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Survey of First 3,000km Rail Line Completed in Afghanistan: AfRA

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(Last Updated On: October 24, 2022)

Afghanistan Railway Authority (AfRA) says survey on the first 3,000km railway line has been completed in Afghanistan and that efforts are underway to provide further financial facilities for starting the project.

Railway projects considered to be extremely important for enhancing Afghanistan’s exports and the overall economic growth as according to AfRA it will allow Afghan products to get access to global markets.

“It [the project] consists of four corridors which would roundly cover Afghanistan,” said Mirwais Ghafoori, an official of AfRA. “[The corridors] would connect Afghanistan to its neighbors and thereafter, to global markets.”

The railway project is the most important and speedy transport alternative. It increases Afghan exports and connects Afghanistan with neighboring countries, according to the Afghanistan Chamber of Commerce and Industries (ACCI).

“Lot of works has been done so far but still it is not enough, further efforts should be made in this regard. Afghanistan Railway Authority has been successful despite being a new organization,” said Khan Jan Alokozay, deputy head of ACCI.“Now we have more facilities at Hairatan port in Mazar-e-Sharif and Aqina port [in Faryab].”

This comes as Afghanistan’s transportation and transit had heavily relied on a single country in the past. But now officials say it has many alternatives to neighboring countries and international markets.

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Turkmenistan business delegation visits Herat

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(Last Updated On: May 5, 2024)

Nokerguly Atagulyev, the head of the Union of Industrialists and Entrepreneurs of Turkmenistan, has visited Herat province for trade talks, the Ministry of Industry and Commerce announced on Saturday.

The ministry said in a statement that the purpose of the Turkmen delegation’s visit is to help reduce Afghanistan’s trade deficit, to foster commercial and economic cooperation, examine Afghanistan’s proposal for the supply of construction materials, especially marble and iron bars and for the growth of trade and transit between the two countries.

The delegation is also expected to meet with officials and private sector representatives, and visit commercial and industrial sites of Afghanistan, especially in Herat province.

The visit comes after Nooruddin Azizi, Acting Minister of Industry and Commerce’s trip to Turkmenistan. The aim is to open the first Afghan-Turkmen Business Forum and discuss the import of construction materials, especially marble and iron bars from Afghanistan.

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IEA plans regional energy trade hub with Russian oil in mind

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(Last Updated On: May 3, 2024)

The Islamic Emirate of Afghanistan (IEA) has agreed with Kazakhstan and Turkmenistan to build a logistics hub in western Afghanistan aimed at making the war-torn nation a major logistics point for regional exports, including oil from Russia to South Asia, the country’s commerce minister said.

Following a meeting between representatives of the three countries in the Afghan capital last week, IEA’s acting commerce minister Nooruddin Azizi told Reuters that technical teams would draw up a written agreement within two months on the formal plans for the hub, which all three countries would invest in after six months of talks.

As foreign aid to Afghanistan falls and the predominantly agricultural economy is marred by persistent drought, its officially unrecognised IEA government has faced questions over how to fund development and avoid economic stagnation, Reuters reported.

Azizi said the new hub was part of broader efforts to take advantage of Afghanistan’s strategic location, once a thoroughfare for the ancient Silk Road trade route, lying between South and Central Asia and sharing borders with China and Iran.

“Based on our discussions, a logistics centre is going to be established in Herat province, which can connect the north to South Asia,” Azizi said, adding that the Taliban (IEA) was eyeing the millions of tons of oil they expected Russia would be selling in coming years to South Asian countries, particularly Pakistan, to pass through the new hub.

“The three countries have done their best to prove Afghanistan’s claim as a connectivity point,” he said.

“Reaching Pakistan through Afghanistan will be the best option,” Azizi added, saying they were focused on Russia’s petroleum exports and that Kazakhstan was also planning to export goods through Herat into South Asian markets.

Kazakhstan’s trade ministry said in a statement to Reuters that it wanted to develop roads and a railway through Afghanistan to connect with South Asia and the Gulf, with the hub serving as an important logistics point.

“The creation of the hub will allow for the development of multi-modal services by consolidating truck shipments in the dry port where they will be sorted and sent along railroads on the North-South corridor to sea ports in the Gulf, Pakistan, and Indian Ocean, towards India,” the statement said.

Azizi said the logistics hub’s initial capacity would be one million tons of oil but he did not give a date for when it would be operational.

Turkmenistan’s government did not immediately respond to a request for comment and the Russian government did not respond to a request for comment during a national holiday.

Pakistan’s foreign office and energy minister did not respond to a request for comment. Pakistan is a major trading partner with Afghanistan and has signed on to regional energy connectivity agreements, Reuters reported.

However, Islamabad has had strained relations with the IEA in recent years over accusations Afghanistan is harbouring anti-Pakistan militants, which Kabul denies.

Cash-strapped Pakistan last year became Russia’s latest customer, snapping up discounted crude that has been banned from European markets due to Russia’s war on Ukraine.

Afghanistan also buys oil, gas and wheat from Russia at discounted rates.

Azizi said that the IEA was also speaking with Chinese authorities on building a road through the remote, narrow Wakhan corridor that connects Afghanistan with China and that they hoped Afghanistan would eventually develop into a route for trade between China and Iran. He said Afghan commerce ministry officials had been recently been sent to China for training.

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Aziz discusses trade issues while on visit to Iran

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(Last Updated On: May 2, 2024)

Acting Minister of Commerce and Industry of the Islamic Emirate of Afghanistan Nooruddin Azizi arrived in Iran’s Sistan and Baluchistan Province on Thursday for a meeting on facilitating the process of economic cooperation between the two countries.

The ministry’s spokesman Abdulsalam Javadakhandzadaa said Thursday the minister discussed the development of trade and transit relations between Iran and Afghanistan – but with the focus on the province of Sistan and Baluchistan.

Aziz also discussed the need to strengthen processes for goods through Chabahar port and emphasized the need to resolve issues relating to this trade route.

According to Javadakhandzadaa officials of the two countries discussed the strengthening of commercial and economic cooperation, while Azizi requested that costs be lowered for goods and for land to be made available in Chabahar to Afghan businessmen and for railway facilities to be provided.

Both sides agreed that in order to develop trade between the two countries and to strengthen transit through Chabahar, a joint technical committee would be established on a provincial level and that issues will be followed up by the central committee.

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