Kazakhstan Business & Economy - The Times Of Central Asia

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Logistics

Kazakhstan and China Plan Cross-Border Driverless Truck Trials

Driverless trucks could eventually carry freight between Kazakhstan and China, with the two countries planning to test them on international routes. The Kazakhstan Road Research Institute (KazdorNII) and Chinese technology company China TransInfo Group signed an agreement in Astana on October 16 to develop the trials and establish a joint center for autonomous transport. The partners plan to establish a testing ground and introduce systems that can weigh trucks while they are moving. They are also considering a joint center to coordinate transport operations and share data. KazdorNII will work to adapt the Chinese company's technologies to Kazakhstan's roads and technical requirements. At the NEW SILK WAY transport forum in Astana, China TransInfo Group signed a separate memorandum with Kazakhstan's Ministry of Transport on cooperation in autonomous vehicle technologies. Kazakhstan has already conducted a similar trial with Russia. In May 2026, two Russian-made KamAZ trucks traveled in opposite directions between Astana and Moscow, crossing the international border. However, only parts of the roughly 3,000-kilometer journey were completed autonomously. Kazakhstan and China also launched the Smart Customs project at the Bakhty–Pokitu border crossing in 2025, with plans to use driverless electric shuttles to transport cargo between the two countries. The new initiative envisages testing autonomous trucks on an international road route rather than limiting their operation to border infrastructure. Separately, Kazakhstan plans to begin producing Chinese SITRAK autonomous semi-trucks by 2028, as The Times of Central Asia previously reported.

Middle Corridor

Kazakhstan Expands Middle Corridor Fleet as Caspian Sea Levels Fall

Containers are piling up on Kazakhstan's Caspian coast as they await shipment to Azerbaijan. A shortage of vessels and weather-related restrictions are delaying cargo along the Middle Corridor, a trade route connecting China and Europe while bypassing Russia. Kazakhstan plans to acquire five vessels and has ordered another six to expand maritime freight capacity. At the same time, falling Caspian Sea levels are limiting how much cargo existing ships can carry and complicating port operations. Yerkin Nygmetov, CEO of KTZ Express Shipping, described the container backlog at the New Silk Way international transport forum, held in Astana on October 15–16. According to Nygmetov, adverse weather conditions can restrict operations at Kazakhstan's ports for a total of up to 75 days a year. Freight Volumes Rise as Vessels Face Delays The Middle Corridor, officially known as the Trans-Caspian International Transport Route, runs through Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia. From there, cargo continues to Turkey and Europe, including via the Black Sea. Following Russia's invasion of Ukraine in 2022, the route attracted increased interest from companies seeking to reduce their dependence on transit through Russia. According to Kazakhstan's national railway company, Kazakhstan Temir Zholy (KTZ), container traffic along the Middle Corridor reached 44,200 twenty-foot equivalent units (TEUs) in January–August 2026, an increase of 58% from a year earlier. A TEU is a standard measure of container capacity equivalent to one 20-foot container, approximately six meters long. During the same period, 419 container trains departed China along the route, compared with 228 a year earlier. The maritime section requires containers to be transferred from trains onto vessels in Kazakhstan and then back onto railcars in Azerbaijan. Waiting for an available ship increases delivery times, particularly during periods of heavy cargo arrivals. The World Bank has assessed the corridor's potential for growth. According to a study published in September, investments in transport infrastructure and better coordination of logistics procedures could more than triple trade volumes along the Trans-Caspian Corridor by 2040 and cut delivery times in half. The bank also projects that implementing the proposed measures could increase the combined GDP of nine countries connected to the route by 3.3% and create two million jobs. Kazakhstan Orders Vessels from China and Azerbaijan KTZ Express Shipping, a subsidiary of KTZ, plans to acquire five container vessels in 2026. Another six multipurpose dry cargo and container ships have been ordered from shipyards in China and Azerbaijan. By 2028, the company aims to expand its own fleet to 13 vessels with a combined deadweight tonnage of 96,000 metric tons. Deadweight tonnage refers to the maximum weight a vessel can carry, including cargo, fuel, supplies, and other variable loads. On October 15, Kazakhstan's Samruk-Kazyna sovereign wealth fund confirmed that two dry cargo vessels would be built at the Baku Shipyard under contracts signed in April 2026. Another four vessels have been ordered from China's Jiangsu Haizhongzhou Shipping Industry. Each is designed to carry up to 537 TEUs, with a deadweight tonnage of 9,900 metric tons. The...

