CORRECTED - UPDATE 1-Turkey, Georgia, Azerbaijan launch joint rail link

(Corrects currency of bid to lira from dollars in paragraphs two and seven) (Adds quotes, details)

By Hatice Aydogdu

KARS, Turkey, July 24 (Reuters) - Leaders of Turkey, Georgia and Azerbaijan launched a railway project between the three countries on Thursday, building on links forged by gas and oil pipelines.

At a railway station in the eastern Turkish border town of Kars the presidents of the three countries held a ground breaking ceremony for the 290 million lira ($241.06 million) Turkish section of the railway.

The three are linked by the BP-led (BP.L: Quote, Profile, Research) Baku-Ceyhan oil pipeline and the Baku-Tbilisi-Erzurum gas line but trade links between Turkey and the Caucasus region are limited.

Turkish President Abdullah Gul, Georgia's Mikheil Saakashvili and Azerbaijan's Ilham Aliyev placed three sections of railway track on a large map of the region in a symbolic launch of the project as confetti showered down.

"With this project the historic Silk Road is being reinvigorated," Gul said in a speech.

"The project is open to all countries in the region who want to contribute to good neighbourly relations, peace and prosperity," he said.

Ozgun Yapi-Celikler joint venture won the tender last September for construction of the 76-km (47-mile) Turkish stretch of the railway with a bid of 289.8 million lira, the lowest of 14 bids.