TRANSPORT SECTOR OVERVIEW
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1 TRANSPORT SECTOR OVERVIEW KAZAKHSTAN November 2016 Business Sweden, Kazakhstan
2 TRANSPORT SECTOR PLAYS AN IMPORTANT ROLE FOR THE OVERALL ECONOMY GDP COMPOSITION BY SECTOR 100% USD 188 billion* USD 203 billion* USD 212 billion* 80% 48,1 49,8 50,8 60% 40% 7,5 7,8 8,1 Services Transport Goods 20% 44,5 42,5 41,1 0% A NUMBER OF NEW REFORMS WILL BE IMPLEMENTED WITH THE AIM TO BOOST FUTURE GROWTH OF THE SECTOR SOURCE: STAT.GOV.KZ, WORLDBANK * GDP IN KAZAKHSTAN BUSINESS SWEDEN 17 MARCH,
3 GOVERNMENT IS POURING RESOURCES TO TRANSPORT PROJECTS MAINLY IN THE FREIGHT AREA FREIGHT VOLUME COMPOSITION Road 155,7 Air 46 Marine 2,5 Rail 216,6 Total freight volume 490,8 (2014) excluding inland waterways and pipeline freight Kazakhstan s access to the Persian Gulf ports and Turkmenistan, carried by the Trans-Caspian Railway, will lead to increased trade between two regions A logistics hub, The Khorgos-Eastern Gate, on the border with China will serve as a land-based freight option between China and Europe The country's exports are concentrated on the freighting of bulk products, namely oil and grain. The country's rail freight sector has developed to cater for these needs and will continue to do so in the longer term, as both commodities look set to continue dominating Kazakhstan's trade sector RAIL FREIGHT HAS THE MOST POTENTIAL FOR GROWTH AND DEVELOPMENT IN THE TRANSPORT SECTOR SOURCE: STAT.GOV.KZ, BMI KAZAKHSTAN INFRASTRUCTURE REPORT 2015, BMI RESEARCH KAZAKHSTAN FREIGHT TRANSPORT REPORT 2015 BUSINESS SWEDEN 17 MARCH,
4 MINISTRY OF INVESTMENTS AND DEVELOPMENT OVERSEES SECTOR OF TRANSPORT INFRASTRUCTURE Ministry of Investments and Development 18 departments in total (e.g. legal, HR, finance, admin, tourism, economic integration etc.) 9 committees in total, 3 of them are related to transport infrastructure Transport Committee Roads Committee Civil Aviation Committee 10 units managing road, water, rail, infrastructure development and state purchasing matters 6 units managing construction, funding, maintenance, loans, reconstruction and project preparation matters 13 units managing aviation safety, admin, legal, quality, flight operation, international relations, finance, airport management matters TRANSPORT AND ROADS COMMITTEES ARE MAINLY INVOLVED IN DIFFERENT GOVERNMENTAL AND INTERNATIONAL PROJECTS SOURCE: MINISTRY FOR INVESTMENT AND DEVELOPMENT OF THE RK BUSINESS SWEDEN 17 MARCH,
5 STATE PROGRAMS FOR THE INFRASTRUCTURAL DEVELOPMENT OF THE SECTOR State Program Road Rail Air Marine Nurly Zhol (Bright Path Policy) Construction / reconstruction of Central- South, Central-East, Central-West and roads of republic importance. Budget - USD 1 billion Reconstruction of 7,4 thousand km of automobile roads and realization of 11 road projects. Budget - USD 8,8 billion Realization of railway projects. Budget - USD 170 million from National Fund Construction of the second lines on sites Almaty 1 Shu co-financed from KTZ funds - USD 115 million Reconstruction of a takeoff runway and a new terminal of Astana International Airport. Budget - USD 324 million As part of industrial infrastructure development special economic zone at the port of Aktau is being completed with the budget for 2015 USD 252 million along with the construction of other economic zones Development and Transport Infrastructure Integration Budget USD 19 billion* Reconstruction of km roads Increase the number of regular bus routes, by 2020 provide 100% coverage by opening 300 additional routes Construction of 1302 km railways by 2020, upgrade of 650 locomotives, wagons and 1138 passenger coaches Reconstruction of 11 airports, runways and passenger terminals 75 new international routes by 2020 Capacity increase of Aktau port by 20.5 million tons in 2020 Purchase of universal ferry Construction of the new shipyard, get repairs of vessels up to 70% by 2020 GOVERNMENTAL EXPENDITURE ON INFRASTRUCTURAL DEVELOPMENT SIGNIFIES THE IMPORTANCE OF KAZAKHSTAN AS A TRANSIT HUB SOURCE: MINISTRY FOR INVESTMENTS AND DEVELOPMENT OF THE REPUBLIC OF KAZAKHSTAN, STATE PROGRAM ON DEVELOPMENT AND TRANSPORT INFRASTRUCTURE INTEGRATION *BUDGET BASED ON THE CURRENT EXCHANGE RATE, ACCORDING TO THE OLD EXCHANGE RATE BUDGET WAS USD 28 BILLION BUSINESS SWEDEN 17 MARCH,
6 MAJOR NATIONAL COMPANIES ARE INVOLVED IN THE DEVELOPMENT OF THE TRANSPORT SECTOR National railway company Kazakhstan Temir Zholy, operator of the main railway network, passenger carrier and cargo transportation National maritime shipping company KazMorTransFlot develops national merchant marine fleet and organizes international shipping of domestic freights by its own forces. Has four subsidiaries - Kazmortransflot Ltd., Kazmortransflot UK Ltd, Altai Shipping Ltd and Alatau Shipping Ltd National carrier Air Astana is the principal airline and the flag carrier of the country, based in Almaty. Operates scheduled domestic and international services on 56 routes from its main hub, Almaty, and from its 2 secondary hubs, Astana and Aktau National roads authority KazAutoZhol is determined as the operator of republican roads, implements and monitors progress of investment projects of international and republican significance NATIONAL COMPANIES SERVE AS A STRONG BASE FOR FURTHER DEVELOPMENT OF THE SECTOR SOURCE: RAILWAYS.KZ, AIRASTANA.COM, KAZAUTOZHOL.KZ, KMTF.KZ BUSINESS SWEDEN 17 MARCH,
7 AIR ROAD PART OF THE INVESTMENTS TO THE SECTOR COME FROM INTERNATIONAL FINANCIAL ORGANIZATIONS Reconstruction of 790 km roads in Mangistau Oblast under CAREC program. Strength Budget 1 USD 371 billion Strength financed 2 by ADB Strength 3 Expansion and modernization program of Astana International Airport. Budget USD 31 million financed by EBRD INTERNATIONAL INVESTMENT PROGRAMS Comprehensive modernization and restructuring program of KTZ, implementation of sustainable energy technologies. Budget USD 300 million financed by EBRD Expansion of Aktau port by constructing three dry cargo berths, grain handling complex and related infrastructure. Budget USD 208 million financed by Sberbank RAIL MARINE SOURCE: EBRD, SBERBANK, ADB BUSINESS SWEDEN 17 MARCH,
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