Competitiveness Analysis of the Caucasus Transit Corridor


    Deloitte Consulting LLP



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At the present time the Caucasus Transit Corridor (CTC) plays a relatively minor role in the movement of non – oil cargo between Central Asia and Europe; the preferred route is via Russia and the Baltic ports. Some reasons for this include the erratic operation of Caspian Sea ferries linking Baku with Aktau and Turkmenbashi, lack of “transparency” of port charges and customs fees in Baku, inadequate warehousing at the port of Poti for some commodities and “established” relationships with the traditional transport route providers on the route through Russia and the Baltic Sea ports.

This report investigates the comparative transport charges and service provided by the CTC with the Russia/Baltic corridor as well as through the Ukraine and the southern routes through Turkmenistan and Iran. Primary focus of the conclusions is identification of measures needed, whether they are investments or changes in policy/legislation which would improve the attractiveness of the CTC to potential users and the likelihood that significant traffic could be diverted from these alternative routes.