The economic growth importance of the railway sector and investments allocated to the development and modernisation of railway infrastructure are no longer a secret and countries in Central Asia are fully aware of this and allocate investments to railway projects.
The development of interstate connections through railway lines is a strong point in the consolidation and extension of the economic, political and commercial relationships. To this end, Kazakhstan, Iran and Turkmenistan have set up a railway committee which includes representatives of the railway companies in the three countries, a body implicated in the joint projects for the development of the railway network. Starting with 2009, the railway administrations have initiated the project for the construction of the line linking the three countries on the route Uzen (Kazakhstan)– Kyzylkaya – Bereket – Etrek (Turkmenistan) – Gorgan (Iran). The line is strategically situated for the parties involved connecting Central Asia to the Persian Gulf, via Iran, to be connected to the railway network for the access to ports. The railway will also facilitate the access of European countries (direct route) to the ports of the Persian Gulf. The length of the railway reaches 900 km, of which 70 km in Iran, 700 km in Turkmenistan and 130 in Kazakhstan. It is estimated that the line will increase trade figures by around USD 10 Billion. The route is three times shorter than that to the Suez Canal and plays an important role in creating new commercial and social environments in the region near the Caspian Sea and north territories, from Bereket to the border with Kazakhstan.
The implementation of the project requires funds estimated at USD 1.4 Billion, the financing for the works in Turkmenistan being mostly ensured by the Asian Development Bank, ready to endorse total funds of USD 350 Million and the Islamic Development Bank with USD 371 Million. Also, at the beginning of 2012, the Turkmen President approved the 2012-2016 Master Plan on railway transport, according to which the railway project is priority (together with works for the construction of stations and necessary facilities and rolling stock acquisition). “The line will facilitate the access of European and Asian countries to the Persian Gulf providing the shortest route in this direction and the railway stations pertaining to this line will become international transport hubs. The availability of modern railway lines will help expand international transport cooperation”, declared President Gurbanguly Berdimuhammadov.
Currently, construction works in Kazakhstan are completed and “by the end of the year the project in Iran should be also completed as specified in the agreement we have signed (in June 2012), declared the Minister of Transport in Kazakhstan, Askar Zhumagaliyev.
“By October, we want to complete construction works as this project is important for the national and regional economy”, declared Seyyed Abbas Araghchi. Iranian Deputy Foreign Minister.
At the beginning, freight traffic is estimated at 5 million tonnes of freight per year and it is expected to increase to over 12 million tonnes/year.
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