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Transport projects to contribute to whole region

21 January 2016 19:34 (UTC+04:00)
Transport projects to contribute to whole region

By Nigar Orujova

The economic crises around the world set new rules for many countries especially those involved in the production of the “black gold”. However, show must go on and the international economy could not stop development.

In this situation, Azerbaijan’s favorable geographic location can be a new pot of gold for the country and the region as a whole. Currently, development of the transport sector is a priority for the country’s leadership in 2016.

The case is modern Silk Road route that is expected to be as important as its processor. Ferry across the Caspian Sea, railways and highways of Azerbaijan with access through the Baku-Tbilisi-Kars railway to Turkey, made the most important link of the new Silk Road.

Moreover, the Baku-Tbilisi-Kars and North-South projects contribute to the development of not only Azerbaijan but also the whole region, the senior fellow at the Analytical Center of the Institute of International Studies MGIMO, Russia, Ph.D, Leonid Gusev, said.

Today, BTK connects railways of Azerbaijan, Georgia and Turkey. However, in the future it is planned to connect railways of the Caucasus with the European railways through the Bosporus, he said. It is also planned that via this railway goods from Asia, particularly China, will be transported through Kazakhstan to Europe.

The expert considers the project important for the member countries as well as countries in Europe and Asia that may join it.

Gusev said it is important for the participating countries to raise funds to finance projects in a time of crisis attracting foreign investors.

The peak capacity of the Baku-Tbilisi-Kars corridor will be 17 million tons of cargo per year. However, at the initial stage, this figure will be equal to one million passengers and 6.5 million tons of cargo.

The expert further noted that implementation of the project North-South would be very important for both Azerbaijan and Russia, Iran, Pakistan and India.

Land corridor through Pakistan is quite difficult because of the risks of possible sabotage, he believes. “Parties should take into account all the risks. Although if the railway is built, the goods between Russia and India will be delivered much more quickly than by sea,” said Gusev.

The annual transit of goods from Iran to Russia via Azerbaijan will reach about ten million tons.

In turn, the North-South railway will connect Northern Europe to South-East Asia. It will serve as a link to connect the railways of Iran, Azerbaijan and Russia.

Earlier, Russian political and public figure, a member of the Public Chamber of the Russian Federation, Georgy Fedorov said expansion of highways within Baku-Tbilisi-Kars and the North-South international corridors will have a positive impact on both the economy of the participating countries of these projects and the region in a whole.

The expert noted that in time of crisis, it is particularly relevant to search for new options of economic cooperation and expansion of range of possible trade routes, the development of which is impossible without a good transport infrastructure.

Azerbaijan has already invested billions of dollars in the development of sea, railway, road and social infrastructure. Developed infrastructure and good business climate have paved the way to attract foreign direct investment in this sector, as well.

Azerbaijan also applies the principle of single window for transportation of transit cargoes through its territory via the railways, maritime transport, ports and terminals. This makes the country more attractive for entrepreneurs.

Moreover, the country has recently reduced transit costs by around 40 percent for foreign carriers heading to the Kazakh port of Aktau and Turkmenbashi port of Turkmenistan. The government also applies a 30-percent discount on the services of transit of oil and oil products by railway and transshipment via the sea terminals.

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Nigar Orujova is AzerNews’ staff journalist. Follow her on Twitter: @o_nigar

Follow us on Twitter: @AzerNewsAz

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