Transit Ambitions: Kazakhstan Emerges as Key Link Between East and West

Kazakhstan is poised to enhance its role as a pivotal transit hub between China and Europe amid evolving global logistics dynamics, according to a recent analysis by Energyprom.kz. China’s Role in Global Logistics China remains the world’s largest exporter, shipping approximately 4.5 billion tons of goods annually, with 60-70% transported via maritime routes. More than one-third of global container traffic passes through Chinese ports and transit centers. However, rising geopolitical tensions and sanctions have prompted Beijing to diversify its logistics options and reduce reliance on sea routes. The Belt and Road Initiative (BRI), which primarily traverses Kazakhstan, Russia, and Belarus, plays a crucial role in this strategy. Land routes offer shorter delivery times, typically 10-12 days compared to 30 days by sea. Alternatives bypassing Russia, such as the corridor through Kazakhstan, Iran, and Turkey, are also gaining prominence. Kazakhstan’s Transit Potential Kazakhstan’s strategic location enables it to serve as a vital conduit in global transport flows. The modern incarnation of the Silk Road has transformed the country into a linchpin for trade between East and West. Developing transit corridors not only boosts the national economy but also improves socio-economic conditions in border and underdeveloped regions by creating jobs and attracting investment. Over the past 15 years, Kazakhstan has invested more than 10 trillion tenge in transit infrastructure, generating approximately 600,000 jobs. In 2023, transit cargo volumes reached 30 million tons, exceeding the target of 27.7 million tons set in the national development strategy, “Concept for the Development of the Transport and Logistics Potential of the Republic of Kazakhstan until 2030.” The strategy aims to increase total transit volume to 35 million tons by 2030, including 2 million TEU in container traffic. Growth in Transport Service Exports Kazakhstan’s expanding logistics capabilities are translating into increased exports of transport services. In 2024, rail freight exports totaled US$1.3 billion, up 2.1% from the previous year. Road freight exports surged by 19.6% to US$665.7 million, while sea freight rose by 47.2% to US$64.7 million. Pipeline service exports also grew by 7.1%, despite a 1.6% decline compared to 2019 levels. Innovation and Digitalization in Logistics To cement its global position, Kazakhstan is investing in a smart economy by incorporating innovation and digital solutions into its logistics framework. This includes automation, artificial intelligence, blockchain technology, and the creation of integrated digital logistics hubs. One such initiative is the Alatau Special Economic Zone (SEZ), an innovation center designed to enhance the country’s transit ecosystem. According to the Astana International Financial Center (AIFC), the transport and logistics sector’s contribution to GDP could rise from 6.2% in 2022 to 9% by 2025. Link to AIFC report This digital transformation promises not only to reduce operational costs but also to generate thousands of high-skilled jobs, an essential component of Kazakhstan’s path to sustainable economic growth.