Building Bridges Across Eurasia: Kazakhstan’s Strategic Push for Transport Integration

The development of the economic systems of Europe and Asia is outpacing the level and pace of integration in the transportation systems of the countries located between them. This problem can be solved by creating an overland chain across the entire Eurasian space. As part of the development of its transit potential, Kazakhstan has started to form the backbone of such a terminal network. All work on creating transport networks has been entrusted to the national company, Kazakhstan Temir Zholy (KTZ), which plans to integrate all modes of transport to offer a comprehensive range of client services under a 'one-stop-shop' principle and enhance international operations. Establishing a terminal network outside of the republic will improve freight logistics and help build efficient supply chains. This decision is driven by market demands for cargo delivery, which go beyond mere transportation needs and require the provision of a comprehensive transportation product by a single logistics operator. Where Cargo Flows Begin Developing cooperation with China plays a crucial role in integrating Eurasian transport space. In 2023 alone, transit freight traffic between Kazakhstan and China reached a record 28.3 million tons. This success was partially due to the development of a terminal network in China - the Kazakhstan-China logistics terminal in the Pacific port of Lianyungang has been operating for ten years, and the largest dry port in Central Asia, Khorgos – Eastern Gate, operates on the border. The transport system between these two ports facilitates the delivery of goods from China's eastern coast to Europe via the Caspian Sea, ensuring the shortest delivery times. Adding the new Kazakh terminal in Xi'an to this transport chain has optimized logistics processes and boosted transportation performance. In the first eight months of 2024, container transit from China along the Trans-Caspian International Transport Route (TITR) increased 20-fold thanks to the freight terminal in Xi'an, a project was implemented in partnership with the Chinese company, Xi'an Free Trade Port Construction and Operation. Focusing on EAEU Transport Potential Significant steps have been taken to harness the transport potential of the Eurasian Economic Union (EAEU) countries. In April, construction began on a new terminal at the Selyatino station near Moscow. A trilateral Kazakhstan-Russia-China agreement on creating the CRK Terminal transport and logistics center has been signed by KTZ, SlavtransService, and Xi'an Free Trade Port Construction and Operation. This logistics hub, based in one of the largest dry ports in Selyatino, will develop direct transport links between Xi'an, Russia, and other countries. Its launch is expected this year. Additionally, in the fall of 2024, KTZ signed a Memorandum of Understanding with Chinese and Belarusian partners to build a new logistics terminal in the Belarusian city of Svisloch. Caspian Priority To further integrate Kazakhstan into the key Trans-Caspian International Transport Route (TITR) plans are underway to create an inter-modal freight terminal in Azerbaijan's Alyat port. An agreement for the project's implementation has been signed between SK-AIH Investment Fund Ltd, KTZ, Baku International Sea Trade Port CJSC, and Xi'an Free Trade Port Construction and...

Kazakhstan, Iran, Turkmenistan and Russia to Develop North-South Transport Corridor

On July 19 - 20, the Ministry of Transport of Kazakhstan organized its first meeting on the North-South transit and trade corridor in Aktau attended by delegations from Azerbaijan, Armenia, Afghanistan, Kazakhstan, Russia, Belarus, Turkmenistan, UAE, Iran, Iraq, Oman, and Uzbekistan. By connecting Russia and Belarus to ports in the Persian Gulf, with further access to India, the North-South transport corridor will broaden prospects for trade and become a key engine for Kazakhstan's economic development. During the meeting,  Kazakhstan, Iran, Turkmenistan, and Russia signed a roadmap for the development of the eastern route of the North-South transport corridor from 2024 to 2025, aimed to increase the corridor's throughput to 15 million tons of cargo annually by 2027 and 20 million tons by 2030. Kazakh Minister of Transport Marat Karabaev commented: “Kazakhstan intends to continue its active participation in the development of the Eastern branch of the North-South corridor, which has the highest potential for growth in cargo flows until 2030 and appears to be the safest and shortest transit route to the Indian Ocean. Therefore, it is necessary to begin the practical implementation of the Roadmap signed today for the synchronous development of the eastern route of the North-South corridor passing through the territories of Kazakhstan, Russia, Turkmenistan, and Iran.”