities have emerged, and we have become the sole corridor for supplying Central Asian nations. This presents a new opportunity. We have realized that certain infrastructure—had it been in place—would be in high demand today.

SOCAR’s New Move

SOCAR has imported its first batch of 5,000 tons of gasoline from Italy to Georgia. The fuel was supplied by the Italian company Italiana Petroli and meets the European EN 228 standard. This marks the first direct commercial supply deal between SOCAR and Italiana Petroli. The collaboration became possible after SOCAR acquired a 99.82% stake in the Italian company. Importing fuel from a new route creates an additional opportunity for Georgia, as the country expands its fuel supply sources. This will contribute to a stable and flexible fuel supply in the market.

Sources:

bm.ge / businessinsider.ge / bpn.ge  entrepreneur.com / europetime.eu / bp.ge