Silk Road Digest | 20 Sep 2026

2026-09-20

Middle Corridor Summit in Bulgaria

European Commission President Ursula von der Leyen announced that she would hold a regional connectivity summit with the Prime Minister of Bulgaria, focusing on the development of the "Middle Corridor." The project aims to connect the South Caucasus and Central Asia to European markets and envisages attracting up to €12 billion in public and private investment under the "Global Gateway" initiative; the goal is to diversify routes, increase trade flows, and reduce cargo transit times by 2030.

Additionally, the EU has concluded new free trade agreements with India, Mexico, Australia, and Indonesia.

Record at Batumi Terminal

In August 2026, the Batumi oil terminal handled 293,000 tons of oil, petroleum products, and gas—the highest monthly figure recorded since 2017. This record result was driven by an increase in cargo flow and the resumption of crude oil and aviation kerosene handling. In total, the terminal processed 1.251 million tons of cargo between January and August, a 3% increase compared to the same period last year.

Anaklia Port and Railway

Jemal Inaishvili, Chairman of the Supervisory Board of "Tbilisi Dry Port," stated that a direct rail connection to the Anaklia port station is a prerequisite for the port's full-scale future operation—just as is the case with the ports of Poti and Batumi. Therefore, the efficient operation of the railway and the rapid implementation of planned investments are critically important. This is especially true today, as the closure of Iran as a transit country and restrictions on the operation of Russian ports have significantly increased pressure on the Middle Corridor—a burden that ultimately impacts the ports and the railway system.

Oil and Gas Transit Volumes Decline

In January–August 2026, 16.746 million tonnes of oil were transported via the Baku-Tbilisi-Ceyhan (BTC) pipeline, an 8.8% decrease compared to the same period in 2025. The BTC pipeline accounted for 76.6% of the total volume; of this, 13.7174 million tonnes (81.9%) was Azerbaijani oil, while 3.0285 million tonnes (18.1%) originated from Turkmenistan and Kazakhstan. Transportation of Azerbaijani oil fell by 11.3%, whereas the volume of foreign oil increased by 4.9%. During the same period, 15.038 billion cubic meters of gas were transported via the Baku-Tbilisi-Erzurum (South Caucasus) pipeline—a year-on-year decline of 0.7%—representing 56.1% of the gas transported through Azerbaijan's main gas pipelines. In total, 26.788 billion cubic meters of gas were transported via Azerbaijan's main gas pipelines, marking a 0.5% increase compared to the same period of the previous year.

Truck Queue Grows at Lars

At the Upper Lars checkpoint on the Russia-Georgia border, 585 trucks are currently waiting in the electronic queue on the Russian side to cross; this represents an increase of 247 vehicles—or 73%—compared to September 11, while the queue has grown from 79 to 585 vehicles since September 7. Upper Lars is Russia's busiest road border crossing: in 2025, 4.8 million tons of cargo passed through it, with an average daily throughput of 1,040 trucks and a peak of 1,476. In April 2025, the queue reached a record 5,010 trucks. By June 2026, more than 100,000 trucks were registered in the electronic queue, and the annual economic value of cargo moving through Lars amounts to approximately $5–8 billion.

Turkey Develops Railway Infrastructure

Turkey is planning a high-speed railway project connecting Samsun, Trabzon, and Sarp—linking six provinces along the country's northern coast and significantly reducing travel times in the region. Meanwhile, construction continues on the Ankara-Kırıkkale-Çorum-Samsun railway line; once completed, the travel time between Ankara and Samsun will be reduced to approximately 2.5 hours.

Georgia-Azerbaijan Land Border

Azerbaijan has extended its special quarantine regime until 06:00 on January 2, 2027. Consequently, the country's land borders will remain closed, and entry into Azerbaijan for foreign nationals will be possible only by air, although exiting the country via land routes remains permitted.

Disruptions in the Middle Corridor

Amidst tensions in the Middle East and the closure of the Strait of Hormuz, demand for transit via Georgia and the Middle Corridor has risen significantly—including from India and the UAE—yet the infrastructure of the participating countries was not fully prepared to handle the increased cargo flow. According to Ana Kakabadze, Head of the Sea and Rail Department at SKYLOG, delays at the port of Aktau (Kazakhstan) and prolonged container processing times on the Azerbaijani railway are particularly problematic; consequently, total transit times have surged: while transporting cargo from China to Georgia previously took approximately 16–17 days, the transit period has now extended to 40–45 days. Furthermore, the increased cargo turnover typical of the year-end period has created additional strain, further exacerbating capacity issues.

The current throughput capacity of the "Middle Corridor" stands at approximately 6 million tons of cargo and up to 182,000 containers per year. Kazakhstan plans to increase this figure to 10 million tons per year by 2030.

Air Georgia’s New Terminal

Air Georgia plans to construct its own passenger terminal at Tbilisi International Airport. The Albanian group Kastrati has shown interest in investing in the project, initially expressing an intention to invest approximately $150 million. The parties signed a memorandum in August, and work is currently underway to resolve issues regarding an additional land plot and to prepare a joint agreement with the investors. The investors are scheduled to visit Georgia and meet with the government at the end of September, after which the project is expected to move to its concrete stages.

Land Carriers Association

Irakli Nemsadze, the head of the association, stated: "In recent years, we have observed increased economic activity and growing production potential in Central Asian countries; consequently, these nations have become sources of significantly higher cargo volumes than before. Added to this is the growth in trade turnover with China and the interest shown by global cargo owners in our region and route. We must be prepared for any scenario—including a situation where conditions on alternative routes deteriorate, leading to increased pressure on our own route. We must also prepare for the scenario where the situation stabilizes, considering what we can offer to cargo owners."

The Middle Corridor — A Historic Opportunity

Cargo flows along Georgia's transit corridor have increased significantly. As a representative of Gianti Logistics notes, the Georgian corridor has never experienced such a heavy load. The company estimates that the volume of cargo transported through Georgia has risen recently, a trend linked to ongoing changes in the region and heightened interest in alternative transport routes.

New Sulfur Transit Route via Georgia

Amid restrictions affecting Russian ports, the importance of alternative routes for exporting Kazakh sulfur is growing.

Sulfur shipments through Georgia are already underway: 37,000 tons of Kazakh sulfur were handled at the Port of Batumi in 2025, with another 28,000 tons processed between January and May 2026. Additional capacity also exists via the port of Poti.

Potential sulfur suppliers include Kazakhstan, Turkmenistan, and Uzbekistan. Based on the resources of these countries alone, there is significant potential to attract substantial cargo volumes through Georgia.

Increasing transit volumes requires expanding the capacity of port and railway infrastructure. Sulfur can be transported either via Black Sea ports or along the Baku-Tbilisi-Kars railway line towards Turkey.

Challenges Facing the Middle Corridor

The freight forwarding company SKYLOG notes that, despite rising cargo volumes, the Middle Corridor continues to face challenges regarding high tariffs and long transit times. According to Ana Kakabadze, Head of the Company’s Maritime and Railway Department, carriers are currently choosing the corridor passing through Georgia primarily due to existing tensions in the region. She notes that while tariffs and transit times are the two main criteria for companies selecting a logistics route, the "Middle Corridor" fails to significantly reduce transit times, and current pricing has not succeeded in attracting carriers. In Kakabadze’s assessment, addressing and aligning these two aspects is essential to further increasing cargo volumes.

Sources:
bm.ge;  businessinsider.ge;  bpn.ge;  bp.ge;
europetime.eu