Logistics

Kazakhstan’s Warehouse Market Faces Mismatch Between Supply and Demand

Central Asia is seeking a larger role in trade between China and Europe by offering alternative shipping routes that bypass Russia. However, growing interest in transit has not been matched by balanced development of warehouse infrastructure. Some transport hubs face shortages of modern facilities, while others have vacant space. For international freight operators and retailers, this means additional costs. For investors, it raises the risk of financing warehouses that may struggle to attract tenants. These contradictions were discussed on October 15 in Almaty at the Central Asia Warehouse Summit 2026, organized by consulting firm IBC Global. The summit brought together industry representatives and investors. Research presented at the event showed a growing disconnect between warehouse construction and actual demand. Vacant Warehouses Exist, but Not Where They Are Needed According to IBC Global, the vacancy rate for modern warehouse space in Kazakhstan is about 5%. This gives tenants more options when choosing facilities and negotiating rents. However, the national figure masks significant differences between cities and types of warehouse space. Industry estimates put Astana's shortage of modern warehouse space at approximately 350,000–400,000 square meters. Separately, property consultancy Bright Rich reported that Almaty's warehouse vacancy rate had reached 13.3% in May 2026. These estimates come from different periods and surveys, and should not be treated as directly comparable. Class A warehouses are modern facilities with high ceilings, loading docks, security systems, and infrastructure designed to handle large volumes of goods. Kazakhstan's warehouse market is nevertheless expanding rapidly. According to an IBC Global ranking presented at the summit, the total area of Class A warehouses covered by its research increased by 39% over the past year to 730,000 square meters. More than half of that space, approximately 400,000 square meters, is controlled by the five largest property owners. Their facilities are concentrated mainly in Almaty and Almaty Region, Astana, and Shymkent. Developers Continue Building Despite Weaker Demand A survey of more than 100 warehouse market participants across four Central Asian countries revealed a gap between developers' plans and tenants' expectations. According to IBC Global, 81% of developers intend to launch new projects or complete facilities already under construction within the next twelve months. Yet 62% of developers surveyed identified weak tenant demand as the main obstacle to market development, while 52% cited the high cost and limited availability of financing. IBC Global's market sentiment index for Kazakhstan stood at 48.1 points in the third quarter of 2026, below the neutral threshold of 50. However, 52% of respondents expect supply and demand to move closer to equilibrium over the next year. The risks are particularly high for speculative developments launched without a tenant already under contract. Developers expect to secure customers after construction is completed, but by then business requirements and market rental rates may have changed. One alternative is the build-to-suit model, in which a facility is constructed to meet the requirements of a specific tenant. Its location, size, equipment, and operating conditions are agreed upon in advance. This reduces vacancy risk for...

Middle Corridor

Japanese Firms Test Middle Corridor Freight Route as Tokyo Funds Aktau Port Upgrade

Japan is assessing greater use of the Middle Corridor following trial shipments by Japanese companies, as Tokyo funds customs upgrades at Kazakhstan’s port of Aktau worth up to $4.5 million. The results of the trials were presented at an October 19 conference in Tokyo, which focused on Japan’s transport links with Central Asia and the Caucasus. The trials assessed delivery times and costs, alongside customs procedures and logistics services. Japan’s funding provides for the installation of a stationary X-ray inspection system for large cargo at Aktau, where containers are shipped across the Caspian Sea to Azerbaijan. The grant, agreed in January, is valued at up to 719 million yen (approximately $4.5 million). The equipment is expected to reduce inspection times by two-thirds. Kei Takagi, Japan’s State Minister of Economy, Trade and Industry, linked Tokyo’s interest in the Middle Corridor to efforts to diversify international transport routes and strengthen trade with Central Asia and the Caucasus. For Japanese exporters, the Middle Corridor could provide an alternative way to reach markets across Central Asia and onward to Europe. Japanese cargo must first reach the corridor by sea, through China or another point connecting to the overland transport network. The route’s attractiveness therefore depends on transshipment costs and reliable connections, including efficient customs clearance. In 2025, the Middle Corridor handled 4.12 million metric tons of freight, down from 4.48 million tons in 2024 but approximately five times the volume recorded seven years earlier. According to Kazakhstan’s Ministry of Transport, transit times along the corridor have fallen from 28–32 days to 13–17 days. The ministry’s estimate is for the corridor, rather than a quoted delivery time from Japan. Beyond freight transport, conference participants discussed digital infrastructure across the Caspian Sea. The Kazakh side highlighted the October 15 inauguration of a 380-kilometer fiber-optic cable linking Kazakhstan and Azerbaijan. The cable across the Caspian seabed is intended to carry international internet traffic between Central Asia and the South Caucasus, with adjustments to the line continuing through the end of 2026. Direct air connections were also discussed. Air Astana plans to launch scheduled flights between Almaty and Tokyo’s Narita Airport in December 2026.

