Transport & Logistics in Kazakhstan: An overview

When you live and work in the world’s ninth largest country, transport and logistics naturally becomes a hot topic. Kazakhstan is roughly the size of continental Europe. That means its business community is perpetually on the hunt for expert transport players to ferry vital goods across the country.

Kazakhstan’s transport and logistics sector is undergoing a quiet transformation throughout the country. Lots of cash is being pumped into the industry, under the influence of some of its largest neighbours.

Kazakhstan’s burgeoning logistics sector

Establishing a more competitive, more efficient transport industry is one of the Kazakhstani government’s key developmental goals. State run programs are in place to boost the industry – but Kazakhstan requires international cooperation and expertise to really take it off the ground.

That said, transport and logistics in Kazakhstan is enjoying growth. Total ton-to-kilometre freight turnover stood at 514.7 ton/km in 2016 – an 0.9% increase against 2015’s levels. Since 2007, where total freight luggage across all non-pipeline transport modes stood at 2.12 billion tons, overall cargoes have reached 3.72 billion.

Kazakhstan connects continents

If you are looking to move cargo throughout Central Asia, the CIS countries, or into Asia proper, then Kazakhstan makes the ideal base. It borders five nations, sits on the Caspian Sea, and is criss-crossed by a wide number of important international transport corridors.

Kazakhstan is flanked on two sides by Russia and China. Wedged in between these two giants, and their significant consumer cultures and massive economies, is a competitive advantage for Kazakhstan. Elsewhere, it is bordered by Uzbekistan, Turkmenistan, and Kyrgyzstan – ensuring connections with Central Asia, and beyond, are top notch.

These multi-modal routes have shaped Kazakhstan’s transport infrastructure – but they do allow goods to travel to Russia’s furthest reaches from the most easterly of China’s cities. Corridors bisecting Kazakhstan include:

• Northern Corridor of the Trans-Asian Railway Main (TARM) – Western Europe – China, Korean Peninsula, and Japan via Russia and Kazakhstan (Dostyk - Akogai – Sayak – Mointy – Astana – Petropavlovsk section) 
• Southern Corridor of TARM – China and Southeast Asia via Turkey, Iran, Central Asian states, and Kazakhstan (Dostyk – Aktogai – Almaty – Shu – Arys – Saryagash section)
• TRACEA – Eastern Europe – Central Asia via the Black Sea, Caucasus, and the Caspian Sea (Dostyk – Almaty – Aktau section)
• North-South Transport Corridor – Gulf States via Russia and Iran, via Kazakhstan (Aktau – Urals and Aktau – Atyrau sections)

China’s One Belt One Road project, a modern Silk Road equivalent, is ready to sweep through Central Asia with Kazakhstan placed firmly as the belt’s “buckle”. Not only does this mean billions in logistics spending, on rail and road links and logistics centres, but it means quicker transit times at a lower cost too. 

Transport infrastructure gets cash boost in Kazahstan

Transport infrastructure is getting a big cash injection. $27 billion is being spent on building new roads and highways, port construction, investment in the aviation industry, and development of rail freight.
 
Kazakhstan Railways (KTZ) recently opened the Khorgos Gateway, the world’s biggest dry port, on the border with China. This $357 million logistics hub is to capture Chinese cargoes on their way across Asia into Europe. At its peak, Khorgos is expected to handle 200,000 containers a year. Even so, Khorgos Gateway is only a small slice of  KTZ’s planned total $36.3 billion investment plan for improving connectivity with China over the next five years.

Elsewhere, along the Caspian Coast, we find a spate of port upgrades or brand new construction projects. Aktau, Kazakhstan’s only real major maritime centre, is getting a $1 billion bump courtesy of Dubai’s DP World.

Kazakhstan is also building the Kuryk freight terminal. Kuryk is expected to handle 35% of the nation’s maritime trade once finished in 2020 – and it will give Kazakhstan two major ports on the Caspian Sea as well.

By 2019, a further 37,000km of roads, either freshly built or upgraded, are estimated to be put in place. The cost, $9 billion, hints at the scale of Kazakhstan’s road construction goals. Road transportation and trucking represents the country’s second largest market segment, in terms of revenues and trade turnover. Any actions towards updating the nation’s roadways can only point towards a cheaper, more efficient transportation industry.

Meet Kazakhstan’s logistics sector at TransKazakhstan

Increased cargo flows and revenue streams are waiting to be untapped by the international transport industry in Kazakhstan. 

Trade shows, such as TransKazakhstan, are essential in connecting international transport and logistics firms with Kazakhstani partners. 

TransKazakhstan is returning to Astana for 2017 in November, celebrating its 21st successful year in bringing together foreign players with domestic companies in Kazakhstan.

If you are looking to increase the load of your own fleet of trucks, containers, railway cars, ships and aircrafts, terminals, warehouses and port infrastructure, as well as to increase sales of integrated transport and logistics services, this is the event for you. 

To get more information on TransKazakhstan, and to find out how you can take part in this must-attend event, get in contact with us today.

 

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