We have to be ready for this: Alikhan Smailov speaks out about Kazakhstan transit potential amid growing freight traffic


As part of a working visit to Zhetysu region, Prime Minister Alikhan Smailov reviewed the development of transport, logistics, and agro-industrial potential of the region.

For example, at the Taldykorgan airport, the Head of Government was presented a report on the reconstruction of roads Taldykorgan - Kalbatau - Ust-Kamenogorsk, Usharal - Dostyk, Saryozek - Koktal, Lepsy - Balkhash and the airport runway in Usharal, as well as development of transit infrastructure in Alakol district of the region.

Alikhan Smailov emphasized that thanks to measures taken and current external economic situation Kazakhstan is becoming the most important land corridor between Asia and Europe and one of the transport and transit hubs of global significance.

"The Zhetysu region has all the resources to develop its transit potential. Two international checkpoints Dostyk and Nur Zholy, the Dostyk and Altynkol border railway stations, and international transit routes are located on its territory. It is necessary to use all the possibilities of the region in the transport and logistics sphere," he said.

The Head of Government pointed out that the construction of the second track on the Dostyk - Moynty railroad section was started in time, because against the background of the lifting of restrictions by China, the flow of goods to Europe is growing dynamically.

"We must be ready for this," Alikhan Smailov noted.

The Prime Minister also pointed out the importance of completing the reconstruction of the runway of the Usharal airport, which made it possible to accept aircraft with a large fuselage. According to him, in conjunction with the ongoing modernization of roads and the launch of additional trains it will have a significant impact on the development of tourist areas of Lake Alakol and Lake Balkhash.

Alikhan Smailov added that in general the government attracts major international partners to create a modern infrastructure in the transport sector. In particular, a multifunctional cargo transshipment terminal has been built at Dostyk station. It is planned to introduce storage facilities with a total cargo turnover of more than 1 million tons per year, with an investment of 3 billion tenge. It is also planned to form its own fleet of 500-1000 euro trucks. At the initial stage, total investments here will be more than 5 billion tenge.

Then the Prime Minister visited Koksu sugar refinery, which several years ago underwent a major modernization. Under it high-quality foreign equipment has been installed at the plant, the heat supply has been transferred to gas and new equipment has been purchased. According to the results of the last year the plant produced about 70 thousand tons of sugar, the plan for 2023 is 92 thousand tons.

Alikhan Smailov stressed that the state provides unprecedented support measures for white sugar producers, including within the "turnover scheme". Also adopted a comprehensive plan for the development of the sugar industry, which provides for a phased increase of sugar beet planted area to 15 thousand hectares, in particular, the gross harvest of about 525 thousand tons by 2026 in the region of Zhetysu.

"In this regard, it is important to take measures to involve and restore irrigated land. In terms of water supply, measures are envisaged for reconstruction of water facilities. Sugar refineries also need to be modernized and to bring white sugar output up to 180 thousand tons by 2026," he said.

Here the Head of Government held a meeting with the heads of agricultural formations of the region, where the issues of subsidies, availability of land plots, provision of other support measures, etc. were raised.

Alikhan Smailov instructed the Ministry of Agriculture to analyze the raised problems and make specific proposals to address them, adding that last year the government doubled funding of the industry and will maintain this high level in the current year.

During the visit Prime Minister also familiarized himself with the activities of dairy farm "Karimov", which in 2022 was significantly expanded to ensure loading of local dairy plants and reduce the import of dairy products. The farm now has about 900 head of cattle.

Farm manager Rahim Karimov asked the Head of Government to consider expanding support measures for small and medium-sized family farms to reduce their costs and increase productivity.

"One of the options for solving the issue could be the use of the possibilities of agricultural cooperation. This area is now receiving a lot of attention from the state. If two or three farms decide to unite their efforts, their production costs and risks will decrease and the share of profit will increase. At the expense of consolidation we will have an opportunity to cover this subject of agroindustrial complex by subsidizing investment," Alikhan Smailov answered.  

In general, according to the Prime Minister, to date the measures of state support of the dairy industry made it possible to carry out a significant technological modernization of the industry. In the last five years alone 82 billion tenge were allocated to support dairy cattle breeding.

"This year we plan to replicate the experience of the North-Kazakhstan region in the whole country where 21 projects on creation of milk cattle farms were implemented in a short period of time. This work should be taken under special control," Alikhan Smailov indicated.

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