A Country of Great Transit Potential

Transport and logistics are taking center stage in international cooperation today, as National Company Kazakhstan Temir Zholy, JSC (NC KTZ, JSC), plays an active part in the creation of Eurasia’s new transport framework, striving to expand and consolidate its position on the international railroad transportation market.

Geographical benefits

The main railroad goods traffic directions of NC KTZ, JSC, are either domestic or international. According to the national transport operator, over the first 10 months of the year 2023, exports accounted for 84% of international traffic, import traffic made up 7%, while the remaining 9% was transit flow. As of the end of this period from January to October, the international traffic volume has now topped 110 million tons. Going forward, there are plans to eclipse as many as 136 million tons for the year. The main freight nomenclature (to\from Russia. – Ed.) is divided by the shipment directions. So, export is dominated by: coal, iron ore, grain, and oil products. Imports are most commonly in the form of ferrous metals, construction goods, chemicals, baking soda, nonferrous ore, and other goods.

Furthermore, NC KTZ, JSC, has serious transit potential thanks to Kazakhstan’s location on the world map. This renders transit flow a matter of strategic importance. One of the most significant container cargo transit directions is China/Asia – Europe and vice versa. At the same time, there is dynamic development going on in directions like China-Russia-China and China-Central Asia-China. Transit flow includes oil products, ferrous metals, chemicals, baking soda, and fertilizers.

Author: press service of JSC “National Company” Kazakhstan Temir Zholy.

Interaction with neighbors

The interaction between NC KTZ, JSC, and Russian Railways, OJSC, is currently geared toward achieving a common strategy and developing transport communication between Russia and Kazakhstan, as well as expanding the region’s transit capacity.

Freight rail traffic between Russia and Kazakhstan for the period from January to October 2023 grew 5% over the same period last year, topping 76 million tons.

During the celebration of the 20th anniversary of Russian Railways, OJSC, this year, NC KTZ, JSC, has been awarded a prize for “International partner of Russian Railways, OJSC: transport and logistic business development”. Fostering the transport ties of Kazakhstan and Russia will facilitate growing mutual trade and investments.

Through separate corridors

NC KTZ, JSC, is actively using and developing the North-South ITC’s eastern route, which leads from Russia to ports of the Persian Gulf and features the prospect of continuing on to India. This route may become a driving force in Kazakhstan’s economic development and drastically transform the structure of transportation, cooperation, and the level of interaction inside greater Eurasia. To develop the route, the parties are taking simultaneous measures to modernize the infrastructure, build up the terminal capacity and rolling stock, lift administrative barriers, and create favorable conditions for the transport operators.

With an eye to identify infrastructure issues and technical barriers in the North-South ITC’s Eastern route, Kazakhstan’s, Russia’s and Turkmenistan’s railroad administrations have conducted a technical audit of the division points and the adjoining railroad infrastructure this year. The work resulted a joint Plan of action being approved to increase the efficiency of cross-border division points. The Plan reflects short- and long-term objectives, including organizational, technical, reconstructive, and technological measures, the implementation of which will provide the basis to augment the North-South ITC’s capacity.

In addition, KTZ Express, JSC, a Kazakhstani transport and logistics company; Russian Railways Logistics, JSC; and The Transport and Logistics Centre of Turkmenistan, JSC, have signed a memorandum to create a joint venture (JV) for goods transport development. The JV is intended to create a uniform logistics operator on the North-South ITC’s eastern route.

In 2024, NC KTZ, JSC, will continue its collaboration aimed at developing and strengthening cooperation on wide-ranging matters, including the development of international transport corridors.

Corridor synergy

At the same time, NC KTZ, JSC, is devoting special attention to the development of the Trans-Caspian International Transport Route (TITR). The company says that the North-South ITC, as a longitudinal corridor, corresponds to the latitudinal TITR. NC KTZ, JSC, is noting significant synergy in both routes’ coordinated and systematic development.

The TITR runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and on to European countries. The route transports container cargo shipments by railroad as well as by sea transport through the Caspian.

Together with its colleagues from Azerbaijan, Georgia, and Turkey, NC KTZ, JSC, is actively developing the capacity of the railways and seaports the TITR runs through. Together with the route’s participants, we are ourselves working out measures to establish a transit product with uniform pricing principles.

According to press service materials

JSC “National Company” Kazakhstan Temir Zholy