TODAY.AZ / Politics

Why US needs Azerbaijan as hub of new Silk Road

08 June 2015 [17:34] - TODAY.AZ

The ancient Silk Road brought valuable goods, ideas and information from Asia to Europe, including inventions such as paper and gunpowder, Ambassador of Azerbaijan to the United States Elin Suleymanov said in an article on Global Post news website.

“Countries that missed out on these advances lost out on the progress and prosperity of their times,” said the article.

Now, world and regional leaders are making plans to build a new Silk Road, consisting not only of roadways but also pipelines, cable lines, airports and ports, Suleymanov said.

“The nations along this corridor of commerce and cultural exchange will see economic and political benefits,” said the article. “Which countries will win the competition to map out the new Silk Road?”

Suleymanov in his article went on to say that the U.S. has presented a certain vision.

A vision that reflects an “enduring commitment to the region, a recognition of the vital importance of economic and energy connectivity, and a representation of our belief that shared prosperity can lead to stability and security,” said Assistant Secretary of State Nisha Biswal in a speech earlier this year, writes the author.

“But so too has China, which is investing $46 billion in an infrastructure development program called the China-Pakistan Economic Corridor,” said the article. “Meanwhile, two other regional powers, Russia and Iran, are also expanding their influence in the Caucasus and Central Asia at the juncture between East and West.”

The region remains critically important for the United States and its allies, writes Suleymanov. He said that on the strategic front, the United States must maintain its supply lines to battlegrounds in the war on terror, such as Afghanistan and Pakistan.

“On the energy and economic fronts, the new Silk Road will impact three pivotal projects for the United States and Western Europe,” said the article. “Azerbaijan stands at the center of all three.”

First, there's the strategic Baku-Tbilisi-Ceyhan oil pipeline from Azerbaijan to Georgia to Turkey, which ships much-needed energy supplies to Western Europe and Israel, said Suleymanov.

The total length of the B?? is 1,768 kilometers including a 443 kilometer-long section running through Azerbaijan, a 249-kilometer long section in Georgia and a 1,076-kilometer long section in Turkey. The construction of the pipeline started in April 2003. It was filled with oil on May 18, 2005.

Second, there's the Southern Gas Corridor, which also begins in Azerbaijan and is now being extended into European markets, Suleymanov said.

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian Sea region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and Trans-Adriatic Pipeline.

Third, there's the Baku-Tbilisi-Kars railroad beginning in the capital of Azerbaijan and that will take people and products to Georgia and Turkey, opening new opportunities for expedited East-West transit, according to the article.

Baku-Tbilisi-Kars railway is being constructed on the basis of the Georgian-Azerbaijani-Turkish intergovernmental agreement.

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree 'On the implementation of the Baku-Tbilisi-Kars project activities' dated February 21, 2007. SOFAZ has allocated two loans totaling $775 million for the construction of the Georgian section.

A new 105-kilometer branch of the railroad is being constructed as part of the Baku-Tbilisi-Kars project. In addition, the railway's Akhalkalaki-Marabda-Tbilisi section is under reconstruction in Georgia that will increase its capacity to 15 million metric tons of cargo per year. A depot is under construction in Akhalkalaki for the transition of trains from the existing tracks in Georgia to the European ones. It is planned to complete the implementation of the project in 2015.

“For global policymakers, the lessons are clear: The new Silk Road must strengthen the aforementioned existing infrastructure and Azerbaijan must remain a major hub on the commercial and multicultural highway between East and West,” said the article.

A moderate, modern and predominantly-Muslim nation, Azerbaijan has demonstrated its importance in wartime by facilitating the travel of American supplies through its borders to Afghanistan, said the article. The country has also sent troops to Afghanistan as well as to Iraq and the Balkans, according to Suleymanov.

In his recent address to a joint session of Congress, Afghanistan's new president, Ashraf Ghani, repeatedly referred to Azerbaijan as a cornerstone of this commercial corridor between East and West, said the article.

Explaining how the United States brought military supplies along "the route through Europe to Georgia, Azerbaijan ... and on to Afghanistan," he declared: "We have already made significant headway in making the vision of the Lapis Lazuli corridor that will link us to Turkmenistan, Georgia, Turkey and Europe into a reality," according to Suleymanov.

“With far-reaching investments in transportation infrastructure, Azerbaijan is committed to reviving this route,” said the article. “Connecting Azerbaijan, Georgia and Turkey, the Kars-Tbilisi-Baku railway is scheduled for completion later this year.”

This rail line will be able to move up to 20 million metric tons of freight and 3 million passengers from East to West, allowing Azerbaijan to export its enormous energy reserves to Turkey, writes the author.

“The railway link will also allow Central and South Asian countries to increase the flow of goods to European markets,” according to the article.

Meanwhile, Azerbaijan is completing construction of the first phase of the Baku International Sea and Trade Port, the largest maritime export and logistics center on the Caspian Sea with a total capacity to move 25 million metric tons of cargo a year, said the article.

Founded in 1902, the Baku International Sea Trade Port supports maritime trade with the Caspian littoral states. It also has access via the Volga-Don and Volga-Baltic canals to world markets.

The port serves as a link in the transport chain, linking the ports of Georgia on the Black Sea and Central Asian countries. It is a major transportation hub in the Europe-Caucasus-Asia corridor.

“Azerbaijan has also built a new terminal for Baku International Airport, accommodating about 3 million additional passengers,” said the author.

With huge energy resources and a growing domestic market, Azerbaijan already links East and West, according to the article.

Currently totaling $2.3 billion, bilateral trade between Azerbaijan and the United States is increasing with the recent contract to purchase eight civilian airplanes from Boeing — an agreement that supports more than 11,000 American jobs, the author writes.

Now, as in ancient times, the new Silk Road will be a fulcrum for exchanging ideas as well as products, according to the article.

With a history of promoting trade, not terrorism, and fostering cultural coexistence, not sectarian conflict, Azerbaijan can make the new Silk Road a force for peace and prosperity in the 21st Century, just as its fabled forerunner was in ancient times, said the article.

/By Trend/

URL: http://www.today.az/news/politics/141260.html

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