Transport and Logistics - The Times Of Central Asia

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First Cargo Transported from Pakistan to Azerbaijan via Kazakhstan

A Pakistani transport and logistics company, TCS, has now completed a pilot delivery of goods from Karachi (Pakistan) to Baku (Azerbaijan) through the Caspian seaport of Aktau in Kazakhstan. The shipment was organized with the assistance of the Embassy of Kazakhstan in Islamabad, in an effort to expand Kazakhstan’s transit transport potential. Kazakhstan’s Foreign Ministry announced that the transportation of Pakistani pharmaceutical products under TIR, along the 4,820 km long route through Afghanistan and Uzbekistan to Aktau and then by sea to Baku, took 21 days. According to Pakistani logistics experts, the Trans-Afghan corridor in tandem with the Karakoram Highway, can provide significant impetus to expanding the transit and transport potential of Kazakhstan and Pakistan, with reference to the Trans-Caspian International Transport Route.

Trans-Caspian Corridor International Cooperation Transport and Logistics International trade SPECA

SPECA Countries’ Digitalization of Multimodal Data Exchange along Trans-Caspian Transport Corridor

An international seminar on “Trade Facilitation and Digital Transformation of Multimodal Data and Document Exchange along the Trans-Caspian Corridor” was held in Aktau, Kazakhstan on June 11-12. Participants included the Ministry of Trade and Integration of Kazakhstan, the United Nations Economic Commission for Europe (UNECE), the International Association “Trans-Caspian International Transport Route” (TCITR), and partners including the German Society for International Cooperation (GIZ) and the Permanent Secretariat of the Intergovernmental Commission of the Transport Corridor Europe-Caucasus-Central Asia. The seminar followed the adoption of the SPECA Roadmap for Digitalization of Multimodal Exchange of Data and Documents along the Trans-Caspian Transport Corridor, using UN legal instruments and standards, at the Presidential Summit of participating States of the United Nations Special Programme for the Economies of Central Asia (SPECA), back in November 2023, The workshop in Aktau, which brought together experts in trade, transport, and digitalization from fifteen countries, focused on the digitalization of multimodal exchange of data and documents along the Trans-Caspian Transport Corridor, particularly in the ports of Baku (Azerbaijan), Aktau (Kazakhstan), and Turkmenbashi (Turkmenistan). During the event, reports were given on the implementation of UN standards for digitalization of international supply chains, port community systems, interoperability, and multimodal data exchange. A visit to Kuryk, organized by the Kazakh side, included a presentation of the port’s digitized system as well as ongoing work on transhipment and storage of cargo. The United Nations Special Program for the Economies of Central Asia (SPECA) was launched in 1998 to strengthen sub-regional cooperation in Central Asia and its integration into the world economy. SPECA countries include Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Kazakhstan's trade turnover with SPECA countries in 2023 amounted to $9 billion.

Transport and Logistics Railway

Kazakhstan’s National Railway Carrier Under Threat of Default

The Chairman of the Supreme Audit Chamber (SAC), Alikhan Smailov, has discussed the possible default of national rail carrier, Kazakhstan Temir Zholy (KTZ). According to Smailov, the company cannot currently fulfill its obligations. "The company is in the ‘red’ zone of credit risk. At the beginning of 2024, its debt amounted to 2.9 trillion tenge ($6 billion) and continues to grow; 45%, or 1.3 trillion tenge ($2 billion), of the total debt is aimed at refinancing previously assumed debt obligations,” said Smailov, answering questions from deputies. According to Smailov, Samruk-Kazyna JSC's existing corporate governance methods and development strategy, which include KTZ, are not able to prevent the crisis the country's national railway company is facing. “Further deterioration of assets, the build-up of debts, and the inability to service them without fundamental management changes will lead to the default of KTZh,” Smailov stated. A large amount of budget funds has been spent on developing the railway industry over the past four years, but it has not been enough. The money invested has yet to meet the nation's needs for freight and passenger transportation, Smailov emphasized.

