@Shutterstock

Railway or Another Way: Transportation Dilemma for China, Kyrgyzstan, Uzbekistan

The construction of a railroad along a route linking the three countries has been delayed due to an ongoing search for investors.

Conceived last century, the 454-kilometer China-Kyrgyzstan-Uzbekistan railroad project is designed to connect the railroads of China and Uzbekistan through the territory of Kyrgyzstan, and provide links to the European railroad networks via Turkmenistan, Iran and Turkey as part of the New Silk Road transport system.

Discussions continue concerning the potential profitability of the large-scale project and despite an announcement by Kyrgyz President Sadyr Zhaparov that construction would begin this year, no progress has been made to date.

Landlocked Kyrgyzstan is understandably the most interested of the three countries in establishing the rail connection. The new highway would shorten the existing transport corridor by 900 km, improve transportation between Central Asian countries, and provide access to deep-water ocean ports. According to calculations by Chinese specialists, the cost of the railroad trunk line through Kyrgyzstan is estimated at $1.34 billion, while the total amount of the project is $4.7 billion.

“The sum is very large and will take 35-40 years to be paid off”, reported Zhaparov. “But rather than being a dead end, our country will become a transit state . The road will serve the Kyrgyz people and our country for a lifetime. We are (therefore) considering implementing this project in a different way to external borrowing.”

According to preliminary agreements, construction of the China-Kyrgyzstan-Uzbekistan railroad will be carried out by the Chinese company China National Machinery Import & Export Corporation. However, Chinese investors in Kyrgyzstan are viewed with caution — especially if one takes into account that of $4.8 billion of Bishkek’s total foreign debt, at least $1.8 billion is held by the Export-Import Bank of China.

Many experts are sceptical about the feasibility of building such a large-scale railway. Material investment and labour inputs will be required to lay the track through inaccessible and inhospitable mountainous terrain — not to mention the construction of bridges and tunnels; all of which have the potential to incur unforeseen costs and construction time. The ambitious transport corridor will also require coordination on many administrative levels, including tariffs and customs regulations and procedures, which could discourage logistics planners from choosing the new, unproven route in favour of those already established.

@gov.kz

Kazakhstan’s Eastern Dry Port to Get New Airport With German Cooperation

Kazakhstan will get a new airport at the special economic zone (SEZ) Khorgos – Eastern Gate near the Chinese border, with construction taking place over the next eight years. The project will be managed by local authorities in partnership with the German company, Skyhansa LLP. The project is planning to attract 250 billion tenge ($557 million) in investments and create 700 new jobs.

The volume of cargo transportation at the airport is targeted to be 50,000 tons per year, and the passenger terminal capacity will handle up to 500 people an hour, the press service of the Zhetysu Akimat (regional administration) reported.

The Zhetysu region has great transit potential, as it’s located at the crossroads of some key transportation routes – between China, Southeast Asia, CIS countries and Europe, said the head of the region, Beibit Isabaev, speaking at a meeting with potential investors. In the SEZ Khorgos – Eastern Gate, 56 companies are working on projects worth more than 800 billion tenge ($1.8 billion), he stated.

The head of the region added that the authorities are ready to help businesses with infrastructure development. Cooperation agreements between the investor company, the regional department of entrepreneurship and the administration of the SEZ Khorgos already been signed. Investors have shown interest in the development of small aviation and started joint work with the Akimat of Taldykorgan.

The new airport is planned to be completed by 2032, and the construction project involves three stages. In the first stage, the airport’s basic infrastructure will be built, and at the subsequent stages, the functionality will be expanded and new facilities will be added, including a hotel and a shopping and entertainment center, said General Director of Skymax Technologies Group LLP, Yerik Shortanbayev.

gov.kg

Construction of Waste Processing Plant Launched in Bishkek

On 29 March, Akylbek Japarov, Chairman of the Cabinet of Ministers of the Kyrgyz Republic, participated in a ceremony to mark the construction of a plant to produce electricity coupled with the disposal of solid household waste in the city of Bishkek.

