Editorial Note: The following news reports are summaries from original sources. They may also include corrections of Arabic names and political terminology. Comments are in parentheses.

 

Kazakhstan Enhances Trade with its Neighbors, Playing the Role of a Bridge Between the Largest Economies of Asia and Europe,

August 2, 2023

 

First direct China-Central Asia freight train from Dulaying international land-sea logistics port leaving Dulaying Station in Guiyang, southwest China’s Guizhou Province, July 28, 2023 Xinhua Astana Times	Business delegation from Afghanistan arrives to Astana met by Minister of Trade and Integration Serik Zhumangarin, August 1, 2023 Astana Times

A view of the city of Almaty, Kazakhstan, July 2023, Astana Times	Kazakhstan Sends First Trucks on New Trade Route to Pakistan, August 1, 2023

 

Expert Offers Insight on Middle Corridor’s Development, Kazakh Passport’s Power

BY SANIYA SAKENOVA in INTERNATIONAL 

2 AUGUST 2023

Astana Times –

Despite complex geopolitical events, the global political and economic system remains quite stable, enabling Kazakhstan to keep pursuing its ambitions and enhancing its role as a bridge between the largest economies of Asia and Europe, Adil Kaukenov, the chief expert at the Kazakhstan Institute for Strategic Studies (KazISS), said in an interview with The Astana Times.

KazISS chief expert Adil Kaukenov. Photo credit: Facebook.

Kaukenov mentioned several trade routes that Kazakhstan is developing to the north and south, while the main one, the Trans-Caspian International Transport Route (TITR) passes through the center. TITR, also known as the Middle Corridor, runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, Türkiye, and further to European countries.

“The Middle Corridor is a brand new route. It is not even close to operating to its full capacity yet. That is why it sparks great interest right now,” the expert said.

Kaukenov said there are many disputes related to tariffs and the TITR’s direction between political scientists, logistics experts, and businesses. However, with a well-developed infrastructure, the route keeps progressing rapidly, with big players in Europe and Asia eyeing its great potential.

The expert highlighted that China is optimistic about these processes and ready to support Kazakhstan’s efforts in building new routes and ideas.

Kaukenov personally met with Steinmeier in a small group of experts at the port of Kuryk. Photo credit: Adil Kaukenov/Facebook.

The ports of Aktau and Kuryk on the Caspian Sea are essential in this area, Kaukenov noted. In particular, he pointed out that the Kuryk port has transformed from a place that used to be an empty coast to a modern port utilized for both freight and passenger traffic. With connected railway tracks, the port also covers customs, ticketing, as well as sending and receiving cargo systems.

According to the expert, building new infrastructure and ports is a significant challenge for Kazakhstan and the post-Soviet space, as investors are skeptical about such projects in Central Asia.

“The fact that Kazakhstan manages to create such facilities with its funds and to convince its foreign partners to use this reliable and safe infrastructure is a huge breakthrough,” Kaukenov said.

German Federal President Frank-Walter Steinmeier called the ports “a junction of the Middle Corridor” during his visit to Kazakhstan last month. As noted by the expert, it is not surprising that Steinmeier not only spoke about the project but also met with Prime Minister Alikhan Smailov precisely in the port of Kuryk, which changed the idea and logistics of transport flows in the Caspian Sea, as it offered an entirely new infrastructure in a new place.

Kaukenov suggested that with Germany’s interest, the Kuryk port has a headstart to become one of the significant points on the Caspian Sea and other ports of neighboring countries.

“It is important that our ports manage to compete to use this infrastructure,” he pointed out.

Kaukenov personally met with Steinmeier as part of a small group of experts, noting that it was a great honor to talk with decision-makers and exchange views on current political events and relations between Germany and Kazakhstan.

The expert revealed that Germany is very interested in Kazakhstan’s new routes, which allow the German economy to maintain its links with the Asian continent.

Kaukenov called Steinmeier’s visit a remarkable event, given that visits by persons of this level are quite favorable for Kazakhstan, as they increase recognition and provide more opportunities to attract investment and tourists.

The expert recalled that such visits are also vital for strengthening the position of the Kazakh passport. The government is currently working to simplify the visa policy for Kazakh citizens to visit countries of the European Union.

Kaukenov emphasized that the Kazakh passport is generally powerful, as it provides citizens with visa-free access to many countries, or at least the possibility to obtain a visa on arrival or online.

