Products

The project will provide transport and transshipment services for breakbulk, bulk and containerised goods for imports and exports to/from China. When the planned maximum capacity is reached in 2030, the average annual volume of imports/exports to/from China through the hub during the period 2030-2036 will amount to 5.7 million tonnes, including the transshipment of agricultural products (1.7 million tonnes per year), the transshipment of other dry goods (0.4 million tonnes per year) and the transshipment of solid minerals (3.6 million tonnes per year).

Project

As part of this investment project, a port logistics centre with a capacity of 4.3 million tonnes per year will be built in the East Kazakhstan region. The port will provide full control and coordination of all stages of bulk cargo transshipment from the moment of its arrival to shipment to the Zhemenei station in China. 

There is a need to reduce the queues at the railway stations of the Republic of Kazakhstan and China, which are caused by the difference in the width of the railway tracks of the Republic of Kazakhstan and China.

Initiator

Akimat of the East Kazakhstan region.

Market

By the end of 2022, Kazakhstan's exports to China will have increased by 35% compared to the previous year, reaching 6,5 trld. tenge. In 2022, exports of dry bulk from Kazakhstan to China increase by 31%, reaching 6.7 million tonnes. At the same time, iron ore accounted for 82.7% (5.6 million tonnes) of dry bulk exports to China. 

Kazakhstan also actively exports flaxseed, sunflower and other oilseeds as an investor. Investment structure: exports of which will reach 405 thousand tonnes in 2022. In 2022, the turnover of railway transport in the Republic of Kazakhstan will increase by 4% and will amount to 308 billion t-km.

What is the attractiveness of the project? 

• Advantageous location. The East Kazakhstan region is located in the east of the Republic of Kazakhstan, bordering both Russia and China, and within the country's borders with the Abai and Pavlodar regions, where the Pavlodar and Saryarka FEZs are located. Potential users of hub services also operate in the East Kazakhstan region itself - large metallurgical complexes of Kazzinc LLP, Ust-Kamenogorsk Titanium and Magnesium Combine JSC, Ulbinsk Metallurgical Plant JSC. 
• Multimodal transport. The logistics centre offers the possibility of simultaneous use of various modes of transport, which significantly increases the capacity and volume of traffic. Exporters can choose the optimal mode of transport depending on the characteristics of the cargo, the distance and the required delivery time.

Investment proposal

The project requires financing of 60 004 mln. tenge, including

• 66.23% (39 602,79 mln. tenge) – borrowed capital;
• 33.7% (20 400,41 mln. tenge) is equity.

The proposed financing structure and government support measures are indicative and the final structure of financing and participation in the project will be determined based on the results of joint negotiations with the investor. 

• 58% (35,33 mln. tenge) – buildings and structures;
• 42% (25,08 mln. tenge) – machinery and equipment.