Kazakhstan is planning to raise tariffs for transporting coal exported to Uzbekistan, press service of the Prime Minister of Kazakhstan reported on July 17. This decision was discussed during a meeting between the working group of Kazakhstan and Uzbekistan, led by deputy heads of government. The meeting also focused on the progress of two significant joint projects initiated by the presidents of both countries in December 2022.
One of the projects entails the phased establishment of an Artel household appliance production plant in the Karaganda region, with the launch scheduled for 2025. The plant aims to generate goods valued at $8.95 bn, with $7.97 bn intended for export. Additionally, the Chevrolet plant, focused on manufacturing Onix vehicles, is set to commence operations on October 1, 2024, at the SaryarkaAvtoProm plant.
The proposal to increase tariffs for coal transportation to Uzbekistan from Kazakhstan is expected to result in higher costs for Kazakh coal exports. Furthermore, discussions during the meeting also addressed topics such as augmenting the throughput capacity of border points and activating the multimodal transport route involving China, Kazakhstan, Uzbekistan, Turkmenistan, and Iran.
Furthermore, Kazakhstan has made a request to Uzbekistan to lower tariffs for the transit of flour passing through Uzbek territory and heading to Afghanistan. Since 2017, there has been a notable decline in the volume of Kazakh flour exported to Afghanistan via Uzbekistan. Consequently, a joint expert working group has been formed to deliberate and negotiate tariff conditions for rail transportation.
At the beginning of June Daryo reported that Iran Sharkhan, the Vice Minister of Industry and Infrastructure Development of Kazakhstan, revealed intentions to progressively raise thermal coal exports to Uzbekistan by over 25-fold, reaching a total of 12.8 million tons by 2025.
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