DMac
2nd April 2010, 10:21 AM
A new Silk Road in the making
(Central Asia, April 3, 2010-issue 610)
By Giorgio Fiacconi
TCA publisher
BISHKEK (TCA) -- For as long as we can recall, traffic between western countries and China and the Far East has been going via land.
Accounts of European traveller to the Middle Kingdom from the fifteenth century onward only describe land routes. One of the most famous books documenting the travels of Marco Polo, “Il Milione†describes Polo’s adventurous expedition, but many other reports preceded and followed in the search for the best route to China and its goods. Even Chinese chronicles gave accounts of Chinese expansion and travels westward via land. Only in the fourteenth century did the west start exploiting southern sea routes. Today, most traffic between the West and China is along sea routes, but land routes are still the most economic and would be the fastest if only the infrastructure were in place and if the numerous countries which the Silk Road covers would consider the issue with a proper medium-term vision and economic consideration.
In the present condition, although transport by train is increasing, proper modernization has not occurred. This is a strange situation since trains remain the most convenient and safest method of transporting goods, especially in winter time when it is the most preferable option as road conditions can be very dangerous. Today it is possible to send goods by train from any part of Central Europe to Kazakhstan and Kyrgyzstan in approximately 25 days. The cost of utilizing the railroads are high due to the fact that the gauge of the tracks are different in European and Russian countries, as well as the fact that the system is not used as frequently as it ought to be. It is time that European export to Central Asia and China rediscover the train, giving a new impetus to the existing free economic zone of Kyrgyzstan for access to China, and other Central Asia countries.
It took Chinese leadership to develop a new plan where East and West can be joined in a unique modern railway that will surpass the Trans-Siberian Railroad in term of facilities, speed and cargo capacity with high speed trains and a unique narrower track matching European standards. From China to Europe and vice versa few routes have been considered. Those through Central Asia will start in Urumchi and Kashgar in Xingjian Province and will travel through both Kazakhstan and Kyrgyzstan. From there, both routes via Central Asia will move into Eastern Europe. Today the Korgas- Urumchi line is already complete, and the next logical step is on to Astana and Almaty. Through a separate branch, the train will connect the West with the extensive Chinese railway system as well as the Far East. The other railway departing from Kashgar and crossing through Kyrgyzstan will pass through Uzbekistan and continue on to Turkmenistan, ultimately ending in Europe. In the meantime, another railway is being considered in Southeast Asia via Myanmar, Vietnam, Thailand and Malaysia, reaching all the way to Singapore. Furthermore, Beijing already has trains that take passengers and cargo to the Far East, and with a new lease agreement with the deep sea port of Rajin in North Korea, China is now able to transport not only goods, but passengers as well from any part of Europe to the Sea of Japan in less than one week, making the passage from the Atlantic to the Pacific a very cost-efficient alternative all year round. The plan is certainly ambitious but it is feasible, and probably within ten years time we will have high speed trains travelling from Southeast Asia and the Far East using railroads to cross through Central Asia with a huge saving in terms of money, less restrictions and a speed unthinkable at today methods of transport.
The project is not just another proposal; the Chinese have been working on this plan for a few years and they have the know-how, the work force and the money to implement the plan. Last but not least, they are very familiar with how to deal with the regimes of Central Asia, having shown that they can work with them and can handle the local situation with very few questions asked.
The strategy is clear and follows a well planned rationale with the railroad achieving different purposes. From the economic side, the project will guarantee to China additional access to Central Asian resources, while lowering transport costs for the export of goods from China to Central Asia and Europe. From the other side, the project also has a very clear military justification and will keep transport of goods away from the maritime routes where it is well known that American fleets closely monitor all shipments. Regarding financing, while some countries will finance the stretch that is crossing their land, China is proposing a type of barter that is difficult to refuse. Against Chinese advance payment for the construction and the supply of trains, China guarantees the purchase of various raw materials and energy products. The formula, although not very transparent, provides the country which the tracks cross with guaranteed development and a ready buyer for those resources along the route, which thanks to the new railway, become readily accessible. All this makes sense but will certainly generate new geo-political competition between the US, Russia and China. Hopefully, confrontation will be avoided as it is clear that China’s presence in Central Asia, through such an extensive network of railways, will allow it to challenge not only Russian strategic interests but also those of the United States.
