Kazakhstan has been actively working to enhance its transport and transit potential, as well as modernize transport corridors, since gaining independence. Over the past 15 years, the country has allocated more than $35 billion towards these initiatives. Marat Karabayev, the Minister of Transport of Kazakhstan, has highlighted these efforts.
The transport industry in Kazakhstan is now considered a lucrative area for investments. The country boasts the shortest routes from Europe to Central Asia, China, and Southeast Asia, positioning itself as a key player in global transit flows. Kazakhstan has successfully established a network of efficient transit transcontinental corridors and routes.
The Middle Corridor, also known as TITR, stands out as a significant logistical solution connecting transit flows between Europe, Central Asia, and China. This route has the potential to serve as a continental bridge, reducing freight traffic time and transport costs. In 2022 and the first nine months of 2023, cargo volumes on this route doubled.
Efforts are underway to collaborate with neighboring countries and regional partners to regulate tariffs on the corridor. Container transportation tariffs on the route have already been fixed, with plans to stabilize them for at least five years. A joint venture agreement was signed in Tbilisi in October, involving Kazakh, Georgian, and Azerbaijani railways, aimed at improving the quality of service on the Middle Corridor.
The TITR Association’s expansion aims to promote a corridor approach more effectively. Negotiations are ongoing for the inclusion of Austrian Rail Cargo and other cargo operators from Germany, with additional interest expressed by Lithuania, Latvia, Estonia, and Hungary.
Collaboration with global partners is a key focus for Kazakhstan, evident in agreements with major European companies such as Maersk, Alstom, DB Engineering, HHLA, Stadler, Jan De Nul, MSC, and a $1-billion agreement with the American WABTEC following President Tokayev’s visit to the US in September 2023.
In terms of cooperation with China, Kazakhstan plays a vital role in the One Belt, One Road initiative. Approximately 85% of all land transit traffic from China to Europe passes through Kazakhstan. Infrastructure projects like the Kazakh-Chinese logistics centre, Khorgos dry port, Western Europe-Western China transit highway, and the railway corridor from China to Iran contribute to this collaboration.
Kazakhstan and China recently approved a draft Agreement on the Development of the Trans-Caspian International Transport Route, aiming to provide favorable conditions for the route’s development and attract additional transit and foreign trade cargoes.
The European Union is also considered a crucial partner for the successful development of the Middle Corridor. Kazakhstan is eager to collaborate with the EU, and during a working visit in October 2023, Hors Classe Adviser of the European Commission Henrik Hololei expressed interest in advancing investment cooperation in transport and transit.
Sustainable, ready-to-go projects will be prioritized, and Kazakhstan is open to European investors. The government-backed projects aim to match infrastructure capacity to the positive outlook presented in the EBRD study on developing sustainable transport connectivity between Central Asia and the EU.
European companies are encouraged to explore opportunities in shipbuilding, port development, aircraft manufacturing, and the establishment of postal and commodity hubs in Kazakhstan. The upcoming Central Asia-EU Investors’ Forum in Brussels in January will provide a platform to announce flagship projects under the Global Gateway initiative.
Kazakhstan is optimistic about becoming the region’s new transport and trade hub, with the EU recognized as a preferred partner due to its excellent transport capacity, impactful economic power, and globally renowned companies.
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