INVESTMENT PROJECT“СONSTRUCTION OF TRADE-LOGISTIC CENTER IN

SHYMKENT CITY”

СONSTRUCTION OF TRADE-LOGISTIC CENTER IN SHYMKENT CITY

Effective trade-logistic system is the basis of growth and development of Kazakhstan economy.

For effective use of geopolitical potential of the Republic of Kazakhstan it is necessary to create transport-logistiс system integrated into international transport-logistic supply chain, able to offer qualitative added value cost service.

…Kazakhstan must become the part of the world transport-communication system, that will need lead development of the whole transport infrastructure system of the country.

President of the Republic of KazakhstanN.A.Nazarbayev

Creation of trade- logistic centre in South-Kazakhstran oblast

Applicants:South-Kazakhstan oblast Akimate,JSC «National company «Social- entrepreneurial corporation «Ontustik», Ltd «RIC-regional investment center «Маximum»

Realisation period: 2010 – 2014

Place of realisation: South-Kazakhstan oblast, Shymkent city, airport area

Total cost of the project : 40,35 billion tenge, including: -7,2 billion tenge(20%)- budgetary funds;-33,15 billion tenge (80%) – attracted funds.

• On the territory of the oblast passes through international transport corridor “West Europe-West China” and South corridor Transasian railways;

• There are main airways connecting European countries with countries of South-East Asia.

• Special Economic Zone “Ontustik” for development of textile cluster is situated in Shymkent, that will allow to solve effectively logistic tasks of companies included into SEZ;

• Availability of international carrier of transport-logistic company “Agroholding “Ontustik”” Ltd which has 52 units of trucks including 30 heavy haulers with refrigerators of “DAF” company;

• High concentration of production capacities and human resources in the region;

• Climate peculiarities of South-Kazakhstan oblast, which allow to raise many fruits and vegetables;

• An opportunity to form return freight for European cargo carriers with goods meeting requirements of EU.

Advantages of establishing trade-logistic centre in Shymkent

Aims and tasks of trade-logistic center being created in Shymkent city

• Support of international trade and assistance to goods movement through international corridors by means of modernization logistic opportunities, interaction of networks and multimodal (combined) transport;

• Growth of export, increase in effectiveness of agroindustrial complex and provision of food safety of the state;

• Creation of modern transport-logistic structure integrated into international transport-logistic system of goods movement and services;

• Effective use of transit potential , favorable geopolitical situation of the country and advantages of availability of international directions of highways, railways, air corridors;

• Provision of EU requirements to goods, agricultural products of RK to provide European cargo transporters with return load.

Trade-logistic centre in South-Kazakhstan oblast in Kazakhstan transport system on the direction of international transit corridor

“West China-West Europa”

Шымкент

• The southern corridor Transasian railways main lines . Is laid through the territories: South-East Europe- China and South-East Asia through Turkey, Iran, Central Asian countries and Kazakhstan. Its Kazakhstan part comprises the route: Dopstyk-Aktogai-Almaty-Shu-Arys- Saryagash.

• ТRACEKA. Transport corridor is laid through the territory : East Europa-Central Asia through the Black sea, the Caucasus and Caspian sea. Its Kazakhstan part comprises the route: Dostyk-Almaty-Aktau.

• Central corridor of Transasian railways main lines. Central corridor has a big significance for regional transit freight traffic. Its Kazakhstan part comprises the route: Saryagash-Arys-Kandagach-Ozinki..

Three out of five international railways corridors are laid on the territory of the South-Kazakhstan obvlast

• The Republic of Kazakhstan – Shymkent city;

• The Kyrgyz Republic – Osh city;

• The Republic of Tadzhikistan – Nizhniy Pjandzh;

• The Republic of Uzbekistan- Navoi city;

• The Republic of Turkmenistan- Turkmenbashi city.

The designed TLC will be included into international network\ junctions of logistic centers in Central Adia

(the project TRACEKA): no

The project presupposes reconstruction of approach to Shymkent city on existing road 2231 km – 2260 km near TLC being built in airport area..

Transit of the corridor “East Europa-East China” being built on the territory of the South-Kazakhstan oblast

Trade-logistic centre location in Shymkent city

аэропорт г.Шымкент

жел./дорога

а/д «Шымкент-Самара»

• The part for building TLC is situated to the west of Shymkent city and comprises 72 hectares (underlined with red colour);

• Very favorable situation of the section for construction of TLC is characterized by availability of all types of trunk lines.

-airport -on straight direction is about 3 km;

-railways – it is necessary to continue branch line about 4 km;

-automobile highway (Shymkent-Samara) is situated on straight direction about 4 km.

• Ailability of

Situation of trade-logistic centre in Shymkent city

Situation scheme of building placement

The structure of trade-logistic centre in Shymkent city

Stages of investment project financing

40 354 259,6 7 200 000,0 2 099 029,4 9 299 029,4 31 055 211,2

1 turn from budget

(2010-2011г.г.)

2 turn private investment

(2011-2012г.г.)

Total Private investment

sum of project investment,

total, thousand

tenge II stage (2012-2014)I stage (2010-2012)

Financing stages, thousand tenge

Stages of building TLC in Shymkent

І stage: 2010-2012 гг. ІІ stage: 2012-2014 гг.• Approach of communication and engineering networks;

• Pavilion for meat and fish sale;

•Administration building; • Pavilion for wholesale and retail sale;

• Office building ; • Fruits and vegetables sale pavilion ;

• Hotel for 60 places ; • Pavilion for trading from platforms ;• Laboratory; • Garages and service zone;• Logistic centre; • Boiler;• Conference-room, restaurant; • Pumping plant;• Customs building; • Pond evaporator ;• Customs laboratory; • Filling station.• Terminal for storage of fruits and

vegetables;• Meat and fish storage terminal;• Container platform .

Capacity and economic effectiveness of the project “Building trade-logistic center ” indicators

Enterprise capacity (throughput capacity a year ) in natural value:

Fruits and vegetables 96 000 tons

Meat and fish 45 000 tons

Cost of commodities:

Fruits and vegetables 96 milion tenge

Meat and fish 370 million tenge

Total number of created workplaces 980

Capitalized payback period 14,6 years

Net reduced value 9 217 million tenge

Investment profitability index 1,3

Internal norm of profitability 13,6%

Trade-logistic center in Shymkent city and roadside service on the way of the built corridor “East Europe-

East China”

Building of TLC in Shymkent city and use of TLC objects in system of roadside service has a number of advantages:•Favorable location of TLC near corridor being built;

•Availability of objects for organization of continuous relaxation, a guarded parking for trucks, a shop, a café, a service-technical servicing, automobile filling stations etc .

•Rendering complex services: loading- unloading work, supply and sorting, recalibration in accordance with adopted international standards, goods weighting, customs paper preparation, laboratory services and so on.;

•Absence of competition and weak development of available roadside service;

•Increase in the number of foreign drivers, cargos and passangers due to introduction to exploitation transport corridor;

•Big distances between human settlements in the Republic of Kazakhstan.

Scheme of trade-logistic centre functioning in Shymkent city