“Kazakh citizens can easily get a visa in Thailand after 15-20 minutes in the queue. Not every country has this opportunity,” he said.

Kaukenov named European countries, India, Japan, and the United States as the destinations that would strengthen the Kazakh passport if they facilitated the visa process. He noted that if India and Japan enable visa-free travel for Kazakh citizens, they will be able to travel visa-free to most Asian countries.

The expert said complex negotiations are underway with European partners, and progress is being made.

“The only directions left will be the facilitation of the Schengen and American visas,” he concluded.

Expert Offers Insight on Middle Corridor’s Development, Kazakh Passport’s Power - The Astana Times 

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First China-Central Asia Freight Train Leaves Guiyang to Almaty

BY STAFF REPORT in INTERNATIONAL 

2 AUGUST 2023

Astana Times-

A cargo train left Dulaying International land-sea logistics port in Guiyang, southwest China’s Guizhou Province, on July 28 to Almaty, marking the launch of the first direct China-Central Asia rail-road intermodal freight train service from Guiyang, reported Xinhua.

First direct China-Central Asia freight train from Dulaying international land-sea logistics port leaving Dulaying Station in Guiyang, southwest China’s Guizhou Province. Photo credit: Xinhua/Yang Wenbin.

A train loaded with more than 1,500 tons of goods, including mattresses, children’s products, and ceramic tiles, will pass through the Khorgos International Center for Border Cooperation in the Xinjiang Uygur Autonomous Region and eventually arrive in Almaty. It will take nearly 11 days to travel one way.

On the return journey, nearly 1,300 tons of agricultural products will be transported from Kazakhstan to Guiyang.

Kazakhstan has launched a pilot project at the checkpoint this year to automate issuing electronic permit forms based on the CargoAlem electronic queue system module, designed to exclude human errors and corruption risks.

First China-Central Asia Freight Train Leaves Guiyang to Almaty - The Astana Times

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Kazakhstan Sends First Trucks on New Trade Route to Pakistan

BY SANIYA SAKENOVA in EDITOR’S PICKS, INTERNATIONAL 

1 AUGUST 2023

Astana Times –

Kazakhstan has sent several trucks on a new trade route to Pakistan through Afghanistan in a pilot mode as part of a recently launched project, Kairat Torebayev, Vice Minister of Trade and Integration, said at a July 31 press briefing, reported Kazinform.

According to Torebayev, Kazakhstan is currently negotiating with National Logistics Cell, a Pakistani company, which will safely ensure trade between Pakistan and Kazakhstan.

“The cargo from Kazakhstan to Pakistan and back travels 4,000 kilometers. It is not such a long distance in terms of regional development,” he said.

The minister noted that Kazakhstan will continue its cooperation with Uzbekistan to supply flour and grain to Afghanistan.

He also mentioned an agreement on a 30% discount on the transit of goods through the territory of Turkmenistan in the direction of Afghanistan.

As a bridge connecting Central Asia, India, and the Persian Gulf, Afghanistan allows Kazakhstan to gain access to Pakistan’s seaports of Karachi and Gwadar, then to India, the Middle East, and Africa.

Kazakhstan will host the first Kazakh-Afghan business forum on Aug. 3 in Astana focused on developing trade and economic relations with Afghanistan

Kazakhstan Sends First Trucks on New Trade Route to Pakistan - The Astana Times

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Kazakh-Afghan Business Forum to Unlock Trade and Logistics Opportunities

BY AIBARSHYN AKHMETKALI in BUSINESS, CENTRAL ASIA  

2 AUGUST 2023

Astana Times –

Kazakh-Afghan Business Forum taking place on Aug. 3-5 in Astana is intended to strengthen trade and economic relations, providing opportunities for businesses across numerous sectors, including diversification of trade routes, said Kazakh officials at a press briefing on July 31.

Business delegation from Afghanistan arrives to Astana met by Minister of Trade and Integration Serik Zhumangarin . Photo credit: Prime Minister’s press service.

Kazakh Deputy Minister of Foreign Affairs Kanat Tumysh and Vice-Minister of Trade and Integration of Kazakhstan Kairat Torebayev attended the briefing, highlighting that Kazakhstan is aiming for robust years of bilateral trade with Afghanistan, surpassing the $988 million reached last year, as the two nations continue to deepen trade ties.

About the forum

According to Torebayev, the forum will gather over 200 delegations headed by Nooruddin Azizi, Afghan Minister of Industry and Commerce.

