Kazakhstan Unveils Plan for New Russia-China Transit Route via Irtysh River

[艹艹艹]

Kazakhstan Unveils Plan for New Russia-China Transit Route via Irtysh River​

By Vusala Abbasova August 22, 2024

Kazakhstan is planning a major new transit route that will connect Russia and China, using the transboundary Irtysh River. The Irtysh, which flows through China, Kazakhstan, and Russia, is set to become a key part of a multimodal transport corridor aimed at boosting trade between the three countries.

Speaking at a briefing on Tuesday, Kassym Tlepov, Deputy Chairman of the Committee of Railway and Water Transport in Kazakhstan’s Ministry of Transport, highlighted the significance of the project. He emphasized that the new corridor would fully utilize the potential of river transport, creating a new link between Russia and China.

“We plan to transport cargo along the Irtysh River, from Tomsk to the village of Tugyl on Lake Zaysan, using river vessels,” Tlepov explained. “From there, the cargo will be moved by road or rail to China and back.”

Kazakhstan is working on expanding its ship repair and shipbuilding capacities to support this initiative. Tlepov mentioned that the existing infrastructure, particularly the Pavlodar river port, is not sufficient to handle the expected increase in traffic. As a result, additional port facilities are planned in Semey and Ust-Kamenogorsk.

Tourism along the Bukhtarma River is also seeing significant growth, according to Tlepov. To maintain this momentum, the country is exploring options for round-the-clock river navigation and ways to continue river transport during the non-navigation period, as the river remains unfrozen in some parts.

In addition to these developments, Kazakhstan is planning to build a hydraulic structure near the city of Semey. The estimated cost for this project is around 5.6 billion tenge, or about $11.7 million. Furthermore, there are plans to construct a new river port in Tugyl and lay a 99-kilometer railway from Tugyl to the Chinese border.

Considered one of the longest rivers in the world, Irtysh flows through the territory of three countries: China (525 km), Kazakhstan (1,700 km) and Russia (2,010 km). One of its tributaries flows into Balkhash, the largest lake in Kazakhstan and the world’s third largest freshwater lake. Irtysh is also a major tributary of the Ob River, which flows into the northern seas of Russia. The development of this corridor will provide Kazakhstan access to these northern seas through the Ob-Irtysh basin, with an expected transportation volume of 2-2.5 million tons annually.

Kazakhstan’s Deputy Minister for Transport Maksat Kaliakparov previously stated that this multimodal transit corridor is expected to be completed before 2026. Projects include the construction of an additional hydraulic structure on the Pavlodar-Semey section, the Tugyl port, and the Tugyl-Maikapchagai railway. Additionally, a fourth Maykapchagai-Zimunai rail checkpoint is expected to be opened to further facilitate trade.

The project is expected to significantly increase freight volumes, with an annual goal of transporting 3.6 million tonnes of cargo along the route.

How Kazakhstan is building its logistics empire​

26 Aug, 2024
By Maxim Kramarenko

Kazakhstan has some big ambitions, and at the top of the list is becoming a major transport and logistics hub that links different parts of Eurasia. President Kassym-Jomart Tokayev laid out this vision in his address to the nation last year, highlighting the country’s strategic position between East and West, as well as North and South. Even without access to the sea, Kazakhstan sees itself as a crucial bridge for international trade.

One of the main pillars of this strategy is developing the railway network. Kazakhstan is pumping money into expanding and modernizing its railways to become a top transit hub in Eurasia. This year, a new multimodal transport and logistics center opened at the Dostyk station on the Kazakhstan-China border. This center has already become a key node in the flow of goods between China and other parts of Eurasia, with a capacity to handle up to 800 TEUs and process 1,200 TEUs daily. This facility speeds up transit times and boosts the volume of goods moving through Kazakhstan.

There’s also ongoing construction of a second railway line from Dostyk to Moyynty, aimed at increasing the line’s capacity by five times. This project is part of a broader plan to enhance the country’s main transport corridors, such as the North-South and Trans-Caspian International Transport Route (TMTM). These corridors are vital for connecting China with Europe and the Middle East, positioning Kazakhstan as a key player in both regional and global trade.

To achieve these bold goals, Kazakhstan is keen on attracting investments and working closely with international financial institutions. The Eurasian Development Bank (EDB) is one of its significant partners, releasing a report this year on the prospects for developing the Eurasian transport network. The report stresses the need to create meridian corridors that integrate with existing latitudinal routes, like those stretching East-West. According to Yevgeny Vinokurov, Deputy Chairman of the EDB, these new corridors will cut transport costs and create a unified network, increasing freight flows by 40%.

Kazakhstan is in talks with the EDB to secure $1.9 billion for upgrading its railway infrastructure along the North-South route. This funding is expected to boost the capacity of railway segments and help build new logistics centers, which would increase freight traffic from 6 to 10 million tons annually. The country is also looking at bringing in investors from other international financial institutions to further expand and modernize its transport infrastructure.

Beyond railways, Kazakhstan is also focusing on its waterways. The Irtysh Basin, which saw about 1.4 million tons of cargo transported last year, is becoming a key part of the country’s strategy to create multimodal transport corridors. Plans are in place to build a new shipping lock in the Semipalatinsk region and a port in the village of Tuygyl on Lake Zaysan. This initiative aims to establish a new transit corridor linking Russia, Kazakhstan, and China, potentially increasing shipping volumes to 3.6 million tons per year.

There are also discussions about creating a Siberian River Route , which could compete with the Suez Canal. If this idea takes off, the Irtysh Basin would become part of a new route connecting Europe and Asia through Kazakhstan and Siberia.

Western sanctions against Russia have shaken up global trade routes, pushing some of them to bypass Russia and go through Kazakhstan instead. This shift has turned Kazakhstan into a crucial transit hub, opening up more opportunities for foreign investment in its transport infrastructure and expanding its trade networks.

Kazakhstan’s economy is already reaping the benefits. The country is attracting new manufacturing facilities, including assembly lines for South Korean and Chinese car brands. This growth is creating jobs, developing technical education, and raising the skill levels of local workers. Over time, this could lead to even greater development of Kazakhstan as a logistics and industrial center.

Kazakhstan is also going all-in on digitizing and automating its transport corridors. Introducing modern technologies is cutting down the time it takes for goods to move through the country, reducing bureaucratic hurdles and lowering transport costs. Digital logistics management systems and automated warehouse complexes are already making the transport process more efficient and making Kazakhstan an even more appealing option for international trade partners.

Digitization is a crucial part of Kazakhstan’s push to integrate into global logistics chains. Using advanced IT solutions helps improve monitoring and management of freight flows, ultimately allowing Kazakhstan to become more deeply embedded in international logistics networks.

Kazakhstan is making steady progress toward its goal of becoming a central transport and logistics hub in Eurasia. With substantial investments, strategic partnerships, and active infrastructure modernization, the country is becoming an increasingly significant player on the global stage. In the coming years, Kazakhstan plans to continue enhancing its transport and logistics capabilities, attract more investment, and strengthen its position as a trade and transport center in Eurasia.

These ambitious plans are not just about boosting Kazakhstan’s economic potential; they’re also about positioning the country as a vital partner for nations across Europe, Asia, and the Middle East, contributing to regional and global stability and cooperation.