Trade and Logistics - The Times Of Central Asia

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Opinion: Mirziyoyev’s Historic Visit Opens New Era for Uzbekistan-Mongolia Ties

Uzbekistan’s President Shavkat Mirziyoyev embarked on a historic journey to Mongolia on June 24-25, marking a significant milestone in the relationship between the two nations. This landmark visit, the first of its kind in over thirty years since the establishment of diplomatic ties, signifies a new era of collaboration and potential growth in Central Asia. Accompanied by his wife, Mirziyoyev was warmly received in Ulaanbaatar by Mongolian Foreign Minister Batmunkh Battsetseg and a host of other dignitaries. Their arrival set the stage for discussions aimed at unlocking vast opportunities for multifaceted cooperation and development, reflecting a shared vision for a prosperous future. Despite the significant geographical distance that separates Uzbekistan and Mongolia, the two nations are witnessing a remarkable evolution in their bilateral relations. This burgeoning partnership spans several domains, including diplomacy, economics, transportation, culture, and humanitarian efforts. A pivotal moment in this relationship was marked by the recent inauguration of the Mongolian Embassy in Tashkent, which symbolizes a commitment to fostering closer ties. Additionally, the increased frequency of intergovernmental and interparliamentary dialogue reflects a shared ambition to enhance collaboration. The signing of 14 bilateral agreements further underscores a mutual desire to cultivate trust and strengthen the partnership, paving the way for a promising future. In recent years, the partnership between Uzbekistan and Mongolia has experienced a remarkable surge in trade and investment. This dynamic growth is underpinned by a robust and multifaceted cooperation that spans numerous sectors, showcasing the commitment of both nations to strengthening ties. Between 2018 and 2023, trade between Uzbekistan and Mongolia experienced a significant increase, rising by more than 8.8 times. This impressive upward trajectory has continued into the early months of 2025, with preliminary data indicating a sustained expansion. Uzbekistan exports a variety of goods to Mongolia, including vital agricultural and industrial products, while Mongolia has ramped up its livestock exports, enriching the trading landscape. The establishment of numerous joint ventures exemplifies, with many ventures operating in Uzbekistan featuring 100% Mongolian capital, primarily in the realms of trade and services. Both nations are actively identifying and pursuing opportunities for collaborative projects in critical areas, including logistics, agro-processing, and machinery manufacturing. A particular emphasis is placed on joint production initiatives in sectors such as leather, wool, and cashmere processing, as well as the fabrication of electrical equipment, machinery, and construction materials. Agricultural cooperation is also a key focus, with plans for joint clusters and projects aimed at the processing and production of meat, dairy, wool, and leather products. Enhancing transport interconnectivity and developing innovative logistics routes are prioritized, with a direct air service between the capitals anticipated to be in place by the end of the year. Cultural and humanitarian exchanges are being fostered through initiatives such as the Days of Uzbek Culture, which take place in Ulaanbaatar, and the return of Mongolian students to Uzbek universities. The recent meeting between the President of Uzbekistan and the President of Mongolia, Ukhnaagiin Khurelsukh, marked a significant step toward enhancing bilateral cooperation. Both leaders engaged in productive...

Iran Rail Corridor Trade and Logistics Railways railroads New rail routes Rail cargo China

Beijing Meeting Charts Future of China-Kazakhstan-Turkmenistan-Iran Rail Corridor

