BAKU, Azerbaijan, October 7. The creation of a
Private Sector Advisory Council (PSAC) could improve the efficiency
of the Middle Corridor, the International Finance Corporation (IFC)
said.


The IFC made the statement in a publication on the role of the
private sector in unlocking the potential of the Trans-Caspian
Transport Corridor, also known as the Middle Corridor.


According to the publication, the recommendation to establish a
PSAC is included in a new flagship World Bank report on the
Trans-Caspian Transport Corridor. The council is intended to bring
together private-sector representatives, government authorities and
corridor users on a single platform to identify bottlenecks and
develop relevant reforms.


“How can we make the Middle Corridor perform better? Listen to
the companies that use it. Private sector advisory councils are
intended to bring together businesses, governments and corridor
users to work together on the corridor’s problems and develop
appropriate reforms,” said Sakshi Varma, senior operations officer
at the IFC.


Martin Voetmann, global head of land transportation at KENKO
Logistics, noted that intergovernmental cooperation is needed to
ensure such coordination.


“This is where mechanisms such as the PSAC can be useful and
become an effective instrument for ensuring coordination and
alignment among countries in the Caspian region,” he said.







Varma also emphasized that involving the private sector in
decision-making would allow the real needs and challenges faced by
transport operators to be taken into greater account.


“When the private sector has a seat at the table, solutions are
more likely to reflect real-world needs and problems. This would
make the Middle Corridor more efficient and more attractive for
investment,” she said.


The Middle Corridor is a multimodal trade and transport route
connecting Asia and Europe through Central Asia, the Caspian Sea,
Azerbaijan, Georgia and Türkiye. The route begins in China and runs
through Central Asia before crossing the Caspian Sea and continuing
through Azerbaijan, Georgia and Türkiye to European markets.


The Middle Corridor is being developed as an alternative to
traditional northern and southern transport routes, providing
connectivity between Asian markets, including China, and Europe.
The World Bank says targeted investments and reforms along the
corridor could significantly increase trade volumes and reduce
travel times by 2040.