Kazakhstan: Emerging as Eurasia’s Transport and Logistics Hub
Kazakhstan Emerges as a Powerhouse in Eurasia’s Transport and Logistics Landscape
Amidst a complex web of geopolitical shifts, Kazakhstan is emerging as a veritable powerhouse in Eurasia’s transport and logistics landscape. President Kassym-Jomart Tokayev, in his state-of-the-nation address on Sept. 1, set an ambitious objective for Kazakhstan to become what he called a “full-fledged power” in this field.
Kazakhstan, the world’s largest landlocked country, possesses significant untapped potential in transport and logistics. Its strategic geographical location at the crossroads of Europe and Asia, abundant natural resources, and proactive infrastructure development plans make it a promising hub for regional and international trade.
In his address, Tokayev tasked the government to bring the share of 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 first half of 2023. Kazakhstan has invested $35 billion in the transport and logistics sector in the past 15 years, laying the groundwork for ambitious future growth.
Kazakhstan boasts a network of transit, transcontinental corridors, and routes, with thirteen international corridors passing through the country, including five railways and eight auto corridors. In February, the Kazakh government adopted the concept for the development of transport and logistics potential until 2030, providing a vision for the development of various transport modalities, including rail, road, maritime, and air, as well as logistics.
Experts suggest that Kazakhstan is well-placed to benefit from the increased movement of goods between Europe and Asia. According to the Kazakh Ministry of Transport, in the first eight months of 2023, Kazakhstan’s transit traffic surged to 20.7 million tons, up by 25% compared to the same period last year. The majority of transit cargo is transported by rail, and plans are in place to further increase the volume of transit through the territory of Kazakhstan.
Kazakhstan’s participation in international transport corridors like the Trans-Asian Railway, TRACECA, and the North-South corridor opens up access to seaports and creates direct links to major consumer markets around the world. Projects have been launched to streamline administrative procedures, expand the geography of corridor participants, and attract new partners to the route.
The significance of the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, has garnered attention from its founding nations and beyond, including interest from the European Union and the United States. The throughput capacity of TITR stands at six million tons, and plans are in place to increase it to 10 million tons per year by 2027, with reduced delivery times and streamlined administrative procedures at checkpoints and ports.
Kazakhstan is working on several key projects to develop TITR, including the construction of a second track on the Dostyk-Moiynty railway section to increase transit traffic between China and Europe and the construction of the new Darbaza-Maktaaral railway line that will alleviate congestion and enhance transit capabilities.
President Kassym-Jomart Tokayev has repeatedly emphasized the need to unlock the potential of TITR, including through partnerships with other countries and international organizations, showcasing Kazakhstan’s commitment to becoming a major player in the global transport and logistics landscape.
