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    Central Asia
     Jan 11, 2012


Afghan rail link marks a break-out moment
By Fozil Mashrab

TASHKENT - The commissioning last month of the 75-kilometer railway line from Hairatan on the Uzbekistan border to Mazar-e-Sharif in Afghanistan is being hailed on both sides of the border. Seen as the start of Afghanistan's first rail network, it is creating openings for a stronger local economy and increased regional trade.

The railway line's chief financier, the Asian Development Bank (ADB), is confident that this relatively short stretch of railway will help Afghanistan to redefine its role in the region and in the world by unlocking its previously untapped trade potential. That is crucial in putting the Afghan economy on a sustainable footing as troops from the United States and the North Atlantic Treaty

 
Organization prepare to withdraw from Afghanistan by 2014.

Construction of the line was agreed by Afghanistan, Uzbekistan and the ADB in 2008 as part of the ADB-sponsored Central Asian Regional Economic Cooperation (CAREC) program. This envisages interconnecting Central Asia with South Asia and Europe through a web of inland highways and railway lines to boost trans-regional trade and help landlocked Central Asian countries secure access to open sea ports.

The ADB provided a US$165 million grant and the Afghan government paid $5 million into the project. Uzbekistan's State Railways Company (USRC) was contracted to construct the line. Work started in January 2010 and was completed by November that year, well ahead of the scheduled deadline of mid-2011 - and even before Uzbek and Afghan bureaucrats could finish the necessary paperwork and reach an agreement on the terms and conditions of exploiting the line.

A successful first "test drive" was carried out in the middle of last month, although freight traffic was reported to have used the line as early as August.

USRC's offshoot "Sogdiana Trans" will be responsible for exploiting the Hairatan-Mazar-e-Sharif railway line for the initial three years, according to the agreement between the two countries. During this time, USRC will assist Afghan counterparts in creating necessary infrastructure to maintain and service the line, trains and locomotives so that future Afghan railway engineers and mechanics can take over the job smoothly.

The line will initially be used only to transport "commercial and non-lethal cargo". Theoretically in the not so distant future, Afghan passengers could be allowed to take a ride to cities such as Samarkand, Bukhara and Khiva in Uzbekistan and travel even further to Russia or beyond.

Before the commissioning of the line, most of Afghanistan's imports from Central Asia already came through Uzbekistan, with some also coming through Tajikistan and Turkmenistan.

ADB's vice president Juan Miranda said the line will significantly raise the capacity to handle goods at the Uzbek-Afghan border from the current 4,000 tonnes per month to 30,000-40,000 tonnes per month. Afghanistan-bound cargo was often held up at the Uzbek side of the border as all containers arriving through the extensive Uzbek rail network had to be transferred to trucks, which will no longer be necessary until inside Afghanistan after the line terminates.

The ADB is optimistic that gradually with the development of the Afghan economy, especially its mining and agricultural sectors, the flow of material will be both ways. The withdrawal plans for US and NATO troops will certainly result in outgoing traffic for this new line.

Before then, the line will increase Uzbekistan's strategic importance for US and Western countries as a base for logistical supplies to their troops in Afghanistan through what is known as the Northern Distribution Network (NDN).

The US government's relations with its erstwhile "frontline ally" Pakistan are in deep crisis following the "friendly fire" incident in November when a NATO air strike killed 24 Pakistani soldiers and injured many others.

The Pakistan government has retaliated by "permanently stopping" the transit of US and NATO logistical convoys through its territory to Afghanistan, leaving thousands of trucks carrying supplies stranded in Pakistan. That leaves Uzbekistan - and the Hairatan-Mazar-e-Sharif railway line - as the major life line for the US to deliver supplies to its troops to Afghanistan.

Around 75% of all the logistical supplies to US troops in Afghanistan is already being transported through the NDN, of which 90% crosses into Afghanistan from Uzbekistan, according to US officials.

The new line fits into US government's new strategy for integrating Afghanistan with other countries in the region so that the Afghan economy will be on a more sustainable footing in the aftermath of the withdrawal of Western troops, which might also result in a sharp reduction in foreign aid to the country.

