BRI: Role of Azerbaijan in Regional Transport Connectivity
The Chinese One Belt & One Road Initiative (BRI) has become a “permanent” platform for further strengthening of regional as well as trans-regional connectivity in the South Caucasus, Central Asia, South Asia, Middle East and Africa and even its acceptability is getting momentum in Europe clearly indicating its strategic importance to achieve dreams of immense socio-economic prosperity, industrialization, infrastructure development and transportation in all the member countries. In this regard, the role of Azerbaijan is “unique”, “integrated” and “coordinated” because of its positive, productive and participatory role in South Caucasus, Central Asia and Eurasian regions.
Most recently, Azerbaijan and China have celebrated 30 years of their diplomatic relations. During all these years, Azerbaijan fully supported the good and principal cause of the Chinese Government and especially the BRI. In this connection, to further strengthen bilateral relations under the flagship project of BRI, it initiated numerous projects of national, regional as well as trans-regional “transport” and “infrastructure” including the opening of the “Baku-Tbilisi-Kars railway” and the “Baku International Sea Trade Port” connecting to the Trans-Caspian transport route which is good omen for the Chinese BRI and materialization of greater Eurasian region.
Interestingly, during all these years, China remained a “trustworthy” and “strategic” partner of Azerbaijan and extended its free of cost humanitarian assistance in difficult times of COVID-19 pandemic. Now both countries are cooperating in diverse sectors of economy such as “oil production”, “information” and “communications”, “construction” and building materials and transport. Good thing is that the Chinese BRI includes the launch of the “Zangezur Corridor” which will become an ideal link between various links on the route of the new Silk Road and provide the shortest and most convenient alternative route for transporting goods from China to the West.
Moreover, both countries are jointly working in the transport and logistics sector. Azerbaijan, as an “important transit” connecting hub on the route of the BRI today plays a supportive role in cargo transportation between Asia and Europe. Due to close liaison between the Ministry of Economy of Azerbaijan and the Chinese Xi’an Free Trade Port Construction and Operation Co, regular container transportation from China to Azerbaijan, Georgia and Turkey has been started. Interestingly, both countries enjoy strategic cooperation in the transport and transit sector which was signed with Azerbaijan Railways CJSC in April 2019 in Beijing as part of the BRI.
According to the latest official figures (January 2023) more than “200 Chinese companies, registered in Azerbaijan, have been engaged in trade, agriculture, transport, communications and other important sectors. Serious negotiations are being carried out to establish an enterprise in Azerbaijan to assemble electric buses, hybrid and electric cars which would be value addition in bilateral ties of both the states. Chinese companies, businessmen, investors and the private sector are keen to make befitting propositions in the formation/building of industrial parks and agricultural parks in Azerbaijan. In this connection, the “Trade Department of Azerbaijan” was opened in the G-Hub shopping centre in Wuhan (Hubei province) during 2022 which will sell food industry products manufactured in Azerbaijan under the “Made in Azerbaijan” brand.
Azerbaijan is a strategically located country that plays a key role in the BRI. Azerbaijan’s location at the crossroads of Europe and Asia makes it a key part of the BRI’s transport corridors, which are designed to facilitate the flow of goods, services, capital and knowledge between communities, countries and continents.
The transport corridors are expected to enhance trade and investment, promote economic integration and support sustainable development in the region in which Azerbaijan’s participation in the BRI is expected to provide new “economic opportunities” for the country, including increased foreign investment and the development of its transportation infrastructure.
For the further strengthening of trilateral trade Pakistan’s NLC started a container trading mechanism by crossing Taftan and reaching its final destination Istanbul through Gurbulak Border Terminal via Iran. Other vehicles also departed for Azerbaijan’s capital Baku which reached its destination in 7-8 days. Interestingly, the NLC, the country’s premier multimodal logistics organization planned to extend commercial operations to other Central Asian Republics (CARs) and China in future as well, in order to improve economic stability and integrate Pakistan’s market with those in the region.
In this connection, NLC has been awarded Transports Internationaux Routiers (TIR) admission by Pakistan National Transport Union for regional transport operations. It started IRT operations to Turkey and Azerbaijan which has been dubbed as a new era of connectivity through trucking under the Ministry of Commerce’s Silk Route reconnect policy.
To conclude, in the further development, expansion, connectivity, cooperation, coordination and last but not the least collaboration of the Chinese BRI is heavily dependent on the role of Azerbaijan which is “paramount|, “permanent” and “participatory”.
The government of Azerbaijan and its policy makers should seek more and more investment from the Chinese companies and private sector under the flagship project of the BRI for the rapid “socio-economic uplift” and “robust infrastructure” development in the newly liberated areas of Karabakh.
In this regard, the Government of Azerbaijan should encourage the Chinese companies to make investment in “green living”, “green energy production”, “hydro-power generation”, “smart living”, “production of renewables (solar & wind)”, “organic agriculture”, “cash crops”, “hybrid seeds”, “disaster management” and last but not least, joint ventures in combating “climate change” in these areas transforming it as the most attractive areas for inflows of FDIs, and FPIs in the days to come.
Moreover, joint cooperation in “smart technologies”, “AI”, “science & technology”, promotion of “software houses”, “e-commerce”, “SME”, “micro-financing”, production of “lithium” batteries and last but not the least, “blue & green hydrogen energy projects” may also be included in the ongoing BRI projects in Azerbaijan, especially in newly liberated areas.
The early initiation and completion of “Zangezur Corridor” would be a “game changer” for Azerbaijan’s greater regional connectivity and trans-regional trade & commerce activities on a regular basis with the easiest, smoothest and shortest trade route connecting all the regional countries in the days to come.
The Republic of Azerbaijan is the “land of fire” and has firm belief in “fraternity not fatality”, “cooperation not conspiracy”, “development not destruction” and always prefers “dialogue and diplomacy” to resolve the regional disputes.
In this regard, valuable “economic incentives”, “socio-politico cooperation” and true “statesmanship” of Azerbaijan under the visionary leadership of incumbent president Ilham Aliyev would bring greater regional stability, peace and harmony in the South Caucasus and Eurasian region under the flagship project of BRI.
