International Transit - The Times Of Central Asia

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Kazakhstan Building Five Cross-Border Trade Hubs

Kazakhstan is advancing plans to establish five cross-border trade and economic hubs, aiming to position the country as a key global transport and logistics center. The initiative was reviewed at a government meeting on December 10. Strategic Hub Development Minister of Trade and Integration Arman Shakkaliyev reported that significant progress has been made on the hubs, with rail and road links already in place. The planned hubs are: The Khorgos Hub: Located on the border with China. The Caspian Hub: Situated along the Trans-Caspian International Transport Route (TITR). The Eurasia Center for Cross-Border Trade: Positioned at the border with Russia. The “Central Asia” International Center for Industrial Cooperation: At the border with Uzbekistan. The Industrial Trade and Logistics Complex: At the border with Kyrgyzstan. Additionally, container hubs are planned for the ports of Aktau and Kuryk in the Mangistau region. Multimodal air hubs are also under development at airports in the cities of Astana, Almaty, Shymkent, and Aktobe. Broader Economic Goals Prime Minister Olzhas Bektenov underscored the strategic importance of these projects, emphasizing their potential to reduce transit times, boost industrial production, increase tax revenues, and create new jobs. Bektenov highlighted that the network of hubs will form a unified trade and transport space with Kazakhstan’s key trading partners. “This will significantly increase trade turnover between the countries and strengthen strategic relations with neighboring states,” he said. The prime minister also stressed the importance of leveraging major transport corridors such as the East-West, North-South, and Trans-Caspian International Transport Route corridors to enhance access to the markets of China, the Persian Gulf, the Caucasus, and Europe.

Azerbaijan China Middle Corridor International Cooperation TITR international cargo International transport International Transit Multimodal Transport Corrdior

Kazakhstan, Azerbaijan and China Establish Joint Cargo Terminal in Baku

Azerbaijan, China, and Kazakhstan have signed an agreement to establish an intermodal cargo terminal in the Port of Alat in Baku, the Azerbaijani capital. The agreement was signed in Baku on November 12 by SK-AIH Investment Fund Ltd (Samruk-Kazyna, Azerbaijan Investment Holding), Kazakhstan Temir Zholy (Kazakhstan’s national railway company), Baku International Sea Trade Port (Azerbaijan), and Xi'an Free Trade Port Construction and Operation Co., Ltd (China). The project was made possible through Azerbaijan’s provision of a land plot, operational berths, and terminal facilities at the Port of Alat. This new terminal is expected to increase container train traffic between China and Europe along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, reducing delivery times, transportation costs, and transshipment time. The terminal will feature a universal cargo yard, a covered warehouse complex spanning 5,000 square meters, and a container yard with a capacity of over 1,000 containers. Kazakhstan and China plan to increase the volume of cargo transported along the TITR to 600 container trains per year by 2025–2026, with targets of 1,000 container trains in 2027 and 2,000 by 2029, according to Kazakhstan’s Ministry of Transport. In 2023, transit volumes between China and Europe through Kazakhstan reached 2.76 million tons—a 65% increase from 1.7 million tons in 2022. The TITR connects China and Europe via Central Asia and the Caucasus, bypassing Russia, offering a strategic link between the two regions.

China Belt and Road Initiative International Transit multimodal transport corridor Trans-Caspian International Transport Route Trans-Caspian Trade Route

