Iran is actively strengthening transport ties with Central Asian states to solidify its position as a regional transit hub, despite U.S. sanctions, by promoting the Southern Corridor as a key east-west and north-south route linking China, Central Asia, Iran, Turkey, and Europe. This aligns with China’s Belt and Road Initiative (joined by Iran in 2021), amid shifts in global logistics driven by maritime tensions and the Ukraine war, which have boosted alternatives like the Middle Corridor (27,000 containers in 2024, up 25-fold from 2023) and prompted Beijing to support the Southern Route for economic and geopolitical reasons.

Key developments include Iran’s plans for 17,000 km of new rail corridors costing over $10 billion, aiming for 60 million tons annual capacity; completion of the China-Kyrgyzstan-Uzbekistan railway by 2030; and projects like the Marand-Cheshmeh Soraya rail link to enable monomodal transport, shortening East Asia-Europe routes by 900 km and reducing times by 7-8 days. China-Iran collaborations feature the Sarakhs terminal (over 50% complete by August 2025), electrification of 1,000 km of rail to triple capacity to 15 million tons, and enhanced border infrastructure with Turkmenistan targeting 20 million tons annually.

U.S. dominance in the Zangezur Corridor (via TRIPP venture, 74% stake) is accelerating China’s pivot to Iran bypassing the Caspian Sea. Central Asian nations like Uzbekistan (launching Uzbekistan-Turkmenistan-Iran-Turkey rail in 2022), Kazakhstan, Tajikistan, and Kyrgyzstan are diversifying trade via Iranian ports (e.g., Chabahar, Bandar Abbas terminals), fostering multimodal corridors to the Indian Ocean and boosting transport service exports.

Challenges include technical/political bottlenecks limiting the Southern Corridor’s 10 million-ton capacity, requiring policy harmonisation, unified standards, and a coordinating body. Amid Iran’s conflicts, Central Asian states must pragmatically defend trans-Iranian routes with Western partners to ensure sustainable growth in Eurasia’s logistics landscape.