On December 25, experts convened in Beijing to evaluate the performance and future potential of the China-Kazakhstan-Turkmenistan-Iran railway route. The meeting reviewed the route’s operational results for 2024 and explored opportunities for further development. Kazakhstan was represented by KTZ Express, a subsidiary of Kazakhstan Temir Zholy (KTZ), the national railway company. According to KTZ Express, cargo transportation volume along the route increased by 31% during the first 11 months of 2024 compared to the same period in 2023. This growth underscores the rising interest of market participants in the route and highlights Kazakhstan’s critical role as a transit hub in the global supply chain. Key Discussion Points Participants focused on several areas to enhance the route’s efficiency: Increasing cargo delivery speeds to further reduce transit times. Optimizing customs procedures to streamline cross-border operations. Implementing modern digital solutions to simplify logistics processes and improve transparency. Strategic Importance of the Route The China-Kazakhstan-Turkmenistan-Iran railway corridor is a vital link in Eurasian trade, facilitating the rapid movement of goods from China’s eastern coast to the Persian Gulf and Middle Eastern markets. This corridor has already achieved significant milestones, reducing delivery times between China and Iran to just 15 days. With its growing cargo volumes and strategic positioning, the China-Kazakhstan-Turkmenistan-Iran railway route is poised to become an even more significant player in Eurasian trade. Continued efforts to optimize its operations and infrastructure will further solidify its role in connecting key global markets.

Transport Transport & Logistics multimodal transportation Rail cargo New rail routes Railways Trade and Logistics

Transforming Kazakhstan’s Railways: Strategic Infrastructure for Regional and Global Connectivity

Kazakhstan’s rail network is a strategic national asset, vital for a country of its vast size and landlocked geography. Without direct access to the world’s oceans, railways serve as critical arteries for trade and transit. Under new geopolitical and logistical conditions, the importance of modernizing and expanding this network has become increasingly urgent. Spanning 21,000 kilometers, Kazakhstan’s railroads form the backbone of its transportation infrastructure. By 2030, the country plans to modernize 11,000 kilometers of highways and construct over 5,000 kilometers of new railways. Among these ambitious projects are the construction of second tracks on the Dostyk-Moyinty railway section, a bypass railway line around Almaty, and two new lines: Darbaza-Maktaaral and Bakhty-Ayagoz. Expanding Trade with China: Increased Cargo Traffic The Dostyk border station has become a key hub for exports to China and a vital transit point for East-West trade. In recent years, growing cargo volumes and limited capacity have placed immense pressure on its infrastructure. The Dostyk-Alashankou junction point, with a current capacity of 20 million tons annually, handled 15.2 million tons in the first 10 months of this year alone - a 15% increase compared to the same period last year. To address these challenges, construction of second railroad tracks on the Dostyk-Moyinty section began in November 2022. Part of the National Project: Strong Regions - Driver of the Country's Development, this project aims to increase the section’s capacity fivefold, from 12 to 60 train pairs per day. Transportation speeds between China and Europe are also set to improve significantly, from the current 800 kilometers per day to 1,500 kilometers per day. Official data indicates that 635 kilometers of the planned 836 kilometers have already been completed. The project involves 62 bridges, 242 pipelines, and a workforce of 24 construction companies and over 440 units of equipment. Completion is expected by late 2025. Private Investments Driving New Railway Lines Kazakhstan’s second major rail crossing with China, Altynkol station, has also reached its maximum capacity. Together with Dostyk, the two stations handle 28 million tons annually. This makes the development of the new 272-kilometer Bakhty-Ayagoz railway line essential. Connecting the border to the Semey-Aktogay section and the China-Europe corridor, the new line is expected to boost goods transportation to and from China by an additional 20 million tons. This project, realized under a public-private partnership model, will feature the construction of 11 stations, 47 bridges, 23 railroad overpasses, and eight highway overpasses. It will also include five pedestrian bridges and 16 observation structures, utilizing over 500,000 locally manufactured sleepers and 36,000 rails. Approximately 1,700 jobs will be created during the construction phase, with priority given to local residents. Alleviating Traffic in Almaty: A New Bypass Line The 73-kilometer bypass railway line around Almaty is set to increase cargo capacity by 17 million tons annually. By redirecting traffic to the Zhetygen-Kazybek Bey line, this project will reduce congestion at the Almaty junction by 40%. Faster delivery times for goods and passengers - up to 24 hours shorter - are among...

