Caucasus Railway Could Spur Regional Development

CAUCASUS RAILWAY COULD SPUR REGIONAL DEVELOPMENT

Associated Content, CO
Dec 15 2007

The Power and Interest News Report (PINR), an independent
organization that provides conflict analysis services in the context
of international relations, has published a new report titled "The
Baku-Tbilisi-Kars Railway: The First Step in a Long Process." The
report, authored by Stefan Bocioaca and published December 13, is
available on the PINR web site.

Construction of the Baku-Tbilisi-Kars, or BTK, railway got under way
in Marabda, South Georgia late last month, marking the beginning of
a rail linkage between Azerbaijan, Turkey and Georgia. The project,
which consists of 18 miles of track in Georgia and 47 miles of rail
in Turkey, is projected to be finished in the next 1-2 years. PINR
notes that both Europe and China are interested in the railway because
Chinese goods could be transported to Europe more quickly than is
currently possible with along the trans-Siberian route. China is
also pursuing an effort to connect with Europe through a new network
utilizing multiple modes of transportation, including road, rail,
air, and sea. The report also notes that the railway could be expanded
to include Europe after the completion of a tunnel project under the
Istanbul strait.

Armenia, PINR notes, wanted to be included in any rail project in
order to prevent further isolation and dependence on Georgia.

However, two of the major players, Azerbaijan and Turkey, wanted
Armenia to remove its military forces from Azerbaijan in order to
participate in the railway endeavor. And as the report says, there
is not much likelihood of that happening any time soon.

According to the report, Azerbaijan hopes that the new railway project
will help further regional integration, along with trade and foreign
direct investment. Additionally, the report says, the new project will
allow the nations of Central Asia and the Caucasus to bypass Russia
while still connecting themselves with Europe. Regional integration is
becoming more evident, as the report notes, with Azerbaijan’s State
Oil Company opening a port terminal in Georgia and investing in a
petrochemical company in Turkey. Additionally, the report notes,
Turkey is increasing its level of investment in Azerbaijan and is
Georgia’s largest trading partner.

The report closes by noting that the new railway project is an
essential element in a developing transcontinental passageway that
could serve as an example for other states. Regional problems still
exist, however, and disputes over the Caspian Sea, along with ethnic
and religious conflicts, will present serious challenges, PINR notes.

Source: The Power and Interest News Report web site

633/caucasus_railway_could_spur_regional.html

http://www.associatedcontent.com/article/483