BRITAIN TO CHINA BY RAIL: THE KARS-AKHALKALAKI RAILWAY
By M. Alkhazashvili
(Translated by Diana Dundua)

The Messenger, Georgia
Sept 29 2006

The construction of the Kars-Akhalkalaki-Tbilisi-Baku railway will
probably be the most significant project in the entire Caucasus,
and could bring tremendous economic dividends to the region-if it
ever gets off the ground that is.

There have been several unexpected difficulties along the way
for this 826 kilometre project. Most recently, an unnamed Turkish
official alleged that the "Georgia is deliberately delaying the start
of work on the Kars-Akhalkalaki-Tbilisi-Baku railway…Tbilisi is
creating all kinds of bureaucratic obstacles to delay the railway’s
construction. This is absolutely incomprehensible" reported the Baku
daily Zerkalo.

Surprisingly, the biggest stumbling block has come from the other
side of the Atlantic: the Senate’s Banking, Housing and Urban Affairs
Committee just passed a bill that forbids US government assiastance
to the project, after strong lobbying from the US Armenian lobby,
who argue that the railway is designed to further isolate Armenia from
the region. There is a shorter, disused route running through Armenia,
it has been closed since Turkey and Azerbaijan closed their borders
to Armenia in response to the Nagorno-Karabakh conflict.

Nevertheless, construction is due to begin in middle of 2007 and could
be completed as early as 2010. The project requires 98 kilometres of
new track be laid between Kars in Turkey and Akhalkalaki in Georgia,
30 kilometres in Georgia, 68 in Turkey. Also, the Akhalkalaki-Tbilisi
section of track must be repaired. This is estimated to cost over USD
400, Turkey and Azerbaijan say they are more than capable of meeting
the cost without US backing. The Georgian section is to be financed
with a loan from the Azeri government of USD 200 million.

This may sound like big money, but when you consider the significance
of this east west transport link-which connects railways from Britain
to china-it begins to seem like quite a small investment. Minister
of Economic Development Irakli Chogovadze says when working at full
capacity, Georgia can expect to receive USD 150 million annually from
transport fees.

Kazakhsatn and china are both excited about the project, which gives
them access to Europe much quicker than via the existing Trans-Siberian
route. The Kazakh Caspian port of Aktau is connected to the chines
border and beyond. The project also has the backing of the EU in
the form of the TRACEcA [Transport Corridor Europe Caucasus Asia]
programme it sponsors.

The railway line has huge potential to deepen integration of Turkey,
Georgia and Azerbaijan, and in turn link them more closely with Europe
and Asia. As such, it could provide a significant boost both to the
regions economy, and its international importance.