Business & Economy - The Times Of Central Asia

Viewing results 13 - 18 of 2035

Aviation

What’s Holding Back Kazakhstan’s Air Transport Market?

Kazakhstan’s aviation industry has posted steady growth in recent years. Over the past four years, passenger and cargo traffic have risen by more than 36% and 23% respectively, with an actively expanding route network. The state’s aviation development strategy prioritizes infrastructure upgrades, improved safety standards, and expanded international cooperation. Yet, despite these advances, several systemic barriers continue to prevent Kazakhstan from realizing its potential as a Central Asian aviation hub. These challenges were discussed at the New Silk Way International Transport and Logistics Business Forum and the annual TransLogistica Kazakhstan 2025 exhibition. Experts agree that Kazakhstan’s air transport market ranks among the fastest-growing globally, driven in part by geopolitical shifts that have boosted the volume of Chinese and European transit flights through its airspace. Industry Trends and Infrastructure Expansion A major airport modernization effort is underway, targeting key cities such as Astana, Almaty, Aktobe, Shymkent, and Karaganda. Renovations have already been completed in Aktau, Pavlodar, and Balkhash, while new terminals have opened in Almaty, Kyzylorda, and Shymkent. New airports are under construction in Kenderli, Zaisan, Katon-Karagai, and Arkalyk. Total investment in infrastructure has exceeded $2.9 billion. According to the Civil Aviation Committee, in 2025, Kazakh airlines transported a record 15 million passengers and 171,000 tons of cargo. Transit flights accounted for 414 million aircraft-kilometers. Deputy Chairman Sarsen Zharylgasov has stated that the country now operates 56 domestic routes, up 9% year-on-year, and maintains air links with 30 countries. International Routes and Regional Competition In 2025, 33 new international routes were launched, connecting Kazakhstan to cities including Budapest, Munich, Cairo, Shanghai, Phuket, and Delhi. Currently, 140 international routes operate under the Open Skies policy, which has applied to 15 airports since 2019. Looking ahead to 2026, new routes are planned to major global hubs, such as Singapore, Tokyo, Rome, Vienna, and New York. The long-anticipated direct U.S. flight hinges on a successful completion of the FAA's CAT-1 audit, following Kazakhstan’s passage of the preliminary technical assessment in August 2024. The 2022 air transport agreement between the U.S. and Kazakhstan remains a key step toward this goal. Air Astana plans to operate the route using a Boeing 787 Dreamliner, though delivery has been delayed to Q2 2026 due to production backlogs. Meanwhile, Uzbekistan is ramping up its own ambitions. During President Shavkat Mirziyoyev’s 2025 visit to the US, Tashkent signed a deal with Boeing for 22 Dreamliners. Analysts suggest this could intensify regional competition and enhance Uzbekistan’s appeal as a transit hub. Airport Bottlenecks and Tariff Issues Despite progress in large cities, many regional airports remain hampered by chronic underinvestment and outdated tariff policies. According to Zharylgasov, tariffs at several airports have not been updated in over two decades. “We are working to completely deregulate tariffs, but the Agency for the Protection and Development of Competition does not yet support us,” he noted. Eliminating state control over airport tariffs could introduce market-based pricing, attract investors, and improve profitability, particularly for regional hubs. Digitalization Drives Efficiency Digital transformation is another key priority. Kazakhstan...

Exports

Kazakhstan Boosts Animal Feed Exports to China

Kazakhstan has significantly increased its exports of compound animal feed to China, even as shipments of unprocessed grain have declined, according to Kazakhstan Temir Zholy (KTZ), the national railway operator. The shift in export dynamics is attributed to China’s record 700-million-ton grain harvest in 2025. In response to domestic supply, the Chinese authorities have tightened grain import regulations and introduced customs restrictions. As a result, Kazakhstan’s grain export structure has shifted toward processed goods with higher added value, most notably, compound animal feed. Animal feed is in high demand within China’s livestock sector and receives priority clearance at border checkpoints. This preferential treatment has contributed to a notable surge in Kazakh feed exports. During the first two months of the current marketing year (September-October 2025), KTZ transported 873,000 tons of grain for export, including 672,000 tons of animal feed, a 3.5-fold increase compared to the same period last year. Overall grain exports to China, however, rose 35% year-on-year to 3.5 million tons between January and October 2025, reflecting a shift toward higher-value processed goods rather than bulk grain. According to the Ministry of Agriculture, Kazakhstan continues to export most of its grain to countries across Central Asia and the Caucasus, including Uzbekistan, Tajikistan, Kyrgyzstan, Afghanistan, Turkmenistan, and Azerbaijan.

Agriculture

Kazakhstan Launches First Carbon Agro-Climatic Testing Ground

Kazakhstan has inaugurated its first carbon agro-climatic testing ground, Kaz Agro Carbon, at the A.I. Barayev Scientific and Production Center for Grain Farming, marking a significant step toward climate-resilient agriculture. The project is a collaborative effort between the agriculture ministries of Kazakhstan and Russia, the National Academy of Sciences of Kazakhstan, and scientists from the University of Hannover in Germany. According to the Kazakh Ministry of Agriculture, the new facility is designed to manage soil carbon, reduce greenhouse gas emissions, and enhance the climate resilience of the agricultural sector. Kaz Agro Carbon will act as a pilot site for joint research focused on measuring, modeling, and managing the carbon balance in Northern Kazakhstan. Researchers aim to develop technologies that reduce emissions and boost carbon dioxide absorption in local ecosystems. “Kaz Agro Carbon is a platform for integrating science, innovation, and real-world production. It will help preserve soil fertility, adapt agriculture to climate change, and develop a national carbon balance management system. This is an important step toward developing climate-smart agriculture in Kazakhstan,” said Timur Savin, Chairman of the Board at the Scientific and Production Center for Grain Farming, during the opening ceremony. Amid global efforts to combat climate change, carbon farming is emerging as a strategic growth area for Kazakhstan’s agricultural sector. According to the Ministry of Science and Higher Education, Kaz Agro Carbon is equipped for year-round monitoring of ecosystem conditions. The site will track soil carbon levels as well as key meteorological data such as temperature, humidity, and precipitation. Kazakhstan’s carbon sequestration potential is estimated at up to 535 million tons annually. The development of carbon offset trading mechanisms could attract as much as $25 billion per year to the national economy. The new facility will provide farmers with the tools to certify accumulated carbon and participate in the emerging carbon quota market, positioning Kazakhstan to take an active role in international emissions trading.