Trade and Logistics International trade Foreign Trade Regional Relations Trade Afghanistan

Kazakhstan Opens Pavilion in Uzbek-Afghan Border Trade Center

Kazakhstan’s Ministry of Trade and Integration has announced the opening of a trade pavilion showcasing Kazakh products at the Termez International Trade Center, located in the town of Termez, Uzbekistan, near the Afghan border. The pavilion is expected to serve as a strategic platform for promoting Kazakh goods in the markets of Uzbekistan and Afghanistan. The Termez International Trade Center is a crucial hub at the crossroads of Central Asian trade routes, facilitating significant trade flows between Uzbekistan and Afghanistan. Opened on August 29, the center was inaugurated by Uzbek Prime Minister Abdulla Aripov and acting Afghan Deputy Prime Minister Abdul Ghani Baradar. The facility includes retail spaces, hotels, a medical center, and other amenities. Notably, it supports transactions in multiple currencies, such as U.S. dollars, euros, rubles, and yuan. Afghan citizens can visit and conduct trade at the Termez center for up to 15 days without requiring an Uzbek visa. Kyrgyzstan has also secured a presence at the Termez International Trade Center. As The Times of Central Asia previously reported, on November 11, the Kyrgyz Ministry of Economy and Commerce acquired a trade pavilion, providing a strategic foothold to expand Kyrgyzstan’s influence in the markets of Uzbekistan and Afghanistan. Kazakhstan and Kyrgyzstan have both removed the Taliban from their lists of terrorist organizations, aligning with broader efforts by Central Asian nations to deepen trade and economic ties with Afghanistan.

Bilateral Trade Trade and Logistics Foreign trade turnover International trade Bilateral Cooperation Export/Import Afghanistan

Kazakhstan and Afghanistan Seek to Increase Trade to $3 Billion

On October 22, Kazakhstan’s Deputy Prime Minister Serik Zhumangarin and Afghanistan’s Minister of Industry and Commerce, Nuriddin Azizi, signed a roadmap to increase Kazakh-Afghan trade turnover to $3 billion at a business forum in Almaty. This follows Kazakhstan’s removal of the Taliban from its list of terrorist organizations in June as part of an effort to develop trade and economic ties with Afghanistan. The roadmap includes Kazakhstan’s participation in constructing two railway lines in Afghanistan: Turgundi—Herat—Kandahar—Spin Boldak and Mazar-i-Sharif—Harlachi. It also aims to expand the range of goods in bilateral trade, develop cooperation in the chemical industry, and increase the export of Kazakh ammophos materials to Afghanistan. Additionally, the roadmap includes plans to export both new and used cars manufactured in Kazakhstan, set up service centers in Afghanistan, and build schools in the region. According to Kazakh officials, there is significant potential to increase grain and flour exports to Afghanistan while importing Afghan fruits, vegetables, dried fruits, and other food products. Kazakhstan is also interested in supporting Afghanistan’s economic development and integration into international transport corridors. In the first half of 2024, the volume of road transit from Afghanistan through Kazakhstan increased by 8%, exceeding 5,000 tons, compared to 10,000 tons last year. Deputy Prime Minister Zhumangarin noted at the forum that a railway corridor connects Kazakhstan and Afghanistan through Turkmenistan and Uzbekistan. Kazakhstan is also interested in using the Trans-Afghan corridor, which runs through the Karachi and Gwadar seaports in Pakistan, to facilitate the transit of Kazakh export cargo to markets in the Middle East and Southeast Asia. The Afghan delegation was offered access to the dry port of Khorgos on the Kazakh-Chinese border to ensure the smooth transit of Afghan goods to China via Kazakhstan. The business forum in Almaty coincided with Kazakh-Afghan negotiations on the logistics of transporting goods from China to Afghanistan and back through Kazakhstan. The event also featured an exhibition of Afghan food and industrial products.

Afghanistan Export/Import Trade and Logistics International transport Bilateral Cooperation

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.