The Port of Singapore Authority (PSA) and Kazakhstan Railways (KTZ) seek to establish a railway route to transport cargo between China and Europe without the need to transit Russian land.

This joint venture, titled “the middle corridor”, is set to meet growing demand after multiple European importers decided to avoid shipping through Russia.

According to an article by the Journal of Commerce, the geopolitical conflict involving Russia and Ukraine led to a shift in rail transport from the northern corridor via Russia to transport by sea or through longer and more expensive routes via the Caspian Sea.

A joint venture company, KPMC Ltd., was established to take over the development of the middle corridor, also known as the Trans-Caspian International Transport Route. Countries like Kazakhstan, Azerbaijan, Georgia, Ukraine, China and Turkey will be key players in the realization of this project.

Currently, the existing components of the middle corridor suffer poor infrastructure, multiple handovers required for shipments, unreliable ferry services on the Caspian Sea, and congested ports, says JOC. The KPMC will be tasked with addressing the current issues to ensure a smooth flow of goods from China to Europe.