Afghanistan, China forge closer economic ties
(Central Asia, April 3, 2010-issue 610)
BEIJING (TCA) -- On March 25, Afghan President Hamid Karzai finished a three-day visit to Beijing, China. Karzai arrived in China on March 23 with a government delegation that included the Foreign Minister Zalmai Rasoul, National Security Advisor Dr. Spanta, Defense Minister Wardak, Mining Minister Shahrani and about twenty national traders and investors. It was Karzai's fourth visit to China as President of Afghanistan.
China and Afghanistan took new steps to further strengthen economic and trade cooperation as new agreements were signed regarding aid, tax reduction, training and stabilizing the volatile region.
Chinese President Hu Jintao and Hamid Karzai signed three documents on economic and technological cooperation, favorable tariffs for Afghan exports to China and training programs. The two presidents also discussed economic cooperation in mining, agriculture, hydroelectricity, irrigation, and infrastructure projects.
During the meeting with Hu, Karzai said Afghanistan was honored to have China as a friend and neighbor.
China's economic assistance to Afghanistan dates back to the mid 1950s when the two countries established diplomatic ties. Chinese engineers built a number of hospitals and water conservancy projects around the Central Asian country. The most well-known project is a large dam about 40 kilometers outside of Kabul.
Since 2002, China has given more than 900 million yuan ($130 million) in aid for the rebuilding of Afghanistan. Last year, China announced it would provide an additional $75 million in aid to Afghanistan over the next five years.
Mutual trade between the two countries has been growing rapidly in recent years, reaching $155 million in 2008.
Since July 2006, China introduced zero import tariffs on 278 products from Afghanistan.
China Metallurgical Group Corp. has invested in the Aynak copper mine in Afghanistan. Implementation of this project helped create jobs for thousands of local people.
During the meeting with President Hu, Karzai expressed gratitude to China for the support and encouragement that it has given Afghanistan since the establishment of diplomatic ties, in particular over the last eight years. Chinese media quoted Karzai as saying his country was willing to cooperate with China in advancing peace and stability.
On the afternoon of March 25, Karzai met with top Chinese legislator Wu Bangguo and Premier Wen Jiabao. Karzai said his country hoped to further expand cooperation with China in politics, trade, defense and education, as well as to enhance coordination on regional and global issues.
Wu, chairman of the National People's Congress Standing Committee, said that China respects Afghanistan's independence, sovereignty and territorial integrity, and supports the country's efforts for national stability and development.
Hailing the progress of bilateral ties, Wu said China hoped to push forward a cooperative partnership with the country and hoped the two countries would remain good neighbors, good friends and good partners forever.
Wu appreciated Afghanistan's support for China on the Taiwan issue and issues regarding Tibet and Xinjiang.
Karzai said currently Afghan-Chinese relations are at the best in history, adding that his country is committed to strengthening neighborly ties with China.
During the meeting with Karzai, Premier Wen said that China would continuously provide assistance and aid to Afghanistan and pledged to enhance security and economic cooperation.
“China will step up contact and coordination with Afghanistan and the international society to strive for a secure and harmonious regional environment while pushing for lasting peace and common development,†Wen concluded.
The two sides also agreed to expand economic cooperation and trade, increase mutual investment and technology transfer, and deepen cooperation in the areas of transportation, agriculture and irrigation, energy, mining and infrastructure.
(Xinhua, RFE/RL)
Freight delays by Uzbekistan affect Tajikistan’s economy
(Tajikistan, April 3, 2010-issue 610)
By Rakhim Nazarov
DUSHANBE (TCA) -- Last week, the Tajik Ministry of Foreign Affairs sent a note to Uzbek authorities concerning the delay of freight shipments in Uzbekistan. The note requested assistance in resolving the issue.