Middle Corridor

How the Shrinking Caspian Sea Affects the Middle Corridor’s Potential

Paradoxically, the Caspian Sea is becoming one of Eurasia’s most important transport hubs at a time when its falling water level is creating growing constraints on navigation. As sanctions disrupt traditional trade routes through Russia, countries are investing in the Middle Corridor as an alternative link between Asia and Europe. Yet the continuing decline in sea level is limiting shipping capacity and increasing the risks and costs associated with long-term infrastructure projects. The first Caspian Environmental Summit, held in Turkmenistan on October 9, 2026, drew attention to the scale of these changes. Between 2000 and 2025, the Caspian Sea shrank by more than 16,000 square kilometers, while in some areas the shoreline receded by tens of kilometers. How the Caspian’s Falling Water Level Affects Freight The Middle Corridor, linking China, Central Asia, the Caspian Sea, the South Caucasus, Turkey, and Europe, is seen as a promising route for diversifying international trade. Its development can reduce shippers’ dependence on individual transport routes and improve economic ties among countries in the region. According to the World Bank’s latest study, more than $25 billion in investment in the corridor’s core physical infrastructure will be needed through 2040. An additional $30 billion could be required for enabling infrastructure and services. The bank estimates that if infrastructure investment is combined with institutional reforms, freight volumes along the corridor could quadruple and travel times could fall by about two-thirds by 2040. A study by the Organisation for Economic Co-operation and Development (OECD) notes that insufficient depths are already preventing vessels from being fully loaded, reducing transport efficiency and increasing costs. Large-scale dredging was carried out at the Port of Kuryk in 2024. Over four months, around one million cubic meters of material were removed, and the depth of the operational port area was increased to 7–8 meters, according to the port operator. This made it possible to load vessels to full capacity. Meanwhile, major dredging work is underway at Aktau, where 1.3 million cubic meters of material are to be removed to increase water depths to 6–7 meters. The work is expected to be completed by the end of 2026. Dredging, however, can only maintain the operation of individual port facilities, while further declines in the sea level may require repeated work or the reconstruction of berths. Where draft restrictions prevent full loading, transport companies may need to make more voyages to carry the same volume of cargo, increasing spending on fuel, crews, maintenance, and port operations. Constraints on the maritime section can also lead to delays for railcars and containers and disrupt transshipment schedules. These disruptions reduce the predictability of deliveries along the entire route. Similar problems are emerging on the western coast of the Caspian. Falling water levels are reducing vessel cargo capacity at Azerbaijani ports and oil terminals and requiring additional dredging. Infrastructure for Decades Ahead According to the OECD study, which cites World Bank climate projections, under a high-emissions scenario in which the Caspian water level falls by about five meters between...

Civil Aviation

Kazakhstan ICAO Develop Civil Aviation Master Plan Through 2050

Kazakhstan is working with the International Civil Aviation Organization (ICAO) to develop a master plan for the country's aviation industry through 2050. The country aims to expand its international route network and increase air cargo traffic by capitalizing on its location between Europe and Asia. Saltanat Tompiyeva, chair of Kazakhstan's Civil Aviation Committee, announced the plan at the New Silk Way 2026 transport and logistics forum in Astana. In the first nine months of 2026, Kazakh airlines carried 12.4 million passengers, while the country's airports handled 136,500 tons of cargo. Kazakhstan's international route network covers 31 countries and 137 destinations. Since the beginning of the year, 24 new routes having been launched from Kazakhstan, including flights connecting Almaty with Chongqing and Warsaw, and Astana with Ulaanbaatar. According to Tompiyeva, the master plan will establish a long-term development framework for the aviation sector. To support domestic cargo carriers, Kazakhstan has introduced import incentives for certain categories of aircraft and intends to expand their access to international markets. Several airport development projects were also presented at the forum. Astana International Airport plans to build a second runway and expand its cargo infrastructure by 2035. There are also plans to build a second airport in Astana. In September, authorities signed a framework agreement with Singapore's Changi Airports International to cooperate on building the new airport and developing the existing one. Meanwhile, Aktau has plans for an aviation and logistics hub with projected investment of $400 million to $500 million and Karaganda Airport is developing the QarGo Hub project and aims to increase cargo throughput to 61,000 tons in 2026. The city is also home to Alatau Air Cargo, an airline established as KTZ Air Cargo in late 2025 and renamed in June 2026, which is preparing to launch cargo flights. SCAT Airlines also presented 12 investment projects to develop its hub in Shymkent, including airport infrastructure expansion and the establishment of aircraft maintenance facilities. Kazakhstan also plans to double its fleet of aircraft operated by Kazakh airlines by 2030.