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Development of a Maritime Fleet in a Landlocked Country

It may come as a surprise to some, but despite being a landlocked country far from any ocean, Kazakhstan is actively developing its maritime fleet. The country recognizes that to play a significant role in maritime transport across the Caspian Sea, Kazakhstan must enhance the competitiveness of its commercial fleet, alongside improving coastal infrastructure and services. This initiative not only generates revenue for Kazakh transport companies and contributes to the national budget but also safeguards the country's foreign trade. Kazakhstan has set an ambitious goal to establish a regional transit hub based on its Caspian Sea ports, Aktau and Kuryk. It is attracting major international players to develop its logistics services and integrate Kazakhstan into the global trade and transport network. However, the development of the national commercial fleet is lagging. The shortage of a strong fleet means Kazakhstan struggles to compete with the maritime industries of other Caspian nations. It is no secret that most maritime transport between the ports of Aktau/Kuryk and Baku is currently handled by the Azerbaijan Caspian Shipping Company, one of the largest maritime transport operators in the region. The company owns more than 50 transport vessels and over 110 specialized ships and plans to implement a large-scale investment program to modernize its fleet by 2029. Meanwhile, according to Kazakhstan’s Bureau of National Statistics, 263 maritime vessels are registered in the country. However, more than 70% of these vessels are over 25 years old. The aging fleet and weak presence in the maritime transport market prevent Kazakhstan from increasing its share in global supply chains, meaning most of the profits from freight transport go to foreign carriers. The longstanding principle discussed in Kazakhstan’s transport sector — “Our Cargo – Our Port – Our Fleet”— could enable domestic transport companies to earn up to 30% more through logistics-related revenue. According to World Bank estimates, by 2030, cargo transportation via the Trans-Caspian International Transport Route is expected to reach 11 million tons. The Concept for the Development of Kazakhstan’s Transport and Logistics Potential until 2030 forecasts that the volume of containerized transit cargo along this corridor from China will grow by at least 40,000 TEU (twenty-foot equivalent units) in the next five years. Over the past decade, Kazakhstan’s domestic tanker fleet has significantly reduced its oil transport operations, as most of the country's crude oil is now transported via pipelines. However, a recent drone attack on the Caspian Pipeline Consortium's (CPC) largest oil pumping station and a subsequent statement from “Transneft” warning that this could lead to a 30% reduction in Kazakhstan’s oil exports highlight the urgent need for an alternative maritime route for oil transport. This would help maintain stable oil production in the country’s fields. Accelerating the modernization and expansion of Kazakhstan’s national fleet will integrate the country into the regional transport and logistics system, reduce dependency on foreign vessels, and protect foreign trade from volatile freight market conditions — especially given ongoing geopolitical uncertainties in the region. A key initiative expected to strengthen Kazakhstan’s...

Trans-Caspian Trade Route International trade International transport

Turkmenistan, Azerbaijan, Georgia, and Romania Advance Caspian Sea-Black Sea Transport Corridor

On February 10, representatives from the foreign ministries and transport authorities of Turkmenistan, Azerbaijan, Georgia, and Romania held a video conference to discuss a draft intergovernmental agreement on the establishment and operation of the Caspian Sea-Black Sea International Transport Route, the Turkmen Foreign Ministry reported. Participants expressed confidence that the quadrilateral agreement, expected to be signed this year, will significantly boost international freight transportation between Central Asia and Europe. They also highlighted the anticipated positive impact on trade relations among the participating countries and emphasized the importance of involving international cargo transportation organizations to enhance connectivity between European and Asian markets. The initiative builds on a joint declaration signed by the foreign ministers of Turkmenistan, Azerbaijan, Georgia, and Romania in Bucharest in March 2019, which set the foundation for the corridor’s development. The new transport route will link Turkmenistan’s Caspian Sea port of Turkmenbashi with Romania’s Black Sea port of Constanța, passing through the ports of Baku in Azerbaijan and Poti and Batumi in Georgia.

