Turkmenistan, being a bridge between Europe and Asia, northern and southern countries, is actively realizing its potential for the development of transport and logistics infrastructure, while the favorable location of the state opens up new opportunities for creating sustainable transport routes in the main four geographic directions.
International experts note that the “open door” policy is consistently leading Turkmenistan to the transport integration of Eurasian space through logistics, while the development of transport corridors strengthens its position as an international logistic hub.
It includes the construction of branched, complex, combined transport and transit infrastructure that cover the continental Eurasia with access to the sea terminals of the Black Sea and Baltic regions, South and Southeast Asia, and the Middle East.
There are many transport and logistics projects already implemented by the country in recent years: the construction of the Kazakhstan-Turkmenistan-Iran railway, work on the modernization of the road network, including the construction of the high-speed Ashgabat-Turkmenbashi highway, and a number of others.
In mid-2020, the President of Turkmenistan initiated a project to create a new transport corridor along the route Afghanistan-Turkmenistan-Azerbaijan-Georgia-Turkey (Lapis Lazuli Corridor).This transport project will allow participating countries diversifying their entries to regional and continental trade markets, which will support directly to strengthening of national economies, expansion of trade and economic relations and increment of volumes of trade between Central and South Asian and European countries.
Afghanistan is of special place in the world in the development of infrastructure ties.The country, which up the beginning of the 21st century had no railways and high-quality highways, is in great need of assistance, primarily from neighboring states.
And recently, in 2021, President of Turkmenistan Gurbanguly Berdimuhamedov and President of Afghanistan Mohammad Ashraf Ghani launched new infrastructure facilities.
Namely, Akina-Andkhoy railway, built in Afghanistan at the expense of the Turkmen side, a power line and two fiber-optic communication lines.These projects are aimed at integrating Afghanistan into regional and continental economic, transport and logistics ties.
It should be noted that the construction of infrastructure facilities in Turkmenistan and Afghanistan, in terms of geo-economic and geopolitical significance, is beyond the regional significance and contributes to the formation of a new belt of transport and communication links and energy supplies, connecting Central and South Asia with Europe and the Middle East.
With the commissioning of these facilities, opportunities for the effective implementation of the transit and transport potential of the two states, their interaction in the energy and communication sectors, and integration into the system of modern international economic relations are expanding.
And the President of the IRA specifically drew attention to the fact that “the implementation of these projects proves that our vision of interconnectedness and integration is not a regional dream, but an indisputable reality.”
With the involvement of Afghanistan in projects for the formation of branched transport infrastructure in the region, the state received a unique opportunity to use its geographical dividends as a transport and transit hub on the Eurasian continent.
Thus, new infrastructural facilities open up opportunities for Afghanistan to participate in world economic processes and enhance the influence and importance of Turkmenistan both in the region and on the continent.
It is worth to mention the importance of digitization of transport and logistics processes within the framework of the implementation of the Concept of the digital economy of Turkmenistan. The use of IT significantly contributes to the efficiency of tackling many issues, thereby increasing both the quality and efficiency of international economic relations.
According to international financial institutions forecast, all developed economies and most developing countries were expected to experience negative growth in 2020, and the remaining small group of countries were expected to slow growth rate to near-zero level.
At the same time, to date, the outcomes of the growth rate of the economy of Turkmenistan show very convincing values.Thus, in 2020, the growth rate of gross domestic product (GDP) is 5.9 percent, according to preliminary estimates, which is slightly less than in previous years.
As for the other countries, the forecasts were consistent with reality and came true.This indicates the stability of the national economy against various crisis and the presence of appropriate effective tools in managing the country’s economy.
The role of the private sector, the growth rate of which is even higher than the national average, should also be mentioned as it contributes much to the rapid growth of the country’s GDP.
Thus, for example, according to preliminary estimates, in 2020, the Union of Industrialists and Entrepreneurs of Turkmenistan has reached the growth rate of industrial production of about 13.5 percent, agricultural and food production of 11.0 percent.
As a result, in 2020, the share of products and services of the private sector of the economy in the GDP of the country (excluding the oil and gas sector) increased from 66 to 71 percent.
Therefore, the involvement of private business in the implementation of the tasks of creating a modern transport and logistics infrastructure is very important and promising.
For the active development of the transport and logistic infrastructure in the country, in the summer of 2020 , the private companies joined to establsi the Turkmen Logistics Association (TLA).
The Association is a public association; its activity is aimed to protect the rights and joint interests of members of the Association, to coordinate their efforts in expanding business activity in the market of forwarding and logistics services.
There are more than 90 transport and logistics companies and enterprises in the association, and from day to day, entering new members renew this list. Incorporation of members into Association is a confirmation of their high degree of proficiency, financial stability and deserved business reputation.
The list of international partners of the Association includes: The Belarusian Association of International Forwarders, Belarus; The Chartered Institute of Logistics and Transport, Kazahstan; Association for development of business logistics, Uzbekistan; Association for transport, freight forwarding and logistics organizations in Ukraine; the Regional Association of Ship-owners and Freight Forwarders of the Astrakhan region, Russia, and the Union of transport and logistics organizations and associations “Kazlogistics”, Kazakhstan.
One of the huge achievements in the activity of the Association is its accession to the FIATA (International Federation of Freight Forwarding Associations). On December 7, 2020, the FIATA General Meeting welcomed the Association as a new member; the event brought together more than 200 participants.
Thus, the involvement of public and business organizations in the creation and development of the country’s transport and logistics ties will give an additional impetus to the implementation of infrastructure projects and contribute to the creation of a single geo-economic space in Eurasia.
Turkmen Logistics Association contact details: Turkmenistan, Ashgabat, Av. А.Niyazov, Bld. 422 Phone: +993 (12) 75-40-00; +993 (12) 44-34-97; +99363557388 E-mail: info@tla.tm
Yuri ARONSKY, Chairman of the Union of Economists of Turkmenistan