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  • New Transport Projects In The Region

    NEW TRANSPORT PROJECTS IN THE REGION

    26.05.2014

    Sevak Sarukhanyan
    Ph.D., Deputy Director of "Noravank" Foundation

    Recently there has been a surge in work on international transport
    projects. This concerns also the South Caucasus and Caspian region,
    where several projects are close to completion. Unfortunately, these
    projects may to a certain extent negatively affect the regional
    interests of the Republic of Armenia.

    Qazvin-Rasht-Astara: the Final Phase?

    In early May 2014 discussions intensified around prospects of
    Qazvin-Rasht-Astara railway that would connect Iran and Azerbaijan.

    They were especially boosted by Azerbaijani president's visit to
    Tehran in April, the significance of which was highly appraised both
    by Iran and Azerbaijan.

    It would not be true to say that I. Aliyev's visit produced
    strategic changes in Iran-Azerbaijan relations, as the documents
    signed during the visit did not have strategic significance and were
    related to some narrow, small areas. At the same time, the top-level
    Iranian-Azerbaijani negotiations broke the ice in the interstate
    relations that was formed in recent years. This was also demonstrated
    by the Iranian official media reports, where discussions between Aliyev
    and Rouhani about Karabakh issue were reported with short information
    at the end about the conflict, which almost literally repeated the
    Azerbaijani standpoint, i.e. occupation of 20% of territory, Armenian
    military units and 1 million refugees.

    In any case, after the negotiations between Iranian and Azerbaijani
    presidents, discussions intensified on implementation of joint
    projects with participation of both countries. In May one of these
    projects was brought to forefront, which is the construction of
    Qazvin-Rasht-Astara railway that would not only connect the railroads
    of Iran and Azerbaijan, but also would create a direct transportation
    channel from the Persian Gulf to Baltic Sea. This is a project of
    global significance, implementation of which was halted due to Iran's
    isolation and strained Iranian-Azeri relations. However, recently
    there has been some progress made in both of these dimensions.

    Thus in May, answering to a question from the official Iranian IRNA
    news agency, Gilan province Governor General Mohammad Ali Najafi said
    that the Iranian president has instructed all relevant ministries
    to finish construction of the Qazvin-Rasht-Astara railway as soon
    as possible.

    Gilan province Governor General's answer would have probably drawn no
    much attention, because under the ongoing economic crisis in Iran there
    are no government funds to finance large projects. However on May 7,
    2014, during the Session of the Council for Rail Transport of CIS held
    in Astana, Mohsen Pour Seyed Aqaie, Managing Director of Iran Railways
    Organization (which has a status of an observer in the Council), met
    his Azerbaijani and Russian counterparts and a trilateral agreement
    was reached that Russian Railways JSC will build Qazvin-Rasht-Astara
    railway track. A day later this was confirmed by Vladimir Yakunin,
    who described the project as important and promising.

    Russia's interest in this project can be explained both by strategic
    and tactical considerations. In strategic terms it creates beneficial
    prospects for Russia, as it allows Moscow to become an international
    transit hub. Tactically the project is important, too, since it
    breathes life into the potential Russia-Iran "oil deal" that has been
    actively discussed recently. In this potential deal Iran is supposed
    to export $15 billion worth of oil to Russia and receive services and
    goods in exchange. Given the limitations of the export-oriented part
    of the Russian economy, such export of goods seems hard to implement.

    However, as far as the services are concerned (e.g. constructing a
    railroad), the capabilities of Moscow are not that limited. In this
    respect Qazvin-Rasht-Astara project is beneficial for Russia both
    strategically and tactically.

    Caspian railway chain

    Iran's step up of activities in the area of transportation is not
    limited to Qazvin-Rasht-Astara project. Iran's president has ordered
    to speed up construction of Iran-Turkmenistan-Kazakhstan railway.

    According to Abbas Ahmad Akhoundi, Minister of Roads and Urban
    Development, it will be completed in October 2014. This is not
    just for the Iranian section of the railroad, but the whole
    project. This means in near future the Iranian railroads will be
    connected to Azerbaijan and Russia through Qazvin-Rasht-Astara, and
    to Turkmenistan and Kazakhstan through a second project. The first
    one would also allow Iran to connect to Georgian railways and port of
    Poti through Azerbaijan, whereas the second one opens opportunities
    to link the railroads of Iran and China through construction of the
    Kazakhstan-China railway.

    In part, the reason for acceleration of works on these two projects is
    that Iran attempts to use the window of opportunity created by some
    improvement of relations with the West, in order to get economically
    and politically more interconnected with the neighboring countries.

    At the same time it has to be noted that Qazvin-Rasht-Astara railway
    construction significantly diminishes prospects of constructing
    Iran-Armenia railway, because both projects essentially solve the same
    problem from the geographic point of view, that is, establishment of a
    South-North transport corridor. Under such circumstances implementation
    of one project decreases the chances of the other one materialize.

    "Globus" analytical bulletin, No. 5, 2014

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    http://www.noravank.am/eng/articles/detail.php?ELEMENT_ID=12728




    From: A. Papazian
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