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The importance of the Caucasus region for Europe has been recognized a long time ago and has gained increased attention in recent years. With the increase of trade volumes between China, Southeast Asia and Europe — European’s trade with China has increased in volume by a over 35% between 2006 and 2008 — the availability of secure, fast and effi cient transport lanes connecting these economic powerhouses becomes more important.

The strategically advantageous location of the South Caucasus region at the intersection of North-South and East-West corridors is an opportunity to promote investment in the development of multimodal transport chains. Shipments from Central Europe could use a combination of rail, inland waterway or maritime shipping via the Black Sea, railroad services across Georgia and Azerbaijan to the Caspian Sea and the adjoining
countries reaching further east to the “Stan” countries and finally to Indian and Chinese markets.

Worldwide economic growth has stimulated European demand for raw materials, primarily petroleum products, natural gas, and other commodities prevalent in Central Asia. Demand for these exports generates suffi cient economic wealth and disposable income in the Caspian and Caucasian countries, turning them into a much sought after market for European exports.

Private initiatives to engage in the development of these markets is another driver for the EUCATI community, complementing public efforts of UN/ECE, the European Union’s European Neighborhood Policy and Eastern Partnership initiative as well as existing and future bilateral trade agreements and free trade areas.

Results and experiences from previous international initiatives and projects (TACIS, TRACECA, ENP), reports from UN/ECE, WTO, World Bank and similar organizations, as well as contributions from participants at a recent workshop in Vienna, point to fi ve subject matter domains, where substantial initiatives will be needed.

• Current and future transport capacities
• Cross border trade & transport; trade facilitation
• Supply Chain Security improvements
• Simplifi cation of administrative processes
• Regional economic development

These five domains do not necessarily only represent political and administrative hurdles for businesses to overcome, but represent opportunities in themselves, where European experiences, entrepreneurship and innovative research capacities can be successfully deployed.

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