«THE BELT AND ROAD INITIATIVE» is the global trend of economic growth. The role of Kazakhstan.
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1 INTERNATIONAL INSTITUTE OF LOGISTICS AND BUSINESS «SILK WAY» «THE BELT AND ROAD INITIATIVE» is the global trend of economic growth. The role of Kazakhstan. Iskaliyev Yerkhat Serikovich, DBA, MBA, PhD - Member of Institute SILK WAY Board of Trustees - Director of Department "Transport and Logistics" Sovereign Wealth Fund "SAMRUK KAZYNA" JSC - Member of Presidium Transport Union of Kazakhstan "KAZLOGISTICS" - Chairman of transport logistics Subcommittee under NEC ATAMEKEN" Astana, 2017
2 Kazakhstan as a facilitator of «New Silk Way» This principle was voiced by the Head of State during the 25th plenary session of the Foreign Investors Council and is a competitive advantage of the project "Kazakhstan - New Silk Way". The basis of the new economic policy will be the plan for infrastructure development, which is primarily focused on the construction of transport and logistics routes, which in future should adequately meet the needs of the economy and population in the freight and compete successfully in world markets. One of the tools to ensure international standards of logistics services is the implementation of the "principle of 5S" - speed, service, cost, safety and stability. President of the Republic of Kazakhstan Nazarbayev N. 2
3 3 The bridge between Europe and Asia Kazakhstan must rebirth its historical role and become a huge business transit hub in the Central Asia region, so called bridge between Europe and Asia This is a creation of single complex of international level, based on key transport routes of Kazakhstan. The results of realization of this Mega-project until 2020 year are value of transit shipping through Kazakhstan must double grow with continued achieving to 50mln tones. The meeting of Presidents of the Kazakhstan and China President of the Republic of Kazakhstan Nazarbayev Nursultan The establishment of an "economic corridor of the Silk Road" conforms to the fundamental interests of China and Kazakhstan. I hope that both sides will take advantage of the historic opportunity to strengthen the role of cooperation between China and Kazakhstan in the promotion of cooperation in the region through the Silk Road" President of the People's Republic of China Xi Jinping
4 INTERNATIONAL INSTITUTE OF LOGISTICS AND BUSINESS «SILK WAY» The art of teaching the success Institute SILK WAY institutesilkway institute SILK WAY CONCEPT OF THE INSTITUTE School of Business Center for the development and implementation of SCM (Supply Chain Management) and Innovation Research center "Silk Way" International center for investment attraction Centre of Certification and Human Resources management Industry Engineering Management Centre Education - Training - Certification for the following areas: -logistics (warehousing, procurement, manufacturing); -business (with advanced educational systems and technologies) -service (restaurants, hotels, service improvements and increase the quality of the front-line staff) Short-term courses, workshops, seminars, online training, master classes. Complex optimization of the enterprise, production and logistics audit, increase of production efficiency, warehouse, shipping and transport optimization, project management, organizational development of the company. Research of forecasting, transport and transit, production, new technologies efficiency in cooperation with scientific institutions of Europe, Russia and China. Managing financial instruments, assistance in projects structuring and research, creating of business incubators, investors attraction Certification of specialists in the field of logistics and transport in accordance with professional standards (European Logistics Assosiation, IATA, FIATA, IRU, IMO). Introduction of SEM (Systems Engineering management), technical and technological improvement of a company, technical support Оn-line platform for forum and conference training consulting research Educational programs are placed on the platform and designed in collaboration with educational institutions, consulting firms and business coaches. Our partners outsourcing implementation 22
