Targeted investments to upgrade and better integrate the Middle Corridor could more than triple trade volumes along the route, halve travel times, boost GDP by 3.3%, and create 2 million more jobs by 2040. If the Middle Corridor countries pair infrastructure investments with reforms that improve trade and transport efficiency, corridor volumes could quadruple and travel times could fall by two-thirds by 2040, compared to 2023.
Middle Corridor countries will need to invest at least $25 billion through 2040 to relieve physical infrastructure bottlenecks, which are primarily concentrated in rail segments, port capacity, and maritime links. In addition, an estimated $30 billion will be needed for enabling investments, such as connecting roads and rail links that tie the corridor into local economies, logistics hubs and inland terminals. A significant portion of these investments could be mobilized from the private sector.
Cross-border collaboration will be key to ensuring smooth functioning of the corridor. Sequenced actions should prioritize adopting a single, digital corridor system to replace fragmented paperwork with one digital entry point for transport, transit, and trade data; establishing an integrated, market oriented rail freight and shipping operator for containerized freight as a joint venture between the rail and shipping operators of host countries, which would seamlessly link rail and maritime services; strengthening corridor-wide coordination to monitor performance, resolve bottlenecks, and support joint decisions; and modernizing corridor operators by improving governance, financial sustainability, and regulation.
