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Kazakhstan to spend over $200M to create new railway route

Business Materials 18 November 2019 14:16
Kazakhstan to spend over $200M to create new railway route

BAKU, Azerbaijan, Nov.18

By Nargiz Sadikhova - Trend:

Based on the results of a state expertise, construction of a railway route bypassing Kazakhstan’s Almaty will be 80.5 billion tenge (approximately $208 million), Transport Committee under the Kazakhstan’s Ministry of Industry and Infrastructural Development told LS news agency, Trend reports.

According to the information, the project is being developed to be implemented within the public private partnership. Auctions are currently being held to select a private partner.

“The new line will allow to eliminate the need for transit freight traffic to use the Almaty stations. This will reduce the transportation time by an average of two days and unload Almaty stations by 40 percent,” the committee said.

On October 29, 2019, Kazakhstan’s Minister of Industry and Infrastructural Development Beibut Atamkulov said that the railway route bypassing Almaty is to be constructed by 40 percent, According to him, currently a very high increase of railway transit observed in Kazakhstan.

Today all major cities of Kazakhstan are connected by high-speed passenger routes network used by the trains made of modern, comfortable wagons of domestic production.

In 2010 the Government of Kazakhstan adopted new program for development of transport infrastructure till 2014 under which the following was realized:

- amendment to the international contracts and the national legislation of Kazakhstan concerning railway transport within the EEA;

- unification of freight transport tariffs by type of journey;

- initiation of work to implement the new mechanism of subsidize losses of the carriers, conducting railway passenger transportation according to socially important interregional services;

- optimization of holding structure of Kazakhstan Railways and disposition of non-core and core support assets in a competitive environment;

- intensive development of logistics and transit multimodal transportations through creation of one-stop-shop services by all types of transport and integration of transport assets.

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