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6 Kazakhstan on the way of global trade DYNAMICS OF THE FOREIGN TRADE The neighboring countries external trade volume by 2020 year, bln USD Russia European Union Kazakhstan Growth of trading volume Middle Asia China 2011 y y. $739 billion 1,6 times $1 200 billion bln. USD China ЕU Russia China 83,5 200 Turkey China Russia Central Asia Russia China 22,5 40 India The global transit air freight with the direction China Europe is forecasted to reach 17 mln TEU by 2020 (170 mln tons), in ,7 mln TEU (117 mln tons). The growth of freight - 45%. Kazakhstan is aiming to attract 8% of this cargo flow (1,5 mln TEU, 15 mln tons) 4
7 TUNIS Trans Kazakhstan routes KAZAKHSTAN NEW SILK WAY ICELAND Stockholm Helsinki St. Petersburg RUSSIA Routes North TARM (Lianyungang-Dostyk-Petropavlovsk-Brest- Hamburg) Distan ce km Travel time, days Central TARM (Lianyungang-Dostyk-Astana-Ozinki-Brest) South ТАRМ ((Lianyungang-Dostyk-Sarakhs-Rаzi-Istambul) North-South (St. Petersburg-Aktau-Amirabad-Bandar Abbas) Chongqing-Duisburg TRACECA (Lianyungang-Dostyk-Aktau-Baku-Poti-Istanbul) Transsiberian (Nakhodka Petropavlovsk-Helsinki) South Sea Route Kashgar (China) - Osh (KRG) - Herat (Afg) Malme Moscow Ekaterinburg Гамбург POLAND Petropavlovsk Birmingham London Paris FRANCE Duisburg GERMANY Milano Warsaw Slawkow Krakow BRES T UKRAINE Ozinki Makat Iletsk Aktob e Shalkar Kostanay Shubarkul Karagandy Saksaulskaya Zhezkazgan ASTANA KAZAKHSTAN Dostyk MONGOLIA Naushki Zabaykalsk Kharbin Orense SPAIN Cordova Antequera Barcelona Valencia Florence Rome Napoli Constant a Istanbu l TURKEY SYRIA Poti Kars IRAQ Ahalkalaki Tebriz Aktau Beyneu BAK U Astara IRAN Uzen Bereket Shymkent Saryagash Farab Gorgan Sarakh Amirabad Mashhad s Khaf Gerat Khosravi Tehran AFGHANISTAN TAJIKISTAN Jetigen Almaty KYRGYZSTAN Khorgos Alashankou CHINA Urumqi Chengdu Beijing Dalian Tangqing Lianyungang Shanghai Wuhan Hangzhou Qinghai Nakhodka JAPAN Seoul Daegu Pusan Hakata S.KOREA PHILIPPINES Ahvaz ALGERIA LYBIA EGYPT SAUDI ARABIA Zakhedan Bender-Abbad PAKISTAN Chongqing Siman Taipei TAIWAN Kunming Saudi Arabia Джедда Medina Мекка Qatar Omman Abu-Dhabi UAE Yemen Dubai ОМАН India Chabakhar UAE New-Delhi INDIA MYANMAR LAOS Guangzhou Shenzhen Kaohsiung Malaysia MUMBAI PHILIPPINNES THAILAND Auto/m, r/w YEMEN 5
8 Strategic positioning of Kazakhstan by 2020 Murmansk Kandalaksha Arkhangelsk reverse traffi Saint Petersburg Praha Helsinki Tallinn Riga Klaipeda Kaliningrad Berlin Duisburg Warsaw Minsk Ust-Luga Moscow Kiev N.Novgorod Samara Ekaterinburg Aktobe Omsk Astana Qaragandy Semey Novosibirsk Krasnoyarsk Ulan-Ude Chita Ulan-Bator Khabarovsk Vanino Budapest Sofia Kishinev Bucharest Istanbul Odessa Konstanca Novorossiisk Поти Burgas Ankara Rostov-na-Donu Tbilisi Tehran Aktau Quryk Turkmenbashi Baku Gorgan Sarakhs Ashkhabad Amirabad Shymkent Tashkent Bishkek Dushanbe Dostyk Khorgos Alma-Ata Urumchi Ussuriisk Vladivostok Beijing Pyongyang Seoul Kuandzhu Pusan Changzhou Liayungang JSC «NC «KTZ» TLC and hubs on the territory of the RK TLC and hubs in the TC TLC and hubs in foreign countries Agent network Bender-Homeini Bender-Abbas Dubai Deli Dhaka Transcontinental corridor "Western Europe - Western China" Yangon Chingqing Kunming Bangkok Gravity cargo for distribution The direction of traffic after the distribution Direction of reverse traffic Transport and Logistics Cluster 8 20
