Assessment of the Impact of the International North-South Transport Corridor on Transit Travel Time in Regional and Global Cargo Transportation

Authors

DOI:

https://doi.org/10.17059/ekon.reg.2025-2-6

Keywords:

multimodal transportation, intermodal transportation, freight flow assignment, modelling, prediction, optimization of the transportation system

Abstract

Global and regional challenges are reshaping trade relations, supply chains, and cargo transportation routes. In this context, the International North-South Transport Corridor (INSTC) is gaining increased political and economic importance. This study evaluates congestion along sections of the corridor by analysing demand and infrastructure capacity in the regional transit logistics system. Using a game-theoretic model, the competitive behaviour of cargo flows under limited network capacity was simulated. Results indicate that with projected transportation demand between Saint Petersburg and Mumbai reaching 41 million tons per year by 2030, transit times between Europe and Asia via the INSTC could be reduced by 20–40 % compared to existing routes. The corridor remains attractive for transit volumes up to 80 million tons annually, and with targeted investments to expand capacity on 11 key network sections, it could handle up to 100 million tons per year. In the long term, the INSTC is expected to support 80 to 100 million tons annually, maintaining competitiveness in the global freight network and fostering regional economic development. Further investments in border crossings and transshipment hubs could expand capacity beyond 100 million tons, strengthening the corridor as a viable alternative for routes between Asia, Europe, India, and North America. These findings can inform development plans for the INSTC, transport policies of participating countries, and contribute to improving local living standards.

Author Biographies

Alexander Yu. Krylatov , Saint Petersburg State University

Dr. Sci. (Phys. and Math.), Associate Professor, Professor, Saint Petersburg State University; Leading Research Associate, Solomenko Institute of Transport Problems of RAS; Scopus Author ID: 56104299500; http://orcid.org/0000-0002-6634-1313 (7-9, Universitetskaya Embankment, Saint Petersburg, 199034, Russian Federation; 13, 12 line, Vasilevsky Ostrov, Saint Petersburg, 199178, Russian Federation; e-mail: a.krylatov@spbu.ru, aykrylatov@yandex.ru).

Marina A. Fedorova , Saint Petersburg State University

Bachelor (7-9, Universitetskaya Embankment, Saint Petersburg, Russian Federation; e-mail: mfedor1532@gmail.com).

Anastasiya P. Raevskaya , Saint Petersburg State University

Cand. Sci. (Phys. and Math.), Associate Professor, Associate Professor; Scopus Author ID: 57192959034; http://orcid.org/0000-0002-6240-177X (7-9, Universitetskaya Embankment, Saint Petersburg, Russian Federation; e-mail: a.raevskaya@spbu.ru).

References

Afesorgbor, S. K. (2021). Sanctioned to starve? The impact of economic sanctions on food security in targeted states. In P.A.G. van Bergeijk (Ed.), Research Handbook on Economic Sanctions (pp. 438-466). Edward Elgar Publishing. https://doi.org/10.4337/9781839102721.00032

Andreyev, M. Y., & Polbin, A. V. (2023). Macroeconomic effects of the expected future decline in oil revenues for the Russian economy under capital control. Voprosy ekonomiki, (4), 5–28. https://doi.org/10.32609/0042–8736-2023-4-5-28 (In Russ.)

Beine, M., Docquier, F., & Rapoport, H. (2008). Brain drain and human capital formation in developing countries: winners and losers. The Economic Journal, 118(528), 631–652. https://doi.org/10.1111/j.1468–0297.2008.02135.x

Biglaiser, G., & Lektzian, D. (2011). The effect of sanctions on US foreign direct investment. International Organization, 65(3), 531–551. https://doi.org/10.1017/S0020818311000117

Borjas, G. J. (1987). Self-selection and the earnings of immigrants (No. w2248). National Bureau of Economic Research. https://doi.org/10.3386/w2248

Borodin, K. G. (2016). The impact of the embargo and sanctions on the agri-food markets in Russia: Analysis of consequences. Voprosy ekonomiki, (4), 124–143. https://doi.org/10.32609/0042–8736-2016-4-124-143 (In Russ.)

