ASTANA, Kazakhstan, December 25. Kazakhstan continues to develop the transport sector and wants to turn it into one of the main sectors of the economy.
Trend News Agency provides an overview of the main events in the transport sector of Kazakhstan in 2023:
Road transport
Kazakhstan started this year with the adoption of a 10-year development strategy for KazAutoZhol (the national highway operator). The strategy includes a number of steps expected to improve the condition of roads, in addition to unlocking the country’s transit potential. An additional benefit would be the construction of electric vehicle charging stations, which would allow for more use of environmentally friendly vehicles.
It was revealed in January that in 2023, Kazakhstan is going to build or reconstruct 10,500 kilometers of roads. In particular, the building and reconstruction of 7,300 kilometers of major roads will be completed. Additionally, 3,200 kilometers of roads incorporated into the local network will be built and modernized.
Moreover, it was announced that around 11.8 billion Kazakh tenge ($25.62 million) will be allocated for the reconstruction of the roads in the Zhambyl region. The funds will be used for the maintenance and repair of 557.4 kilometers of roads. Upon the completion of the work, the share of roads in good condition will reach 98 percent in the region.
In addition, Kazakhstan will also continue to work on the implementation of projects, which will include international participants, from 2024 through 2030. The projects include the construction of the 513-kilometer-long Zhezkazgan-Karagandy road, the Astana-Kostanay-Russian border road with a length of 830 kilometers, the Beyneu-Shalkar road that stretches 515 kilometers, as well as the Kyzylorda-Aktobe and Aktobe-Uralsk roads with a length of 1,101 and 628 kilometers, respectively.
In the second half of 2023, Kazakhstan will launch the Big Almaty Ring Road (BAKAD). Spanning 66 kilometers, BAKAD consists of four-lane sections (9 kilometers) and six-lane sections (57 kilometers), along with bridges, interchanges, and necessary infrastructure. The BAKAD project, with a total cost exceeding $743 million, marked a groundbreaking milestone as Central Asia's inaugural international public-private initiative. The projected volume of cargo transported in the BAKAD zone is expected to increase by 87 percent over the next 15 years, reaching 35.9 million tons.
On October 3, Kazakhstan officially joined the World Road Association. An agreement was signed between the World Road Association (PIARC) and the National Committee of PIARC in Kazakhstan as part of the XXVI World Road Congress in Prague. It is expected that this agreement will contribute to the development of the country's road industry.
Moreover, it was announced that Kazakhstan plans to expand the international highway between Western Europe and Western China. The section of the international highway Western Europe-Western China from the city of Kyzylorda to the border of the Aktobe region (566 km) is planned to be transferred to category I with four-lane traffic.
In addition, the minister of transport, Marat Karabayev, announced that major road projects in Kazakhstan will be fully completed next year and put into operation. Currently, in Kazakhstan, 856 km of roads are being put into operation, where reconstruction and major and medium repairs were previously carried out. In total, according to him, construction and installation work covered 11,000 km this year.
Meanwhile, Kazakhstan announced plans to increase the share of toll sections on the country's roads. Currently, toll sections in Kazakhstan amount to 3,200 kilometers. The share of toll sections in 2024 will increase by 1,200 kilometers.
Co-op with international financial institutions in road transport
The Asian Development Bank (ADB) announced plans to conduct a sovereign project to support the reconstruction of a connector road in Kazakhstan.
In addition, ADB has committed to financing two new road projects in Kazakhstan with its sovereign-guaranteed loans starting in 2024.
It was announced that Kazakhstan plans to attract Eurasian Development Bank (EDB) investments to implement road projects. The road projects require financing in the amount of 2.2 trillion tenge (about $4.7 billion).
Railroad transport
In January, Kazakhstan expanded its geographical connectivity by receiving the first train from Vietnam through China. The train departed from Pingxiang Railway Station in Guangxi, in southern China, and reached the Xi’an dry port, in the east of the country. The train was then sent to Kazakhstan via the China-Europe Express. The train was carrying various electronic spare parts manufactured in Vietnam.
