Baku 15° C
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The establishment of the BTKI Railways LLC, a joint venture between subsidiaries of Azerbaijan Railways (ADY) and Georgian Railway, marks a significant milestone in the development of the Baku-Tbilisi-Kars (BTK) railway. This strategic partnership aims to expand the potential of the BTK railway, which has become an increasingly important geopolitical and economic asset in the region.
According to Report, the BTK railway, being the shortest route between China and European countries, has revolutionized intercontinental transportation. It has reduced cargo transportation time more than twice, making it a key component of China's Road, Belt economic development strategy. The railway has also opened up new opportunities for Central Asian countries, such as Turkmenistan, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Afghanistan, providing them with access to European and global markets.
ADY has been working tirelessly to expand the BTK railway, focusing on increasing transportation speed, ensuring the safety of transported goods, implementing flexible tariff policies, and intensifying logistics and marketing efforts to attract more transit cargo. These initiatives not only support the sustainable development of the region but also contribute to the economic growth of the countries involved.
In the face of global geopolitical changes and growing instability in traditional trade routes, the BTK transport corridor, connecting Central Asia with Europe through the Caucasus, has gained special importance. It demonstrates the cohesion and readiness for cooperation among the region's countries, especially in the context of logistics disruptions in the Red Sea and the ongoing conflict between Russia and Ukraine.
For the Turkic states, particularly those in Central Asia, the BTK railway offers a new route for exporting goods to Europe, bypassing tension points in the Middle East and South Asia.
The Turkic world and the new Silk Road
The Organization of Turkic States (OTS) countries have a combined GDP of $1.2 trillion, a population of 163 million, and a trade volume of $22 billion as of 2023. These figures highlight the significant economic potential of the Turkic world and the importance of strengthening transport links between these countries.
The BTK railway is not merely an economic project; it is an instrument of geopolitical influence. By fostering closer political relations and economic ties among the Turkic states, the railway contributes to the creation of a new Silk Road. The modernization of railway infrastructure, establishment of new logistics centers, and development of digital technologies will further enhance the attractiveness of this transport corridor for businesses.
As the BTK railway undergoes reconstruction and expansion, with its capacity increasing from 1 million tons to 5 million tons per year by May 2024, Azerbaijan Railways is fully prepared to transport a significant portion of cargo from Central Asia and Asia to the west and back. This development positions the BTK railway as a competitive player in the international cargo transportation market.
In conclusion, the Baku-Tbilisi-Kars railway, as a key section of the Middle Corridor, symbolizes the new Silk Road. It strengthens transport links between continents, creates a foundation for sustainable economic cooperation, and plays a vital role in the global supply chain. The BTK railway is not just changing the economic map of the Turkic world; it is reshaping the future of trade and cooperation in the region.
