Russia is intensifying its efforts to restructure its cross-border transport infrastructure in response to the growing logistical challenges and shifting geopolitical dynamics in the Eurasian region. As the North-South Transport Corridor (NSTC) and its parallel routes become focal points for regional integration and economic competition, Moscow is actively pursuing new partnerships and accelerating infrastructure projects. The Caspian region is currently experiencing environmental changes, evolving relations with neighboring states, and a compelling need to secure reliable transit routes for strategic goods. These initiatives are currently being implemented. The subsequent article investigates the most recent proposals from Russia, the current condition of its transport corridors, and the broader implications for economic resilience and regional connectivity.
Integrating Georgia
Russian officials have expressed their willingness to integrate Georgia into cross-border transportation routes. Moscow is reportedly poised to pursue further normalization of relations with Georgia, according to Dmitry Masyuk, Deputy Director of the Fourth Department of CIS Countries at Russia’s Ministry of Foreign Affairs. Masyuk asserts that Russia regards itself as having taken “significant measures in this direction,” including the restoration of air connections, the lifting of the visa regime for Georgian citizens, and the provision of preferential access for Georgian goods to the Russian market. He is quoted as stating that Russia continues to be a critical partner for Georgia in the realm of specific product supplies and that Moscow is “prepared to advance further, even to the point of incorporating Georgia into the strategic North-South Transport Corridor.”
Officials in Tbilisi have not responded to Masyuk’s proposal, and diplomatic relations between the two nations have yet to be reconciled, despite these efforts.
The NSTC and Russian-Azerbaijani Relations
A visit to the Caspian littoral by Russian Deputy Prime Minister Alexei Overchuk and other officials was canceled in response to the escalating tensions between Russia and Azerbaijan. Nevertheless, it is anticipated that Moscow and Baku will endeavor to resolve their misunderstandings, according to observers.
The NSTC project was described by Russian Presidential Press Secretary Dmitry Peskov as “a very significant initiative that serves the interests of both countries.” Indicating a willingness to sustain cooperation, he stated that Moscow anticipates that any inquiries from Azerbaijan will be addressed in a comprehensive manner.
Rostec, the Russian state corporation, reaffirmed its dedication to the development of the transport center along the North-South route. It also clarified that the transfer of the remaining shares of the Astrakhan Port to Iran is not currently being considered.
Infrastructure Development and Logistics Challenges
The NSTC’s competitiveness is being improved in Russia’s Southern and North Caucasus Federal Districts, particularly through the establishment of a parallel Black Sea–Caucasus route (BSCR). The objective of these initiatives is to fortify the connections between the NSTC and BSCR, a development that has been partially motivated by the ongoing military-political tensions in the vicinity of Iran and the shallowing of the Caspian Sea.
In early 2025, the Port of Astrakhan experienced a nearly 50% decrease in cargo transshipment volumes, with only 1.3 million tons handled—a 40.4% year-over-year decrease—due to these environmental and geopolitical factors. The Port of Makhachkala had a slightly improved performance, with a 9.5% decrease to 1.2 million tons. However, the overall negative trends continue. The Caspian Basin seaports (Astrakhan, Makhachkala, and Olya) collectively achieved one of their lowest results in recent years, with a mere 3.3 million tons handled in the first half of 2025. This represents a 35% decrease from the previous year. Non-liquid cargo experienced an especially severe decline.
Environmental Factors Influencing the Caspian Region
Over the past two decades, the Caspian Delta has experienced substantial environmental changes, including a 20-kilometer retreat of the delta and a nearly two-meter decline in water levels, as noted by experts. The Volga–Caspian branch of the Federal State Budgetary Scientific Institution “VNIRO” reported significant changes in the Volga Delta, such as the formation of new watercourses, micro-deltas, and islands as a result of the receding sea.
According to reports, the vegetation zone in the sea in Kalmykia has reportedly shifted by over 10 kilometers by mid-2025, and several islands have been transformed into peninsulas. The construction of a new port in Lagan is effectively impossible due to its location, which was previously on an island. The settlement is now situated deep inland. Additionally, the littoral in the Kizlyar Bay region of northern Dagestan has receded by five kilometers or more.
Investment in Infrastructure and Rail Freight
These developments have incited a transition to rail freight along the Russian segment of the Caspian (western) route of the NSTC. Russian Railways (RZD) implemented export tariff discounts of up to 50% for coal, chemical fertilizers, and ferrous metals that were transported along this route on June 24, 2025. Each commodity was subject to specified reduction coefficients.
In light of the present geopolitical climate, the strategic significance of establishing additional connections between the port terminals of the Azov–Black Sea and the Caspian basins of Russia has increased. The North Caucasus Railway (NCR) has established an investment program that will be implemented through 2030. The program is designed to ensure that the sections leading to the Azov–Black Sea Basin terminals have a throughput capacity of 152 million tons by the end of the decade.
Important initiatives are currently ongoing, including:
- Second tracks are being constructed on the Kizlyar–Ulan–Khol–Oleinikovo line in the northern Dagestan–Kalmykia–Astrakhan Oblast region.
- Modernization of the Kizlyar–Sulak and Komsomolskaya–Tverskaya lines
- Reconstruction of the Salsk freight terminal, a significant rail hub
- Increased capacity on lines to the ports of Bataisk, Novorossiysk, and Tuapse
- Reconstruction of Makhachkala station in conjunction with the development of the Makhachkala Sea Commercial Port
The “Strategy for the Development of Railway Transport of the Russian Federation for the Period until 2030” also anticipates the construction of a 430-kilometer railway from Ulan-Khol (Kalmykia) through Elista to Zimovniki (Rostov Oblast). A Kalmykia government decree in December 2024 postponed this project to 2030–2034, deeming it essential for the direct connection of the Caspian sector of the NSTC with the Azov ports and Novorossiysk.
Outlook
All of these factors and projects are designed to expedite the development of an expanded North-South Transport Corridor area, thereby improving its competitiveness in the Eurasian transit and logistics market. This expansion is in response to the increasing competition for cargo routes and the efforts to maintain the loyalty of key transit states.