Borodin, K. G. (2018). Assessing the impact of food embargoes and economic sanctions on the commodity markets (the example of meat markets). Ekonomika i matematicheskie metody [Economics and mathematical methods], 54(4), 41–59. https://doi.org/10.31857/S042473880003319-9 (In Russ.)

Börsch-Supan, A. (1991). Aging in Germany and the United States: international comparisons. Economic Policy, 6(12), 103–140. https://doi.org/10.2307/1344450

Boulanger, P., Dudu, H., Ferrari, E., & Philippidis, G. (2016). Russian roulette at the trade table: A specific factors CGE analysis of an agri-food import ban. Journal of Agricultural Economics, 67(2), 272–291. https://doi.org/10.1111/1477–9552.12156

Burda, M. C. (1995). Migration and the option value of waiting. Economic & Social Review, 27(1), 1–19. http://hdl.handle.net/2262/64775 (Date of access:)

Burmina, S. D., Nesterova, K. V., & Polbin, A. V. (2022). Estimating the effect of taxing CO2 emissions on Russian oil industry). Vestnik mezhdunarodnykh organizatsii: obrazovanie, nauka, novaya ekonomika [International Organizations Research Journal], 17(3), 131–154. https://doi.org/10.17323/1996–7845-2022-03-05 (In Russ.)

Chen, Y. E., Fu, Q., Zhao, X., Yuan, X., & Chang, C. P. (2019). International sanctions’ impact on energy efficiency in target states. Economic Modelling, 82, 21–34. https://doi.org/10.1016/j.econmod.2019.07.022

Cuadros, A., Martín-Montaner, J., & Paniagua, J. (2019). Migration and FDI: The role of job skills. International Review of Economics & Finance, 59, 318–332. https://doi.org/10.1016/j.iref.2018.09.007

Docquier, F., Kone, Z. L., Mattoo, A., & Ozden, C. (2019). Labor market effects of demographic shifts and migration in OECD countries. European economic review, 113, 297–324. https://doi.org/10.1016/j.euroecorev.2018.11.007

Doxey, M. (1981). Oil and food as international sanctions. International Journal, 36(2), 311–334. https://doi.org/10.1177/002070208103600204

Edo, A. (2019). The impact of immigration on the labor market. Journal of Economic Surveys, 33(3) 922–948. https://doi.org/10.1111/joes.12300

Felbermayr, G., Kirilakha, A., Syropoulos, C., Yalcin, E., & Yotov, Y. V. (2020). The global sanctions data base. European Economic Review, 129, 103561. https://doi.org/10.1016/j.euroecorev.2020.103561

Fidrmuc, J. (2004). Migration and regional adjustment to asymmetric shocks in transition economies. Journal of Comparative Economics, 32(2), 230–247. https://doi.org/10.1016/j.jce.2004.02.011

Fischhendler, I., Herman, L., & Maoz, N. (2017). The political economy of energy sanctions: insights from a global outlook 1938–2017. Energy Research & Social Science, 34, 62–71. https://doi.org/10.1016/j.erss.2017.05.008

Gharibnavaz, M. R., & Waschik, R. (2018). A computable general equilibrium model of international sanctions in Iran. The world economy, 41(1), 287–307. https://doi.org/10.1111/twec.12528

Gurvich, E., & Prilepskiy, I. (2016). The impact of financial sanctions on the Russian economy. Voprosy ekonomiki, (1), 5–35. https://doi.org/10.32609/0042–8736-2016-1-5-35 (In Russ.)

Ha, L. T., Dung, H. P., Chuong, P. H., Thanh, T. T., & Huong, T. T. L. (2021). Global economic sanctions, global bank linkages and information asymmetry: An evidence from cross-country data. Global Economy Journal, 21(03), 2150011. https://doi.org/10.1142/S2194565921500111

Han, K. J. (2013). Saving public pensions: Labor migration effects on pension systems in European countries. The Social Science Journal, 50(2), 152–161. https://doi.org/10.1016/j.soscij.2012.12.001

Hejazi, J., & Emamgholipour, S. (2022). The effects of the re-imposition of US sanctions on food security in Iran. International Journal of Health Policy and Management, 11(5), 651–657. https://doi.og/10.34172/ijhpm.2020.207

Hufbauer, G. C., Schott, J. J., Elliott, K. A., & Oegg, B. (2007). Economic Sanctions Reconsidered. Washington DC: Peter G. Peterson Institute for International Economics.

