Kazakhstan Puts Components in Place for Caspian Shipping

July 31, 2012

By Alexandros Petersen

First published in Eurasia Daily Monitor July 31, 2012.

On July 25, Kazakhstan’s coastal city of Aktau hosted an expert-level conference on implementing global standards for maritime shipping at Caspian ports (News.az, July 25). Organized by TRACECA’s Logistics Processes and Motorways of the Sea (LOGMOS) project, the conference signals the inauguration of an important stage in the development of “New Silk Road” corridors from East and South Asia to Europe. As the European Union’s trans-Eurasian transport coordinating mechanism, TRACECA provides a regional forum and technical assistance for countless projects across the continent. However, while TRACECA can help on the margins, for a project to go forward, it requires political and financial commitment from host governments. For this reason, a number of LOGMOS projects have stalled, most notably the planned Turkmenbashi-Baku connection. But, the Aktau-Baku link seems to be moving ahead, with key managerial, logistical and technical issues addressed, to tackle one of the New Silk Road’s most vexing obstacles: the Caspian Sea Read more »

Chinese Traces in Gorno-Badakhshan

July 25, 2012

by Raffaello Pantucci

Lenin greets visitors to Murghab, Gorno-Badakhshan, Tajikistan

Attention has been focused in Tajikistan’s Gorno-Badakhshan region this week, as a government operation in retaliation for the murder of a Major General Abdullo Nazarov, a senior intelligence official, has been launched in the region’s Pamir Mountains. While the regional capital Khorog has apparently now re-opened for business, it seems as though hostilities continue in the mountains.

Earlier this year, we made a trip to this part of Tajikistan, on our way through to the Kulma Pass, Tajikistan’s border post with China. Closed to anyone but Chinese or Tajik passport holders, we instead went right up to the border on either side, driving from Kashgar to Tashkurgan, pausing at Kara Suu to see the brand new border post that has been built on the Chinese side of the Kulma Pass and sat empty waiting for business. It was a crystal clear day, with the border post and army base next to it seemingly abandoned. From what we could see on the Tajik side, nothing was stirring.

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Uzbekistan’s Balancing Act With China: A View From the Ground

July 20, 2012

By Raffaello Pantucci and Alexandros Petersen

First published in China Brief July 19, 2012.

The exact reasons for Uzbekistan’s decision to withdraw from the Collective Security Treaty Organization (CSTO) at the end of June remain unclear (Xinhua, June, 29; Russia Today, June 28, 2012). However, while Tashkent seems to have soured on the Russian-led regional organization, President Islam Karimov took time in June to pay a state visit to Beijing that included attending the Chinese instigated Shanghai Cooperation Organization (SCO). In addition to attending the SCO Summit, President Karimov held separate bilateral meetings with President Hu Jintao, signed a strategic partnership agreement and approved a raft of new measures to strengthen Sino-Uzbek relations (Gov.uz, June 8; Xinhua, June 7). At this high level, relations are clearly moving in a positive direction. The view from the ground, however, is far more complex with Uzbekistan’s traditional vision of itself as a regional powerhouse and industrial power potentially at odds with China’s growing influence in Central Asia. Read more »

Khorgos to Become Kazakhstan’s Trans-Eurasian Transport Hub

July 11, 2012

By Alexandros Petersen

First published in Eurasia Daily Monitor July 10, 2012.

On June 28, Kazakhstan’s Senate amended the country’s transport regulations partly to allow for the state railways operator, JSC “NC” Kazakhstan Temir Zholy (KTZ), to develop a transport and logistics company, spearheading the country’s transformation into a Eurasian transport hub (Kazinform, June 28). Exactly how this new state-led company will be organized remains to be seen, but KTZ seems to be preparing for an expansion of its scope and activities. In early July, it placed $800 million in 30-year Eurobonds on the London and Kazakhstan stock exchanges, and KTZ is expected to be a major part of Kazakhstan’s so-called People’s IPO in the coming years, wherein ordinary Kazakhstanis will be able to invest in some of their country’s largest enterprises (IFR, July 7).

But, the focus of KTZ’s activities in the transport area is the burgeoning “land port” at Khorgos on the China-Kazakhstan border, northeast of Almaty. As a result of a number of agreements between Astana and Beijing, the area around Khorgos is set to become a Special Economic Zone (SEZ), with 30-day visa exemptions for businessmen operating in the zone. Plans call for centers for trade, tourism, culture and sports, a number of hotels, as well as an airport and the terminus of a railway to Almaty, which is to connect with the Chinese-funded high-speed railway project planned to run from Almaty to Astana (Tengrinews, May 25, 2011). According to the World Bank, Khorgos is to be a key node on the Western Europe-Western China International Transit Corridor, coordinated by the Central Asia Regional Economic Cooperation (CAREC) program (World Bank, May 1). An immense new freight terminal has already been built, with bays for six trucks to be inspected simultaneously.

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Featured: “China’s Footprint Beyond Its Western Borders”

July 5, 2012

On the photography front, our project has been gaining strong traction with both Mainland Chinese and Western outlets. In particular:

Southern Window (南方窗), a leading Chinese commentary magazine, has published our photo essay entitled “China’s Footprint Beyond Its Western Borders” or “西陲之外的中国足迹” which looks at China’s wide array of interests and Chinese trader communities in the Central Asia region.

Based on numerous interactions with local Chinese here in Shanghai, granted a limited research pool, one discovers that layman awareness of China’s numerous western neighbors is quite limited. China’s tourists still prefer to travel to Europe, Southeast Asia and the US, and apart from specific industries (infrastructure, oil, gas etc) and goods trade run from Xinjiang province, the Chinese man/woman on the street does not feel that Central Asia has any significant impact – economic or cultural – on their daily lives.  Read more »

After CSTO Withdrawal Uzbekistan Also Looks East

July 2, 2012

By Alexandros Petersen

Uzbekistan’s decision to withdraw from the Russia-led Collective Security Treaty Organization (CSTO) for the second time does not come as much of a surprise for long-time observers of Tashkent’s foreign policy.  Before finally calling it quits, Uzbekistan’s leadership had expressed frustration with the group’s overtly anti-Western guise, its fealty to Moscow and its pretensions at competition with NATO and the Shanghai Cooperation Organization (SCO).  Uzbek forces have not participated in the group’s military exercises and President Islom Karimov made a point of not attending CSTO summits.  In contrast, his recent visit to Beijing for the SCO summit was highly publicized, as was a new strategic partnership agreement signed with China. Read more »