Automotive Industry

Škoda Group Plans Joint Venture to Assemble Railway Vehicles in Uzbekistan

Czech manufacturer Škoda Group has announced plans to establish a joint venture in Uzbekistan to assemble railway transport vehicles, according to a statement from the company’s press service. The initiative was unveiled during President Shavkat Mirziyoyev’s official visit to Belgium on October 24, where he held a roundtable meeting with top European business leaders. Among the participants was Škoda Group CEO Petr Novotný, who described Central Asia as a highly promising market. Novotný presented the company’s strategic roadmap for entering Uzbekistan, backed by support from the European Commission and the European Investment Bank. The proposed joint venture will focus on three key areas: assembling railway vehicles under local conditions, providing long-term maintenance and repair services, and launching a Škoda Academy to train and upskill Uzbek specialists. “Each of the three areas represents a concrete step toward fulfilling the new Enhanced Partnership and Cooperation Agreement and the European Global Gateway strategy. We consider Uzbekistan to be a country opening up to new investments from European business partners. It has long been in our sights in terms of our strategic ambitions. We therefore very much welcome the opportunity to contribute to the development of sustainable transport, education, and technological modernization in the local market,” Novotný said. Škoda emphasized that the project aligns with Uzbekistan’s national goals to modernize its transport infrastructure and deepen partnerships with European industry. The company said that high-level discussions in Brussels underscored the strong potential for European technology and expertise to support the sustainable transformation of Uzbekistan’s railway sector.

Coal

Kyrgyzstan Boosts Coal Production Ahead of Winter Heating Season

Kyrgyzstan has increased domestic coal production in preparation for the winter, with four of the country's six deposits now operating at full capacity, according to the state-owned enterprise Kyrgyzkomur, which oversees coal mining and distribution at socially affordable prices. To ensure stable fuel supply, Kyrgyzkomur has signed agreements with 126 coal trading bases nationwide. These sites sell coal at reduced prices, aimed at supporting low-income households and easing the burden on public utilities. In the first nine months of 2025, Kyrgyzstan produced 655,000 tons of coal, while overburden removal reached 6.8 million cubic meters. Coal from the Kara-Keche deposit remains the most in demand. It is also supplied to the Bishkek thermal power plant, which provides the capital with heat and electricity. However, local coal is considered lower in quality compared to imports, particularly coal from Kazakhstan’s Shabyrkul deposit. To stabilize the market and prevent price hikes, authorities have tightened oversight of the coal sector. Under an order issued by the Ministry of Economy on September 26, 2025, temporary state regulation of coal prices was introduced for 90 days. “The maximum retail prices are set at $80 per ton for imported coal and $66 per ton for local coal from the Kara-Keche deposit, mined by Kyrgyzkomur,” said Maksat Akylbekov, chief inspector at the Antimonopoly Regulation Service, in an interview with Tbe Times of Central Asia. To curb speculation and prevent the sale of low-quality coal, Bishkek authorities have banned the retail sale of coal in bags. Fuel can now only be purchased by the ton at designated depots. As a result, smaller traders have relocated to the outskirts of the city, where they continue to sell coal in smaller quantities. Sellers report that many residents request 100-200 kilograms of coal, as not all can afford to purchase an entire season’s supply at once or have the storage capacity. In some cases, sellers informally accommodate these buyers. Violations of the government’s pricing rules are subject to fines of $35 for individuals and $150 for legal entities.

Waste-to-Energy

Chinese Firms to Build Waste-to-Energy Plants in Astana and Shymkent

Kazakhstan is advancing the modernization of its waste management system with the launch of new waste-to-energy projects in Astana and Shymkent, its second- and third-largest cities. On October 31, the Ministry of Ecology and Natural Resources announced the signing of investment agreements with China’s Shaanxi Construction Engineering Kazakhstan Co., Ltd. and East Hope LLP to construct the new facilities. In Astana, East Hope LLP will invest approximately $180 million to build a plant with a daily processing capacity of 1,500 tons of municipal solid waste, equating to around 550,000 tons per year. In Shymkent, Shaanxi Construction Engineering Kazakhstan Co., Ltd. will invest $100 million in a plant capable of processing 1,000 tons of waste daily, around 360,000 tons annually. Together, the two projects are expected to create more than 550 jobs during the construction phase and approximately 200 permanent positions once operational. The plants aim to significantly reduce the volume of waste sent to landfills while generating clean electricity, contributing to Kazakhstan’s broader environmental and energy goals. In August, the Ministry signed a separate agreement with China’s Hunan Junxin Environmental Protection Co. Ltd. to construct Kazakhstan’s first waste-to-energy facility in Almaty. That plant will process at least 1,600 tons of solid waste daily and generate up to 60 megawatts of electricity. The total investment in the Almaty project is estimated at $269 million.