9 A high potential in developing China EU transit through Kazakhstan 6
10 Eastern provinces of China may utilise rail transport over sea routes Comparison of routes from Chongqing to Duisburg Length Time Cost Via sea ~ км days $5 600 Via railway through Dostyk ~ км. 21 days days (after optimis.) $9 200 $8 100 (after optimis.) Via railway through Zabaykal sk ~ км. 32 days. $ Better deal 7
11 LPI index of Kazakhstan indicates the development of logistics Total LPI rating of Kazakhstan Quality of infrastructure(ports, railways and motor roads) Compliancewith cargo delivery terms Simply organization of international transportations Possibility to monitorcargos (SCM) Customs efficiency (speed, easy, predictability) Competence in logistics (transport operatorsand customsbrokers) Germany 4,23 Singapore 4,14 China 3,66 Lithuania 3,63 1 Germany 1 1 Luxembourg 4,44 4,80 2 Germany 5 6 Singapore 4,45 4, China 3,75 Lithuania 3,57 34 Turkey 31 Turkey 3,42 3, Singapore 4,40 Lithuania 4,14 Luxembourg 4,24 Singapore 3,96 8 Germany 3,86 12 China 3, Sweden 4,38 ermany G 27 4, Singapore 4,05 China 3, Singapore 4,18 many 2 Ger 4,12 Lithuania 27 3,68 28 Lithuania 3,42 China 3, Germany 4,28 Singapore 4,09 China 3,62 Lithuania 3,49 Turkey 3,31 40 Panama 33 Malaysia 31 China 31 Lithuania 43 Turkey 36 Turkey 44 3,34 3,45 3,90 3,49 3,39 3,18 Slovenia 3, Kazakhstan 2,75 Russia 2,57 Uzbekistan 2, Kazakhstan 2,76 80 Ukraine 84 Ukraine 2,74 2, Georgia 2, Uzbekistan 2,45 Russia2,43 Georgia 2,17 40 Turkey 35 Turkey 3, Ukraine 3,51 Russia 3,15 Kazakhstan 3,0 Uzbekistan 2,83 Georgia 2, ,41 61 Ukraine 72 Russia 2,96 2,76 Kazakhstan 86 Kazakhstan 2,52 2,75 71 Kazakhstan 92 Kazakhstan 2,86 2,57 Ukraine 2,59 Russia 2,45 Uzbekistan 2,36 Georgia 2, Russia 2,62 Georgia 2, Uzbekistan 141 2,05 Uzbekistan 2,32 Ukraine 2,30 Georgia 2,26 Russia 2,01 95 Ukraine 2, Uzbekistan 2,39 Georgia 2,08 8
12 LPI positions for 2007, 2010, 2012, 2014 and 2016 ¼ Indices Place Place Place Place Place Logistic performance index Quality of infrastructure Compliance of delivery terms Easy organization of international commodity deliveries Possible to monitor commodities throughout the delivery chain Efficiency of the customs authority Competence in logistics Improvement in comparison with the previous year - Worsening in comparison with the previous year 21 9
13 Principle of 5S logistics Speed High speed and stable timing of passing through the whole route Service High level of service allowing to minimize the involvement of a consignor in the process of transportation Security The security of cargo provided by the traceability of goods through the whole transportation route Stability Provision of key parameters of the route directed to increase the effectiveness of freight forwarding Cost Service cost cutting as a result of cutting the unproductive expenses (minimization of ineffectiveness) JSC «NC «KTZ» 13 10
14 11 5 S = Speed + Service + Safety + Cost + Stability 1) Speed and Cost = key performance indicators and have the desire to optimize the multi-directional, are the basis of competitive advantage in the implementation of transit potential. 2) Service and Safety = must always gravitate in terms of the maximum value, the improvement of these indicators will help win the "battle for transit" as Kazakhstan is landlocked, the service, the political and economic stability is the key to success. 3) Stability = important that all parameters were fixed and unchanging in time and only tended to improve as much as possible (principle better stability than the cheap) logistics business plans for 5 years.
