Strategic Assessment of Euro‐Asian Trade & Transportation Azerbaijan as a Regional Hub in Central Eurasia TALEH ZIYADOV JUNE 2011 Strategic Assessment of Euro‐Asian Trade and Transportation Azerbaijan as a Regional Hub in Central Eurasia TALEH ZIYADOV June 2011 Publisher Information (TBD): Azerbaijan Diplomatic Academy Baku, Azerbaijan Johns Hopkins University Washington, DC Please cite this work as: ….. …. Cover Photo: Design Concept of New International Terminal at Heydar Aliyev International Airport in Baku, Azerbaijan. Courtesy of ARUP Engineering Company. ISBN: Copyright © TABLE OF CONTENTS TABLE OF CONTENTS .......................................................................................................................................... V PREFACE ........................................................................................................................................................... IX ACKNOWLEDGEMENTS ................................................................................................................................... XIII FOREWORD ...................................................................................................................................................... IX EXECUTIVE SUMMARY ...................................................................................................................................... IX ABBREVIATIONS ............................................................................................................................................. XVII FIGURES & MAPS ............................................................................................................................................ XXI TABLES .......................................................................................................................................................... XXIII INTRODUCTION.................................................................................................................................................. 1 PART I: EURO‐ASIAN TRADE: THE BIG PICTURE ................................................................................................... 7 THE EURO‐ASIAN TRADE AND CENTRAL EURASIA ................................................................................................................. 9 The Euro‐Asian Trade: Overview ........................................................................................................................... 9 The EU‐China Trade .......................................................................................................................................................... 12 The EU‐ASEAN Trade ........................................................................................................................................................ 14 The EU‐India Trade ........................................................................................................................................................... 15 Euro‐Asian Maritime Trade and Containerization .............................................................................................. 17 PART II: ASSESSING THE PRESENT: TRANSPORT, CORRIDORS, AND LOGISTICS IN EURASIA ................................ 21 MOTORWAYS AND RAILWAYS OF AZERBAIJAN .................................................................................................................... 23 Roads and Highways ........................................................................................................................................... 23 Railways .............................................................................................................................................................. 26 EURASIAN TRANSPORT CORRIDORS .................................................................................................................................. 29 The Central Corridor: Transport Corridor Europe, Caucasus, Asia (TRACECA) .................................................... 29 A Limping Leg of the New Silk Road ................................................................................................................................. 29 Truck Transit via TRACECA vs. Alternatives ...................................................................................................................... 33 The Central Route to Afghanistan ............................................................................................................................... 33 The Southern Route ..................................................................................................................................................... 36 The Northern Route .................................................................................................................................................... 37 The Fastest Route ........................................................................................................................................................ 38 Advantages and Disadvantages of TRACECA for Trucking ........................................................................................... 38 TRACECA and Rail Transportation .................................................................................................................................... 40 The Northern Corridors ....................................................................................................................................... 46 Trans‐Eurasian Express (TEE) ............................................................................................................................................ 46 Trans‐Siberian Railway (TSR) ............................................................................................................................................ 48 Trans‐Kazakhstan Routes ................................................................................................................................................. 55 The China Angle ........................................................................................................................................................... 64 The Southern Corridor ......................................................................................................................................... 66 AZERBAIJAN AS A REGIONAL HUB IN CENTRAL EURASIA vi TABLE OF CONTENTS The North‐South Transport Corridor (NSTC) ....................................................................................................... 74 The Western NSTC Route ................................................................................................................................................. 80 The western NSTC route: Highways ............................................................................................................................ 80 The western NSTC route: Railways .............................................................................................................................. 83 The Eastern NSTC Routes ................................................................................................................................................. 85 MARITIME TRANSPORTATION AND CASPIAN PORTS ............................................................................................................. 89 Overview ............................................................................................................................................................. 89 Caspian Ports ...................................................................................................................................................... 92 Baku .................................................................................................................................................................................. 92 Aktau ................................................................................................................................................................................ 95 Turkmenbashy .................................................................................................................................................................. 99 Astrakhan ....................................................................................................................................................................... 103 Ola .................................................................................................................................................................................. 105 Makhachkala .................................................................................................................................................................. 106 Iranian Ports ................................................................................................................................................................... 107 Anzali ............................................................................................................................................................................ 111 Amirabad ...................................................................................................................................................................... 112 Nowshahr .....................................................................................................................................................................