Vladimir Norov: “The goals and objectives of the Caspian format and the SCO largely overlap, as do their histories.” The SCO Secretary-General’s address to the First Caspian Forum participants in Turkmenistan

On 12 August 2019, SCO Secretary-General Vladimir Norov addressed delegates at the First Caspian Forum, held in the Avaza tourist area (Turkmenbashi, Turkmenistan).

Located in the centre of a major transit corridor between Europe and Asia, Turkmenistan has initiated a number of large-scale international and regional projects. "The fact that the forum is taking place in the tourist capital of Turkmenistan attests to the successful socioeconomic development of the Turkmen people and their substantial contribution to the common efforts in strengthening the relations between the Caspian states," Vladimir Norov commented.

The SCO Secretary-General stressed that the Caspian format was becoming one of the key players in geopolitical and economic processes, and the Caspian region is building a transit hub that is not simply of regional but of global importance, encompassing maritime, land-based and energy routes.

Vladimir Norov drew the forum attendees' attention to the 2014 SCO Agreement on Creation of Favourable Conditions for International Road Transport that legally established parity terms for road carriers and laid a solid foundation for unobstructed international motor transportation between Eastern Europe and China's coastal area.

Currently, with the aim of creating successfully functioning transit corridors, the SCO member states are negotiating the approval of documents on developing roads, building a system of integrated transit operation management and arranging coordination between the national railway service agencies.

It is important to involve Afghanistan in the development of regional traffic arteries, which will no doubt serve as another factor in stabilising the situation in the country.

The Secretary-General emphasised the need to streamline customs and visa procedures in the region and to synchronise and increase the efficiency of border checkpoints as well as to adopt information and communications technologies. "Efficient use of the transit opportunities across the vast Eurasian space by means of eliminating various barriers and developing the necessary institutional foundation for integrating infrastructure projects of the SCO member states and the Caspian region will, undoubtedly, support both the economic and social progress of our countries and peoples," Vladimir Norov said.

The Secretary-General highlighted that "over the period of its operation, the SCO has won recognition as a respected and influential international organisation and it is proactive in its communication and collaboration with other states and multilateral associations."

Below is the text of the SCO Secretary-General's remarks:

Mr Berdimuhamedov,

Your Excellencies,

Ladies and Gentlemen,

First of all, allow me to express my deepest gratitude to the organisers for creating favourable conditions for productive work at the Forum and for their warm hospitality.

With its central position in one of the largest transport corridors between Europe and Asia, Turkmenistan has more than once initiated major international and regional projects.

The fact that this Forum is being held in the tourist capital of Turkmenistan attests to the country's successful socioeconomic development and its significant contribution to the common efforts to strengthen ties between the Caspian states.

The Forum agenda, aimed at the development of regional trade, economic and investment cooperation between the Caspian states, is highly relevant and well-timed.

It can now be confidently stated that the Caspian Five meetings have established themselves as a reliable multilateral format, with activities based on the principles of equality and mutual consideration for the interests of others, respect and mutually beneficial cooperation, and the strengthening of the centuries-old traditions of neighbourly friendship and partnership.

We express full support for the position of the leadership of Turkmenistan on the relevance of close partnership between the Caspian states and international organisations, on the basis of their community and continuity awareness.

The goals and objectives of the Caspian format and the Shanghai Cooperation Organisation coincide in many respects, as does the history of their development — from collaboration on cross-border issues to multifaceted cooperation.

Four of the Caspian states are members of the SCO family, which is promising for mutually beneficial cooperation between the two associations.

Over the period of its activity, the SCO has gained a foothold among the authoritative and influential international and regional organisations and is actively developing dialogue and cooperation with other states and multilateral associations.

Forum participants,

Today, Caspian Sea countries are marking the anniversary of the signing of the Convention on the Legal Status of the Caspian Sea, which opened up new opportunities for the coastal countries in connection with the implementation of important projects related to the provision of regional security and the development of trade, economic and cultural relations.

The Convention implies that the Caspian Sea states have assumed responsibility for maintaining security in the region.

In this context, I would like to note that while taking up a vast space in Eurasia, the SCO has achieved success in providing security and stability in our region.

In this regard, we consider it important to use the potential we have in order to strengthen peace and stability in the Eurasian space, as is necessary for the improvement of the wellbeing and sustainable development of our countries and peoples.

