Information published on 31 October 2017 in the UIC electronic newsletter "UIC eNews" Nr 568.

Kazakhstan: Interfacing of “Nurly Zhol” and “Economic belt of the Silk Road” forms a new architecture of transcontinental corridors

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On 16 October a delegation of JSC NC KTZ led by Vice President for Logistics Sanzhar Yelyubaev took part in the investor day in Hong Kong, organised by the Samruk-Kazyna Fund.

The Vice President of the Company reported on the transit and transport capabilities of Kazakhstan and spoke about the activities of JSC NC KTZ as a national transport and logistics holding company implementing the state strategy for the development of the country’s transit potential.

JSC NC KTZ is one of the 15 largest railway companies in the world in terms of cargo turnover. At the end of 2016, the share of rail transport in the market of cargo transportation in Kazakhstan was 46%.

“Located in the centre of Eurasian continent between the world’s largest markets, Kazakhstan has a huge potential for growth in transit traffic,” said S. Yelubayev and noted that “the Company generates 35% of its revenues from transit traffic by attracting additional container freight flows and improving the commercial structure transported nomenclature.”

The Vice-President stressed that "the interconnection of the Kazakhstan’s “Nurly Zhol” program and the Chinese project “The Economic belt of the Silk Road” provides synergy of transport and logistics systems of two countries and forms a new architecture of transcontinental corridors."

On behalf of the Head of State, JSC NC KTZ is preparing a strategy of growth in transit and multimodal transportation, which provides for the integrated development of international transport and logistics routes from China to Europe through the territory of Kazakhstan.

S. Yelubayev reported on the development of transport and logistics infrastructure of trans-Kazakhstan corridors, expansion of logistics and terminal infrastructure on the border with China Altykol / Dostyk stations up to 40 million tons, the capacity of the existing railway lines from the Kazakhstan-China border with access to the Caspian sea infrastructure.

“To attract freight traffic, we are forming a network of transport and logistics centers at key points of cargo consolidation,” he said and noted that "the entry of COSCO-Shipping company and Lianyungang Port into the Dry Port development project in the territory of the SEZ “Khorgos - Eastern Gates” On the Kazakh-Chinese border opens a new stage in the development of transcontinental transportation."
“The most favourable economic and infrastructure conditions for the development of transport and logistics business and production have been created on the territory of Khorgos,” S. Yelubayev said and invited investors to develop business on the territory of the hub.

At present, JSC NC KTZ actively promotes a regular container service, working with 17 provinces of China, in Vietnam, Korea, Europe and the Persian Gulf.
"We offer competitive terms of delivery of goods. For example, from China’s provinces to European countries, the cargo is delivered from 9 to 15 days, to Central Asian countries and Russia - on average 6-8 days, "S. Yelubayev noted.
Today, the share of Kazakhstan on the China-Europe-China land route has reached 71% against 12% in 2011. New routes are being mastered in communications between China, Iran, Great Britain and Turkey through Kazakhstan.

By 2020, it is planned to increase the volumes of transit traffic to two million TEU in the directions running through the territory of the Republic of Kazakhstan.

(Source: KTZ)