Turkmenistan builds routes towards peace and social stability

An expert Yuri Aronsky tells about Turkmenistan’s infrastructure projects as the surest way towards national, regional and continental development.

Rich natural resources, existing capacities to process them and the advantageous geopolitical location of Turkmenistan have a significant impact on the economic development strategy and its export potential. The same factors largely determine the state policy on international economic relations, opening up more opportunities for transit of in-demand natural resources and products to world markets. An economist, scientist, Chairman of the Union of Economists of Turkmenistan (UET), a member of the Coordination Council of the International Union of Economists, an expert and author of CentralAsia.news Yuri Aronsky comments on how Turkmenistan leverages its capabilities.

Multi-lane bridge of cooperation 

Today, Turkmenistan, serving as a bridge between Europe and Asia, northern and southern countries, utilises its geopolitical potential to develop transport and logistics infrastructure, while the advantageous location of the Turkmen state opens up new opportunities to build sustainable transport, energy, gas and oil pipeline routes in the four geographic directions.

Turkmenistan’s foreign economic policy is primarily aimed at cooperation with its neighbours. Moreover, its energy resources are a crucial factor contributing to economic development, and its huge estimated reserves of natural gas could pave the way for further progress. Taking a proactive stand on international cooperation, neutral Turkmenistan puts forward concrete initiatives to build an extensive transport and logistics infrastructure and successfully implements large-scale projects in this sphere jointly with foreign partners.

Pursuing open door policy

Multilateral transport and logistics cooperation is particularly relevant during the coronavirus pandemic, when the economies of Central Asia and neighbouring regions are faced with an urgent need to adapt to the challenging new environment. To do so will require new international legal mechanisms that can ensure the functioning of transport systems in emergency conditions.

International experts note that the open door policy is leading Turkmenistan towards transport consolidation of the entire Eurasian space through logistics, and the development of transport corridors strengthens its position as an international hub. Such a policy leads to mutual benefits for both the country and its neighbours, significantly facilitating trade and mutual exchange.

Nowadays, the states that successfully implement infrastructure projects often gain higher revenues from the implementation of these projects than from the sale of natural resources. Experts predicted the growth in transportation and the increasing importance of transport and logistics in the world economy a long time ago. However, the pandemic has significantly speeded up these processes, and today the transport industry has overrun perhaps, all areas, including the once ‘all-powerful’ fuel and energy sector in terms of profitability and relevance.

When speaking about infrastructure projects, we mean the development of an extensive, complex, combined transport and transit infrastructure covering continental Eurasia with access to the sea terminals of the Black Sea and Baltic states, South and Southeast Asia and the Middle East.

It is very important for Turkmenistan that ranks among the countries with the largest natural gas reserves in the world and possesses the profound oil potential, as well as a number of modern refining enterprises, to decide consistently and effectively matters related to transit of its resources to consumers in Europe and Asia.

Routes of exports and peace 

After opening the rail route between Iran and Turkmenistan through the Serahs station in late June 2020, Iran’s rail transit to Turkmenistan rose by 35%. During the second half of 2020 (July-December), 200,000 tonnes of cargo arrived in Iran from Turkmenistan.

In 2020, Turkmenistan increased the value of electricity exports by 3.2 times compared to 2019. According to the State Committee on Statistics, the physical volume of supplies increased 3.1 times. The increase in exports was a direct consequence of the successful implementation of a number of well-thought-out infrastructure projects. They are aimed at increasing electricity production in Turkmenistan to 33 billion kWh per year. Currently, the major importers of Turkmen electricity are Afghanistan, Iran and Uzbekistan.

Energy export routes from Turkmenistan open up wide opportunities for many joint projects and, therefore, for energy dialogue and diplomacy.

Turkmenistan, as an energy power with global energy reserves, pays great attention to diversified development of pipeline transportation. Turkmenistan has hydrocarbon reserves of about 71 billion tonnes of oil equivalent, of which more than 20 billion tonnes of oil and more than 50 trillion cubic metres of natural gas. The super-giant Galkynysh field with nature gas reserves estimated at 27 trillion cubic metres has the largest ‘blue fuel’ deposits.

A concrete example of how the country is boosting energy diplomacy and seeking to promote peace dialogue and sustainable economic development in line with international standards is the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, which, according to stakeholders and partners, will give a powerful impetus to economic growth in the region. Today, the neighbouring member states have made a significant progress in implementing the TAPI transnational gas pipeline project on their territory, and Turkmenistan has completed construction work on its territory. Moreover, the Turkmenistan-Uzbekistan-Kazakhstan-China transnational gas pipeline has been built and is operating effectively.

All these gas and energy projects testify that Turkmenistan is a leader in the energy industry in the Central Asia and South Caucasus region, and it is determined to facilitate dialogue and promote regional and economic integration. Turkmenistan, located in the very centre of the Great Silk Road, plays a key role in the region as a peacemaker and promoter of energy diplomacy.

Turkmenistan and the global crisis

At this time of worldcrisis caused by the pandemic, it can be said that Turkmenistan is one of the few countries in the Middle East and Central Asia, whose budgetary funds are sufficient to support economic recovery from the global crisis caused by the coronavirus pandemic. So concluded experts of the International Monetary Fund in the October 2020 Regional Economic Outlook Report.

Along with Turkmenistan, the list includes Azerbaijan, Kazakhstan, Kuwait, the United Arab Emirates and Saudi Arabia. However, the “corona crisis” has caused the public debt to increase in other countries, which led to the fiscal deterioration.

Infrastructure projects of regional and continental significance

Along with modernisation of the transport system inside the country, measures are taken to create and develop the international transit and transport corridors, such as Afghanistan-Turkmenistan-Azerbaijan-Georgia-Turkey.

The implementation of the ambitious infrastructure projects, such as the Turkmenbashi International Sea Port, the Ashgabat International Airport and the Turkmenabat-Ashgabat-Turkmenbashi highway enables Turkmenistan to become an important hub of the transnational transport and logistics system today.

The emphasis should be put on the tremendous importance of the project for modernisation and electrification of the section of the Turkmenbashi-Ashgabat-Mary-Turkmenabat railway that runs parallel to the highway. The full operationalisation of these and other facilities can instigate strategic changes in the supply chains of continental cargo transportation, for which the most optimal and profitable routes are opening.

Particular attention should be paid to the important role of digitalisation in conducting transport and logistics processes within the Digital Economy Concept for 2019-2025, initiated by President of Turkmenistan Gurbanguly Berdimuhamedov. The use of information technologies in this sphere significantly contributes to timely performing many processes and tasks, thereby improving the quality and efficiency of international economic relations.

Summarizing the above, we can note the growing role of Turkmenistan as a key infrastructure hub in Eurasia of regional and continental significance.

19 фев 2021, 08:24
Photo source: behance.net

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