In addition, it was announced that Kazakhstan Railways (KTZ) will launch the tests of OneWeb satellite terminals on the railway in Kazakhstan. The intended launch comes as part of a Memorandum of Understanding signed between the KTZ and OneWeb, "Network Access Associates Ltd.", an international company specializing in the field of satellite communications. This cooperation will provide high-speed satellite connections to cargo and passenger trains operating in Kazakhstan.
Moreover, Kazakhstan's national railway operator signed credit deals with a syndicate of banks comprised of Société Générale and Natixis for the purchase of electric locomotives. The funds provided will enable the railway operator to procure 100 electric locomotives produced in Kazakhstan. The locomotives will be supplied from 2023 through 2029. KTZ expects that the new locomotives will enable the company to offer a higher quality of service to its customers.
On March 3, China initiated the construction of the second track of the railway between Jinghe and Alashankou, which later extended into the territory of Kazakhstan. Kazakhstan Railways revealed that this will streamline the connection between China and Kazakhstan. The construction of the second track is expected to have a positive impact on the transit capacity of the route.
Meanwhile, Kazakhstan and Uzbekistan have announced their intention to construct a new Darbaza-Makataaral railway line. The construction of the new railway line, with a total length of 106 kilometers, will transport an additional 10 million tons of cargo per year between the countries. The construction project will require more than $347 million.
In addition, it was announced that to improve the quality of passenger transportation, work is underway to purchase new modern passenger railroad cars. This year, 162 units were purchased. Of these, 76 have been put into operation, and 24 railroad cars will be delivered by the end of the year. And in the first half of next year, the remaining 62 railroad cars will be delivered. In addition, by 2029, it is planned to purchase 844 passenger railroad cars from domestic factories.
Moreover, Kazakhstan and China agreed on a transportation volume of 27.8 million tons of cargo for 2024, which is 1 million tons more than the 2023 figure. An agreement on this was reached during the 32nd regular meeting of the mixed commissions of the border railways of tKazakhstanand China in Shymkent on September 8.
Meanwhile, Zhanibek Tayzhanov, CEO of Passenger Transportation JSC, said that Kazakhstan will purchase 537 high-tech railcars from Stadler by 2030. Taking into account all the planned measures to update the railcar stock, in 2030 the average age of railcars will decrease from 18 to 13 years. At the same time, the provision of carriages with an air conditioning system will be 100 percent.
In addition, Kazakhstan Railways announced plans to build 1,300 km of railway tracks within three years. This will significantly increase the country’s transport potential, increase the efficiency of the transportation of export products, and increase the speed of trains across the country. It is planned to build the Darbaza-Makataaral section, a bypass around Almaty, and the opening of the third border crossing with China (Bakhty-Ayagoz).
It was announced that Kazakhstan and China plan to build the third cross-border railway between the countries. In this regard, a Memorandum of Understanding was signed between the Ministry of Transport of the Republic of Kazakhstan and the State Committee for Development and Reform of the People's Republic of China on the joint development of cooperation on the Ayagoz-Tacheng railway construction project.
At the same time, a subsidiary of Kazakhstan Railways (KTZ, a national company)—"KTZ"—Freight Transportation" LLP—announced that it would acquire 218 locomotives, including 75 mainline diesel locomotives of the TE33AS series, 130 electric locomotives of the KZ8A series, and 13 switcher diesel locomotives of the TEM11A series—until 2029.
On October 21, a contract was signed between the Afghan Railway Authority and Kazakhstan's company Integra Construction to resume work on the construction of a railway line in the section from Rozanak station to Rabattarian station (43 kilometers). As Kazakhstan's Foreign Ministry said, the construction of the railway line in Kabul is scheduled for completion in May 2025.
In addition, a memorandum was signed on the creation of the Belarus-Russia-Kazakh-Uzbekistan – Afghanistan – Pakistan transport corridor. The signing of the memorandum took place on the sidelines of the first Shanghai Cooperation Organization (SCO) International Transport Forum in Tashkent (Uzbekistan).
On November 14, in the Almaty region of Kazakhstan, construction of a railway line began, bypassing the Almaty station. The implementation of the project will make it possible to redirect freight traffic to the new Zhetygen-Kazybek railway, bypassing the Almaty station. In general, the new line will reduce the load on the Almaty junction by 40 percent and significantly reduce the time of cargo delivery.
