This study evaluates the potentialdemand for oil and oil products transport via the existingrail corridor in the Caucasus, taking into consideration thecompetition from alternative routes. It identifies potentialbottlenecks that would prevent the potential traffic fromusing the corridor and proposes solutions for the physicaland operational improvements to the corridor needed toattract the potential traffic. The report is based on areview of studies of oil production and transport, andinterviews with oil producers, transportationintermediaries, railways, and ports in the region. Thereport begins with a discussion of the outlook for Caspianoil production and transport options for oil. Next, itdiscusses the physical and commercial constraints on theCaucasus rail corridor. It ends with a market analysis,strategies for attracting business, and significant actionsneeded to address the problems outlined previously in the report.