Kazakhstan's logistics cluster on the Caspian Sea has the potential to attract Russian interest, according to Grigory Mikhailov, a specialist in Central Asia and editor-in-chief of LogiStan, who shared his insights with SputnikLive.
"There is a possibility that Kazakhstan is unlikely to want to let any neighbors into such projects. And Russian contractors and logisticians may be attracted to set up the hub," Mikhailov said.
The concept of developing ports in Kazakhstan has been a topic of discussion for decades. However, the projected completion period extending to 2028 is viewed as overly ambitious.
"The construction period of up to 2028 does not seem realistic," Mikhailov noted.
Given the scale and strategic importance of the project, Kazakhstan is likely to seek foreign investment.
"Most likely, Kazakhstan will try to attract foreign investors, for example, on the terms of further transfer of rights to the facilities," he suggested.
The logistics cluster will cater to a significant demand for transportation. This includes the transit of goods from China to Europe and Kazakh cargo, notably steel. Additionally, the project envisions establishing a new logistics route for transporting Kazakh oil, which currently predominantly passes through Novorossiysk.
"There is demand for transportation. This includes the transit of goods from China to Europe, and Kazakh cargo - steel. A new logistics route for transporting Kazakh oil," Mikhailov explained.
The creation of this logistics hub will not only benefit Kazakhstan by diversifying its logistics capabilities but also stimulate port development in neighboring regions such as Astrakhan and Makhachkala.
"The project will allow Kazakhstan to diversify logistics and will also give impetus to the development of ports in Astrakhan and Makhachkala," he said.
For efficient cargo transportation, the project will require container terminals and at least two ports capable of sending and receiving varying degrees of cargo.
"For normal cargo transportation, container terminals and at least two ports are needed, which will send and receive cargo to varying degrees. Currently, only Turkmenbashi in Turkmenistan performs such a function in the Caspian Sea," Mikhailov concluded.
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