Caspian region to gain strategic importance thanks to joint projects - Gul
By Aynur Jafarova
The Caspian region will gain a strategic significance in the world thanks to the transport and energy projects jointly implemented by Turkey, Azerbaijan and Georgia, Turkish President Abdullah Gul said on September 5.
Speaking at the international forum dedicated to transport and communication held in Istanbul, Gul said that the Baku-Tbilisi-Kars railway project contributes to the creation of a single transport corridor from Beijing to London, local Turkish media reported.
"Baku-Tbilisi-Kars is part of the Silk Way project designed to change the world's trade balance. We make every effort together with our colleagues from Azerbaijan and Georgia to complete its construction in a short time," he said.
Gul also noted that the Baku-Tbilisi-Kars railway will be put into operation next year.
The Baku-Tbilisi-Kars railway is being built in accordance with an inter-governmental agreement reached by Azerbaijan, Georgia and Turkey. The railway will increase the flow of containers and other types of cargo from Asia to Europe.
Azerbaijan has allocated a $775 million loan for the construction of the Georgian section of the railway. Funding for the project from the State Oil Fund is carried out in accordance with the 2007 presidential decree on taking measures within the Baku-Tbilisi-Kars railway project.
It is planned to construct a new 105 kilometer branch railway as part of the Baku-Tbilisi-Kars project. In addition, reconstruction work will be carried out on the Akhalkalaki-Tbilisi-Marabda railway in Georgia, which will increase its capacity to 15 million tons of cargo per year. It is envisioned to build a center in Akhalkalaki for the transition of trains from the existing train tracks in Georgia to the European ones.
Around 30 million tons of cargo a year are to be transported via the Baku-Tbilisi-Kars railway line, which will become a direct route to the European rail network.
Economic projects implemented between Georgia, Azerbaijan and Turkey bring these countries together and strengthen their cooperation. These three countries are connected by several important regional projects, including the Baku-Supsa, Baku-Tbilisi-Ceyhan oil pipelines, Baku-Tbilisi-Erzurum gas line and Trans-Anatolian gas pipeline (TANAP).
The economies of Azerbaijan and Turkey and the cooperation between them have reached a high level.
According to the 2012 results, trade turnover between the two countries amounted to $2.12 billion. Turkey ranked first among the foreign trade partners of Azerbaijan for the volume of imports ($1.520 billion) with a share of 15.75 percent in Azerbaijani imports.
As of the end of 2012, the number of companies with Azerbaijani capital in Turkey reached 1,100.
Mutual investments between Azerbaijan and Turkey exceed $10 billion. The amount of Azerbaijani investments in Turkey in the coming years is projected at $21 billion.
SOCAR is one of the world's most well-established oil companies, active in Turkey since May 30, 2008. The volume of investments that SOCAR will invest in the projects in Turkey is estimated at $17 billion.
SOCAR is involved in a number of major investment projects in Turkey, including the construction of TANAP, Star refinery and others.
According to the estimates, Turkish companies have invested $6.5 billion in Azerbaijan's economy. The volume of Azerbaijani investments in Turkey stands at $4 billion, and it is expect this figure to increase to $15 billion in the coming years.
Currently, there are 2,000 companies with Turkish capital operating in Azerbaijan, which constitutes 36 percent of all foreign companies operating in the country.