The Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, has seen a significant surge in cargo transportation. In the first 9M 2023, the volume of cargo transportation along the TITR surged by 88%, reaching 2 mn tons, as per the Astana Times. This is a substantial increase from the 1.1 mn tons transported during the same period in 2022.
The corridor has emerged as a significant alternative to existing routes, with its total throughput capacity standing at 5.8 mn tons of cargo annually. The volume of container traffic was 33,000 twenty-foot equivalent (TEU) containers in 2022, while the current potential of the Middle Corridor is 80,000 TEU containers.
Time efficiency
The transit time along the TITR has been significantly reduced. It has dropped from 38-53 days to 18–23 days. Plans are underway to reduce this period further to 14–18 days in 2024, including within the territory of Kazakhstan – from 6 to 5 days.
Development efforts
Kazakhstan’s strategic goal is to increase the capacity of the Middle Corridor up to 10 mn tons by 2030. To facilitate this effort, the country has signed roadmaps with Azerbaijan, Georgia, and Turkiye to address bottlenecks and develop the Middle Corridor by 2027.
Kazakhstan Temir Zholy (KTZ) national railway company, Georgian Railway, and Azerbaijan Railways inked an agreement to create a joint venture to develop multimodal service on the TITR. A new company named Middle Corridor Multimodal was registered at the Astana International Financial Centre in November.
Engaging European companies
Efforts are ongoing to engage European transport and logistics companies. During the visit of German President Frank-Walter Steinmeier to Astana in June, the German company Rhenus and KTZ signed a memorandum of understanding for joint work to increase cargo flow on TITR.
In June, the Lithuanian company LTG Cargo joined the TITR International Association, opening new opportunities for diversifying cargo flows from Kazakhstan to Lithuania and vice versa. Negotiations are underway between the Kazakh Ministry of Transport and Austria’s Rail Cargo Group for the company to join the TITR association and open a representative office in Kazakhstan.
Experts’ assessment
In its study published in May, the European Bank for Reconstruction and Development (EBRD) endorses the Central Trans-Caspian Network (CTCN), traversing through southern Kazakhstan, as the most sustainable option for forging links between Central Asia and Europe.
Plans to construct and upgrade extensive railway networks, including Khorgos dry port near the Chinese border, demonstrate a strong commitment to enhancing transit facilities. EBRD estimates that approximately $20.4bn in investment is needed for these projects in Central Asia, highlighting their significant scale and potential impact.
In a business-as-usual scenario, the transit container volume on CTCN could rise from 18,000 TEUs in 2022 to 130,000 TEUs in 2040. With investment projects and measures for smoother connectivity in place, the transit container volume on the CTCN could surge to 865,000 TEUs by 2040.
Investment in transport and logistics
Over the past 15 years, Kazakhstan has invested $35bn in the transport and logistics sector. The nation now boasts a network of transit, transcontinental corridors, and routes. Thirteen international corridors, including five railways and eight auto corridors, pass through Kazakhstan.
Aiming for economic Growth
In his September 1 address, President Tokayev tasked the government with increasing the transport and logistics sector’s contribution to the national GDP to 9% within the next three years. As of 2022, the figure stood at 6.2%, with a slight dip to 5.9% in the 5M 2023.
Future development plans
In February, the Kazakh government adopted the concept for the development of transport and logistics potential until 2030. This document provides a vision for the development of various transport modalities, including rail, road, maritime, and air, as well as logistics.
Major infrastructure projects
Dostyk-Moiynty section
Bakhty-Ayagoz Railway line
On December 21, the construction of a new 272-kilometer-long Bakhty-Ayagoz railway line began in the Abai Region. The completion of the project is scheduled for 2027. The project is intended to unload two existing border railway stations at Dostyk-Alashankou and Khorgos-Altynkol and increase the throughput capacity of the border crossing points of Kazakhstan and China from 28 to about 48 mn tons. The construction of the crossing and the railway line will cost over 320 bn tenge ($696.3mn).
Almaty station bypass railway line
Another strategic project is the Almaty Station Bypass Railway Line, whose construction began on November 14. The completion of the project is scheduled for 2024. The project covers the construction of a new railway line between Zhetygen, 50 kilometres north of Almaty, and Kazybek Beka, 90 kilometres northwest of the city centre. Projections suggest that the new line will reduce the load on the Almaty hub by 40%, reducing cargo delivery times to 24 hours. The project has attracted private investments worth 93.6 bn tenge ($203.7mn).
Darbaza-Maktaaral Railway line
The construction of a new railway line, Darbaza-Maktaaral, spanning 152 kilometres in length, commenced in the Turkistan Region on November 27. The completion of the project is scheduled for 2025. A new checkpoint will be established along the Kazakh-Uzbek state border as part of this initiative. The cost of the project is estimated at 250 bn tenge ($543.9mn).
Aktau Port: future container hub
The development of the technical and economic justification for the construction of a container hub based on the Aktau port commenced in April. The financial details are nearing completion, and the entire document, including the state examination approval, is expected to be ready by March-April 2024. The construction of the container hub is set to be completed in 2025. Investments in the project amount to 13.7 bn tenge ($29.8mn).
The container handling capacity of the Aktau port is 70,000 TEUs. After upgrading the transhipment yard and equipment, it is expected to reach 120,000 TEUs. Once the container hub construction is finished, the capacity is expected to increase to more than 300,000 TEUs.
Transit and Cargo Transportation Dynamics
The significant increase in cargo transportation and transit, including container shipments, highlights the growing demand for Kazakhstan’s transit routes. According to the latest government data, in the first 10M 2023, the volume of freight traffic in Kazakhstan by all modes of transport reached 725.6 mn tons.
Rail cargo transportation reached 246 mn tons, an increase of 3% compared to the same period in 2022.
Rail cargo transportation: growing sector
In 2022, rail cargo transportation between Kazakhstan and China surpassed 23 mn tons and in 2023, this figure has increased by another 22%, said Minister of Transport Marat Karabayev at a November 21 government meeting.
According to the minister, the railway has been meeting Kazakhstan’s export needs, with export shipments totalling 70.7 mn tons, an 8.5% increase since the start of 2023.
Transit transportation increased by 19% from 2022 to 22.5 mn tons in 2023. Kazakhstan aims to elevate transit cargo volumes to 35 mn tons by 2029.
Seaports: key players in economy
The total capacity of Aktau and Kuryk seaports is 21 mn tons per year. Seaports have the possibility of transhipment of oil, grain, and general cargo and provide seamless ferry transportation of goods in wagons and motor vehicles. The merchant fleet consists of 20 vessels.
At a December 12 government meeting, the minister said in the first 11M 2023, the volume of traffic through seaports reached 6.5 mn tons, which is 10% more than in 2022. This indicates the growing importance of seaports in the country’s economy and their role in facilitating trade and commerce.
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