According to the Tajik Railway national enterprise, about one thousand freight cars with different types of goods vital to Tajik and Afghan economic development have been delayed in Uzbekistan over the last two months.
Railcars carry such goods as aluminum used by the Tajik Aluminum Company (Talco), bulldozers needed to build the Rogun hydropower plant, and fuel and lubricants for agricultural purposes.
This is not the first time that goods traveling to Tajikistan have been detained in Uzbekistan without explanation. At the end of last year, several hundred railcars were detained in Uzbekistan. Tajik businessmen who were owners of the freight petitioned the Ministry of Foreign Affairs to resolve the issue.
Last week, Tajik Prime Minister Akil Akilov raised this issue at a UN meeting. Dushanbe is concerned that Uzbekistan is purposely impeding rail shipments to Tajikistan. As a result, Tajikistan does not receive aviation fuel and raw materials for the aluminum plant in a timely manner.
Tajik experts believe that the freight delays in Uzbekistan are related to the growing pace of the Rogun hydro power plant’s construction in Tajikistan and note that such actions by their neighbor aim to slow down Tajikistan’s development.
Rauf Firdavsov, Tajik political analyst, believes that the delay of freight, part of which are vital to the construction of Rogun, is intentional and connected with said construction. Tashkent is concerned with the fact that the launch of the power plant will disrupt water flow in the Amudarya River leaving Uzbek land without water during the irrigation season.
However, throughout its entire history, Tajikistan has never considered or used water as a means of pressure on neighboring countries. In spite of all obstacles, Tajik authorities have not stopped the Rogun project, which is of strategic importance to Tajikistan.
Experts note that freight delays also negatively affect sowing campaigns in Tajikistan. The country has launched a campaign for planting cotton. According to preliminary info, 183,400 hectares of land have been allocated this year for planting cotton. Cotton is one of the most important crops, ranking second in the list of Tajik exports. In 2009, 296,000 tons of cotton was harvested in Tajikistan instead of the planned 350,000 tons. In 2009, the export of cotton fiber totaled 86,600 tons worth $99.7 million.
If fuel cargo is detained in Uzbekistan, Tajikistan’s agriculture will have even more problems, since over 70 percent of Tajikistan’s seven million people live in rural areas.
P.S. Some of an estimated 1,000 freight cars held up for several weeks on Uzbek territory have now arrived in Tajikistan, RFE/RL's Tajik Service reports.
Tajik railway officials said around 150 of the railcars were now in the country, but the Foreign Ministry said hundreds more were still being held up on Uzbek territory.
Uzbekistan has blamed technical problems, along with bad weather and an increase in freight traffic.
On this last point, the Uzbek Embassy in Dushanbe said on March 26 that Uzbekistan was fulfilling "its obligations under international agreements on ensuring the passage of nonmilitary and humanitarian goods to Afghanistan".
Tajikistan considers railroad link to bypass Uzbekistan
The Tajik government has suggested building a railroad link through Afghanistan to avoid the delays in rail cargo bound for Tajikistan via Uzbekistan, RFE/RL's Tajik Service reports.
Tajik Transportation Minister Olim Boboev told RFE/RL that Tajikistan could build a 250-kilometer rail link connecting Tajikistan with Turkmenistan via northern Afghanistan, a route that would avoid Uzbekistan.
Shodi Shabdolov, the head of Tajikistan's Communist Party and a member of the lower house of parliament, said a railroad linking Tajikistan and Turkmenistan via Afghanistan is feasible and could be completed within a few months.
But Tajik economist Hojimuhammad Umarov said that freight transit via Uzbekistan will remain crucial even if alternative links via Afghanistan or China are built. He pointed out that Tajikistan cannot afford to build such a railroad in the next five or six years.
Umarov says Tajikistan should seek a compromise with Uzbekistan.