Kazakhstan and China to Build Container Hub in the Port of Aktau

Kazakhstan’s national railways company, Kazakhstan Temir Zholy (KTZ), has announced that KTZ Express (a subsidiary of KTZ), China’s Lianyungang Port, and Kazakhstan’s Aktau Sea Trade Port have signed the founding documents of a joint venture to construct a container hub in the port of Aktau. The documents were signed on September 20 in the Chinese city of Xi'an. The project has received support from the governments of Kazakhstan and China as part of China’s Belt and Road initiative. The project will strengthen Kazakhstan's position in the international logistics system. The planned container hub's location on the Trans-Caspian International Transport Route (TITR), or the Middle Corridor, will further increase the route's attractiveness and the volume of transit traffic. The Lianyungang Port is a longstanding partner of KTZ Express. Over the past ten years, they have implemented two joint projects: the Kazakh-Chinese terminal in the Port of Lianyungang and Khorgos Gateway, the largest dry port in Central Asia located on the Kazakh-Chinese border. Also on September 20, a container train departed along the TITR from Xi'an on the route Altynkol—Aktau (Kazakhstan)—Baku (Azerbaijan)—Poti (Georgia)—Burgas (Bulgaria)—Belgrade (Serbia)—Hamburg/Duisburg/Budapest. The heads of the railway administrations of China, Kazakhstan, Azerbaijan, and Georgia attended the departure ceremony. The train, consisting of 55 40-foot containers, was assembled at the Kazakh-Chinese Xi'an terminal. It will travel about 7,000 km to Baku in 8-11 days and then reach its final destination in Budapest in 25 days. The reduced delivery time was made possible by the cooperation of the railway and port administrations of the TITR member countries. The Kazakh-Chinese terminal in the dry port of Xi'an was opened in early 2024. Today, 30% of all container trains from China to Europe via Kazakhstan are formed in the dry port. According to KTZ, thanks to the terminal in Xi'an, cargo transit along the TITR increased 20-fold in the first eight months of this year compared to last year. The delivery time to Azerbaijan has been reduced to 11 days and to Georgia to 14 days.

Railway Agricultural Export International transport International Transit Wheat export Grain export railroads Rail cargo China Agriculture Afghanistan

Special Report: Prospects Look Good for Kazakh Wheat Exports

According to the International Grains Council, Kazakhstan's wheat harvest for the 2024/2025 season is expected to reach 16 million tons. As the harvesting campaign begins, the country's lack of elevator capacity and the problem of mainline railroads are concerns. Idle trains are still a problem, which leads to the introduction of regular restrictions and bans on the acceptance and shipment of wheat due to congestion on the railroad. Market participants note that the railroad cannot cope with the volume of shipments during the autumn rush, with its infrastructural ceiling on shipments at only 1 million tons of grain per month. This leads to a collapse at border railroad crossings and, consequently, a price drop in the domestic market. One obvious solution is to expand Kazakhstan's elevator capacity and grain storage facilities; this is one of the reasons for the increased load on the railroad infrastructure. Thus, according to the Ministry of Agriculture, 191 licensed grain-receiving enterprises have a total storage capacity of more than 13.2 million tons. In addition, agricultural producers have storage capacities for 15.8 million tons of grain, which, as the ministry assures, is enough to store grain considering the projected harvest. Also, according to the ministry, the construction of new grain storage facilities and the expansion of existing ones are envisaged. In 2024-2026, it plans to operate five granaries with a capacity of 30,200 tons. The national railway company Kazakhstan Temir Zholy (KTZ) has already established a grain headquarters, involving representatives from local executive bodies, the National Chamber of Entrepreneurs "Atameken," and shippers. This headquarters ensures adequate transportation for the upcoming season's harvest. As Salamat Abzhaliyev, Deputy General Director for Marketing and Planning of KTZ-Gruzovye Transportations LLP, noted during the briefing held at the end of August, for seven months of the current year, the total volume of grain loading on the network of railroads of the country amounted to 4.7 million tons. Only in Kazakhstan did wheat transportation increase by 3%, amounting to 1.1 million tons. An important factor affecting the efficiency of transporting grain and milling products is the availability of specialized wagons. In addition to boxcars, grain carriers are designed to transport these specific cargoes. Today, the total fleet of boxcars and grain cars on the railroad is about 16,000 and 12,000, respectively. According to KTZ, this fleet is sufficient to fulfill all agreed transportation plans. According to forecasts of the International Grain Council, the export of Kazakhstani wheat in the 2024/2025 season is projected at 10 million tons. During the first six months of the year, 2.4 million tons of wheat have already been shipped. The main buyers of domestic grain are traditionally Uzbekistan, China, Tajikistan, Italy, and Afghanistan. Grain exports to China have grown 5.7 times in the last three years, which makes China a key export destination. China is ready to accept large volumes of grain from Kazakhstan. Today, the country buys about 10 million tons of wheat worldwide, including from Kazakhstan. However, further development of trade is constrained by limited transportation...