Serik Zhumangarin  took part in Kazakh-Afghan business forum in Kabul in April. Photo credit: Prime Minister’s press service.

“They are representatives of business, large energy and telecommunications companies, representatives of the Central Bank and a number of private banks, manufacturers of carpets, beverages, precious stones and many others,” he said.

“I would like to note right away that all members of the Afghan delegation are not included in the United Nations Security Council’s sanctions lists and, accordingly, no restrictive measures can be applied to them,” added Torebayev.

The forum is the result of growing mutual cooperation between the two sides following the Deputy Prime Minister and Minister of Trade and Integration of Kazakhstan Serik Zhumangarin’s visit to Kabul in April.

The delegation led by Zhumangarin announced the establishment of a Kazakh trade house in Afghanistan, with the main office in Herat. Its main goal is to promote and intensify bilateral relations in trade and economics, telecommunications, transportation, and logistics.

Overall, six trade and economic missions by Kazakh businesses were sent to Afghanistan since 2013 and the range of delivered goods expanded each time.

Tumysh stressed that the upcoming forum is aimed solely at developing bilateral trade, economic and investment ties. 

Current trade turnovers with Afghanistan

“Afghanistan is one of the major importers of Kazakh agricultural products. Today, around 70% of the flour exported by Kazakhstan is purchased by Afghanistan. As a result, last year the trade turnover between Kazakhstan and Afghanistan amounted to $988 million and we intend not only to maintain this figure but also to increase it,” said Tumysh.

Kazakhstan aims to surpass that almost $1 billion in bilateral trade recorded last year, as it continues to pursue its $3 billion target in trade in the years to come, said Torebayev.

Flour accounted for the largest portion (70%) of Afghanistan’s imports from Kazakhstan last year and they are expected to continue rising.

“Last year, the volume of flour supply increased by 52% from 895,000 tons in 2021 to 1.3 million tons in 2022, wheat by 20% from 572,000 tons in 2021 to 687,000 tons in 2022, sunflower oil has increased 6.2 times from 2,825 tons in 2021 to 17,500 tons in 2022 and from this year, rye began to be shipped. The demand potential for these goods is huge,” added Torebayev.

Diversification of trade routes

Greater alignment on trade will improve competitiveness and provide opportunities for businesses across numerous sectors, according to Tumysh.

“Namely, [it will allow] for new transportation and logistics routes in the southern direction with access to the Pakistani market with a volume of approximately 220 million people, as well as through the Pakistani ports of Karachi and Gwadar to enter the markets of the Gulf and the Middle East,” said Tumysh.

Kazakh producers will gain export opportunities to Pakistan, India and the Persian Gulf countries. “These are new and very attractive trade markets for Kazakh exporters,” said Torebayev.

“We are now developing new trade routes to Pakistan via Afghanistan. We have reached an agreement with a major player in Pakistan’s transportation services market, National Logistics Cell. It is ready to provide safe and fast transit of goods from Pakistan to Kazakhstan via Afghanistan and back, which is only 4,000 kilometers. We have already successfully piloted the shipment of goods by this route in a fairly short time,” he added.

Kazakhstan is keen to ease export terms for producers through the rail network.

“In order to create attractive conditions for exporters, an agreement was reached on the provision of a 30% discount by the Turkmen side for the transit of cargoes through their territory in the direction of Afghanistan. At the same time, we have strengthened agreements with Uzbekistan to provide preferential conditions for transit rail transportation through the territories of our countries so that we could supply flour and grain to Afghanistan on a parity basis,” said Torebayev.

The vision laid out by Kazakhstan focuses on diversifying trade routes.

“Kazakhstan highly values the initiative to build the Mazar-i-Sharif-Kabul-Peshawar trans-Afghan transport corridor, which will ensure uninterrupted interregional cooperation between the countries of Central Asia and the countries of South Asia and the Middle East. This route will give a new impetus to the dynamics of trade and economic cooperation. Kazakhstan is ready to participate in its construction,” said Torebayev.

Other prospective sectors of cooperation

The energy sector is also on the agenda as one of the prospective areas of cooperation between the two countries.

“Kazakhstan is one of the largest oil and gas producers in the region and Afghanistan needs energy resources for its development. It is possible to implement projects on the production and transportation of energy carriers, which will allow both countries to strengthen their economies,” said Torebayev.

There could also be scope for securing cheaper imports from Afghanistan, particularly of fruits, vegetables, nuts and high-quality Afghan carpets.