TCA Newscenter (newcenter@timesca.com )
(Central Asia, April 3, 2010-issue 610)
By Giorgio Fiacconi
TCA publisher
BISHKEK (TCA) -- For as long as we can recall, traffic between western countries and China and the Far East has been going via land.
Accounts of European traveller to the Middle Kingdom from the fifteenth century onward only describe land routes. One of the most famous books documenting the travels of Marco Polo, “Il Milione†describes Polo’s adventurous expedition, but many other reports preceded and followed in the search for the best route to China and its goods. Even Chinese chronicles gave accounts of Chinese expansion and travels westward via land. Only in the fourteenth century did the west start exploiting southern sea routes. Today, most traffic between the West and China is along sea routes, but land routes are still the most economic and would be the fastest if only the infrastructure were in place and if the numerous countries which the Silk Road covers would consider the issue with a proper medium-term vision and economic consideration.
In the present condition, although transport by train is increasing, proper modernization has not occurred. This is a strange situation since trains remain the most convenient and safest method of transporting goods, especially in winter time when it is the most preferable option as road conditions can be very dangerous. Today it is possible to send goods by train from any part of Central Europe to Kazakhstan and Kyrgyzstan in approximately 25 days. The cost of utilizing the railroads are high due to the fact that the gauge of the tracks are different in European and Russian countries, as well as the fact that the system is not used as frequently as it ought to be. It is time that European export to Central Asia and China rediscover the train, giving a new impetus to the existing free economic zone of Kyrgyzstan for access to China, and other Central Asia countries.
It took Chinese leadership to develop a new plan where East and West can be joined in a unique modern railway that will surpass the Trans-Siberian Railroad in term of facilities, speed and cargo capacity with high speed trains and a unique narrower track matching European standards. From China to Europe and vice versa few routes have been considered. Those through Central Asia will start in Urumchi and Kashgar in Xingjian Province and will travel through both Kazakhstan and Kyrgyzstan. From there, both routes via Central Asia will move into Eastern Europe. Today the Korgas- Urumchi line is already complete, and the next logical step is on to Astana and Almaty. Through a separate branch, the train will connect the West with the extensive Chinese railway system as well as the Far East. The other railway departing from Kashgar and crossing through Kyrgyzstan will pass through Uzbekistan and continue on to Turkmenistan, ultimately ending in Europe. In the meantime, another railway is being considered in Southeast Asia via Myanmar, Vietnam, Thailand and Malaysia, reaching all the way to Singapore. Furthermore, Beijing already has trains that take passengers and cargo to the Far East, and with a new lease agreement with the deep sea port of Rajin in North Korea, China is now able to transport not only goods, but passengers as well from any part of Europe to the Sea of Japan in less than one week, making the passage from the Atlantic to the Pacific a very cost-efficient alternative all year round. The plan is certainly ambitious but it is feasible, and probably within ten years time we will have high speed trains travelling from Southeast Asia and the Far East using railroads to cross through Central Asia with a huge saving in terms of money, less restrictions and a speed unthinkable at today methods of transport.
The project is not just another proposal; the Chinese have been working on this plan for a few years and they have the know-how, the work force and the money to implement the plan. Last but not least, they are very familiar with how to deal with the regimes of Central Asia, having shown that they can work with them and can handle the local situation with very few questions asked.
The strategy is clear and follows a well planned rationale with the railroad achieving different purposes. From the economic side, the project will guarantee to China additional access to Central Asian resources, while lowering transport costs for the export of goods from China to Central Asia and Europe. From the other side, the project also has a very clear military justification and will keep transport of goods away from the maritime routes where it is well known that American fleets closely monitor all shipments. Regarding financing, while some countries will finance the stretch that is crossing their land, China is proposing a type of barter that is difficult to refuse. Against Chinese advance payment for the construction and the supply of trains, China guarantees the purchase of various raw materials and energy products. The formula, although not very transparent, provides the country which the tracks cross with guaranteed development and a ready buyer for those resources along the route, which thanks to the new railway, become readily accessible. All this makes sense but will certainly generate new geo-political competition between the US, Russia and China. Hopefully, confrontation will be avoided as it is clear that China’s presence in Central Asia, through such an extensive network of railways, will allow it to challenge not only Russian strategic interests but also those of the United States.
