The International North–South Transport Corridor: Promoting Eurasia's Intra- and Transcontinental Connectivity

Abstract

The launch of the International North-South Transport Corridor (INSTC) and its connection to latitudinal transport corridors will enable the creation of a single Eurasian transport framework. Significantly shorter delivery time is the key advantage that the INSTC will have relative to the other transport routes. This report looks at potential INSTC freight traffic, which is estimated at 14.6–24.7 million tonnes per year. The gravity model points to a huge trade expansion potential, subject to achievement of “seamless” transport routes improving the quality of the transport infrastructure and digitisation of the international corridor. With a global drive for decarbonisation under way, the authors also assess the INSTC carbon footprint, which is comparable with that of deep-sea maritime transport. In the future, the transport corridor may become an economic development corridor for the EAEU member states, through expansion of production cooperation and build-up of logistical chains with the countries along the INSTC.

Keywords: international transport corridors, transport infrastructure, international trade, EAEU, Eurasia

JEL Classification: F15, F17, L92, O19, R11, R41