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Kazakhstan has begun supplying oil to Europe via the Druzhba oil pipeline system through Russia. The first oil shipments have already arrived in Germany, where amid current geopolitical challenges, it has become an important part of the country's energy security . Acting through its Kazakh subsidiary Agip Caspian Sea, the Italian company Eni, has shipped the first 20,000 tons of oil as part of a test delivery via the Atyrau-Samara route, with further transportation via the Druzhba pipeline. Kazakhstan now plans to deliver up to 1.2 million tons of oil to Germany via this system this year, following an agreement with the Russian side, to ensure uninterrupted supplies to Europe despite the sanctions restrictions on Russian oil. Historically, the pipeline has been one of the largest routes for Russian oil supplies to Europe, but its use has undergone significant changes in recent years due to sanctions. Faced with these changes, Kazakhstan's proposals to increase oil supplies through this route, could not only play a key role in ensuring energy stability in the region but also demonstrate the country's strategic importance as a major player in the global oil market and its ability to adapt to changes in global energy policy.
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.
At the Kazakhstan-China roundtable held in Astana on July 2, several agreements were signed by Kazakhstan’s national railways company Kazakhstan Temir Zholy (KTZ) and Chinese partners to expand Kazakhstan-China cooperation within the Belt and Road Initiative. Kazakhstan Temir Zholy and Lianyungang Port Group agreed on joint investment in the construction of a container hub at the port of Aktau on Kazakhstan’s Caspian coast. The project aims to improve both the effectiveness of the port’s existing infrastructure and the processing of container cargoes shipped through Kazakhstan. KTZ Express (a subsidiary of KTZ), Xi'an Free Trade Port (China), and Slavtrans-Service JSC (Russia) agreed to create a unified digital corridor on the China-Kazakhstan-Russia route to provide a seamless system for processing customs clearance, electronic trade, and other functions. Once in place, it will significantly accelerate logistics, promote the development of electronic trade, simplify customs procedures, reduce trade barriers, increase the transparency and efficiency of supply chains. An agreement was also signed with China’s CRRC for the supply of 200 locomotives to Kazakhstan. Built with improved structural and traction parameters, the locomotives will be adapted to withstand Kazakhstan’s climate and to emit low levels of harmful substances into the atmosphere.
On June 26, on the initiative of South Korea, China, Kazakhstan, and Uzbekistan railway administrations, and in cooperation with SJ Logistics Group, a ceremony was held at the Kazakh-Chinese logistics terminal in the port of Lianyungang, to launch the first container train from South Korea to Uzbekistan through China and Kazakhstan. The national railways company Kazakhstan Temir Zholy (KTZ), the subsidiary of which, KTZ Express, operates the route through Kazakhstan, reported that covering 7 thousand kilometres, the railway opens new avenues for economic interaction between the associated countries. Speaking at the ceremony, Deputy General Director for Commerce of KTZ Express Ulugbek Orazov, noted: “The launch of the pilot train demonstrates our common desire to develop joint multimodal transportation, which will certainly open up new horizons for trade and interaction in the region.” He continued by adding that the event marked an important step in the development of new opportunities to increase the transit potential of Kazakhstan as well as its establishment as a key transport hub in the international supply chain.
On June 29, representatives of Pakistan's and Uzbekistan’s leading transport and forwarding companies, and First Deputy Chairman of the Board of JSC Russian Railways, Alexey Pavlov, participated in a Logistics Forum in Tashkent. As reported by the Uzbek Ministry of Transport, the agenda focused on creating favourable conditions for bilateral and transit cargo transportation through the multimodal transport corridor Uzbekistan – Afghanistan – Pakistan, eliminating barriers and strengthening mutually beneficial strategic cooperation. Members of the Commonwealth of Independent States (former Soviet republics) have a keen interest in redirecting cargo flows to the multimodal transport corridor Uzbekistan - Afghanistan - Pakistan. According to statistics, in 2023 the volume of cargo transportation along this corridor increased 1.5-fold compared to 2021. Speaking at the forum, First Deputy Minister of Transport of Uzbekistan Mamanbiy Omarov emphasized the importance of the Uzbekistan-Afghanistan-Pakistan corridor and mooted proposals for its further development. Recommendations included reducing fees levied on freight transport and establishing fees on a parity basis in the territory of each state; developing mechanisms for insuring cargo along the route and ensuring the safety of goods during transportation; digitalizing the cargo transportation process; and developing proposals to increase the capacity of the Salang Pass in Afghanistan, which is the “heart” of this transport corridor.
The Eurasian Development Bank’s (EDB) Annual Meeting and Business Forum, to be held in Almaty, Kazakhstan on 27-28 June, is to focus on cross-border transport corridors in Eurasia. The EDB is a multilateral development bank serving Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. According to the EDB press service, this year’s forum session, “The Eurasian Transport Network: Potential, Challenges and Solutions” will analyse a report on the development of cross-border transport corridors crucial to the region’s economies. The report highlights the significant constraints in economic development posed by the remoteness of Central Asian countries from global markets and their landlocked status. According to EDB estimates, trade costs in some Central Asian nations are 40% higher than those of coastal states. Overcoming the lack of transport connectivity is key to unlocking the strong economic potential of all Central Asian countries. The concept of the transport network is based on the premise that linking East–West and North–South transport corridors generates synergies, creating new routes, logistics opportunities and better through tariffs. The EDB projects that freight traffic along the three main corridors crossing Central Asia (Central Eurasian Corridor, TRACECA and North–South) could potentially increase by almost two-thirds to 1.7 million containers (TEU) by 2030. Implementing this objective will require concerted efforts from all participating countries.
