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Azerbaijan revives its historic role

14 August 2015 09:00 (UTC+04:00)
Azerbaijan revives its historic role

By Nigar Orujova

On the back of the fall in oil prices, oil and gas-producing countries have rushed to diversify their economy and Azerbaijan has a number of alternatives. Due to its favorable geographic position, Azerbaijan is targeting a turn to becoming a transportation hub of the region.

This transformation is not accidental. Historically, Azerbaijan has hosted various trade routes, including the world famous Great Silk Road.

Today, Azerbaijan plays a leading role not only in large-scale projects focused on the transportation of oil and gas, but transport as well, which are designed to create a global transport corridor from China to Europe.

Azerbaijan is the initiator and participant in the creation of the Baku-Tbilisi-Kars railway, slated to improve the entire railway sector of the country. Moreover, the country is finalizing construction on a new international sea trade port in Alat settlement, and has already received the first container train from China along the Trans-Caspian International Transport Route.

The implementation of large-scale projects to create a diverse transport infrastructure began in Azerbaijan about 15 years ago. Considerable funds have been poured into turning the country into key transport hub of the region.

The capitalization of the transport sector exceeded $20 billion in the last decade.

Last year, Azerbaijan put into operation a new terminal at the Heydar Aliyev International Airport and commenced activity at the region's largest ferry terminal in a newly built international seaport Yeni Baki.

Moreover, in the past couple of years, the country also commissioned a new shipyard and ship repair company, purchased ferries and tankers, bulk carriers and cargo ships, and launched six modern airports.

However, the most impressive achievements in developing transport networks were made in highway construction.

Over the last decade, about 11,000 km of highways and 300 bridges were built and repaired in Azerbaijan. A considerable portion of the funds was directed at the development of road infrastructure of Baku. About $10 billion was invested in the road infrastructure in this period.

At present, Azerbaijan’s advantage is that it has invested in large transport projects before the next phase of the global economic crisis.

In addition, the favorable situation in the region further promotes Azerbaijan’s role as the transport hub for the neighboring countries.

Economy expert Vugar Bayramov believes that the improvement of ties between Iran and the West will unambiguously create many possibilities for Azerbaijan to turn into a regional transport hub.

“Today, the transport sector discusses the issues of transportation of Iranian products through Azerbaijan via the Baku-Tbilisi-Kars railway to Turkish and European markets,” he said to Azernews.

Moreover, Azerbaijan may also connect Iran and Russia by rail, he added.

“On the other hand, Azerbaijan is located at the crossing of Europe and Asia. This means that on the background of BTK railway, Azerbaijan can also provide transportation of goods from Asia to Europe and vice versa. That is, it will allow Azerbaijan to become not only a hub for the neighboring countries, but also for the countries of Central Asia and Europe,” the expert stressed.

The launch of the terminal in Alat in all senses will turn Azerbaijan into the transport hub of the region, he added. “The commissioning of the Alat port soon will enable Asian countries to transport their products cheaper and more convenient through Azerbaijan to Turkish and European markets.”

Bayramov went on to add that discussions are held on the transport capacity of Azerbaijan for Asia and Middle East.

Still, Azerbaijan needs to develop further to attract more countries and business connections.

“The Commissioning of the Baku-Tbilisi-Kars railway, an adaption of more liberal tariffs for the roads of the country, simplifying the procedure to obtain a transit visa, including the use of e-visa – this all will help Azerbaijan to become a real transport hub in the region,” he added.

Bayramov said, to become a convenient transportation hub, the country also needs to improve further infrastructure, legal and technical basis.

The future development of the country as a transport hub will not require a lot of investments, the economy expert believes. However, the realization of such a global project will contribute to the diversification of the economy, a reduction of dependence on oil sector, and help the private sector.

Thus, by becoming the global transport hub, Azerbaijan will strengthen its role in the region.

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Nigar Orujova is AzerNews’s staff journalist, follow her on Twitter: @o_nigar

Follow us on Twitter @AzerNewsAz

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