Asia–Europe logistics is serious business. With the support of governments, international institutions and the private sector, projects worth $345 billion are scheduled in 13 countries across Eurasia, according to the Eurasian Development Bank (EABD). Some $147 billion is earmarked for rail infrastructure.
The EABD identified 402 ongoing and planned projects in the 13 countries. These include Azerbaijan, Armenia, Afghanistan, Belarus, Georgia, Iran, Kazakhstan, Kyrgyzstan, Mongolia, Russia, Tajikistan, Turkmenistan and Uzbekistan.
Rail accounts for nearly half of the value (42.8%) of the projects in the region. Across all investments, including those beyond rail, 49.3% take place in Russia. Moscow has been working to increase the capacity of its railways leading to China. By next year, capacity should grow to 180 million tonnes annually. Russian Railways is on track to meet that target, according to its CEO Oleg Belozerov.
Correspondingly, the Northern Eurasian Corridor receives the largest amount of investment among all Asia–Europe corridors. It runs primarily through Russia, which acts as a bridge between China and the EU’s outer border with Belarus.
CKU and Afghanistan
Central Asia, by contrast, covers 21% of the investment value with 114 projects. Out of those projects, 30% concern rail infrastructure.
Among the Central Asian projects, the two highest-valued ones are both rail expansions. The Trans-Afghan corridor, which runs through Uzbekistan, Afghanistan and Pakistan, tops the list at $4.8 billion. The railway received much international interest as it could open up a new connection to the world’s oceans for the landlocked Central Asian countries.
The CKU railway comes second in the list of largest Central Asian transport projects. Its value falls just short of the Trans-Afghan railway: $4.7 billion. The EADB highlights the CKU railway as the largest one within the Belt and Road Initiative Framework.
China and the private sector
“China is actively involved in the development of transport infrastructure in Central Asia. Projects involving Chinese participation exceed $12 billion, with more than $7 billion provided from Chinese funding sources in the framework of BRI”, says EADB.
Investment in Central Asia total $68.1 billion, meaning that China is responsible for over 10% of the overall sum. National governments still account for the vast majority of investments with 62% of the total project value across all 13 countries. In Central Asia, 43 of 114 active projects (37.7%) receive support from international development banks.
The private sector too supports the many ongoing and planned projects. Of the 402 projects, 123 involve private-sector participation, including 27 PPP projects, says the EADB.