Moreover, it was announced that Kazakhstan will purchase more than 500 locomotives by 2025. Currently, the total number of locomotives in the fleet is 1,880. To ensure the required number of locomotives and reduce the level of depreciation in the fleet, 133 units of locomotives were purchased this year.
On November 27, Kazakhstan began construction of a new 152-kilometer Darbaza-Maktaaral railway line in the Turkestan region in the direction of Uzbekistan. The new railway line will help the country's transportation and transit potential. A new checkpoint at the Kazakh-Uzbek state boundary will be established as part of the project. The construction of a new railway line will allow redirecting cargo from the existing Saryagash-Tashkent section to a new line, unloading the Saryagash station, and increasing export traffic in the direction of Uzbekistan.
On December 21, Kazakhstan began construction of a new railway line, Bakhty-Ayagoz, to China. The length will be 272 kilometers. During the construction of the new line, it is planned to open a third border crossing with China, Bakhty-Chuguchak. Planned to go into operation in 2027, the new double-track Bakhty-Ayagoz railway line will increase the throughput capacity between Kazakhstan and China from 28 million to about 48 million tons, relieve congestion at southern checkpoints, and attract additional transit volumes.
Air transport
Kazakhstan began 2023 by extending its “open sky” policy until the end of 2027. This regime provides for the removal of all restrictions on the number of flights and the provision of the fifth “freedom of the air” to foreign airlines on routes where Kazakh airlines do not operate. The fifth “freedom of the air” allows flights of foreign airlines through the cities of Kazakhstan to the cities of third countries. This makes it possible to increase the transit potential of the country and increase transit passenger traffic through Kazakh airports.
The Kazakhstan Ministry of Transport has upgraded the "open skies" regime in collaboration with the Agency for the Protection and Development of Competition in order to increase the attractiveness of the Kazakh air transportation sector. As a result, foreign airlines now have the right to operate flights to a variety of airports in Kazakhstan with no restrictions on frequency or aircraft type, including the fifth degree of "freedom of air" with no route restrictions.
In addition, the German consortium Hansa stated that it is considering the possibility of building an aviation cargo hub in the free economic zone (Khorgos-Eastern Gate SEZ) in Kazakhstan.
Moreover, the Prime Minister of Kazakhstan, Alikhan Smailov, has signed an agreement with Terminals Holding Company from the UAE as part of a visit to the Turkestan region. The investor will conduct a comprehensive assessment of the activities of the airport of Astana and will subsequently take over operational management to improve the quality of passenger service and the efficiency of the air harbor as a whole.
Meanwhile, on October 27, Kazakhstan and Thailand signed a Memorandum of Understanding, which provides for an increase in the total number of permitted flights by 35.4 percent (from 402 to 544 flights per week).
At the same time, the Ministry of Transport of Kazakhstan is working on the creation of special economic zones at the airports of Astana, Almaty, Shymkent, Aktau, Aktobe, and Karaganda. Work is also underway to identify other regional airports where a special economic regime is needed.
It was announced that the demand for air travel in Kazakhstan increased by 27 percent over the year. In order to meet demand, Kazakhstan began to actively purchase new aircraft. This year, Kazakhstan is buying 11 aircraft; then there will be 100 aircraft in Kazakhstan. And by 2025, the country plans that domestic passenger airlines will have 145 of their own aircraft.
In addition, Kazakhstan and Saudi Arabia agreed to launch direct flights on the route Almaty-Riyadh. The agreement was reached during the visit of the Minister of Foreign Affairs of Kazakhstan, Murat Nurtleu, to Saudi Arabia. Thus, flights between the countries will be operated by the Saudi Arabian airline FlyNas. Flights will begin in the spring-summer season of 2024 with a frequency of 7 flights per week.
Fly Arystan
FlyArystan, Kazakhstan's first low-cost air carrier, has launched direct passenger flights on the Astana-Ankara route. Starting May 23, the flights between Astana and Ankara will operate twice a week, specifically on Tuesdays and Sundays.
At the same time, FlyArystan has also conducted the first flight from Almaty to Georgia's Kutaisi. Starting on June 4, 2023, Airbus A320 airliners began flying on the Almaty-Kutaisi-Almaty route. Flights lasting about 4.5 hours are carried out twice a week, on Wednesdays and Sundays.
