WORLD ECONOMIC JOURNAL
Russia also relies on logistical capacities and transport connections in this region . Recently , traffic has significantly increased along the North-South Corridor , which links Russia with Iran and India via the Caspian Sea . This 7,200- km multi-modal transport network currently traverses Azerbaijan and Iran , bypassing Central Asia , although new routes under consideration do include Kazakhstan and Turkmenistan . With proper efforts , the Middle Corridor and North-South Corridor will reach a capacity of 10 million tonnes each by 2027 .
To sustain this growth , considerable investments are required , particularly in supply chain and logistics infrastructure . The EBRD estimates that € 18.5 billion in cumulative investments are required to make the Middle Corridor fully productive . In comparison , net cumulative foreign direct investment ( FDI ) in Central Asia for 2023 amounted to $ 7.4 billion (€ 6.8 billion ), according to UNCTAD .
INFRASTRUCTURE UNDER PRESSURE
Demand for warehousing facilities in the region has surged to unprecedented levels , driven by four main types of customers : major international brands , online marketplaces , domestic retailers and foreign logistics companies , predominantly from Russia . According to our calculations , these customer types alone require approximately 1.2 million sq . m . of quality warehouse space in Kazakhstan alone . How- ever , the country ’ s total available quality warehouse space barely exceeds 1.4 million sq . m .— equating to just 0.07 sq . m . per inhabitant .
Under government plans 3 , an additional 2 million sq . m . of facilities are set to become available in the next three to four years . Adjusted for population growth , this will increase the country ’ s quality warehousing space to 0.16 sq .
The severe shortage of warehouse space in Central Asia has driven rental rates to unprecedented levels
m . per capita by 2027 . This level will roughly align with infrastructure development in Türkey and Belarus , but will still be less than half of Russia ’ s current capacity , five times less than China ’ s , and several dozen times less than that of Western Europe or the USA .
QUALITY WAREHOUSE SPACE PER CAPITA ( 2023-24 )
The severe shortage of warehouse space in Central Asia has driven rental rates to unprecedented levels . In Tashkent and Almaty , the average annual rate exceeds $ 152-156 per sq . m . 4 , according to NF Group , which is about 15 % higher than
Trans-Caspian International Transport Route
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