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Kazakhstan ready to contribute to movement of tankers along TRACECA: interview with transport and communication minister

Business Materials 22 May 2009 11:17 (UTC +04:00)

Azerbaijan, Baku, May 21 / Trend , E. Ismayilov/

Interview of Trend with Transport and Communications Minister of Kazakhstan Abelgazi Kusainov.

Trend : What kind of work on upgrading, improvement and construction of new railway infrastructure is carried out in Kazakhstan?

Abelgazi Kusainov: In April, we began to build a railway line Eralievo-Kuryk, which creates conditions for the development of the coastal infrastructure of the Caspian Sea in Kazakhstan and the service in the port of Kuryk. A temporary operation of the Eralievo-Kuryk was scheduled for the second quarter of 2010. The length of this railway will be 14.4 kilometers and the estimated volume of freight traffic is 5.5 million tons per year. The project's cost is 7.57 billion tenge.

We are planning to commence the construction of a railway line Uzen-state border with Turkmenistan in order to connect Kazakhstan with Turkmenistan, Iran and Persian Gulf states in the fourth quarter of 2009. The project Uzen-state border with Turkmenistan is a part of the Uzen-Kyzylkaya-Bereket-Etrek-Gorgan project, which have been implementing by Kazakhstan, Turkmenistan and Iran. The initial forecasted volume of shipment is 8 million tons.

The construction of the Korgas-Zhetygen railway line is scheduled for opening of the second frontier point on the railway crossing with China which will cut the distance from south regions of Kazakhstan to China to 500 kolometre. The construction works will be commenced in July 2009 and complete in 2010. The initial volume of shipment will hit 5-6 million tons.

Q: ... and what about the sea transport?

A: Expedient works have been implementing in this area as well. In particular, it is planning to construct four additional oil berths, three berths for dry cargoes, protection of water and dredging works to increase the capacity of Aktau port to 2012. All this will increase the capacity of Aktau on the processing of up to 20 million tons of oil and 3 million tons of dry cargo per year. The current capability of Aktau is 10 million tons per year.

The construction of the Eralievo-Kuryk railway line on the concession ground was commenced in connection with implementation of oil and gas projects in Kazakhstan this year. We are planning to complete the construction of a plant to repair and service small ships in the Bautino port in the second half of the year. The plant was designed to repair small vessels up to 60 meters in length and weighing up to 600 tons, as well as maintenance of all types of vessels operating in the Northern Caspian. Plant's power will allow both to serve 6-8 mooring of vessels at one berth wall. The plant will be able to serve 40-50 ships a year.

Q: Our countries have experience of cooperation in the container transport. A demo container train has been launched to attract the attention of potential customers on the route of Poti-Baku-Aktau-Almaty. Is Kazakhstan interested in continuing cooperation in this regard?

A: At present, active work is conducted to apply transparent of container rail communications Poti-Baku-Aktau-Almaty on a regular base as part of the Transport Corridor Europe-Caucasus-Asia (TRACECA). But I want to say that there are factors hindering full operation of container trains on this route. First of all, it is presence of the established and timely tested container service from the ports of Nakhodka East, Novorossiysk, as a result of which shippers are not yet ready to redirect traffic flows on the route of the Poti-Baku-Aktau-Almaty. In this regard, there are also some technical difficulties associated with the transshipment of goods through the two seas, and the passage of several borders.

However, Kazakhstan is ready to cooperate fully with the organization on full traveling of container trains on the route TRACECA. We are prepared to provide high-quality rail services, the smooth passage of trains via our territory and provide favorable tariffs in the presence of the guaranteed volume.

Q: What reforms should be conducted to improve the effectiveness of the TRACECA corridor?

A: TRACECA is one of the most promising routes that Kazakhstan attaches great importance. The geographical position of our country creates the conditions for the delivery of goods from China to the Western and Eastern Europe, Caucasus, Iran and Turkey. TRACECA could serve as a transcontinental corridor, acting as a bridge for communication Asia (China) - Europe.

But, regarding new economic conditions and challenges, it is necessary to conduct a comprehensive analysis to develop this route. We need to examine the competitiveness of the corridor compared to other alternative routes and to make an analysis of the effectiveness of the EU activities as part of TRACECA, as well as review the tariffs for the goods conveyance in containers by rail, sea and road.

Regarding existence of alternative routes from Asia to Europe on favorable terms, we believe that the development of transit traffic on TRACECA is a long and difficult work and to earn a reputation, it is necessary to use new standards of service quality and pursue a flexible tariff policy.

I think it is necessary to continue to work to create an integrated transport policy throughout the corridor. An important issue is the removal of legal obstacles in the real movement of goods, which require concerted efforts by all countries interested in the development of TRACECA. The outcome of this work should be the recognition of an integrated transport customs invoice by the countries. There is a need for technical support which enables to know exactly where the goods are located at one time or another.

Q: Kazakhstan is creating its fleet on the Caspian Sea based on the support of offshore oil and gas operations as well as for transportation of goods. Does Kazakhstan intend to acquire new vessels? Which directions of traffic are most interesting today?

A: Currently, Kazmortransflot operates three oil tankers with capacity of 12,000 tons. Three more tankers of the same capacity is planned to be built prior to 2012.

At present the main lines of transportation of oil from the Caspian port of Aktau is Mahachkala, Neka and Baku. Nearly 5.9 million tons of oil was transported in 2008. Kazakh oil is expected to be transported to the Black Sea in future.

As part of the development of Kazakhstan's Caspian Sea shelf by fleet for support of maritime operations which composes 13 units, the company transports construction materials and equipment. The volume of traffic from the port of Bautino to construction site of artificial islands totaled 1.7 million tons in 2008. It is planned to increase the transport up to 2 million tons per year in future.

Q: To what degree world financial crisis has impacted transshipment of grain via Aktau port? Is this port expected to be enlarged more?

In January-March, transshipment via Aktau was 58,000 tons compared to 42,000 tons in the first quarter of 2008. In 2008, transshipment of grain via Aktau was 266,000 tons compared to 187,000 in 2007.

At present, Food Corporation JSC is exploring the possibility of expanding the capacity of grain terminal project, located in the port of Aktau up to 1.5 million tons per year from the current 600,000 tons. The volume of one-store terminal is 25,000 tons.

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