Afghanistan, China forge closer economic ties
(Central Asia, April 3, 2010-issue 610)
BEIJING (TCA) -- On March 25, Afghan President Hamid Karzai finished a three-day visit to Beijing, China. Karzai arrived in China on March 23 with a government delegation that included the Foreign Minister Zalmai Rasoul, National Security Advisor Dr. Spanta, Defense Minister Wardak, Mining Minister Shahrani and about twenty national traders and investors. It was Karzai's fourth visit to China as President of Afghanistan.
China and Afghanistan took new steps to further strengthen economic and trade cooperation as new agreements were signed regarding aid, tax reduction, training and stabilizing the volatile region.
Chinese President Hu Jintao and Hamid Karzai signed three documents on economic and technological cooperation, favorable tariffs for Afghan exports to China and training programs. The two presidents also discussed economic cooperation in mining, agriculture, hydroelectricity, irrigation, and infrastructure projects.
During the meeting with Hu, Karzai said Afghanistan was honored to have China as a friend and neighbor.
China's economic assistance to Afghanistan dates back to the mid 1950s when the two countries established diplomatic ties. Chinese engineers built a number of hospitals and water conservancy projects around the Central Asian country. The most well-known project is a large dam about 40 kilometers outside of Kabul.
Since 2002, China has given more than 900 million yuan ($130 million) in aid for the rebuilding of Afghanistan. Last year, China announced it would provide an additional $75 million in aid to Afghanistan over the next five years.
Mutual trade between the two countries has been growing rapidly in recent years, reaching $155 million in 2008.
Since July 2006, China introduced zero import tariffs on 278 products from Afghanistan.
China Metallurgical Group Corp. has invested in the Aynak copper mine in Afghanistan. Implementation of this project helped create jobs for thousands of local people.
During the meeting with President Hu, Karzai expressed gratitude to China for the support and encouragement that it has given Afghanistan since the establishment of diplomatic ties, in particular over the last eight years. Chinese media quoted Karzai as saying his country was willing to cooperate with China in advancing peace and stability.
On the afternoon of March 25, Karzai met with top Chinese legislator Wu Bangguo and Premier Wen Jiabao. Karzai said his country hoped to further expand cooperation with China in politics, trade, defense and education, as well as to enhance coordination on regional and global issues.
Wu, chairman of the National People's Congress Standing Committee, said that China respects Afghanistan's independence, sovereignty and territorial integrity, and supports the country's efforts for national stability and development.
Hailing the progress of bilateral ties, Wu said China hoped to push forward a cooperative partnership with the country and hoped the two countries would remain good neighbors, good friends and good partners forever.
Wu appreciated Afghanistan's support for China on the Taiwan issue and issues regarding Tibet and Xinjiang.
Karzai said currently Afghan-Chinese relations are at the best in history, adding that his country is committed to strengthening neighborly ties with China.
During the meeting with Karzai, Premier Wen said that China would continuously provide assistance and aid to Afghanistan and pledged to enhance security and economic cooperation.
“China will step up contact and coordination with Afghanistan and the international society to strive for a secure and harmonious regional environment while pushing for lasting peace and common development,†Wen concluded.
The two sides also agreed to expand economic cooperation and trade, increase mutual investment and technology transfer, and deepen cooperation in the areas of transportation, agriculture and irrigation, energy, mining and infrastructure.
(Xinhua, RFE/RL)
Freight delays by Uzbekistan affect Tajikistan’s economy
(Tajikistan, April 3, 2010-issue 610)
By Rakhim Nazarov
DUSHANBE (TCA) -- Last week, the Tajik Ministry of Foreign Affairs sent a note to Uzbek authorities concerning the delay of freight shipments in Uzbekistan. The note requested assistance in resolving the issue.
