CENTRAL ASIAN NORTH-SOUTH RAILWAY LINE: A LOT OF

UNCLAS ASHGABAT 000077 SIPDIS SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB E.O. 12958: N/A TAGS: PGOV PREL ECON ELTN IR KZ TX SUBJECT: CENTRAL ASIAN NORTH-SOUTH RAILWAY LINE: A LOT OF HOPE, NOT A LOT OF PLANNING REF: 07 ASHGABAT 1393 ¶1. (U) Sensitive but unclassified. Not for public Internet. GREAT HOPES RESTING ON NORTH-SOUTH LINE ¶2. (SBU) Head of the Ministry of Railway Transportation International Affairs Department Annamurat Horantsanliyev met january 7 with EconOff to discuss the Kazakhstan-Turkmenistan-Iran North-South railway line. Horantsanliyev is coordinating Turkmenistan's construction of the new railway line. He explained the North-South line is an important project for Central Asian countries because a railway line with direct links to Iran or Turkey is the only option for Central Asian countries interested in expanding their trade routes to Europe. He added that Kazakhstan, Turkmenistan, and Iran would soon hold discussions on matters such as monthly cargo capacity, limitations, and predictions. The countries will also discuss track gauge. (NOTE: The new North-South line will transport passengers and cargo. Currently, Turkmen trains to Iran transport only cargo. To travel within Iran, on a different size gauge, Turkmen trailers must be lifted by cranes onto the Iranian tracks in a multi-hour process. END NOTE.) So far, the three countries have not decided on a meeting place or time, although Horantsanliyev said that they would schedule meetings "perhaps this month." Horantsanliyev claimed that the European mass media features the North-South line on the news. "WE'LL SEE WHAT IRAN OFFERS, AND WE'LL LISTEN TO ALL OFFERS" ¶3. (SBU) Horantsanliyev said, "We will see what they (Iranian officials) offer, and we'll listen to all offers. It's possible that the Ministry of Railroad Transportation will build it itself." He aded Kazakhstan, Turkmenistan, and Iran will discuss all construction aspects of the project at the upcoming meeting as well. Horantsanliyev said that the Government of Turkmenistan already announced tenders for the purchase of construction materials. ¶4. (SBU) COMMENT: The Government of Turkmenistan has great hopes that the North-South railway line crossing Kazakhstan, Turkmenistan, and Iran will increase economic activity. However, the three countries still have many barriers to overcome before construction can commence. It appears that they announced construction before they came to agreement on important details, such as cargo capacity and track gauge. Given the potential for protracted negotiation between the neighbors (especially between Iran and Turkmenistan, which are currently engaged in an increasingly noisy gas price war -- see septel),this may not be a simple matter. END COMMENT. HOAGLAND