Turkmenistan that has the unique geographical location and access to the Caspian Sea is an important transport hub and a section of the major transit corridors. The country attaches great importance to bolstering international relations in this area. An analyst for CentralAsia.news Vadim Shagiakhmedov commented on this issue in an interview with CentralAsia.news.
Investment attractiveness of the region
The growing interest in the Central Asian states is due to their proximity to major world powers and the presence of important trade, energy and transport arteries connecting the countries of Asia, Europe and the Middle East. The five friendly republics that have been adhering to the principles of good neighbourliness, mutual respect and consideration of mutual needs for many centuries pursue a flexible and peaceful foreign policy and make every effort to transform the region into an area of a convergence of interests.
In recent years, the summits involving the Central Asian countries and the world powers have illustrated the geostrategic importance of the region, which attracts with huge reserves of natural resources, major trade routes, the ancient legacy of the Silk Road and rapidly growing markets and human potential.
The world’s leading economies are putting forward strategic initiatives for investing in promising infrastructure projects in the Central Asian countries. In January 2024, the international financial institutions announced the allocation of 10 billion euros to develop sustainable transport links in Central Asia and support investment in this sphere.
The main aim of capital injections was to facilitate the connection of China, the Caspian states, Georgia, Turkey and European countries into a multimodal, competitive, stable and active transport route. The time span between the extreme ends of this route will be 15 days.
The reason why the neighbouring regions attach particular importance to transport cooperation with the Central Asian countries is, first of all, easy and convenient access to the huge markets of Russia, China, India and Southeast Asia. From this point of view, it is very important to ensure the operational stability of international routes and provide access to energy resources and transport and logistics facilities.
Harmonious and stable relations among the Central Asian Five make the region a safe and secure place to invest in. The vast transportation network in Central Asia promotes economic growth, creates local jobs, connects people to services and bolsters regional integration.
Prospects and outcomes of investment in the Turkmenbashi port
The transportation capabilities of Turkmenistan remain the focus of attention of investors, who are discussing multilateral and bilateral projects, meetings and talks. The Turkmen delegations take part in the conferences, providing specific information on the opportunities for attracting investment in Turkmenistan’s infrastructure, and confirm Turkmenistan’s readiness to promote mutually beneficial relations with all interested partners.
«In recent years, Turkmenistan has actively invested in the multidimensional development of the transport system, including railway, road, air and sea routes. This facilitates the effective integration of our country into global transport systems. In 2015-2021, over 48 billion manats ($14 billion) were invested in Turkmenistan’s transport and communications sector,» Chairman of the Türkmendeňizderýaýollary Agency Batyr Annayev said.
The official said an important step in this regard was to increase the throughput of the Turkmenbashi international seaport to 25 million tonnes per year and improve access to the water harbours all over the world. After the facility was modernised, over 5,000 kilometres of steel roads provide reliable communication between the regions of the country and open up new transit opportunities.
Participants in economic forums and major investors are showing great interest in the capabilities of the Turkmenbashi international port — the «sea gate» of the country. The facility, put into operation in May 2018, reduced the distance and time of cargo movement and created conditions conducive to entering the commodity markets of the Middle East, the Persian Gulf and Indian Ocean basins.
The Government of Turkmenistan invested $1.5 billion in the construction of the international port. The sea harbour contributed to expanding transport corridors, boosting economic growth and strengthening relations between the Central Asian countries and other regions of the world.
With the aim of modernising and simplifying shipping procedures to meet international standards, the authorities of Turkmenistan acceded to the Conventions of the International Maritime Organisation. This will allow creating the single window system at the Turkmenbashi port that complies with the Green Port environmental standard.
The authorities of Turkmenistan have reached an agreement to attract credit funds from the Islamic Development Bank and the OPEC Fund for International Development to finance the construction of two Ro-Ro vessels and a cargo ship. These ships are in great demand to transport bulky goods over long distances; they significant saves time on loading and unloading.
The international seaport project is a strategic initiative designed to contribute to the prosperity of the region and the world. The sea harbour is a striking example of the success of the social and economic policy of President Serdar Berdimuhamedov and Hero-Arkadag Gurbanguly Berdimuhamedov aimed at uniting states and nations for the benefit of common development.