He was joined by the Mayor of Bishkek, Aibek Junushaliev, the Ambassador of China to the Kyrgyz Republic, Du Dewen, and the director of the Chinese company that will construct the plant.

With reference to the fact that in recent years, environmental issues have been of pressing concern in the capital, he stated, “The landfill in Bishkek needed a plant for processing household waste… This project is (therefore of utmost importance).”

The new plant, due for completion in November 2025 and incorporating waste incinerators, power generators, and cleaning systems, will process approximately 850 tons of solid waste per day.

Japarov also reported that the Cabinet of Ministers will prioritize the construction of waste processing and incineration plants in seven of the country’s regions.

A large waste incineration plant is currently being built in the city of Jalal-Abad, and a Belarusian company has begun construction of a waste incineration plant in Karakol.

Kazakh Ministry of Tourism & Sports

Year of Kazakhstan Tourism in China

The Year of Kazakhstan Tourism in China was officially launched in Beijing on 28-29 March.

The occasion was marked by several events including a Kazakh-Chinese forum on the development of tourism and investment, an exhibition representing Kazakhstan’s various regions, cultural activities staged in an ethno-village, and a gala concert.

In his welcoming speech at the Kazakh-Chinese tourism and investment forum, Ermek Marzhikpayev, Minister of Tourism and Sports of Kazakhstan, said: “The Year of Tourism of Kazakhstan in the People’s Republic of China is a landmark event that helps strengthen friendly relations between the two countries. We believe that our dialogue will give new breath and new horizons for partnership in the field of tourism, creating the basis for fruitful and long-term cooperation.”

He added that Kazakhstan’s rich nomadic culture, centuries-old history, and unique natural landscape has much to offer to travellers with wide-ranging interests.

Kairat Sadvakasov, chairman of Kazakh Tourism national company, likewise celebrated the launch saying, “We are convinced that Kazakhstan is one of the most attractive destinations for Chinese tourists, being not just a friendly and neighboring country with a visa-free regime, but also a strategic partner of the ‘Belt and Road’ Initiative. We offer tourists engagement with the concept of ‘Eco-Ethnic-Entertainment-Events’ including: ecotourism, ethno-tourism, and cultural entertainment.”

China was second only to Russia in the list of countries whose citizens visited Kazakhstan in 2023. According to official statistics, over the first nine months of last year, more than 75,000 Chinese tourists stayed in Kazakh hotels, and a total of over 200,000 visitors from China visited Kazakhstan.

Oil transit

Kazakhstan to Earn $1.7 Billion from Russian Oil Transit to China

The Mazhilis of the Parliament of Kazakhstan has ratified amendments to the agreement between the Governments of Kazakhstan and Russia on the transportation of Russian oil through Kazakhstan to China.

The original agreement, signed on December 24, 2013, covers the period up until January 1, 2024 but both parties have now expressed their interest in its extension to 2033.

According to Kazakhstan’s Energy Minister Almasadam Satkaliev, extending the agreement for a further ten years will enable the transit 10 million tons of Russian oil per year.

Approval was granted for transit tariff set at $15 per ton and between 2024 and 2033, the forecast revenue from the transit of Russian oil through Kazakhstan to China is $1.710 billion.

Statistics show that from 2014 to 2023, the total transit of Russian oil through Kazakhstan to China amounted to 90,899,271 tons, providing transit revenue of $1.327 billion.

Kazakh Ministry of Industry & Construction

Car Seat Factory under Construction in Almaty

LLC Vehicles Almaty, LLC Motor Company Astana Motors, and LLC Youngsan Kazakhstan have collaborated in the build of a factory to manufacture car seats in Almaty.

According to a report issued by the Kazakh Ministry of Industry and Construction, the factory will have the capacity to supply Kazakhstan’s automobile plants with some 100,000 seats per annum and in so doing, make a significant contribution to the development of the country’s automotive industry.

Excavation of the land and the erection of steels have now been completed and work has begun on the installation of wall panels. Deliveries of technological equipment for assembly and electronics testing were received on 20 March and construction is scheduled to finish this autumn/winter.