Central Asia

Kazakhstan Becomes Transport and Logistics Power through Five Major Projects

Kazakhstan plans to build several transport and logistics hubs (TLH) in the next few years. The Ministry of Transport revealed details to LS.

According to the Ministry of Transport, work on their creation is being carried out within the framework of the concept for the development of the country’s transport and logistics potential until 2030.

In total, it is planned to create five TLHs.

Firstly, a goods processing hub, the Industrial Trade and Logistics Complex (ITLC), will appear on the border with Kyrgyzstan. Its commissioning is scheduled for the third quarter of 2026. The Ministry of Trade and Integration has fully completed the procedures for accepting the documents necessary for the construction of the complex.

A tripartite memorandum on investment in the ITLC infrastructure, with Joint Technologies acting as an investor, as well as an intergovernmental agreement on the creation and regulation of the activities of the complex, which is the legal basis for the implementation of the project, have already been signed.

Akimat of the Zhambyl region carries out work on project implementation.

 

Azerbaijan and Kazakhstan Figure Big in Middle Corridor – Expert

Azerbaijan and Kazakhstan play a key role in the Trans-Caspian International Transport Route (TITR, or the Middle Corridor).

“Azerbaijan and Kazakhstan are key states, without which this route could not function,” the expert emphasized.

According to the expert, Kazakhstan is the only country in Central Asia with a suitable infrastructure for transit within the Middle Corridor.

“At the same time, only Azerbaijan has the necessary access to the Caspian Sea. Both Azerbaijan and Kazakhstan are indeed investing in expanding the route and will likely continue to do so,” the expert noted.

The expert mentioned that Azerbaijan and Kazakhstan should direct their investments within the framework of transport routes specifically to the Middle Corridor.

“An important indicator that will be determined in the coming years is whether Azerbaijan and Kazakhstan are able to put in place robust mechanisms to ensure continued investment in the Middle Corridor to diversify their export routes,” the expert added. 

 

Kazakhstan Starts Constructing New Railway Line to China

The construction of a new railway line Bakhty – Ayagoz with a length of 272 km has started in Abay region, Trend reports.

The project is being implemented within the framework of execution of the instruction of the President of Kazakhstan Kassym-Jomart Tokayev and is aimed at increasing the transport and transit potential of the country. Within the framework of the project, it is also planned to commission the third border crossing point with China, Bakhty – Chuguchak.

This new railway line will significantly increase the capacity between Kazakhstan and China from 28 to approximately 48 million tons and relieve congestion at southern border crossings, thereby attracting additional transit volumes. It is planned that the double-track railway will be put into operation by 2027.

The project will be implemented with the participation of a private investor under a public-private partnership (PPP) business model. The project makes provisions for the construction of 11 stations, 47 bridges, 23 railway and 8 road overpasses, as well as 5 pedestrian bridges and 16 inspection facilities. 

 

Kazakhstan's President Calls EAEU Countries to Further Develop North-South Transport Corridor

The EAEU acts as a strategic link connecting the entire Eurasian region, and the member states have every opportunity to consolidate this status.

As Trend reported on Tuesday, it was communicated by the President of Kazakhstan Kassym-Jomart Tokayev during his speech at the meeting of the Supreme Eurasian Economic Council.

“First and foremost, the focus is on the development of the North-South corridor with access to the countries of the Middle East, Iran, Pakistan, and India. In this regard, it is gratifying to note that the Kazakh initiative to launch the Chelyabinsk – Bolasak – Iran route is finding practical implementation. On our part, we are prepared to reconstruct the “bottlenecks” in our railway and road networks. This pertains to the Beineu – Mangystau, Makat – Kandyagash railways and the Beineu – Shalkar section of the highway,” he emphasized.

According to Tokayev, a joint venture of logistics companies from Kazakhstan, Russia, and Turkmenistan is being established for the further development of the corridor.

 

Kazakhstan Sees Rail Transit Traffic Increase to 25 Million Tons

The volume of Kazakhstan’s rail transit traffic has reached up to 25 million tons in 2023, Trend reports.

According to the results of 11 months of this year, the volume of transit traffic increased by 19%, reaching 24.8 million tons. The positive dynamics of containerized freight transit amounting to 1 million 180 thousand.

