Azerbaijan is one of the first countries to support China's One Belt, One Road initiative, also known as the Belt and Road Initiative (BRI). The country's transport infrastructure and political stability have contributed to its importance within the project. Azerbaijan's geographical location on the East-West and North-South transportation corridors, as well as its historical role in the Silk Road, make it a significant player in the initiative. The country has invested in infrastructure projects, including roads, highways, airports, and seaports, to enhance its cargo transportation capabilities and connect Europe and Asia. The Baku-Tbilisi-Kars railway, in particular, has been highlighted as an attractive route for shorter and more reliable shipping between China and Europe.
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Azerbaijan's role in the One Belt, One Road initiative
Azerbaijan is one of the first countries to support China's "One Belt, One Road" initiative, also known as the Belt and Road Initiative. The country has directed its financial resources towards the implementation of this initiative, which aims to improve the social and economic structure in Asia, Europe, and northeastern Africa. Azerbaijan's role in this initiative is significant due to its geographical location on the East-West and North-South transportation corridors, which were historically used by Silk Road caravans.
The country has invested in infrastructure, including roads, highways, airports, and railways, to enhance its transportation network. Additionally, they have developed their seaports and created free trade zones to facilitate trade. These investments have transformed Azerbaijan into an international transportation hub, connecting Europe and Asia.
The Trans-Caspian International Transport Corridor, which includes the Baku-Tbilisi-Kars railway, provides a shorter and more reliable shipping route between China and Europe. This corridor has already begun transporting cargo between the two regions, showcasing the practical implementation of the "One Belt, One Road" initiative.
Azerbaijan's political stability and transport infrastructure contribute to its importance within the initiative. The country's leadership actively works to increase its position in cargo transportation by effectively utilising its geographical location and transport network. The friendship and cooperation between China and Azerbaijan continue to develop, fostering stronger ties between the two nations.
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The Trans-Caspian International Transport Corridor
Azerbaijan is an important part of China's "One Belt, One Road" initiative, also known as the Belt and Road Initiative. The country is geographically located on both the East-West and North-South transportation corridors, which were historically used by Silk Road caravans.
The Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, is an integral component of the Belt and Road Initiative. It is a trade route that starts in Southeast Asia and China, and runs through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey (optional) before reaching European countries. The Middle Corridor is the shortest route between Western China and Europe, and it offers an alternative to the Northern Corridor through Russia and the Ocean Route through the Suez Canal.
The Middle Corridor aims to facilitate trade and economic cooperation by connecting major economic regions through a network of railways, highways, and maritime routes. The Trans-Kazakhstan railroad, completed in 2014, and the Baku–Tbilisi–Kars (BTK) railway, operational since 2017, are key components of this route.
The transit container volume along the Middle Corridor is expected to increase significantly with related infrastructure investments. According to the European Bank for Reconstruction and Development (EBRD), the transit container volume could rise to 130,000 TEUs by 2040 with the necessary investments. However, the Middle Corridor currently faces challenges in terms of cost and efficiency, with longer transit times compared to the Northern route.
The successful implementation of the Middle Corridor depends on addressing logistical and geopolitical challenges, as well as collaboration among the countries involved. Strategic investments and international cooperation are key to unlocking the full potential of this route.
Azerbaijan's stable political environment and transport infrastructure have contributed to its importance within the One Belt, One Road initiative. The country has actively invested in infrastructure development, including the construction of roads, highways, airports, and seaports, to enhance its position as an international transportation hub.
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Baku-Tbilisi-Kars railway
Azerbaijan is a significant part of China's "One Belt, One Road" initiative, also known as the Belt and Road Initiative. This initiative is a modern version of the classic Silk Road mission, which was first put forward by the Chinese empire in the 3rd century BC. The goal was to sell Chinese-made products, especially silk, to Europe.
The Baku-Tbilisi-Kars (BTK) railway, or Baku-Tbilisi-Akhalkalaki-Kars railway (BTAK), is an integral part of the One Belt, One Road project. It is an 826-kilometre (513-mile) railway that connects Azerbaijan, Georgia, and Turkey. The railway became operational on October 30, 2017, following several delays. The project was initially supposed to be completed by 2010 but faced financial and technical difficulties. The railway provides a direct link between Azerbaijan and Turkey via Georgia, bypassing Armenia. It also provides an additional rail route between China and Europe via Central Asia, avoiding Russian territory.
The BTK railway is expected to improve economic relations and increase foreign investment between the three countries. It will also contribute to the formation of strong port infrastructure and facilitate the transportation of oil and oil products to world markets. The railway is designed to carry 1 million passengers and 6.5 million tons of freight in the first stage, with a capacity of eventually carrying 3 million passengers and over 15 million tons of freight.
The construction of the BTK railway has faced some challenges, including financial constraints and technical problems. The project was largely funded by Azerbaijan's State Oil Fund, providing loans to Georgia due to its inability to cover financial liabilities. Additionally, the section between Akhalkalaki and Kars faced delays due to issues with Turkish construction firms.
The BTK railway is a crucial link in the New Silk Road initiative, providing a faster and more efficient route for freight transportation between Asia and Europe. It is also a significant development in the region's transport infrastructure, enhancing connectivity and economic cooperation between the countries involved.
