News
Silk Road Digest | 6 Oct 2026
2026-10-06
New Digital Link in the Caspian Sea
Azerbaijan and Kazakhstan plan to launch a new fiber-optic
cable connection across the Caspian Sea by the end of the year. The project
aims to link the two countries' digital infrastructures, enhance data exchange
capabilities, and diversify regional communication networks. The subsea cable
is viewed as a key infrastructure component for strengthening digital
connectivity between Central Asia and the South Caucasus and, in a broader
regional context, could also facilitate the development of the "Middle
Corridor's" digital dimension.
Dredging at the Port of Aktau
Dredging operations have commenced at the Aktau
International Sea Trade Port; these efforts are designed to maintain and
increase the port's throughput capacity and the efficiency of the Trans-Caspian
International Transport Route (TITR) amidst the declining water level of the
Caspian Sea. The project entails dredging approximately 1.3 million cubic
meters of material from the water area and increasing the depth to 6–7 meters.
Completion of the works is scheduled for the end of 2026.
Investment in Railway Infrastructure
Over the next four years, Georgia plans to invest 890
million GEL in developing railway infrastructure as part of the Middle Corridor
initiative. The project aims to enhance the efficiency and capacity of
Georgia’s railway network and includes the procurement of new freight
locomotives and electric trains, as well as the construction of an electrical
substation. This initiative—funded under the preliminary 2027 state budget—is
designed to strengthen railway infrastructure within the Trans-Caspian Transport
Corridor.
Only one-tenth of the container flow from China reaches
Georgia
An analysis of data from January to August 2026 reveals that
approximately 10% of the container flow moving from China along the East-West
route was recorded as imports into Georgia. During this period, a total volume
of 45,426 TEUs moved from China along this route; of this amount, 27,782 TEUs
(61%) were unloaded at the Port of Alat in Azerbaijan, while 4,318 TEUs
accounted for Georgian imports. Additionally, 712 TEUs were transported via
Akhalkalaki toward Turkey, and approximately 510 TEUs passed through the ports
of Batumi and Poti in transit.
The analysis highlights the discrepancy between the cargo
flows recorded on specific sections of the Middle Corridor and the volumes that
actually reached Georgia's transport network. While the volumes recorded on the
transport networks of China and Kazakhstan are often viewed as representing the
corridor's total output, the actual flow diminishes as cargo moves toward its
final destination. Block trains entering Georgia primarily carry electronics,
household appliances, industrial machinery, auto parts, textiles, solar panels,
electric vehicles, and other relatively high-value containerized goods.
Data indicates that only about one-tenth of the container
traffic dispatched from China via the Middle Corridor reaches Georgia as
imports; this suggests relatively low utilization of the corridor's capacity
within the Georgian section and underscores the importance of evaluating cargo
flows across the entire route.
Armenia-Iran Cooperation
Armenia and Iran have discussed deepening cooperation in the
transport and infrastructure sectors. Among other topics, the parties addressed
the construction of a second bridge at the Armenia-Iran border, the
facilitation of freight transport, and regional connectivity projects. The
meeting also focused on the development of transport links in the region, the
potential of ongoing infrastructure initiatives, and issues of regional
stability and security. The parties also discussed Iran's high-level participation
in the upcoming COP17 conference scheduled to take place in Yerevan.
Armenia-Turkey Energy Connection
Armenia’s Minister of Infrastructure, Davit Khudatyan,
discussed the restoration and activation of the Gyumri-Kars power transmission
line with a delegation from the Turkish electricity transmission company. The
meeting also highlighted the importance of interconnecting the two countries'
power systems for bilateral and regional cooperation.
Armenia-Turkey Border
Armenian Prime Minister Nikol Pashinyan stated that the
country anticipates the opening of the Armenia-Turkey border and the activation
of railway connections between Armenia and Azerbaijan, as well as between
Armenia and Turkey, in the near future. According to him, the process is linked
to the development of the TRIPP project and the strengthening of transport and
energy connections planned within the framework of the "Crossroads of
Peace." Pashinyan stated that opportunities for developing oil and gas pipelines,
as well as power transmission lines, are also being considered.
Economic Growth Forecast
The World Bank has raised its economic growth forecast for
Georgia for 2026 to 7%, exceeding the previous estimate by 2 percentage points.
Against this backdrop, growth forecasts for the region stand at 5.3% for
Armenia, 2% for Azerbaijan, 5% for Kazakhstan, 3.3% for Turkey, 0.8% for
Russia, and 1.2% for Ukraine.
Sources:
bpn.ge / businessinsider.ge /
ge.armradio.am / transcor.ge