According to the Tajik Railway national enterprise, about one thousand freight cars with different types of goods vital to Tajik and Afghan economic development have been delayed in Uzbekistan over the last two months.
Railcars carry such goods as aluminum used by the Tajik Aluminum Company (Talco), bulldozers needed to build the Rogun hydropower plant, and fuel and lubricants for agricultural purposes.
This is not the first time that goods traveling to Tajikistan have been detained in Uzbekistan without explanation. At the end of last year, several hundred railcars were detained in Uzbekistan. Tajik businessmen who were owners of the freight petitioned the Ministry of Foreign Affairs to resolve the issue.
Last week, Tajik Prime Minister Akil Akilov raised this issue at a UN meeting. Dushanbe is concerned that Uzbekistan is purposely impeding rail shipments to Tajikistan. As a result, Tajikistan does not receive aviation fuel and raw materials for the aluminum plant in a timely manner.
Tajik experts believe that the freight delays in Uzbekistan are related to the growing pace of the Rogun hydro power plant’s construction in Tajikistan and note that such actions by their neighbor aim to slow down Tajikistan’s development.
Rauf Firdavsov, Tajik political analyst, believes that the delay of freight, part of which are vital to the construction of Rogun, is intentional and connected with said construction. Tashkent is concerned with the fact that the launch of the power plant will disrupt water flow in the Amudarya River leaving Uzbek land without water during the irrigation season.
However, throughout its entire history, Tajikistan has never considered or used water as a means of pressure on neighboring countries. In spite of all obstacles, Tajik authorities have not stopped the Rogun project, which is of strategic importance to Tajikistan.
Experts note that freight delays also negatively affect sowing campaigns in Tajikistan. The country has launched a campaign for planting cotton. According to preliminary info, 183,400 hectares of land have been allocated this year for planting cotton. Cotton is one of the most important crops, ranking second in the list of Tajik exports. In 2009, 296,000 tons of cotton was harvested in Tajikistan instead of the planned 350,000 tons. In 2009, the export of cotton fiber totaled 86,600 tons worth $99.7 million.
If fuel cargo is detained in Uzbekistan, Tajikistan’s agriculture will have even more problems, since over 70 percent of Tajikistan’s seven million people live in rural areas.
P.S. Some of an estimated 1,000 freight cars held up for several weeks on Uzbek territory have now arrived in Tajikistan, RFE/RL's Tajik Service reports.
Tajik railway officials said around 150 of the railcars were now in the country, but the Foreign Ministry said hundreds more were still being held up on Uzbek territory.
Uzbekistan has blamed technical problems, along with bad weather and an increase in freight traffic.
On this last point, the Uzbek Embassy in Dushanbe said on March 26 that Uzbekistan was fulfilling "its obligations under international agreements on ensuring the passage of nonmilitary and humanitarian goods to Afghanistan".
Tajikistan considers railroad link to bypass Uzbekistan
The Tajik government has suggested building a railroad link through Afghanistan to avoid the delays in rail cargo bound for Tajikistan via Uzbekistan, RFE/RL's Tajik Service reports.
Tajik Transportation Minister Olim Boboev told RFE/RL that Tajikistan could build a 250-kilometer rail link connecting Tajikistan with Turkmenistan via northern Afghanistan, a route that would avoid Uzbekistan.
Shodi Shabdolov, the head of Tajikistan's Communist Party and a member of the lower house of parliament, said a railroad linking Tajikistan and Turkmenistan via Afghanistan is feasible and could be completed within a few months.
But Tajik economist Hojimuhammad Umarov said that freight transit via Uzbekistan will remain crucial even if alternative links via Afghanistan or China are built. He pointed out that Tajikistan cannot afford to build such a railroad in the next five or six years.
Umarov says Tajikistan should seek a compromise with Uzbekistan.
TCA Newscenter (newcenter@timesca.com )