Identifier
Created
Classification
Origin
09ASHGABAT428
2009-04-06 12:54:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

TURKMENISTAN: PORT AT TURKMENBASHY TO GET FULL

Tags:  PGOV ECON EINV TX 
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DE RUEHAH #0428/01 0961254
ZNR UUUUU ZZH
P 061254Z APR 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 2597
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
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UNCLAS SECTION 01 OF 02 ASHGABAT 000428 

SENSITIVE
SIPDIS

SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER

E.O. 12958: N/A
TAGS: PGOV ECON EINV TX
SUBJECT: TURKMENISTAN: PORT AT TURKMENBASHY TO GET FULL
RENOVATION

UNCLAS SECTION 01 OF 02 ASHGABAT 000428

SENSITIVE
SIPDIS

SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER

E.O. 12958: N/A
TAGS: PGOV ECON EINV TX
SUBJECT: TURKMENISTAN: PORT AT TURKMENBASHY TO GET FULL
RENOVATION


1. (SBU) SUMMARY: The port at Turkmenbashy will soon
undergo a complete renovation that will modernize and expand
its facilities and capacity as the largest Central Asian
port. Port authorities say there will be a new ship repair
yard and new cargo handling facilities. In the longer term,
a major cargo handling and processing facility is planned,
and there is interest in buying more cargo and tanker ships.
The renovation is probably a good idea, but expansion of the
port's footprint further inland could adversely impact the
more historically interesting parts of the old city. END
SUMMARY.


2. (SBU) POLOFF met on April 1 with the deputy
representative of the Turkmen Marine and Riverways
Administration in Turkmenbashy to learn about ongoing
developments regarding the city's port. The representative
said Turkmenbashy was the largest seaport in Central Asia,
and that demand for its services was growing rapidly. It has
two piers, and some 900,000 tons of cargo came through it
last year. He claimed that some 70 foreign tankers come
through the port each month, as well as some 150 dry cargo
ships.


3. (SBU) The Administration currently operates one oil
tanker that moves crude from Turkmenbashy to a quay at the
southern coastal town of Ekerem, from where the oil is then
taken aboard by private tankers. The Administration is also
currently operating one dry cargo ship, which was recently
refurbished at the shipyard in Astrakhan, but two others will
be brought online soon. He mentioned the regular operations
of the Azerbaijani rail ferry, which takes rail cars, truck
cargo and passengers between Turkmenbashy and Baku.


4. (SBU) The representative said there were plans to
completely refurbish and modernize the port's facilities and
to add some new facilities in the next few years. The
project is estimated to cost 2.5 billion Euros, he noted.
Plans include modernization of the piers and heavy cargo
transport equipment, and addition of a shipyard that will
initially handle ship repairs. The tender, he said, had
already been announced, and decisions would be made in July

2009. When asked who the main commercial competitors were
for the contract, he said there were multiple companies that
were interested, including Turkish and South Korean
companies, but the Turkmen government is receptive to all
interested parties.


5. (SBU) He said they had no plans now to purchase any
ships, since the infrastructure was not yet ready to handle
an increase in operations. The first priority would be to
modernize existing facilities and build a shipyard, then in
the longer term the Administration was planning to develop a
logistics center to handle large-scale on- and off-load of
dry cargo. Additional tankers and cargo ships would be
considered after these goals are achieved, he said.


6. (SBU) COMMENT: Although much of the port's facilities
appear to have been fairly recently refurbished, it appears
the central government is intent on completely overhauling
it. Once completed, it should be able to handle the growing
amount of largely imported cargo and the variety of petroleum
products that move through it. However, the port is tightly
enclosed by the streets of the old part of the city. If
plans include a substantial expansion of the port's
footprint, it could mean demolition of historical elements of
the old city, some buildings of which are more than 80 years
old. Time will tell how the reconstruction will be carried
out. END COMMENT.

ASHGABAT 00000428 002 OF 002


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