Transport and Logistics Infrastructure Development Caspian Sea International transport Trans-Caspian International Transport Route Multimodal Transport Corrdior

Prospects for the Development of Kazakhstan’s Maritime Trade Gateways

A container hub will be built in the Aktau seaport. The maritime harbor is expected to become a center for cargo consolidation and distribution, facilitating Kazakhstan’s deeper integration into the global trade and transport system. How will this impact port operations, regional development, and the global supply chain through the Caspian Sea? The project in Aktau will primarily allow for the formation of a container park on its territory, serving Kazakhstan, Caspian region countries, and Central Asia. It will provide a full range of services, including container transshipment and warehousing. The hub’s construction marks a new phase in the port’s development, establishing it as a major logistical center. The hub can become not only a component of Kazakhstan’s transportation system, but a key link in the regional and global transport chain. For this project, investment has been secured from Lianyungang Port Group Co. Ltd., which operates one of China’s largest ports, with a corresponding agreement having been signed with the company. Growth Projections and Capacity Expansion According to many industry experts, Kazakhstan needs to actively develop container cargo transport. Currently, the country’s containerization level is quite low, standing at only about 7%. As Abay Turikpenbayev, Chairman of the Board of the Aktau International Sea Commercial Port public company, explained to TCA, oil and containers are ideal cargo for the harbor due to their swift transport, quick unloading, and rapid railcar turnaround. “It’s a different matter when bulk cargo arrives at the port. Bulk materials take longer to unload and congest the port infrastructure, preventing the acceptance and accumulation of a large number of railcars. The use of containers allows for an increased cargo flow,” Turikpenbayev stated. According to Turikpenbayev, unloading bulk cargo takes 2-3 days, and an additional 2-3 days is required for loading. In contrast, container unloading and processing take less than 24 hours. According to World Bank estimates, by 2030, cargo volumes transported via the Trans-Caspian International Transport Route through the Caspian Sea will reach 11 million tons. The new container hub is expected to help handle these volumes and attract additional cargo flows, increasing the port’s container transshipment capacity to 140,000 TEUs per year. Addressing the Caspian Sea Water Level Decline A critical issue that deserves attention is the declining water levels in the Caspian Sea. According to the Caspian Sea Hydrometeorological Research Department of RSE Kazhydromet, since 2006, the level of the Caspian Sea has dropped by approximately two meters. This decline has significantly affected navigation in the region. To address this, dredging work is planned in the Aktau port this year. Turikpenbayev stated that around 1.6 million cubic meters of heavy sediment will be removed from the harbor’s waters. “The dredged material will be used to create new territories and extend the port area southward. This will allow the port’s land area to expand from 60 to 100 hectares in the future,” Turikpenbayev explained. In addition to the construction of the container hub, further port expansion plans include building an additional berth for bulk cargo,...

Kazakhstan, Turkmenistan, Russia, and Iran to Boost Cargo Transport Along North-South Corridor

Kazakhstan, Turkmenistan, Russia, and Iran have reaffirmed their commitment to increasing cargo transportation along the North-South transport corridor. Representatives of national railway companies from the four countries met on January 30 in Almaty to discuss ways to enhance the corridor’s attractiveness and establish favorable end-to-end tariffs for shipments passing through Russia, Kazakhstan, and Turkmenistan to Iran’s Bandar Abbas port. According to Kazakhstan Temir Zholy (KTZ), the country’s national railway company, the meeting also addressed cargo transportation across Kazakhstan, particularly through the Bolashak rail station, located on the border between Kazakhstan and Turkmenistan. In 2024, 1.6 million tons of cargo was transported via this station. The North-South corridor, linking Russia, Kazakhstan, Turkmenistan, and Iran, has an annual capacity of 10 million tons of cargo. In July 2024, Kazakhstan hosted its first international meeting on the North-South transit and trade corridor, bringing together delegations from Azerbaijan, Armenia, Afghanistan, Kazakhstan, Russia, Belarus, Turkmenistan, the UAE, Iran, Iraq, Oman, and Uzbekistan. During that meeting, Kazakhstan, Iran, Turkmenistan, and Russia signed a roadmap for the eastern route of the corridor. The plan aims to expand the corridor’s capacity to 15 million tons annually by 2027 and 20 million tons by 2030. By connecting Russia and Belarus to Iran’s Persian Gulf ports, with further access to India, the North-South corridor is expected to enhance trade opportunities and further solidify Kazakhstan’s role as a key transit hub in the region.

