Kazakhstan looks to open trade outpost at Iranian port

Despite lingering tension between the United States and Iran, Kazakhstan is planning to build a terminal at the Iranian port of Bandar Abbas to facilitate exports. In comments made before a joint session of the Kazakh parliament in late June, Deputy Prime Minister Serik Zhumangarin said no state funds would be used in developing the planned facility, which will occupy roughly 15 hectares at the Iranian port. “The project will be implemented at the expense of private investment. As far as I know, the agreement is already at the final stage: the terms of the lease have been agreed,” the state news agency Kazinform quoted Zhumangarin as telling legislators. Kazakhstan would ship goods from the western city of Aktau to the Iranian port via an existing rail link via Turkmenistan. “This gives Kazakhstan direct access to the markets of India, East Africa, the Persian Gulf countries and Southeast Asia. This is the goal of the project,” Zhumangarin said, adding that the government believes that the sanctions regime on Iran will be eased soon as part of the settlement to end the US-Iranian conflict. The Iranian arrangement is not dimming Kazakhstan’s interest in diversifying its global trade options. According to Zhumangarin, the government remains intent on pursuing the construction of a trans-Afghan railway to gain access to Pakistan’s deep-water ports. Referring to the trade disruption caused by the US-Iran conflict, while noting Bandar Abbas is in the Gulf behind the Strait of Hormuz, the deputy prime minister said: “I hope that such a situation will not be repeated in the near future, but this is a serious signal for us to take into account alternative logistics routes.”

 

Uzbekistan is accelerating plans to forge a trans-Afghan railway, striving to open an export route to Pakistani ports, President Shavkat Mirziyoyev’s press service reports. Work is starting on a variety of infrastructure projects inside Uzbekistan to facilitate trade via a trans-Afghan route. Meanwhile, work is also underway on a railway connecting Kyrgyzstan and Uzbekistan to China. Both corridors will be capable of transporting goods to Pakistani ports. Logistic centers are being developed in three cities, Tashkent, Navoi and Namangan. The government is also planning investments to turn the cities of Khanabad and Angren, as well as the Yangiyul, Akhangaran, Alat and Termez districts into transit hubs for east-west and north-south trade. The immediate focus is on digitalization of transit and warehousing procedures, including the establishment of an electronic monitoring system for storage, license plate recognition and electronic registration of vehicles. The Uzbek government is seeking to attract about $3 billion in investment to help make the improvements. If all goes according to plan, the upgraded infrastructure could increase government revenue by as much as $600 million and create as many as 50,000 jobs. 

Russian analysts believe the bevy of trade and energy deals signed in late June between Azerbaijan and Turkmenistan are laying the groundwork for construction of a trans-Caspian pipeline. An analysis published by the Russian outlet Nezavisimaya Gazeta cites comments made in April by Turkmen Foreign Minister Rashid Meredov, who said a policy priority for Ashgabat is exporting natural gas to Europe. The analysis adds that US officials are working behind the scenes to assemble the needed financing for a pipeline.

Kyrgyzstan and Uzbekistan have completed an exchange of land under their border delimitation and demarcation treaty, according to the Kyrgyz president’s press secretary, Askat Alagozov. The agreement involves the transfer of two erstwhile Uzbek villages -- Chongara and Tash-Tobo – to Kyrgyz jurisdiction, meaning that 2,500 local residents effectively are switching citizenships. Uzbekistan received an equivalent amount of territory. “Registration procedures will now be carried out in these villages, after which the residents will be granted citizenship of the Kyrgyz Republic,” Alagozov stated. Many of the residents impacted by the territorial exchange are ethnic Kyrgyz. The trade is aimed at shortening transit times between the southern Kyrgyz cities of Aidarken and Batken.

Tajikistan and China intend to deepen cooperation on water conservation and glacier preservation measures, the Chinese Communist Party’s official organ, the People’s Daily, reports. The two countries’ respective academies of sciences are jointly implementing a project to promote the sustainable use of water resources and biodiversity conservation, according to the People’s Daily. “Water is the foundation of sustainable development and is closely linked to climate action, food and energy security, ecosystem protection and improvements in people’s quality of life,” the outlet quotes Tajik Foreign Minister Sirojiddin Muhriddin as saying. “That is why addressing water-related challenges requires stronger international cooperation.”

The New Lines Institute for Strategy and Policy has developed an initiative called the Silk Seven-Plus (S7+), a blueprint to enable regional states to realize their economic growth ambitions. It is a multi-phase connectivity plan to strengthen the sovereignty of Central Asian states. The S7+ envisions the establishment of a trade crescent connecting the Caspian Basin to the Arabian Sea, unlocking Greater Central Asia’s full trade potential. The items included in this roundup are relevant to the development of the S7+ concept.