Central Asia

Kazakhstan is actively advancing the development of its segment within the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. Official data reveals a substantial surge, with 2.5 million tons of goods transshipped through the Aktau and Kuryk seaports along the TITR route during the first 11 months of 2023, marking a notable 107 percent increase compared to the previous year. In a landmark move, Kazakh oil made its inaugural journey along the Middle Corridor in 2023.

Hapag-Lloyd AG and Maersk A/S, entities under A.P. Moller – Maersk, are set to embark on a groundbreaking collaboration named “Gemini Cooperation”, scheduled to commence operations in February 2025. This strategic partnership aims to establish a highly flexible and interconnected ocean network renowned for its industry-leading reliability. The fleet pool will consist of approximately 290 vessels, boasting a combined capacity of 3.4 million containers (TEU), with Maersk contributing 60% and Hapag-Lloyd 40%.

The Prime Minister emphasized the importance of the Enhanced Partnership Agreement, the EU strategy for Central Asia, and also highlighted the role of the European Union as the largest trade and investment partner. The transit and transport sector, especially through the Trans-Caspian route, has been highlighted as an important area with increasing traffic volumes and significance in the supply chain of goods from China to Europe. The Prime Minister also noted the upcoming investor forum on sustainable development of transport links, where Kazakhstan will be represented as part of the Global Gateway initiative.

In Astana, a meeting was held between Vice Minister of Transport Talgat Lastaev and the Ambassador of Romania to Kazakhstan Madalina Lupu, where prospects for cooperation in the transport, logistics and aviation sectors were discussed. According to the Ministry of Transport, the Minister of Transport of Kazakhstan is expected to visit Romania soon to discuss the development of the Trans-Caspian international transport route to improve transport links with Europe. It is also planned to sign a memorandum on the development of cooperation within the framework of TITM during the upcoming visit, Lastaev emphasized, expressing hope for further successful cooperation between the countries in the field of transport.

Moody’s Investors Service has upgraded the rating of the national railway company Kazakhstan Temir Zholy (KTZ). The upgrade from Baa3 to Baa2 reflects the sustained improvement in KTZ’s operating and financial performance coupled with improved credit metrics.

PSA International Pte Ltd (PSA) celebrates a historic achievement, setting a new container volume record of 94.8 million Twenty-foot Equivalent Units (TEUs) across its global port terminals in the fiscal year ending on December 31, 2023. The remarkable performance was driven by PSA’s flagship terminal in Singapore, which contributed 38.8 million TEUs, marking a 4.8% increase, while PSA terminals outside Singapore handled 56 million TEUs, reflecting a 3.9% growth. In comparison to the corresponding period in 2022, the overall volume of the Group experienced a significant 4.3% uptick.

KTZ Express has successfully launched a regular service for the delivery of goods from the Chinese city of Xi’an to the Azerbaijani Absheron station through Kazakhstan as part of the development of the Trans-Caspian International Transport Route (TITR).

The Kaztemirtrans company has increased its fleet of freight cars by 67 new gondola cars produced in Ekibastuz by the Kazakhstan Freight Car Building Company. The new cars, with a carrying capacity of 70 tons, received a certificate of compliance with the technical regulations of the Customs Union. This step is part of an extensive plan for the gradual renewal of the company’s freight railcar fleet, aimed at acquiring approximately 3 thousand railcars by 2025. These new resources will be used to transport important social goods such as grain, coal and building materials.

The international rating agency S&P Global highly rated the national company KTZ in the field of sustainability, assigning it an ESG rating of 54 points out of 100 in the global Corporate Sustainability Assessment. A breakdown by component showed that KTZ demonstrates high results in the environmental (61 points) and social (59 points) areas, but is slightly inferior in the area of corporate governance, receiving 40 points. These outstanding results allowed the national carrier to be included in the top 15% of companies in the S&P Global Corporate Sustainability Assessment in the Transportation and Transport Infrastructure industry. The S&P Global ESG Score reflects a company’s relative effectiveness in managing ESG risks and opportunities compared to its peers in the same industry.

At the beginning of this year, the KTZ-Freight Transportation company held the first meeting of the operational grain headquarters with the participation of representatives of grain processors of the Union, the Association of Flour Millers of Kazakhstan and Astyk Trans JSC. The main attention was paid to organizing the transportation of grain cargo and analyzing the results of last year. In 2023, the volume of grain transportation reached 11.3 million tons, with an increase of 12.7%, exports increased by 1 million tons compared to 2022. Transportation of ground products increased by 15%, while imports of agricultural products increased by 15%.