Sanctions Politics Russia International Transit

Kazakh Deputy Prime Minister Zhumangarin: Astana Will Not “Blindly Follow” Anti-Russian Sanctions

In an interview with Bloomberg, Kazakhstan's Deputy Prime Minister and Minister of Trade and Integration, Serik Zhumangarin said the country does not intend to “blindly follow” Western sanctions against Russia if they harm Kazakhstan's economy. According to Zhumangarin, Kazakhstan will comply with the sanctions, but will also consider the impact on the domestic market and the country's economic interests. The statement responded to the concerns of Kazakh entrepreneurs, who are already facing difficulties due to disruptions in trade chains and logistical problems caused by the sanctions. The Deputy Prime Minister emphasized that Western sanctions against Russia have caused disproportionate damage to his country. According to the official, Kazakh producers are suffering huge losses, while their former Russian customers have reoriented themselves to suppliers inside Russia and “continue to prosper.” Without the restrictions, “profits would have stayed in Kazakhstan,” the Deputy Prime Minister said. Instead, he said, they are now “going to those against whom” the West has imposed sanctions. The Kazakh Deputy Prime Minister noted that the sanctions imposed against Russia had already hurt Kazakhstan's economy. In particular, in terms of the breakdown of logistics chains and decreased exports to Russia, one of Kazakhstan's largest trading partners. Zhumangarin stated that Astana will continue to adhere to Western restrictions, but stressed that in the context of global instability, Kazakhstan is seeking to pursue a balanced policy to minimize the impact of sanctions at home and maintain stability in the domestic market. Kazakhstan adheres to an independent policy and continues to develop trade relations with other countries, such as Iran and China, Zhumangarin noted. In particular, Kazakhstan is studying the possibility of using routes across the Caspian Sea to expand trade to the south. Kazakhstan is also negotiating with Western countries to allow the sale of Kazakhstani goods to Iran, or to use the country for transit. Kazakhstan's position reflects its desire to maintain economic independence and minimize the risks associated with external sanctions. At the same time, Kazakhstan is currently complying with international rules and is in dialog with Western countries to find compromise solutions that will avoid further pressure on the economy. Thus, remaining faithful to its international obligations, Kazakhstan seeks to protect its national interests, maintain stability, and develop its economy in a difficult foreign policy environment.

TITR multimodal transport corridor New rail routes International Transit International transport Middle Corridor

Middle Corridor Container Transit Through Kazakhstan Showing Dramatic Growth

Kazakhstan’s national railways company Kazakhstan Temir Zholy (KTZ) has announced that the volume of container transportation through the country is growing rapidly. In the first seven months of this year, rail container transportation from China to Europe through Kazakhstan along the Trans-Caspian International Transport Route (TITR) grew 14-fold compared to the same period last year, The TITR is a multimodal transport corridor connecting China and Europe by bypassing Russia, also known as the Middle Corridor. To develop it, Kazakhstan Temir Zholy, together with other stakeholders, is working to increase transportation volumes, improve services, and speed up cargo delivery. To date, the transportation time from Altynkol railway station on the Kazakh-Chinese border to Absheron (Azerbaijan) has been reduced to 9 days, to Poti/Batumi (Georgia) to 12 days, and to Constanta (Romania) via Poti/Batumi to 20–22 days. In 2023, KTZ and the railway administrations of Azerbaijan and Georgia established the Middle Corridor Multimodal Ltd. Joint Venture to improve multimodal services along the route. The joint venture provides a 'one-stop shop' service and guarantees delivery times and costs. KTZ is developing Kazakh port infrastructure in the Caspian Sea with the involvement of large international logistics companies.