To strengthen its position in the distribution of transit flows, Kazakhstan is working on infrastructure improvement. In particular, the construction of the second track on the Dostyk–Moyynty section continues, which will ensure a five-fold increase in the capacity of the section.

This year, the implementation of three major projects has been commenced:

1. The Barbara–Maktaaral railway line will increase the capacity of border crossing points with Central Asian countries by 10 million tons per year.
2. A bypass railway line past the Almaty station is currently under construction, which will reduce cargo delivery times by 24 hours.
3. A new railway border crossing point Bakhty – Ayagoz is under construction, which will increase the throughput capacity between Kazakhstan and China by 20 million tons per year.

Kazakhstan Sees Passenger and Freight Transport Increase

In the period from January to November 2023, 18.2 million passengers were transported by Kazakhstan's railway transport, which is 1.8% more than during the same period last year.

The highest traffic volume was recorded in the capital – Astana, where the number of passengers reached 5.1 million people, which is 16.5% more than last year. It is followed by the Aktobe region (1.7 million people) and the Kyzylorda region (1.5 million people). The lowest number of passengers was observed in the Almaty region.

The total passenger turnover in Kazakhstan amounted to 14.9 billion passenger-kilometres, which is 1.6% less than in the previous year.

According to the results for eleven months of this year, the volume of rail freight transport amounted to 380.6 million tons, which is 2.2% more than last year.

The largest volumes of freight transport were observed in the Karaganda region (43.8 million tons), the Pavlodar region (37.5 million tons) and the Aktobe region (36.4 million tons), and the lowest – in the Almaty region (5.4 million tons), the West Kazakhstan region (5.2 million tons) and the Turkestan region (5.1 million tons).

 

Dragon Beats Bear: China Overtakes Russia in Trade with Kazakhstan

China has become the main trading partner of Kazakhstan, overtaking Russia, LS reports.

During the period from January to October 2023, foreign trade reached $114.1 billion, which is 2.6% more than during the same period last year.

Sales between Kazakhstan and China increased the most – by 23.8%, to $24.3 billion. For the first time in a long time, China became Kazakhstan’s main trading partner.

China's first competitor is Russia. Trade turnover with Russia reached $21.3 billion during ten months of last year, but decreased by 2% compared to 2022.

Next comes Italy with $13.1 billion, and the changes in turnover are insignificant (+0.7%). Trade turnover with South Korea also increased slightly – by 2.6%, to 5.3 billion in monetary terms.

Türkiye closes the top five main trading partners. The export and import turnover with Türkiye amounted to $4.9 billion. This is 6% less than in January through October 2022.

 

Uzbekistan to Export Textile Fabrics to USA

Under the leadership of the Uztekstilprom Association, more than 10 textile companies of Uzbekistan have successfully received a WRAP (Worldwide Responsible Accredited Production) international certificate, Trend reports.

UZTEX Group was the first company in Uzbekistan and Central Asia to achieve this standard, thanks to the assistance of the Association. The WRAP certificate confirms that products comply with all social norms and regulations required for export to the United States. This step underscores the high standards of quality and ethics that govern the Uzbek textile industry.

Currently, 10 more companies undergo WRAP certification.

 

Companies from Uzbekistan to Transport Cargo through Afghanistan

According to the Ministry of Transport of Uzbekistan, Afghanistan plans to lift restrictions imposed on national carriers from Uzbekistan performing international freight transport through its territory.

According to the information, agreements were reached as a result of a meeting between the Minister of Transport of Uzbekistan Ilkhom Makhkamov and representatives of the delegation headed by the acting Minister of Transport and Civil Aviation Khamidullo Okhunzoda. It has been reported that the restrictions that were previously imposed on Uzbek carriers performing transit and delivery of cargo to third countries and regions of Afghanistan have been lifted. The parties also set specific goals for the mutually beneficial establishment of tariffs and fees for international road freight transport, starting from 2024. 

Afghanistan Lifts Restrictions on Railway Freight Transport for Companies from Uzbekistan

According to the press service of the Ministry of Transport, Afghanistan has lifted restrictions on rail freight transport for companies from Uzbekistan.