Another route opened by FlyArystan during the first half of this year was the Baku-Astana route. The opening of the first flight on this route was on June 3, 2023.
Moreover, FlyArystan, a low-cost airline, also carried out the first flight between Astana and Uzbekistan's Tashkent. The flights between Astana and Tashkent operate twice a week, on Mondays and Wednesdays. Having launched this flight, FlyArystan has become Kazakhstan's first low-cost air carrier to connect the capitals of Kazakhstan and Uzbekistan.
On July 3, FlyArystan, Kazakhstan's first low-cost air carrier, carried out the first flight between Astana and Uzbekistan's Tashkent. In addition, on July 27, FlyArystan launched direct flights between Astana and China's Urumqi.
Meanwhile, Kazakh low-cost airline FlyArystan announced plans to launch regular flights from Almaty to the largest city in India and one of the most populated cities on the planet, Mumbai, in November 2023.
Air Astana
Kazakhstan's biggest airline company, Air Astana, has announced the commencement of direct flights between Almaty and Jeddah, Saudi Arabia, starting on October 1, 2023. The airline has already begun ticket sales for this new route, which will initially operate twice a week, with an additional frequency added in December.
At the same time, Kazakhstan's Air Astana has announced the commencement of direct flights between Almaty and Jeddah, Saudi Arabia, starting on October 1, 2023.
In addition, Air Astana plans to launch flights to Tokyo and Singapore in 2024 and to New York in 2025.
On September 7, Air Astana launched flights on the route Almaty-Tel Aviv. The airline operated its first regular flight from Almaty to Jeddah (Saudi Arabia) on October 6.
Moreover, it was announced that Kazakhstan's Ministry of Transport, in collaboration with airlines, is striving to expand the number of flights from Kazakhstan to China and back. In the autumn-winter season 2023-2024, as passenger traffic grows, Kazakhstan's Air Astana plans to increase flights on the routes Almaty-Beijing (from 6 to 7 flights per week), Astana-Beijing (from 1 to 3 flights per week), and Almaty-Urumqi (from 2 to 7 flights per week). Also next year, Air Astana plans to open new routes to the Chinese cities of Shanghai, Guangzhou, and Chengdu.
SCAT Airlines
Kazakhstan's other company, SCAT Airlines, launched direct passenger flights to Pakistan's Lahore. The direct regular passenger flights between Almaty and Lahore commenced on July 8. The flights will operate twice a week, on Wednesdays and Saturdays.
It was announced that Kazakhstan's SCAT Airlines has signed a contract for the supply of seven new Boeing 737-MAX 8 aircraft to expand its fleet. Replenishing the fleet with seven more new Boeing 737-MAX 8s will increase the airline's carrying capacity, which in turn will have a positive impact on the punctuality of flights and the expansion of the route network.
Other airlines
Oman’s Salam Air launched its first flight from Muscat to Almaty on July 1, 2023. The flights operate twice a week (on Thursday and Sunday). The flights are expected to boost trade, economic, tourist, and cultural cooperation between the two countries.
At the same time, Indian IndiGo launched direct flights between Delhi and Kazakhstan's Almaty in September. The Chinese Loong Airlines has launched flights on the Hangzhou-Almaty route on September 7.
The Russian airline Aeroflot has resumed direct regular flights from Moscow to Shymkent (Kazakhstan). Flights will be operated once a week, starting November 3, on Airbus A320 aircraft. The departure of flight SU1950 from Moscow is scheduled on Fridays, and the return flight SU1951 from Shymkent is scheduled on Saturdays.
Moreover, Qatar Airways announced plans to increase the number of flights on the Almaty (Kazakhstan)–Doha (Qatar) route. As Kazakhstan's Civil Aviation Committee noted, the number of flights is planned to increase from 7 to 14, starting in the autumn-winter period. After increasing the number, flights will be operated twice a day.
Meanwhile, Malaysian Air Asia X announced plans to begin operating direct passenger flights on the route Kuala Lumpur (Malaysia) to Almaty (Kazakhstan) on February 1, 2024. There will be 4 flights per week (Tuesday, Thursday, Saturday, and Sunday) on A-330-type aircraft (capacity ranging from 285 to 377 seats).
