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Kazakhstan and Afghanistan Discuss Transport Links for Trade with China

At a meeting in Almaty on October 21, Kazakhstan's Deputy Prime Minister Serik Zhumangarin and Afghanistan's Minister of Industry and Commerce Nuriddin Azizi addressed the logistics of transportation of goods from China to Afghanistan and back through Kazakhstan. In June, Kazakhstan’s President Kassym-Jomart Tokayev announced that his country had removed the Taliban from its list of terrorist organizations in a move to develop trade and economic ties with Afghanistan. In late August, Kazakhstan’s Foreign Ministry accredited a chargé d’affaires of Taliban-led Afghanistan to expand trade, financial, and humanitarian cooperation between the two countries. As the Kazakh Ministry of Trade and Integration reported, one critical issue is the reverse loading of railcars and containers on their way back from Afghanistan. To reduce the cost of logistics, Kazakhstan is considering loading empty railcars with Afghan fruits and vegetables, persimmons, beans, and other food products for delivery to Kazakhstan. Bauyrzhan Urynbasarov, managing director of Kazakhstan Temir Zholy (KTZ), the country's national railway company, proposed two options for reverse loading empty containers and railcars. The first is a circular train route: container trains traveling from China through Kazakhstan to Afghanistan are loaded with Afghan goods bound for China. From there, they pass through the port of Karachi in Pakistan before returning to China. In the second route, trains reach Afghanistan, where they are reloaded and loaded with Afghan goods, then return to Kazakhstan, where, after unloading, they are packed with Kazakh goods and go to China. Zhumangarin proposed that the Afghan side use the capacities of the Kazakh terminal in the Chinese dry port in Xi'an, the Kazakh-Chinese logistics terminal in the port of Lianyungang, and the terminal currently under construction in the dry port of Urumqi in China’s Xinjiang. The parties also agreed to organize an interregional Kazakh-Afghan forum, where the provinces of Afghanistan and the regions of Kazakhstan could discuss cooperation projects. According to Kazakh statistics, trade turnover between Kazakhstan and Afghanistan amounted to $330.7 million from January to August 2024. Exports from Kazakhstan to Afghanistan totaled $316.5 million, including flour, sunflower oil, natural gas, and fertilizers. Afghanistan's exports reached $14.1 million, mainly mineral water, fruits, juices, and aluminum products. The Afghan delegation arrived in Almaty on October 20 to participate in an exhibition of Afghan food and industrial products.

multimodal transportation International transport taxes Government Legislation Economy Afghanistan

Levies on Uzbek Drivers in Afghanistan Reduced

According to the Ministry of Transport in Uzbekistan, negotiations with Afghanistan have reduced the levies collected from Uzbek drivers in Afghanistan by 5,000 Afghanis (about $80). A levy of 12,000 Afghanis (about $180) was previously charged to cross the Amudarya bridge. Since September 28, this amount has been set at 7,000 Afghani (about $100). The fee for entering Afghanistan with a cargo vehicle, which was 5,000 Afghanis (about $75), has decreased to 3,500 Afghanis (about $55). According to the announcement, the Ministry of Transport continues to create favorable conditions for cargo transportation through the Trans-Afghan multimodal transport corridor, and to optimize the number of levies. This transport corridor accelerates and simplifies the increase and processing of transit cargo through Uzbekistan, Afghanistan, and Pakistan. In recent years, the volume of transit cargo through Afghanistan has increased by over 30%, reaching almost 1 million tons per year. Following a transit trade agreement between Uzbekistan and Pakistan in 2021, cargo volumes have increased significantly, and in 2022, cargo transportation between the two countries through Afghanistan increased 2.5-fold. This year, Uzbekistan plans to transport more than 1 million tons of cargo through Afghanistan to Pakistan.

Export/Import Russia China Railway Economic Cooperation TITR International transport

Kazakhstan and Russia Increase Rail Cargo Transportation to and from China

On October 18, Kazakhstan's Deputy Prime Minister Serik Zhumangarin, and Russia's Deputy Chairman of the Government Alexey Overchuk attended a meeting of the Intergovernmental Commission on Cooperation in Moscow, on Kazakhstan and Russia's transport and logistics sectors. As reported by the Kazakh government's press service, between January and September 2024, the volume of containers transported by rail from Russia to China through Kazakhstan, increased by 63% compared to the same period in 2023, while container transportation along the China-Europe-China route through Russia and Kazakhstan increased by 65%. During the meeting an agreement was made to further increase the flow of container trains on the China-Kazakhstan-Russia route by constructing the necessary transport infrastructure at the Selyatino rail station in the Moscow region. In April, Kazakhstan’s national railway’s company Kazakhstan Temir Zholy (KTZ), Russia’s Slavtrans-Service JSC, and China’s Xian Free Trade Port Construction and Operation Co., Ltd began construction on a new transport and logistics center, CRK Terminal, at Selyatino, aimed at ensuring the efficient handling of cargo following the route Xi'an (China) - Dostyk/Altynkol (Kazakhstan) - Selyatino (Russia). The center is set to become an essential link in developing international transport corridors and increase the competitiveness of transportation through Kazakhstan. In 2023, the volume of cargo transported by rail between China and Russia through Kazakhstan amounted to 3.8 million tons, an increase of 35% compared to 2022. Kazakhstan also remains an important transit and transport link along the Trans-Caspian International Transport Route (TITR), which known as the Middle Corridor, connects China and Europe via Central Asia and the Caucasus.