On 26 December 2023, the head of the Ministry of Transport, Ilkhom Makhkamov, discussed cooperation in the fields of transport and logistics with the acting Minister of Transport and Civil Aviation of Afghanistan, Hamidulla Okhunzoda..

Afghanistan has lifted restrictions for Uzbek enterprises performing transit and bilateral freight transport through its territory.

The parties have also agreed to establish fees and payments for international road freight transport on a parity basis starting from 2024.

In addition, Uzbekistan intends to accelerate the implementation of the trilateral project for the construction of the Trans-Afghan Railway and provide preferential tariff rates for rail freight transport.

At the end of August, the Head of the Ministry of Transport, during the visit to Afghanistan, had a discussion with local officials regarding the lifting of restrictions on transit freight transport through the territory of Afghanistan. As a result of the negotiations, the parties agreed to “leverage each opportunity for the development of transit freight transport.” 

 

Construction of China–Kyrgyzstan–Uzbekistan Railway Set to Commence in 2024

Zhalyn Jeenaliyev, Deputy Director of the Kyrgyz National Investment Agency announced plans to commence the construction of a railway between China and Uzbekistan in near future, Economist.kg reports.

At a press conference in Bishkek, the official spoke about large investment projects that are planned to be implemented in the republic in the coming years. These projects make it possible for the country to attract investments worth $7-9 billion by 2026.

One of the most significant endeavours for the economy will be the construction China–Kyrgyzstan–Uzbekistan railway. The commencement of construction works is scheduled for 2024.

The agency also plans to launch the modernization of the Manas International Airport. Other large-scale investment projects covered by the immediate plans include the construction of a ring road in Uzgen and the construction of a 1.5 GW solar power plant.

Preparations for the construction of the China–Kyrgyzstan–Uzbekistan railway began in 2022, when the three countries agreed on the route and the conduct of a feasibility study. The road map for the construction of a railway line from Kashgar to the border with Uzbekistan was approved in May.

The head of the Marketing and Logistics Department of Uzbekistan Railways, Umidulla Ibragimov, communicated that the work is expected to start this year. However the participants were faced with financing challenges, which is why rumours about the suspension of the railway project appeared and were subsequently refuted. 

 

Uzbekistan to Adopt Toll for Trucks and Cargo Trailers in April

The amount of toll depends on the carrying capacity of the vehicle. The maximum amount will be 3.4 million soums.

Uzbekistan introduces a toll for freight vehicles for the right to use public roads. This news was communicated by the Tax Committee.

The new toll is provided for by the law on the state budget for 2024, which was signed by the President on 25 December 2023. It will be levied on trucks and trailers with a carrying capacity over 10 tons starting from April.

The toll rate depends on the maximum carrying capacity of the vehicle. The table below shows the amount of payments.

 

Chinese Hichain to Open Three Large Logistics Centres in Uzbekistan

The Chinese company Hichain has unveiled its plans to establish several large logistics centres in Uzbekistan, Podrobno.uz reports citing data from the Ministry of Transport.

This became known following the results of the Uzbek–Chinese business forum, which took place in Guangzhou as part of the visit of the Uzbek delegation led by the Minister of Foreign Affairs Bakhtiyor Saidov.

As part of the business forum, First Deputy Minister of Transport Mamanbiy Omarov had a meeting with the President of the Chinese company Hichain Supply Chain. At the meeting, aspects related to the establishment of new logistics centres in Andijan, Navoi and Karakalpakstan in cooperation with the Chinese partner were discussed.

The parties signed a memorandum of understanding on accelerating cooperation and implementation of relevant projects aimed at achieving this goal.

 

Uzbekistan Sees a Six-Fold Increase in Import of Electric Vehicles

The Customs Committee published statistics on the number of electric vehicles imported into the country during 10 months of 2023.

From January to October of this year, 22,492 electric vehicles were imported into the republic for a total amount of $582.3 million. This was communicated by the Press Service of the Customs Committee of Uzbekistan.

Compared to the same period last year, Uzbekistan witnessed a six-fold increase in the imports of electric vehicles (3,679 vehicles last year).

China has become the leading supplier of electric vehicles: since the beginning of the year, 20,642 electric vehicles have been imported from China to Uzbekistan.