Kazakh-Afghan Business Forum to Unlock Trade and Logistics Opportunities - The Astana Times

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Kazakhstan Is Committed to Developing Effective Partnership with Georgia

BY DANA OMIRGAZY in INTERNATIONAL 

2 AUGUST 2023

Astana Times –

The Kazakh government is determined to make every effort to ensure that the Kazakh-Georgian partnership develops dynamically in all fields, said Kazakh Prime Minister Alikhan Smailov during an Aug. 1 meeting with Prime Minister of Georgia Irakli Garibashvili in Almaty, reported the Prime Minister’s press service.

Alikhan Smailov and Irakli Garibashvili. Photo credit: Prime Minister’s press service.

According to Smailov, Georgia is an important and reliable partner of Kazakhstan in the South Caucasus. During the meeting, the sides addressed advancing trade, transport, and logistics cooperation.

Smailov focused on the significance of the transit and transport sphere, emphasizing that the countries are enhancing partnerships to facilitate the Trans-Caspian International Transport Route (TITR), or the Middle Corridor. Over six months, the volume of cargo transportation along the route has increased by 77% and reached 1.3 million tons.

According to Smailov, the interstate agreements strengthened the development of this corridor, promoting digitalization, ensuring stable transportation tariffs, and creating a single logistics operator along the route.

“We are interested in increasing the transport connectivity of the region and in consistently improving transit conditions,” Smailov said.

Garibashvili, in turn, confirmed Georgia’s readiness to strengthen effective cooperation with Kazakhstan across the entire spectrum of bilateral cooperation.

“Earlier, we discussed ambitious plans for the implementation of projects that are of interest to both countries. We pay great attention to the development of the Middle Corridor and joint plans in this direction. The countries have signed the corresponding roadmap. I believe our cooperation will continue to be effective,” Garibashvili said.

Over the past six months, the trade volume between the countries has grown by almost 30% and reached $190 million. However, the relevant intergovernmental commission seeks to increase the figure.

Kazakhstan Is Committed to Developing Effective Partnership with Georgia - The Astana Times

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Almaty City Sets Priorities for Unlocking Industrial Zone’s Potential

BY SANIYA SAKENOVA in BUSINESS, 

2 AUGUST 2023

Astana Times –

The city of Almaty prioritizes the development of the manufacturing industry, tourism, the IT sector, and the creative industry, following the instructions of President Kassym-Jomart Tokayev to unlock the potential of the city’s industrial zone, Kazinform reported on July 31.

Almaty. Photo credit: gov.kz. Click to see the map in full size. The map is designed by The Astana Times.

During the visit to Almaty last year, the President instructed to stimulate competition, attract investment, and significantly increase labor productivity.

At a meeting with city residents, Almaty Akim (mayor) Yerbolat Dossayev said that the industrial output in the city’s Alatau district grew 32.8%, with a 73.2% increase in investments.

With the measures taken to develop the industrial zone, he emphasized that the district’s economy shows positive dynamics and significantly improves the city’s economic performance.

General Director of the Almaty Industrial Zone Alisher Satybaldiyev revealed plans to launch five projects valued at 15 billion tenge ($33.7 million) with the creation of 369 jobs. These are a unique company for producing bimetallic aluminum radiators, a microclonal greenhouse, a plant for manufacturing a drip irrigation product, a paint factory, and a plant for processing coolants.

This year, it is also planned to complete the construction and installation works of five projects worth 11 billion tenge ($24.7 million) to create 250 jobs.

From 2016 to 2022, the city implemented 27 projects worth 124 billion tenge ($278.8 million)on the territory of the industrial zone. With 3,314 jobs created, the company produced goods valued at 1.1 trillion tenge ($2.4 billion).

At present, the Almaty Industrial Zone has 88 companies delivering projects worth 378 billion tenge ($850 million) with the creation of 10,379 jobs.

Some 18 small industrial parks worth ten billion tenge ($22.4 million) in investments covering 88,000 square meters in the zone were built, with further plans to place more than 152 small and medium-sized businesses.

Twenty nine projects with 14 billion tenge ($31.4 million) worth of investments received the status of small industrial parks in Almaty, covering an area of 133,900 square meters.

The zone has placed 11 small industrial parks on 46,000 square meters. Some 76 participants invested around 3.5 billion tenge ($7.8 million), creating 1,074 jobs.

Almaty Sets Priorities for Unlocking Industrial Zone’s Potential - The Astana Times