Trans-Caspian Corridor EU Cooperation Transport and Logistics

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

On 12 June, the European Commission and Kazakhstan launched the Coordination Platform for the Trans-Caspian Transport Corridor, also known as the Trans-Caspian International Transport Route (TITR) or the Middle Corridor, in Astana. According to Kazakhstan’s Ministry of Transport, the newly established Coordination Platform will improve the safety and sustainability of the Trans-Caspian Transport Corridor and turn it into a multimodal and competitive route linking Europe and Asia in 15 days or less. The event was attended by representatives of Central Asian countries and other states sited along the corridor, as well as international financial institutions and non-EU G7 countries. Emphasizing the critical development of transport infrastructure and strengthening transport links for the regions’ economic growth and prosperity, Marat Karabayev, Minister of Transport of Kazakhstan, stated: “The establishment of the Coordination Platform provides us with a unique opportunity to join forces, exchange experience and perspectives to reach common goals. I would like to note that our partners from Armenia, Azerbaijan, Georgia, as well as Turkey have been invited to join this effort, which plays an important role in terms of achieving major and sustainable goals for the development of the Trans-Caspian International Transport Route.” The Minister of Transport expressed gratitude to the European Union for its invaluable support and efforts towards the development of Central Asian countries. Speaking at the event, Henrik Hololei, Hors-Classe Adviser at the Directorate-General for International Partnerships in the European Commission, stated: "The Coordination Platform created for the Trans-Caspian Transport Corridor marks a significant step forward in our cooperation to bring Central Asia and Europe closer together. Sustainable transport connections are crucial for consolidating the region’s economic growth and connectivity with Europe." Ms. Maja Bakran, Deputy Director General for Mobility and Transport at the European Commission, then added: “The Coordination Platform will be instrumental in making the Trans-Caspian Transport Corridor a multimodal, modern, competitive, sustainable, predictable, smart and fast route linking Europe, the Caucasus and Central Asia. The coordination efforts among the various stakeholders will drive forward deeper connections and contribute to sustainable economic development of the region.” The Platform’s key objectives are to promote the corridor and coordinate efforts on the implementation of priority hard and soft infrastructure projects in Central Asia. It will also boost and coordinate investments in rail, road, and port infrastructure.

Transport and Logistics

China, Kyrgyzstan, Uzbekistan Railway Project to Begin

On 6 June, an intergovernmental agreement on the China-Kyrgyzstan-Uzbekistan railway project was signed in Beijing. The China-Kyrgyzstan-Uzbekistan railway is a strategic infrastructure project designed to create a new land transport corridor between Central and East Asia. The agreement, which marks an important step in progressing the project, lists principles and mechanisms for cooperation between the three countries concerning financing, construction, operation, and maintenance of the railway. In accordance with the agreement, the railway will run through Kashgar (China) – Torugart – Makmal – Jalalabad (Kyrgyzstan) – Andijan (Uzbekistan), with a modern transit and logistics infrastructure, warehouses and terminals created along the route. Once completed, the railway will transport an annual cargo of 15 million tons, and reduce time taken for delivery to consumers by 7 days. Chinese President Xi Jinping, Kyrgyzstan President Sadyr Japarov, and Uzbekistan President Shavkat Mirziyoyev attended the event via a video link. Kyrgyz President Japarov described the agreement as “a historical event marking the long-awaited start of the China-Kyrgyzstan-Uzbekistan railway construction project - which will - open new transportation routes to European countries and the Persian Gulf." Uzbek President Mirziyoyev likewise remarked on the historical significance of the signing, and stated, “This railway will become the shortest land link connecting China with our region. In the future, it will allow access through the promising Trans-Afghan corridor to the capacious markets of the countries of South Asia and the Middle East.” Chinese President Xi emphasized that the railway is a strategic project of connectivity between China and Central Asia and a landmark in the three countries' cooperation under the Belt and Road Initiative. According to the Chinese leader, China is ready to work with Kyrgyzstan and Uzbekistan on the launch of the project as early as possible, to boost the regions’ economic and social development .

Transport cooperation Transport and Logistics

Kazakhstan and Uzbekistan Boost Transport Cooperation

On May 11, Ministers of Transport of Kazakhstan and Uzbekistan, Marat Karabaev and Ilkhom Makhkamov signed a Road Map for strategic cooperation in transport and logistics for 2024-2025. During the meeting in Astana, the ministers discussed the development of international transport corridors, rail and road transportation, and joint projects relating to the construction of a transport infrastructure. High on the agenda, were the joint implementation of the construction of the Uzbekistan – Afghanistan – Pakistan railway and the collaborative development of the multimodal transport corridor Belarus – Russia – Kazakhstan – Uzbekistan – Afghanistan – Pakistan. With reference to accelerating transportation through the digitalization of cargo documentation, the parties lauded the introduction of the ‘E-permit’ system of electronic exchange of permit forms between the two countries. The Kazakh side welcomed Uzbekistan’s plans to build the Termez – Mazar-i-Sharif – Kabul - Peshawar railway and confirming his country’s readiness to participate in the project, Marat Karabaev stated, “The implementation of the project will contribute to the development of regional connectivity and trade for the countries of Central Asia, giving them access to the major sea ports of the South Asian region.” The parties also reported that work is now underway on a new railway line between Darbaza and Maktaaral, which will increase the throughput capacity between Kazakhstan and Uzbekistan by a further 10 million tons. The Kazakh minister noted that the volume of export-import transportation between the two countries by road increased by 6% over the past year and amounted to 1.8 million tons.