Kazakhstan plans to increase cargo transit from China to Europe through its territory 5 times by 2029

Issues of development of road freight transportation and transit were considered at the Government session under the chairmanship of Prime Minister of the Republic of Kazakhstan Alikhan Smailov.

As Deputy Minister of Transport Satzhan Ablaliyev reported, following the results of 9 months of the current year, the volume of road freight transportation in the republic amounted to 5.5 million tons, which is 22% more than in the same period last year. The share of domestic operators is 42%.

Positive dynamics is also observed in transit transportation. Compared to last year, there is a 44% growth from 2.5 to 3.6 million tons. The main volume is accounted for the PRC countries as cargo transportation in this direction increased twofold to 1.5 million tons. At the same time, there is a great potential for further increase in transit cargo volumes from China to Europe. If the current dynamics is maintained, the level of transit through the territory of the Republic of Kazakhstan will increase 5 times by 2029, which will have a positive impact on the development of the country's economy.

To reorient cargoes delivered by sea transport to road corridors and increase the share of domestic operators in transportation, measures will be taken to create bonded warehouses, increase the capacity of border crossing points, expand the domestic vehicle fleet, and introduce an effective system of distribution of permits.

On measures to expand the Khorgos transport hub, the Akim of Zhetisu region Beibit Issabaev reported, on acceleration of procedures for allocation of plots for roadside service facilities on the bypass road of Balkhash city the Akim of Karaganda region Yermaganbet Bulekpayev. Akim of Kyzylorda region Nurlybek Nalibayev also informed about harmonization of roadside service facilities with the National Standard.

Alikhan Smailov emphasized that developed road freight transportation directly affects all sectors of the economy. Today, 8 international road corridors with a total length of about 13 thousand kilometers pass through the territory of Kazakhstan. Among them are Western Europe - Western China, North - South, TRACECA and others.

"In order to increase cargo flows along these routes and ensure the rapid passage of goods, it is necessary to reduce the existing barriers as much as possible. These include long procedures of document registration and border crossing, underdeveloped infrastructure, poor organization of transportation and many others. This is what the participants of the cargo transportation process complain about now," Prime Minister pointed out.

According to him, complaints are also caused by a long inspection of cargoes and checking of documents. At the same time, these issues could be solved through the introduction of digital solutions and integration of information systems.

Moreover, the development of bonded warehouses, which are the most important infrastructural link of cargo distribution, is required.

"This is a world experience that will allow us to unload our checkpoints and increase cargo flow," Alikhan Smailov noted.

He added that at the same time there are problems with the issuance of permission forms for cargo transportation to other countries. Kazakhstan receives them on a parity basis with many countries. In this regard, the head of the Government instructed to review the mechanism of providing forms for trucking companies of Kazakhstan and not to make unnecessary demands on them.

Prime Minister also emphasized the quality of roadside service. For example, the transit corridor Western Europe - Western China was introduced more than 5 years ago, and there is still no development of roadside service.

"The situation is similar on all international corridors and domestic routes. Akimats delay the provision of land plots along the roads for service facilities. Accordingly, the infrastructure is not developed," Alikhan Smailov pointed out.

He also reminded that the National Standard, which establishes requirements for roadside service facilities and services provided, has long been adopted. This would allow attracting additional volumes of transit. However, many service facilities still do not meet it.

Prime Minister instructed to develop specific measures to increase the capacity of checkpoints by the end of the year. In particular, together with the Ministry of Digital Development to carry out their full digitalization and ensure integration of all information systems.

Along with this, Alikhan Smailov outlined the need to develop a roadmap for the development of transport and logistics centers and bonded warehouses, to carry out all the protracted procedures for the transfer of land plots to business entities for the construction of service facilities within 2 months, as well as to develop simplified mechanisms for attracting investors and implementation of such projects.

"The Ministry of Transport should develop an effective mechanism for the distribution of foreign permit forms for domestic companies and make appropriate changes to regulatory legal acts," Prime Minister concluded.

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #Government session #Logistics #Trade #Transport

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