/REUTERS, Astana, Raushan Nurshayeva, May 24, 04/ - Kazakhstan considers building new railways with "thin" gage accepted in Europe from China to Beineu station in Western part of the country in order to boost cargo flow from China to Europe, Transport and Communications Minister told.

According to Kazhmurat Nagmanov, there are two possible options for building railways: either to Iranian sea-ports or Turkey.

He did not mention costs and terms of the project, though noted that railways would help to cut the distance and transportation time from Chinese Lyunyangan port to European Rotterdam to 18 days from current 50.

In former soviet republics rail gage is 1,520 mm in width, whereas in Europe and China it equals 1,435 mm and trains full of cargo from China have to replace wheels twice when taking across CIS countries.

"I'm probably speaking of crazy, somewhat ambitious or even superambitious (project). We recalled the Silk Way", Nagmanov told presenting his plan to the Parliament.

"The projects assumes 3,070 km across our territory", he added.

The railway may stretch through Kazakhstan, Iran and Turkmenistan.

Nagmanov told that new railway construction would probably be undertaken at the expense of private funds. Railways will be built near existing ones since it would help to reduce costs.

"If 15 million tonnes of cargo go through that line (from China to Europe), investments will be paid back in 12 years", he told.

According to Nagmanov, Chinese as well as Iranian colleagues have already expressed their interests in project. Turkmenistan where the line is expected to have a length of 700 km promised to produce an opinion by July 1.

Kazakhstan with the economy highly reliant on oil exports tries best in its diversification.

"Oil reserves will occupationally be emptied, but inducement of trade between Eastern Asia and Europe could be a source of income", Nagmanov said.

[2004-05-24]