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Azerbaijan-China relations
Azerbaijan and China have a history of positive relations, with the two countries signing a joint declaration in July 2023 outlining wide-ranging areas of cooperation. China recognised Azerbaijan's independence in December 1991 and established official diplomatic channels in April 1992.
Azerbaijan is an important partner for China in its Belt and Road Initiative (BRI), also known as the One Belt, One Road project. Azerbaijan's location on the shores of the Caspian Sea, bordering Russia and Iran, makes it a critical partner in energy, telecommunications, and transportation routes that seek to connect Europe with East and South Asia without crossing Russian or Iranian territory.
Azerbaijan has actively participated in the BRI by investing in infrastructure projects such as the Baku-Tbilisi-Kars railway and the construction of a new Caspian seaport/free trade facility at Alat, including new ships connecting Alat with ports in Kazakhstan and Turkmenistan. The country has also launched the Trans-Caspian International Transport Route (TITR) or Middle Corridor, which consolidates the rail companies of China, Kazakhstan, Azerbaijan, Georgia, Turkey, Romania, and Poland to shorten overland rail travel.
Azerbaijan's role in the BRI has increased following the Ukraine war, as sanctions on Russia have made its vast rail network, previously the main east-west land route, more problematic. China is particularly interested in a second trading route to Europe via Azerbaijan, southern Armenia, the Azerbaijani exclave of Nakhchivan, and Turkey.
In addition to transportation, Azerbaijan and China have cooperated in the energy sector, with Chinese companies operating successfully in Azerbaijan and playing an essential role in developing interstate relations. Bilateral trade between the two countries has increased, although it is imbalanced, with imports from China exceeding exports to China.
Azerbaijan and China have also collaborated in the arms industry, with China selling military-defence equipment to Azerbaijan. Despite some wariness on China's part due to Turkey's expansion into the Caspian region, the two countries generally view each other as non-threatening due to their geographical distance.
Overall, Azerbaijan and China have strong and developing relations, with both countries benefiting economically and strategically from their partnership.
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The impact of One Belt, One Road on Europe and Asia
Azerbaijan's transport infrastructure and political stability have contributed to its importance within the One Belt One Road (OBOR) initiative, according to Azerbaijani MP Aydin Huseynov. Azerbaijan was also one of the first countries to support the initiative. The country's leadership is carrying out the necessary work to increase its positions in cargo transportation in the region and worldwide by effectively using its geographical position and transport and transit infrastructure.
OBOR, also known as the Belt and Road Initiative (BRI), is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in more than 150 countries and international organisations. The initiative is considered a centerpiece of Chinese President Xi Jinping's foreign policy.
The impact of OBOR on Europe and Asia includes:
Europe
- Several European countries have shown differing trends in their perceptions of and engagement with the initiative. The UK is relatively on the outskirts, while Greece and Balkan countries are more involved and active.
- Negative media coverage of Chinese sociopolitical issues in Europe has impeded deeper engagement with the initiative.
- Many European countries do not separate politics from economics and thus view OBOR as both an economic program and a political agreement. This unclear vision is seen as an obstacle to the initiative's success in these countries.
- There are misconceptions in Europe about the initiative's vision and implications, and many European countries feel disconnected from it.
- Coordinating EU law with the initiative could be difficult, and the degree of Chinese companies' involvement has raised questions about labour division and human rights.
- The initiative has been incorporated into the development strategies of several European countries, including Italy and Greece.
Asia
- The initiative has been praised for its potential to boost the GDP of developing countries in Asia.
- It has also been criticised for human rights violations, environmental impact, and concerns of debt-trap diplomacy and neocolonialism.
- The initiative has resulted in increased investment and infrastructure development in several Asian countries, including Pakistan, Nepal, Sri Lanka, Bangladesh, and Afghanistan.
- It has also led to the development of new markets for Chinese firms, excess industrial capacity overseas, and increased access to resources.
- The China-Indochina Peninsula Economic Corridor, one of the six economic corridors under the initiative, will run from Southern China to Singapore.
- The Trans-Himalayan Multi-dimensional Connectivity Network will turn landlocked Nepal into a land-linked country.
- The initiative has been positively received by the public in Thailand.
- The Bangladesh-China-India-Myanmar Economic Corridor was initially classified as closely related to the Belt and Road Initiative but has since been dropped due to India's refusal to participate.
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Frequently asked questions
The "One Belt, One Road" initiative, also known as the Belt and Road Initiative (BRI) or the Modern Silk Road project, is a large-scale infrastructure and economic development project led by China. It aims to connect China with Europe, Africa, and Asia through the development of transportation networks and other infrastructure.
The "One Belt, One Road" initiative was first announced by Chinese President Xi Jinping in 2013.
The initiative is considered the largest strategic project in the world today, with the potential to impact social and economic structures in Asia, Europe, and northeastern Africa. It affects three-quarters of the known energy reserves in the world and is expected to cover 62% of the global population and 40% of its economic output.
Azerbaijan is one of the first countries to support and contribute to the "One Belt, One Road" initiative. It serves as a leader in the region and is geographically located on important transportation corridors. Azerbaijan has invested in infrastructure projects, such as the Baku-Tbilisi-Kars railway and the Baku International Sea Trade Port, to enhance its role in the initiative.
The initiative provides Azerbaijan with opportunities to develop its non-oil sector, enhance its international transportation and transit capabilities, and promote trade, tourism, and international cooperation. It also contributes to political stability and peace in the Eurasian region.