This US strategy has been attractively packaged as a "New Silk Road", recalling the "the Great Silk Road", an ancient overland network of trading routes that started in China and India and ran all the way to the Middle East and Europe though Afghanistan and Central Asia. This was the world's main trading artery before Portuguese sailors discovered the sea route to Asia in the 16th century.

Initially, when the US government unraveled its "New Silk Road" strategy, many regional heavyweights such as Russia and China suspected a hidden agenda. Some regional observers also suggested this new strategy was meant to pry away mineral-rich Central Asia from under Russian and Chinese influence.

However, the recent developments on the ground suggest that the "New Silk Road" has been gaining increasing acceptance not only from the landlocked Central Asian countries eager to diversify their trade ties and open access to open-sea ports but also from Russia and China, which have been increasing their exports to Afghanistan.

The withdrawal of US and NATO troops and Afghanistan's integration into regional economies will likely lead to increased Russian and Chinese economic and political influence in Afghanistan. China has already made the single-largest foreign investment in Afghanistan's history by securing the rights to develop the Aynak copper mine, one of the world's largest. Chinese companies plan to build their own railway line to bring out Afghanistan's mineral resources developed by Chinese mining companies.

Russia remains the largest trading partner for Central Asian countries (with the exception of Turkmenistan, whose largest trading partner is next door Iran) and their largest military partner, but China is an increasingly major source of foreign investment and various manufacturing technologies.

Construction of the Hairatan-Mazar-e-Sharif line will increase Afghanistan's exposure to and awareness of its northern neighbors, which have strong secular traditions and have by and large accepted modernity with the prospect of building democratic societies in their respective countries.

Afghanistan's ties with its northern neighbors have been extremely limited in the past several decades, with the country exposed mainly to Pakistan, Iran and some other oil-rich Arab countries, which saw Afghanistan with a view to furthering their own ideological and political agendas.

Mazar-e-Sharif is now set to be transformed into a bustling inland trading and transportation hub, with the creation of thousands of jobs and opening new opportunities for various businesses, potentially boosting Afghans' morale and confidence in their own future.

As trade and economic ties with northern neighbors expand, Afghanistan's previously often crippling dependence on Pakistan and Iran for trade will become history. Already, Kazakhstan, Russia, Turkmenistan and Uzbekistan are supplying the lion's share of Afghanistan's imports of petroleum products, although Iran and Pakistan remain significant sources for petroleum supplies.

At present, Afghanistan's capital, Kabul, receives electricity from Uzbekistan 24 hours a day while Turkmenistan and Tajikistan are exporting electricity to light up other parts of the country.

Uzbekistan is also gaining from the new line. Its successful construction showcases the country's increasing industrial and engineering strength, developed over the 20 years of its independence under President Islam Karimov, and marks the coming of age of one of its national champions - Uzbekistan State Railways Co.

The hard currency earned by USRC by constructing and operating the Hairatan-Mazar-e-Sharif line could help cover various rail-related projects that will increase the Uzbekistan domestic railway system's capacity to transit international cargo to its other neighbors.

Recent links already commissioned by the Uzbek government include the 223 kilometer, $150 million-plus Tashguzar-Baysun-Kumkurgan line (2008), connecting the country's two largest southern provinces, bordering Afghanistan, with central Uzbekistan without having to cross the territory of adjacent countries. Two Spanish-made fast-trains connect the capital, Tashkent, to the ancient city and popular tourist destination of Samarkand.

The efficient and punctual construction of the Hairatan-Mazar-e-Sharif line means USRC is the likely partner of choice for future railway projects in Afghanistan. The ADB has already drafted plans to extend the Hairatan-Mazar-e-Sharif line to Herat, at a cost of $500 million. A link is also proposed to run from Mazar-e-Sharif to Kabul and onto the eastern border town of Torkham, connecting with Pakistan Railways.

USRC will nevertheless face competition - ambitious plans are reportedly being developed by an Indian mining consortium for a line crossing the center of Afghanistan to the Iranian coast.

Construction of the Hairatan-Mazar-e-Sharif line demonstrates how Afghanistan's neighbors in practice, and not just in words, contribute to the normalization of life in Afghanistan - even if, as some critics say, Uzbekistan's approach and contributions have been rooted in pragmatism.

Fozil Mashrab is a pseudonym used by an independent analyst based in Tashkent, Uzbekistan.

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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