From January 23, 2024, China Southern Airlines plans to open flights on the new route Almaty-Beijing with a frequency of 3 flights per week. At the same time, if demand increases, China Southern Airlines is ready to consider increasing the number of flights on existing routes from Almaty to Urumqi and Xi’an, as well as from Astana to Urumqi, starting in the spring-summer season of 2024.
At the same time, Chinese Loong Airlines plans to increase the number of flights on the Almaty-Hangzhou route from 3 to 4 per week in December this year. If passenger traffic increases next year, the airline plans to increase the number of flights to 7 per week. The airline is also studying the issue of opening flights on the Astana-Hangzhou, Astana-Chengdu, and Almaty-Chengdu routes in 2024.
It was announced that Wizz Air Abu Dhabi will open regular flights to Kazakhstan's Turkestan city on the Abu Dhabi-Turkestan - Abu Dhabi route. Flights will begin on January 16, 2024, and will operate with a frequency of three times per week (on Tuesdays, Thursdays, and Saturdays). The flights will be carried out on Airbus A321-type aircraft.
Moreover, Türkiye's Turkish Airlines reveals plans to increase the number of flights on the routes Istanbul-Astana and Istanbul-Almaty. The Turkish side informed Kazakhstan about the work to withdraw the low-cost division AnadoluJet from Turkish Airlines as a separate legal entity. Upon completion of this process, the launch of flights to Kazakhstan by the new airline is expected in March 2024.
In addition, Air China is considering increasing the number of flights on the Astana-Xi'an-Beijing route from 2 to 3 per week. At the same time, the airline will also consider operating a third flight per week directly between the two capitals without stopping in Xi'an.
Maritime transport
It was announced that Kazakhstan is working on the construction of a container hub in the seaport of Aktau, which is part of the Caspian transport and logistics node. The container hub will be created on the basis of the "Aktau Seaport" special economic zone, where a land plot of 19 hectares has been reserved for these purposes. Construction is scheduled to be completed in the second quarter of 2025.
President Kassym-Jomart Tokayev of Kazakhstan announced that Kazakhstan is planning a large-scale modernization of its Caspian ports of Kuryk and Aktau.
The Turkish corporation Albayrak Group has stated its willingness to invest in the renovation of the Caspian Sea's Kazakh seaport infrastructure. The holding is interested in providing uninterrupted cargo transit and boosting cargo quantities along the Trans-Caspian International Transport Route.
Co-op with Abu Dhabi Ports Group
In partnership with the UAE, Kazakhstan launched the operations of the Caspian Integrated Maritime Solutions (CIMS) transport company. CIMS was registered on February 13, 2023, in the “Astana” International Finance Center. The company was created jointly between Kazmortransflot and the Abu Dhabi Ports Group.
In addition, a ceremony took place on July 4 in Galati, Romania, marking the acceptance of two new oil tankers, Taraz and Liwa, which have joined the Kazakh maritime fleet. The tankers, with a deadweight tonnage of 8,000 tons, are owned by the Caspian Integrated Maritime Solutions joint venture. The shareholders of the venture include Kazmortransflot National Maritime Shipping Company and the UAE's Abu Dhabi Ports Group.
Moreover, Abu Dhabi Ports Group has entered into a Heads of Terms (HoT) agreement with Kazakhstan's SEMURG INVEST, the proprietor and developer of the Sarzha Multifunctional Marine Terminal in Kuryk Port, to potentially invest in the grain terminal located at Kuryk Port.
Abu Dhabi Ports Group and KazMunayGas, the national company of Kazakhstan, announced plans to collaborate on the joint construction of tankers for oil transportation in the open seas and the Caspian Sea in the near term.
On November 27, Kazakhstan received two new oil tankers purchased from Abu Dhabi Ports Group (ADP). The oil tankers were constructed at Damen's shipyard in the Netherlands. The tankers are 140 meters long, 16.7 meters wide, 4.2 meters deep, and 10 knots fast.
Meanwhile, Kazakhstan announced plans to create a domestic shipbuilding plant based on existing production facilities for the development of the merchant fleet. Turkish companies YDA and Asfat and Emirati Abu Dhabi Ports (ADP) are showing potential interest in implementing the shipyard project.