Ambassador Cekuta: Azerbaijan’s New Silk Road provides unique ability to merge east-west, west-east routes

Azerbaijan’s New Silk Road provides a unique ability to merge east-west (and westeast) routes, as well as the new North-South Transportation Corridor, blending East Asian and South Asian products, said the U.S. Ambassador to Azerbaijan Robert Cekuta at The Silk Road Summit – 2nd Annual Conference: Exploring Business, Trade & Investment Opportunities on the New Silk Road held in Washington D.C.

He noted that from the geopolitical perspective, the United States’ strategic interest in the success of the New Silk Road concept is rooted in very practical terms: it provides a route, for example, to enable Afghan farmers and others to sell their legitimate products, the pomegranates and other fruits and nuts they had long exported.

"It will also integrate other countries in the region with each other, but I would also suggest it can strengthen these countries’ ties with the Euroatlantic community," added the ambassador.

However, Cekuta pointed out that there are practical commercial aspects as well, including the transport equipment and physical and software infrastructure needed as the countries and cities along these re-emerging trade patterns make the modern Silk Road a reality.

"As the ancient Silk Road clearly demonstrated, with established transit routes you can add local products at minimal extra shipping cost as well as moving goods efficiently from one end of Eurasia to another. Countries can determine their comparative advantage, whether in labor, energy cost, materials, or location," said the ambassador.

Azerbaijan’s location, for example, has allowed it to provide multimodal transit cargo capacity, more than doubling transit cargo by truck and rail, he added.

"This is of interest for a number of reasons. Azerbaijan is developing into an increasingly important transit hub, with several successful demonstrations of its ability to move goods between China, Central Asia, and Europe through the Alat Port. Those are important steps toward the regional vision for the New Silk Road. As an alternative overland route, Azerbaijan’s New Silk Road provides a unique ability to merge east-west (and west-east) routes, as well as the new NorthSouth Transportation Corridor, blending East Asian and South Asian products," said Cekuta. "Much of this is due to the significant investments Azerbaijan has made in its transport infrastructure, e.g., building 6,835 miles of new roads, about 300 bridges, and renovating and expanding its main roads connecting it with Georgia, Russia and Iran. Again, the investment in the new Port of Alat just south of Baku underlines Azerbaijan’s role as a key node in the transportation system."

Further, the U.S. ambassador noted that energy can also flow between Asia and European markets, for example through Azerbaijan’s Southern Gas Corridor project, which will bring Caspian molecules to the European market.

This diversification furthers regional and European energy security by ensuring competition, maximizing efficiency, and providing additional capacity, he said, adding that the Southern Gas Corridor is not only an important project for Azerbaijan, but a critical project for the energy security and political security of Europe.

"And just as the United States played a critical role in supporting the Baku-Tbilisi-Ceyhan pipeline back in the late 1990s, similarly, the United States sees this Southern Gas Corridor project as strategic. We will continue to work with the EU to support the government of Azerbaijan, the other governments in the region, and the companies involved to ensure its completion," added Cekuta.

He went on to add that increasing transportation options open up additional trade avenues for wider Central Asia and the Caspian basin, with the potential to boost prosperity, stability, and resiliency throughout the region.

"Along these same routes, energy – not just oil and gas but also electricity – can flow among Caspian Basin and Central Asian countries. The World Bank’s CASA1000 electricity project and the Asian Development Bank’s TUTAP projects help Central Asian countries generating seasonal surpluses of electricity find markets for that electricity to the south. This surplus has added 1,000 megawatts to Pakistan’s power grid, supplying power to more than 16 million people," said the ambassador.

Along with physical trade and energy, information and ideas flow along these corridors, according to Cekuta.

"This sharing of ideas sparks new development and works against narrow, violent, extremist ideologies that fester in isolation and ignorance. Increased access to information means increased education, and a broader worldview more resistant to the poison of extremism. Sharing ideas and expanding economic markets also creates opportunities for young people, women, and minorities and enhances regional stability and prosperity," he said.

Cekuta noted that beyond the economic and trade benefits, progress in implementing the New Silk Road initiatives can have positive impact on lasting stability and security.

"It opens new avenues for countries to work together, reduces barriers to full economic participation for women and other underrepresented groups, and encourages the implementation of rule of law. The ties that are created and sustained should lead to greater security and prosperity for all countries involved," he said.