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Kazakhstan should fully realize transit potential to be part of Silk Road Project

1 July 2015 10:53 (UTC+04:00)
Kazakhstan should fully realize transit potential to be part of Silk Road Project

By Aynur Karimova

The trade volume between Europe and China is expected to reach $1 trillion by 2020. In this regard, it is important to fully realize the transit potential of Kazakhstan, which deserves to be an active part of the new Silk Road of China.

This remark was made by Yerlan Karin, the director of the Kazakh Institute for Strategic Studies, on June 30.

"Currently, the necessary transport infrastructure is being created in Kazakhstan. This will allow us to attract at least 10 million tons of transit cargo. Also, some $40 billion foreign direct investment will be attracted to the transport sector," the expert noted.

The development of the transport and logistics potential of Kazakhstan is the main goal of the 'Nurly Jol' program, initiated by President Nursultan Nazarbayev. The integration of the program with the new Silk Road economic belt is believed to attract new cargo flows.

"Every billion dollars attracted in transport and logistics, allows creating 20,000 high-skill jobs. In this regard, work in this direction will be intensified," he stressed.

Landlocked Kazakhstan, which is located in the heart of Eurasia with no access to world oceans, deserves to be part of the Silk Road Project, a massive undertaking initiated by Chinese President Xi Jinping in 2013 that aims to connect China with Europe and strengthen cooperation between Asia and Africa.

Goods from China are transported either by expensive air routes, or by long sea routes. If a new transit route from China to Europe via Central Asia and the Caucasus is established, cargoes will be delivered to European consumers using faster, more cost-effective routes.

Today Kazakhstan wants to attract the maximum amount of this trade via land route through its own territory. With its advantageous geographic position, a crossroad in between Europe and Asia, Kazakhstan intends to be part of a new multibillion-dollar Silk Road Project.

Kazakhstan has already started working towards the realization of this idea. It is taking measures to develop its transportation infrastructure. The government has set a goal to remove all infrastructural restrictions in order to increase the country’s capabilities to offer competitive services and increase the volume of shipments.

The new economic policy of Kazakhstan also prioritizes the development of transport infrastructure and logistics. In 2014, the state already provided more than $2.5 billion, and between 2015 and 2017 it will allocate $3 billion annually from the National Fund.

The country is also building a dry port and rail yard at Khorgos, in the desert on its eastern border with China. Kazakhstan has 100 container trains from China’s Lianyungang Port to Central Asia this year.

Overall, Kazakhstan plans to become the main transit country between the booming Chinese market and Europe and to turn into a logistics and transit hub in the Eurasian continent.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

Follow us on Twitter @AzerNewsAz

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