By Alexandros Petersen
First published in Eurasia Daily Monitor January 10, 2013.
While the concept of a “New Silk Road” of trade, transport and telecommunications connections across Eurasia was formally endorsed by the US State Department, it is Beijing and Chinese companies that have taken the lead in realizing the immense infrastructure projects that will tie the mega-continent together. The latest is the completion of a second railway link between China and Kazakhstan at the burgeoning Khorgos crossing point and Special Economic Zone. This nearly 600-kilometer section is part of a larger project that connects China’s eastern port of Lianyungang with Kazakhstan’s rail system and points west toward Russia and the Caspian region. Chinese officials refer to it as part of the New Eurasian Land Bridge from China’s ports to Western European ports such as Rotterdam (Global Times, December 22, 2012).
Plans call for the railway to handle 20 million tons of freight by 2020, increasing to 30 million by 2030. The 292-km Chinese portion of the project was built for less than $1 billion—relatively inexpensive by global standards. Khorgos is already the key border crossing for the Central Asia–China natural gas pipeline from Turkmenistan and a new highway network under construction. According to Kazakhstan’s Minister for Transport and Communications Askar Zhumagaliyev, 800 km of this Western Europe–Western China highway will be completed in 2013, with much of the route running alongside the just-completed railway (Tengrinews, December 20, 2012). Continue reading
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 Continue reading
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.