15 21 Systematic issues of route "NEW SILK WAY" Single tariff policy Mutual initiatives Creating effective intergovernmental commissions and working groups for the development of a uniform tariff policy for all members of the route "New Silk Road" Joint ventures, the combined company, coordinating councils and others. Example: JV «YuXinOu (Chongqing) Logistics Co., Ltd» (KTZ, RZD, CHINA RAILWAY), integrated transport and logistics company, the Coordinating Committee for the development of the Trans-Caspian international transport route Development of infrastructure Construction of transport and logistics centers, terminals, creating air, rail and road hub The development of logistics service Provision of logistics services of international standards, the introduction of modern logistics technology transportation and cargo handling, transportation technologies "just in time" and "door to door" COMPETITION IS NOT ABOUT THE COUNTRIES, ROUTES AND TRANSPORT MODES BUT BETWEEN LOGISTICS PRODUCTS!
16 Complex supply chain management Cargo owner s territory Departure station Railway Arrival station Port Production plan Production capacity Approach lines shipping resources Commercial operations Spotting/picking Total production process Raw delivery variability Line balance Capacities Working capacity Working capacity Narrow places Locomotives Running time and availability scheduled work Resources availability Capacities Technological processes Loading plan Cargo classification Production capacity Terminal capacity Raw delivery variability Ship supply Cargo line balance Optimization and Coordination Volume of shipments and sales. Acceleration of capital turnover Working capacity Transportation volume Working capacity Transshipment volume + > Costs of additional optimization services Logistician's opportunities
17 Case: EURAZ a comprehensive analysis of cargo flows be the method of Ishikawa diagram
18 4PL - strategic vision of the development of the logistics Integrated logistic (4PL) Contract logistics (complex 3PL) Перевозчики Freight forwarding (Basic 3PL) Cargo transportation (2PL*) Land forwarding Supply management Automation & talent management SC 1 Consulting Inventory optimization Logistics procurement strategy, supply planning Formation of logistic contracts Selection of the best transport routes Order management Railway transportation Land transportation Sea transportation Air transportation (last mile) Land transportation (main line) Warehouse services 2 Air and sea forwarding High Development of relations with a cargo shipper Provision of infrastructure Terminals Rolling stock Haulage Rails, depots, etc. Trucks Road network Warehouses Tankers Bulkers Мор. порты Aircrafts Airports Low 1. Supply chain consulting 2. Including storage, packing/unpacking, sorting, monitoring of minimum level of inventory, etc. (*) 1PL all logistic operators (up to transportation) company- cargo owner performs without involving of third party and based on own assets Source: Bryanston analysis 18
19 Expected effects of the introduction of SCM tools Reduced planning cycle Reduced storage costs Reduced production costs Reduced time for order Improved service quality Reduced costs for stocks maintenance Reduced cost and time for order processing Reduced warehouse stocks Reduced production costs Growth of profit from 24 to 37% from 18 to 36 % from 7 to 19% Reduced paper transactions from 5 to 15%
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21 THANK YOU FOR YOUR ATTENTION INTERNATIONAL INSTITUTE OF LOGISTICS AND BUSINESS «SILK WAY» Republic of Kazakhstan Astana, Taulsizdik, 41, Business Center SILWAYCENTER www,silkwaycenter.kz Member of Trustee Board Iskaliyev Yerkhat Serikovich tel.: +7 /7172/ mob.: +7 /708/ mob.: +7 /708/
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