Eurasian Transport Network International transport Transport cooperation

Turkey, Uzbekistan, and Azerbaijan Plan New Trade Route Connecting Asia and Europe

Turkish President Recep Tayyip Erdoğan met with delegations from Uzbekistan and Azerbaijan on January 29 to discuss strengthening regional trade and connectivity. At the meeting, Uzbekistan's Foreign Minister Bakhtiyor Saidov delivered a letter from President Shavkat Mirziyoyev. “We conveyed the warmest greetings and a letter from His Excellency the President of Uzbekistan, Shavkat Mirziyoyev. The strong ties between our leaders form the foundation for close cooperation in all areas. Our peoples, connected by a shared history, traditions, and customs, are working together for a better future,” Saidov wrote on Telegram. Saidov was in Ankara for a trilateral forum with his Turkish and Azerbaijani counterparts. Ahead of the event, he held talks with Turkish Foreign Minister Hakan Fidan and Azerbaijani Foreign Minister Jeyhun Bayramov. During the forum, the three countries discussed expanding trade routes between Asia and Europe, as reported by the Anadolu Agency. Turkish Foreign Minister Hakan Fidan stated that the Middle Corridor — which runs through Central Asia, the Caspian Sea, the Caucasus, and Turkey — has proven to be the most reliable and cost-effective trade route between the two continents. Fidan stressed the importance of regional cooperation in the economic, transport, and energy sectors, particularly in light of recent global disruptions caused by the pandemic and conflicts. He also noted Turkey’s growing role as an energy hub amid ongoing challenges in global energy supply. Beyond trade, the ministers addressed regional security concerns, including the situation in Syria. Fidan described recent developments there as a “new window of opportunity” for reconstruction and stability. He called for joint efforts to support Syria’s rebuilding process, emphasizing that stability in the region would enhance trade, transport, and energy cooperation. During the forum, Turkey, Azerbaijan, and Uzbekistan outlined a joint declaration and road map for future cooperation, covering foreign policy and regional cooperation between the three countries; expanding trade, economic, and investment ties to boost regional commerce; and developing transport routes and enhancing regional connectivity. Transport ministers from all three nations will now work on improving logistics and transit routes to further facilitate trade.

Economic Growth International transport Eurasian Transport Network Western Europe-Western China. Railways Rail Corridor

Kazakhstan-China Railway Cargo Transportation Reaches Record High in 2024

In 2024, railway cargo transportation between Kazakhstan and China exceeded 32 million tons, achieving an all-time high, according to the Kazakh Ministry of Transport. Kazakhstan’s rail exports to China grew by 1 million tons, totaling 13.7 million tons. Key export commodities included iron and non-ferrous ore, ferrous and non-ferrous metals, and grain. Meanwhile, Chinese transit cargo passing through Kazakhstan increased by 19%, reaching 15.3 million tons. Additionally, containerized Chinese cargo transiting to Europe via the Trans-Caspian International Transport Route (TITR) recorded significant growth, rising by 43% compared to 2023. One of the main drivers of this record-breaking performance was the opening of a Kazakh terminal at the dry port in Xi’an, China. In 2024, more than 300 container trains passed through this terminal and the Kazakh Caspian port of Aktau, an astonishing thirtyfold increase from 2023. Kazakhstan Temir Zholy (KTZ), the country’s national railway company, has expanded its terminal network. Currently, Kazakhstan operates five major terminals: The port of Lianyungang (China), The dry port in Xi’an (China), Dostyk railway station (Kazakhstan), The Khorgos Gateway dry port (Kazakhstan), and The ferry complex at the Caspian port of Kuryk (Kazakhstan). Kazakhstan has announced plans to add nine additional terminals over the next two years, reinforcing Kazakhstan’s position as a vital hub for transcontinental trade. Several terminal construction projects began in 2024, including: Almaty, Kazakhstan: A logistics hub aimed at strengthening domestic cargo-handling capacity. Azerbaijani port of Alat: A joint project involving Kazakhstan, Azerbaijan, and China to establish a cargo terminal in Baku. Budapest, Hungary: A terminal in Hungary’s capital designed to expand Kazakhstan’s trade network in Europe. Selyatino, Russia: A facility near Moscow to support rail cargo transportation between Kazakhstan, Russia, and China. Additionally, and in collaboration with China’s port of Lianyungang, Kazakhstan has begun constructing a container hub at the Caspian port of Aktau. Kazakhstan’s expanding railway infrastructure will solidify its role as a key logistics hub connecting China, Central Asia, and Europe. With continued investment in terminal networks and partnerships with regional and global stakeholders, Kazakhstan is well-positioned to further enhance its trade capacity and meet the growing demand for transcontinental cargo transportation.