New opportunities in the development of the Historic Silk Road BAKU – TBILISI – KARS Railway Link

HÜSEYİN TEKER Marketing Expert Freight Department of Turkish State Railways Goal is to revitalize Historical Silk Road and improve Economic & Cultural cooperation between the countries.

First agreement signed on 7th February 2007 in Tbilisi.

Foundation of the Turkish section laid on 24 July 2008.

Project planned to be completed by the end of 2016.

TCDD will build logistics center at Kars in the near future. Europe - China connected by rail over Turkey with BTK project.

Project Route: Turkey : Kars-Canbaz : 79 km (newly constructed line) Georgia : Kartsakhi – Ahılkelek : 29 km (newly constructed line) Tbilisi(Marabda) : 160 km (rehabilitation of existing railway line) Tbilisi Gardabani : 70 km (existing railway line) Azerbaijan: Büyük Kesik –Baku : 503 km (physical standards of the existing railway is appropriate. Alat-Baku : 82 km (destination of ferry-connected transports is Alat.) Border Stations: Turkey : Canbaz Georgia : Kartsakhi (Turkish side) and Gardabani (Azerbaijan side) Azerbaijan: Büyük Kesik Bogie Change and Exchange Station: Ahılkelek (Georgia) Comparison of China-Europe Railway Transport Corridors

Beineu Zhezkazgan

Sea North Corridor Middle Corridor Project(Beineu) Northern Line: China-Kazakhstan-Russia-Belarus-Poland-Germany BTK Line: China-Kazakhstan-(Aktau-Alat Caspian Passage)Azerbaijani – Georgia -Turkey- Bulgaria-Romania-Hungary-Austria-Germany China (Zhengzhou) - Germany (Hamburg) 40-feet container delivery time.

Duration (Day)

Seaway 32 Railway Northern Line 16 Middle Corridor (BTK Line)* 16 (Planned)

*In case Marmaray (Rail Tunnel) and other projects in Turkey are realized. 2015 2020 587 billion $ 800 billion $

Foreign Trade Figures 2015 2020 Billion USD • Trade between China and the EU is expected to increase EU China 587 800 from 117 million tons in 2014 to 170 million tons in 2020.

Turkey China 28 100 • BTK route can be evaluated as an Alternative route according to North/South Corridors between Europe ‐ China. Source Eurostat Comext – Statistical regime 4 BAKU-TBILISI-KARS RAILWAY LINE PROJECT

EXPECTED CARGO POTENTIAL OF BTK

 Short Term

Tons Revenue (USD) Import‐Export 4.550.000 41.791.066 Transit 1.950.000 89.921.572 Total 6.500.000 131.712.638  Long Term Tons Revenue (USD) CargotoTurkey:Cereals, Cotton, Legumes, Diesel Fuel, Scrap Import‐Export 8.500.000 78.071.222 Materials (copper, iron, paper), Timber, Coal, Electronic Goods, Textile, Toys Transit 8.500.000 391.965.829 Cargo from Turkey: Construction Materials, Textile, Cleaning Substances, Nourishment, Automotive Products, Electronic Goods, Total 17.000.000 470.037.051 White Goods, Marble, Ceramics, Granite, Ore

 When this line starts operation, 6,5 million tons of cargo and 1 million passanger are planned to be carried in the short term. HÜSEYİN TEKER Marketing Expert Freight Department of Turkish State Railways [email protected]