Silk Road Digest | 4 Oct 2026

2026-10-04

CAMCA2026Baku

On October 1–2, the CAMCA Regional Forum 2026 took place in Baku, Azerbaijan, under the theme "The World and CAMCA: A Region at the Crossroads." The forum brought together representatives from Central Asia, Mongolia, the Caucasus, and Afghanistan, aiming to foster regional dialogue, cooperation, economic ties, investment, and sustainable growth. The program featured sessions such as "Connecting CAMCA to the World: Building Regional and Global Economic Connectivity," "Entrepreneurship in CAMCA: Scaling Regional Success," "Culture, Identity and Regional Narratives," "Unlocking CAMCA’s Growth Potential: The Policy Case for Regional Cooperation," and "Unlocking CAMCA’s Growth Potential: The Private Sector Advantage," as well as a concluding session titled "Statesmen’s Conversation: CAMCA’s Role in a Changing World." Participants included representatives from government and diplomatic agencies, business leaders, investors, entrepreneurs, experts from international organizations, and members of academia and civil society.

"Caucasus Express" — Prospects for a New Tourist Railway Route

Launching a passenger tourist train named the "Caucasus Express" along the Baku–Tbilisi–Batumi and Baku–Tbilisi–Kars–Istanbul–Europe routes could create new tourism and transport opportunities between the Caucasus and Europe. The concept envisions the train journey itself becoming a tourist product, enabling the connection of Baku, Tbilisi, Batumi, Kars, Istanbul, and European destinations within a single trip. The Baku–Tbilisi–Kars railway project was originally designed for both freight and passenger transport. Azerbaijan already possesses specialized passenger train sets manufactured by Stadler, and an automatic gauge-changing system—accommodating the transition between 1,520 mm and 1,435 mm track gauges—has been installed at the Akhalkalaki station. Accordingly, the potential implementation of the project depends on the efficient use of existing infrastructure and rolling stock, as well as on an agreement between the relevant agencies of Georgia, Azerbaijan, and Turkey.

Gnomon Wise’s "Quarterly Review of the Caucasus Economy"

In the second quarter of 2026, the South Caucasus economy grew by 4.3% year-on-year, compared to 3.9% growth in the second quarter of 2025; Azerbaijan made a significant contribution to the strengthening of economic activity, particularly driven by growth in the services and oil sectors. The region's foreign trade turnover amounted to $27.8 billion, marking an 18.8% annual increase—exports rose by 53.2%, while imports declined by 7.7%. Loans issued by commercial banks reached $72.45 billion, representing a 19.3% year-on-year increase. During the same period, the region's average annual inflation stood at 5.4%, which, according to the study, remains a significant challenge for central banks.

South Caucasus Trade Overview

The trade turnover of the South Caucasus region totaled $65,296.8 million during the first eight months of the year, with exports amounting to $33,059.8 million and imports to $32,237.0 million. In the same period of the previous year, foreign trade turnover stood at $61,236.1 million. Consequently, the region's foreign trade grew by 6.6% during the January–August period. In August of this year, trade turnover amounted to $8,266.0 million.

During the first eight months of the year, Azerbaijan accounted for 52.5% of the trade turnover, while the shares of Georgia and Armenia were 27.2% and 20.3%, respectively.

In August of this year, trade turnover increased by 15.8% compared to the same month of the previous year. During this period, monthly exports and imports amounted to $4,202.5 million and $4,063.5 million, respectively.

The Role of Georgian Ports in the Middle Corridor

Amidst the growth of cargo flows along the Middle Corridor, utilizing the throughput capacity of both the Poti and Anaklia ports plays a crucial role for Georgia. According to World Bank estimates, the Port of Poti is already operating at high capacity, while the development of the Anaklia Port would create additional capacity and foster competition in container shipping. Under the "landlord" model, the state provides the basic infrastructure, while private capital is engaged in terminal management and development; in this context, the IFC is interested in potentially participating in the concessions for the Anaklia Port terminals. Concurrently, improving Poti’s infrastructure and operations prior to Anaklia becoming operational is vital to ensure the efficient distribution of port capacity amidst rising transit flows. World Bank projections indicate that by 2040, realizing the potential of the Middle Corridor could boost Georgia’s economy by an additional 3.6% and increase employment by 0.79%.

Sources:
gnomonwise.org / transcor.ge
bm.ge / camcaforum.org