Kazakhstan to establish grain transportation company
Azerbaijan, Baku, May 29 / Trend E. Kosolapova/
Kazakh Food Contract Corporation and Kaztemirtrans plans to establish a joint grain transportation company, the Kazakh Agriculture Ministry reported.
"In order to make up the shortage of grain carries and renew the existing grain carriage fleet, the Kazakh Agriculture Ministry initiates establishing a joint venture on the basis of Kaztemirtrans and Food Corporation and acquisition of additional 5,000 grain carries," the Ministry said.
If the initiative is approved by the government, the coordination of grain transportation by existing and acquired grain carries will be transferred to this new enterprise. All market participants will be able to transport its grain on equal terms.
Underdeveloped logistics infrastructure and a lack of grain carriers are Kazakhstan's main problem with grain exports to the world markets due to Kazakhstan's geographical location and the lack of direct access to the sea. Currently, Kazakhstan's grain carriers' fleet has 5,266 units. Moreover, many grain carriers are considerably worn out.
Due to acute shortage of grain carriers, Kazakh railway was forced to use gondola cars for grain transportation in this marketing year and however will not be able to transport all export potential.
According to the Agriculture Ministry, Kazakhstan needs about 10,000 grain carries to realize its export potential.
Kazakhstan is among the world's major grain exporters. In 2011 the republic had a record harvest of nearly 27 million tons of grain in net weight. Export potential was estimated at 15 million tons.