Agriculture International transport Grain export railroads Export/Import China Afghanistan

China and Afghanistan are the Main Importers of Kazakh Grain and Flour

In January-September 2024, Kazakhstan’s national railways company, Kazakhstan Temir Zholy (KTZ), transported 6.6 million tons of Kazakh grain and 2.7 million tons of flour. Of that amount, 5 million tons of grain and 2.1 million tons of flour were exported. KTZ Managing Director Bauyrzhan Urynbasarov announced this at a government meeting on October 7. According to Urynbasarov, Kazakhstan exported grain mainly to neighboring Central Asian countries (2.9 million tons), China (1.3 million tons), and Afghanistan (127,000 tons). Kazakhstan resumed grain supplies to Iran (211,000 tons), and 423,000 tons of grain were exported to Italy, Turkey, and Russia. From January to September, 495,000 tons of flour were exported to Central Asian countries, 639,000 tons to China, and 666,000 tons to Afghanistan. At the meeting, Deputy Prime Minister Serik Zhumangarin said that Kazakhstan must supply 2 million tons of grain to China this year, but the figure can be increased to 3 million tons. He also ordered an increase in flour supplies to Afghanistan. According to the Ministry of Agriculture, as of October 7, Kazakhstan had completed harvesting 93.2% of grain crops on 15.5 million hectares, and 23.5 million tons of grain had been threshed.

Trans-Caspian Transport Corridor Trans-Caspian International Transport Route International transport Economic Cooperation European Union

EU and Turkmenistan Launch Coordination Platform of Trans-Caspian Transport Corridor

On October 3 in Ashgabat, the European Union and Turkmenistan launched the Trans-Caspian Transport Corridor Coordination Platform. The platform aims to strengthen connectivity by developing transport routes within Central Asia and the European Union. The event brought together the European Union, representatives of the countries along the Trans Caspian Transport Corridor in Central Asia, the South Caucasus, and Türkiye, and international financial institutions. The European Union delegation was led by European Commissioner for International Partnerships Jutta Urpilainen. As reported by the EU Delegation to Turkmenistan, the Trans-Caspian Transport Corridor is a flagship of the EU’s Global Gateway investment strategy, and the establishment of the Coordination Platform is one of the key deliverables of the Global Gateway Investors Forum for EU-Central Asia Transport Connectivity held in January 2024. European and international financial institutions at the Forum committed to mobilizing €10 billion for sustainable transport connectivity in Central Asia. The EU aims to work with partners towards a modern route that boosts trade and facilitates the flow of goods between Central Asia and Europe while driving economic development and regional integration. The platform's main role will be to promote the corridor and coordinate efforts to implement priority projects in hard and soft infrastructure in Central Asia. It will also coordinate with investments and activities in the South Caucasus and Turkey that are relevant to strengthening operational efficiency and seamless connections across the Trans-Caspian Transport Corridor. Urpilainen said: “Central Asia, as a region at the crossroads of Europe and Asia, plays a pivotal role in the EU Global Gateway investment strategy and connectivity vision. The Trans-Caspian Transport Corridor is a critical artery linking Europe and Asia, boosting trade, facilitating exchanges, and driving prosperity across our regions while ensuring improved connectivity, cooperation, and economic growth between all Corridor countries. Harnessing this potential will require massive infrastructure investments in the coming years; I am pleased to see governments from countries along the Corridor, key International Financing Institutions, EU Member States, G7 countries, and other partners coming together.” Urpilainen said that to the European Union, Turkmenistan is an important partner in Central Asia. She also emphasized the European Union's commitment to supporting Turkmenistan's transition to a sustainable, green economy while enhancing its business environment. The EU has further allocated €18 million to strengthen its partnership with Turkmenistan, highlighting its dedication to fostering sustainable development and economic growth.

New rail routes China Economy Railway International transport China-Kyrgyzstan-Uzbekistan Railway Kyrgyzstan Railway

China-Kyrgyzstan-Uzbekistan Railway Company Opened in Bishkek

On September 28, LLC China-Kyrgyzstan-Uzbekistan Railway Company opened in Bishkek for the purpose of constructing and operating a line connecting the three countries. The opening ceremony was attended by the Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov, the Chinese Ambassador to Kyrgyzstan, Du Dewen, high-ranking officials from the Department of Foreign Capital and Overseas Investment of China’s National Development and Reform Commission, and Uzbekistan’s Minister of Transport, Ilkhom Makhkamov. Emphasizing the railway's importance for the region, Japarov stated: "We call this project ‘the construction of the century.’ It will take economic cooperation between China and Central Asian countries to a qualitatively new level." Currently, neither Kyrgyzstan nor Uzbekistan has a rail link with China, with Central Asia only having a connection to China through Kazakhstan. Kyrgyzstan and Uzbekistan also have no railway connecting the two countries. China, Kyrgyzstan, and Uzbekistan signed an intergovernmental agreement on the railway construction project on June 6 in Beijing. As previously reported by The Times of Central Asia, the 523 km railway will run through Kashgar (China), Torugart, Makmal, Jalal-Abad (Kyrgyzstan), and Andijan (Uzbekistan). A transit and logistics infrastructure will be developed along the route. Once completed, the line will see 15 million tons of cargo annually. In June, Akylbek Japarov confirmed a statement made by Kyrgyz President Sadyr Japarov in April 2024, stating that the railway construction would cost $8 billion as opposed to the preliminarily estimate of $4.7billion.