Knobel, A. Y., Bagdasaryan, K. M., Loschenkova, A. N., & Proka, K. A. (2019). Sanktsii: vser’ez i nadolgo [Sanctions: Serious and for long]. Moscow: Publisher “DELO” RANEPA, Scientific Report Series: Economics. (In Russ.)

Knobel, A. Yu., Proka, K. A., & Bagdasaryan, K. M. (2019). The Theory and Practice of International Economic Sanctions. Zhurnal novoi ekonomicheskoi assotsiatsii [Journal of the New Economic Association], (3(43)), 152–162. https://doi.org/10.31737/2221–2264-2019-43-3-7 (In Russ.)

Kwok, V., & Leland, H. (1982). An economic model of the brain drain. The American Economic Review, 72, 91–100. https://www.jstor.org/stable/1808577 (Date of access:)

Le, T. H., & Bach, N. T. (2011). Global sanctions, foreign direct investment, and global linkages: evidence from global data. The Journal of International Trade & Economic Development, 31(7), 967–994. https://doi.org/10.1080/09638199.2022.2047218

Mahlstein, K., McDaniel, C., Schropp, S., & Tsigas, M. (2022). Estimating the economic effects of sanctions on Russia: an allied trade embargo. The World Economy, 45(11), 3344–3383. https://doi.org/10.1111/twec.13311

Majidi, A., Nedjat, S., Mohammadi, A., Jamshidi, E., & Majdzadeh, R. (2014). Impact of sanctions Iranian airlines: How people in Iran feel about air travel safety? International journal of disaster risk reduction, 10, 67–74. https://doi.org/10.1016/j.ijdrr.2014.04.005

Mirkina, I. (2018). FDI and sanctions: An empirical analysis of short-and long-run effects. European Journal of Political Economy, 54, 198–225. https://doi.org/10.1016/j.ejpoleco.2018.05.008

Nesterova, K. V. (2021). Estimating the Impact of Skill-Differentiated Migration on Long-Term Economic Growth in a Global CGE-OLG Model. Ekonomicheskaya politika [Economic Policy], 16(5), 8–39. https://doi.org/10.18288/1994–5124-2021-5-8-39 (In Russ.)

Prilepskiy, I. V. (2019). Financial Sanctions: Impact on Capital flows and GDP Growth in Russia. Zhurnal novoi ekonomicheskoi assotsiatsii [Journal of the New Economic Association], (3(43)), 163–172. https://doi.org/10.31737/2221–2264-2019-43-3-8 (In Russ.)

Shapovalova, D., Galimullin, E., & Grushevenko, E. (2020). Russian Arctic offshore petroleum governance: The effects of western sanctions and outlook for northern development. Energy Policy, 146, 111753. https://doi.org/10.1016/j.enpol.2020.111753

Stark, O., Helmenstein, C., & Prskawetz, A. (1997). A brain gain with a brain drain. Economics letters, 55(2), 227–234. https://doi.org/10.1016/S0165–1765(97)00085-2

Todaro, M. P. (1969). A model of labor migration and urban unemployment in less developed countries. The American economic review, 59(1), 138–148.

van Bergeijk, P. A., & Dizaji, S. F. (2022). Energy sanctions and Russia’s democracy–autocracy: a dynamic VAR analysis (No. 703).

Published

30.06.2025

How to Cite

Krylatov А. Ю. ., Fedorova М. А. ., & Raevskaya А. П. . (2025). Assessment of the Impact of the International North-South Transport Corridor on Transit Travel Time in Regional and Global Cargo Transportation. Economy of Regions, 21(2), 332–348. https://doi.org/10.17059/ekon.reg.2025-2-6

Issue

Section

Sectoral Economics