Ladies and gentlemen,

Today the Caspian format is definitely becoming one of the key participants in geopolitical and geo-economic processes. The Caspian region is building a transport and transit hub, which has not only regional, but also global importance, encompassing maritime, land-based and energy routes.

The agreement on transport cooperation, signed by the governments of the Caspian states, facilitates the formation of a common integrated infrastructure and opens up new opportunities for reaching the markets of Europe, the Middle East and the Mediterranean ports for the countries of the region, including Central Asia, the core of the SCO.

At the same time, the formation of the North-South international transport corridor as an important transit route between the countries of Northwestern Europe, the Caspian Basin, the Persian Gulf, Central Asia, South Asia and Southeast Asia, which also involves SCO countries, will broaden the opportunities for European-Asian cargo shipments, using a shorter and cheaper route.

The agreement on creating favourable conditions for international motor transportation signed by SCO member states in 2014 created the necessary legal framework for road haulers and laid a solid foundation for unhampered international motor transportation from Eastern Europe to China's eastern coast.

In 2018, Belarus, an SCO observer country, joined the agreement.

In order to create efficient transit corridors, work is currently underway to formalise documents on the development of roads, the creation of a system of integrated management of cargo transportation and the interaction between SCO railway agencies.

There have been over 13 million km roads laid in the SCO countries, which is almost 20 percent of all the roads in the world.

Over 244,000 km of railways in the SCO countries facilitate the development of regional transport interconnectivity.

We are witnessing a gradual growth in railway cargo transportation from China to Kazakhstan, Russia and then Europe, Central Asia, the Caspian region and the Persian Gulf.

For instance, the volume of goods transported by rail across two railway passes on the Kazakhstan-China border grew by 38 percent in 2018, reaching 14 million tonnes.

It is important to note that the SCO serves as an effective platform for linking China's Belt and Road Initiative with Central Asian countries' national economic development strategies, opening up the possibility of direct access to seaports.

The integration of the Eurasian Economic Union and Belt and Road creates the conditions for the development of a wider transit zone for cargo flows from Asia to Europe and back.

As President of Russia Vladimir Putin said at the 2nd Belt and Road Forum, the modernisation of the Trans-Siberian and Baikal-Amur railways will increase annual freight traffic to 210 million tonnes by 2025.

At the same time, every year, more than 23 million containers move between China, Southeast Asia and Europe.

The volume of container transportation from China to Europe is more than 40 times higher than in 2010, but only 1 percent of it is transported by rail, the remaining 99 percent being shipped by sea.

It should be borne in mind that according to Chinese President Xi Jinping's statement at the first China International Import Expo in Shanghai last year, 15 years from now, China's imports will grow to $30 trillion compared with over $2 trillion in 2018.

Naturally, that country's exports can increase just as much.

Furthermore, the fast growth of e-commerce at the regional and global levels is bound to greatly amplify the need for the fast delivery of goods to consumers, primarily by rail.

In this situation, the SCO and the Caspian countries will need to address a number of existing issues before they can increase rail transportation.

First of all, they will need to accelerate the decisions on the construction of the Uzbekistan-Kyrgyzstan-China railway, which President of Kyrgyzstan Sooronbay Jeenbekov and President of Uzbekistan Shavkat Mirziyoyev announced at the SCO summit in Bishkek on 14 June. In the future, this railway is expected to become one of the important links in the SCO transport network under the East-West project.

It is important to involve Afghanistan in the development of regional transport routes, which will undoubtedly serve as another factor in stabilising that country.

At the same time, joint efforts should be focused on developing the infrastructure of logistics centres, which would link various types of transport; on upgrading the existing networks and transport facilities; and accelerating the harmonisation and unification of transport standards and phytosanitary rules.

Particular effort is required to simplify customs and visa procedures, as well as to synchronise and increase the efficiency of checkpoints at state borders, and to introduce modern information and communication technologies.

The effective use of the vast Eurasian space's transit opportunities by removing various barriers, as well as by forming the necessary institutional basis for linking the infrastructure projects of the SCO member states and the Caspian region, will undoubtedly contribute to the economic and social progress of our countries and peoples.

Colleagues,

In conclusion, I would like to once again express my gratitude to the organisers of the event for the invitation, and wish all the Forum participants great success, fruitful work and the achievement of their goals.

Thank you.