Kazakhstan has invested tens of billions of dollars in transport infrastructure in recent years and has positioned itself as a key transit link between Europe and Asia. Yet the country still ranks in the middle of the World Bank’s Logistics Performance Index (LPI). Why have these large investments not produced a sharper improvement, and what reforms are needed to change that?
The Times of Central Asia spoke with Mukhtar Tolegen, executive director for transport logistics at the Union of Transport Workers of Kazakhstan, “KAZLOGISTICS.”
TCA: What is Kazakhstan’s current position in the LPI, and how has it changed?
Mukhtar: In the World Bank’s 2023 LPI ranking, Kazakhstan ranks 79th out of 139 countries, with an overall score of 2.7 on a five-point scale. This represents a decline from the previous ranking, when the country ranked 71st.
It’s important to note that the index’s methodology was updated in 2023. In addition to expert assessments, the calculation now includes real-world cargo tracking data, including GPS-based data. This made the ranking more objective and simultaneously increased competition between countries.
Despite its decline, Kazakhstan is demonstrating steady progress in a number of areas. This is primarily due to the development of transport infrastructure, the construction of new highways, the modernization of checkpoints, and the creation of transport and logistics centers.
Strengthening the country’s transit potential within international transport corridors, including the Middle Corridor, the North-South Corridor, and the China-Kazakhstan-Europe route, is also playing a significant role.
At the same time, digitalization of logistics is rapidly advancing, including electronic customs solutions, cargo tracking systems, and other technological tools.
An additional driver is the growing interest of international investors, including in the context of the Belt and Road Initiative.
TCA: How does a country’s position in the ranking affect its economy and investment attractiveness?
Mukhtar: The LPI index is not simply a reflection of the state of the logistics system, but an important indicator of a country’s economic competitiveness. The higher a country’s ranking, the lower its logistics costs for exports and imports, the faster cargo flows across borders, and the higher the level of trust among international partners and investors.
Low scores, on the other hand, indicate bottlenecks, for example, in customs procedures or infrastructure. Under such conditions, large international companies may choose alternative routes, which reduces the country’s transit potential.
Thus, the LPI serves as a tool that directly influences the development of international trade, investment attractiveness, and the country’s strategic position in the global market.
TCA: In which index components is Kazakhstan showing progress, and where are challenges remaining?
Mukhtar: The LPI index is based on six key components, and the dynamics of these components in Kazakhstan remain uneven.
Quality of Infrastructure
Steady progress is being observed here, driven by large-scale investments in the transport system. The modernization of the Dostyk-Moiynty railway section has significantly increased the capacity of the Kazakhstan-China route. Projects are underway to build new lines, including a bypass of Almaty, as well as the Moiynty-Kyzylzhar, Darbaza-Maktaaral, and Ayagoz-Bakhty routes.
At the same time, the Aktau and Kuryk seaports are being modernized, container terminals are being developed, and the road network is being upgraded. In 2025 alone, over 13,000 kilometers of roads were built and repaired.
Customs Efficiency
Despite the introduction of electronic systems, this component remains under development. Bureaucratic procedures and delays at the border continue to have a negative impact. In response, the government is expanding digital solutions, but further process simplification and integration with international standards are required.
Cargo Tracking
Notable progress has been observed here thanks to the implementation of digital technologies. The use of GPS monitoring and route management systems increases the transparency of supply chains and enables the prompt identification of problem areas.
On-Time Delivery
The dynamics remain mixed. Delivery times are decreasing on key transit routes, but bottlenecks at the junctions of transport systems and dependence on external operators continue to hinder overall progress.
Competence of Logistics Services
Gradual improvement is being observed due to the development of educational programs, the attraction of international players, and the implementation of modern supply chain management standards.
Organization of International Transportation
There is positive momentum, particularly on the Asia-Europe route via the Middle Corridor. The development of multimodal transportation and international cooperation increases the stability of supply chains but requires further coordination and infrastructure integration.
TCA: What initiatives does the KAZLOGISTICS Union propose to improve the situation?
Mukhtar: The Kazakhstan Transport Workers’ Union has been implementing a systematic approach to industry development. Since 2016, two-year action plans to improve LPI indicators have been approved in conjunction with government agencies.
One of the key tools is border and checkpoint timekeeping, which has been conducted since 2014. This allows us to identify real delays and formulate practical recommendations.
Additionally, the Domestic LPI study is conducted annually, assessing the country’s domestic logistics system.
Priority areas include developing container shipping between China and Europe, reducing railcar downtime, modernizing infrastructure, digitalizing processes, developing multimodal transportation, simplifying administrative procedures, and training personnel.
These measures are aimed at eliminating systemic barriers and strengthening Kazakhstan’s position as a transit hub for Eurasia.
TCA: How has the $35 billion investment impacted industry development?
Mukhtar: Investments in the transport industry over the past 15 years have created a modern infrastructure foundation. Key transport hubs, roads, ports, and logistics centers have been modernized.
This has led to increased speed and reliability of transportation, the development of multimodal routes, and increased containerization. As a result, Kazakhstan’s role as a transit hub between Europe and Asia has strengthened.
Today, these investments are laying the foundation for further growth of the LPI through digitalization, improved quality of logistics services, and the development of human capital.
TCA: What are the key constraints hindering growth in the ranking?
Mukhtar: Currently, our main efforts are focused on several areas: further digitalization of customs and border procedures, development of multimodal and container transportation, optimization of key transit routes, improving the competencies of logistics operators, and the use of analytical tools, including the LPI, for industry management.
These objectives reflect current growth areas and define the agenda for future reforms.
TCA: When is the next ranking expected, and what are the forecasts?
Mukhtar: The World Bank typically publishes the LPI every two to three years. Given the current dynamics, Kazakhstan has the potential to improve its position through infrastructure development, increased container shipping, and deeper digitalization. However, the final outcome will depend both on domestic reforms and the pace of development in other countries.