CSSHEGEWISCH This is more of a geopolitical issue than a trade issue and appears to tie in with Russia's historic desire for warm-water ports. The Azeris seem to be acting as frontmen for Russian interests. For that reason, I doubt that Iran would agree with such a proposal.
This is more of a geopolitical issue than a trade issue and appears to tie in with Russia's historic desire for warm-water ports. The Azeris seem to be acting as frontmen for Russian interests. For that reason, I doubt that Iran would agree with such a proposal.
I would very much agree on the geopolitical issue, and the long, felt desire for the Russian's to develop a network of more year-round accessible (ie: warm water ports).
The point I was trying to illustrate, by implication, was that a 'new' trade route, unencumbered by potential pirate activity, and 'choke points' (Suez); not to mention, more closely controlled by the Russian government could be an international trade game changer.
Particularly, where it would concern two regional powerhouses seemingly intent on controlling the petroleum wealth that exists in that region. The fact that there is so much international trade that flows on those regional shipping lanes, trading could be altered, In the event of land conflicts in that region; a RAILROAD would allow trade to flow almost unencumbered via the land route, avoiding the less secure sea routes.
I would suspect that the long-term goals of the Russians, and the Iranians is to disrupt shipping bewteen European and American partners. The new Rissian-Iranian railroad would be a key piece in that scenario?
The article from Bloomberg Markets is linked @
http://www.bloomberg.com/news/articles/2016-08-08/russia-iran-consider-rail-link-to-snag-share-of-suez-traffic?
The proposal is for an extension of existing railroads in Azerbaijan, which are already linked to Russia, and extended into Iran. The point is to provide an overland link to provide a route overland for cargo currently, being transported by ship through the Suez Canal.
FTA:"...Azeri President Ilham Aliyev has offered to help finance the so-called North-South transportation corridor, which he touted as a project of “great importance” in connecting Europe and Asia. Rouhani earlier said Azerbaijan had agreed to provide half of the funding needed to extend the Iranian rail network to the Azeri border..."
If completed, what effects will it have on current,existing cargo shipping patterns?
Our community is FREE to join. To participate you must either login or register for an account.