The development of transport logistics

system of the Republic of Kazakhstan

March 27, 2012

Yerkhat Iskaliev

Vice – President of Logistics of National Company “KTZ” JSC

АО НК КТЖ

The Republic of Kazakhstan main indicators

Kazakhstan’s area – 2 724,9 thousand km²

Population – 16 674 thousand people

Population density – 6,12 people/km²

GDP per person – US $ 11,3 thousand

Transport component in GDP – 7%

Investment in TCC – US $3,3 billion

Length of:

motorways – 96 thousand km;

railways – 14 795.4 km;

airways – 78 000 km.

113,2

28,8

50,1

28

Kazakhstan CIS Europe Asia

export import

PRODUCT TURNOVER IN 2011

(US$ BILLION)

1,9

2,2

2,7

2009 2010 2011

15 16,3

28

2010 2011 2020

FREIGHT FORWARDED

(bln ton)

TRANSIT

(mln.ton)

Kazakhstan’s transport sector

main players

JSC «NC «KTZ» 2

Тterminal network

Agencies network

Trucks Divisions

Shipping Division

Aircraft division

АО НК КТЖ

The Republic of Kazakhstan transport logistics system Master-plan – developed with

the technical assistance of and

3

Kazakhstan’s Development

Strategy by 2030

Kazakhstan’s

Development Strategic

Plan by 2020

Territorial Development

Program by 2020

Strategic plans of state

bodies

Development institutes

& national companies

strategies

Territories

development programs

State Program of Forced

Industrial-innovative

Development (SPFIID) and

other state programs

Development strategies of

regional bodies

Master-plan

Industrial programs

12

1

1

16

5

45

33 342

Key elements

of the Republic of Kazakhstan

strategic documents pyramid

Vision /

Strategy

Programs

THE REPUBLIC OF

KAZAKHSTAN

TRANSPORT LOGISTICS

SYSTEM DEVELOPMENT

STRATEGY

(MASTER-PLAN)

By the RK Government

order the Master-plan of

the RK transport logistics

system by 2030 was

developed

Definition of the Master-plan at the

level of strategic programs

■ The Master-plan of the RK

transport logistics system is

defined as an interdepartmental

industrial program

Strategic documents of the bodies

Number of documents Position of the transport-logistics strategy (Master-plan)

JSC «NC «KTZ»

АО НК КТЖ

By the analogy with the best practice, for the offer of a complex logistical product on

the basis of NC KTZ the transport logistical company of the world level is created

4

Sea transport

№ 3 in the world

Contract

Logistics

№ 5 in the world

Air transport

№ 2 in the world

Motor transport

№1 in Europe

Railway

№1 in Europe

109 thousand wagons

3,4 thousand

locomotives

415 million tons of

cargoes

2,5 thousand wagons

81 million tons of

cargoes

52 planes

1225 flights

1,2 million tons of

cargoes

62 vessels

1,6 million TEU

5,3 million in sq. m

TLC and hubs in 50

countries of the world

25% (4

Billion

Euro)

Income*:

75% (12,5

Billion

Euro)

* the Data is resulted only for a direction of freight traffic

Приобретение

зарубежных активов и

компетенций, сеть

альянсов и

партнерств

Мультимодальность и

международное

присутствие

Acquisition of foreign

actives and competences,

a network of alliances and

partnership

Multimodality and the

international presence

The center of competences

and the best practices in

Eurasia

Creation of the transport

logistical company on a world

wide level

JSC «NC «KTZ»

АО НК КТЖ

To realize the potential, Kazakhstan needs to create an effective transport-logistics

system on every stage (New Silk Road especially)

Working with key clients, promotion of key routes

«Door-to-door» decision, freight tracking

Supply Chain Management

Manufacturer Transport-logistics

center

Consumer

F

orm

ati

on

of

part

s

So

rtin

g, p

ackin

g, sto

rage

,

lab

elin

g a

nd

oth

ers

So

rtin

g, p

ackin

g, sto

rage

,

lab

elin

g a

nd

oth

ers

Dis

trib

uti

on

Problem solving where different transport types join each other

Transport-logistics

center

5 JSC «NC «KTZ»

АО НК КТЖ 6

The Map of the Transeuroasian Routes (Kazakhstan – New Silk Road)

JSC «NC «KTZ»

RUSSIA

KYRGYZSTAN

ИСЛАНДИЯ

Antequera

Karagandy

AKTAU

Mongolia

Pusan

Hakata

Хельсинки

CHINA

ИСЛАНДИЯ

TURKEY

ТУ

НИ

СА

Zhezkazgan Shalkar

Aktobe

Pavlodar

Kashgar

Uralsk

Тбилиси

Semey

ГРУЗИЯ

Lianyungang

Urumchi

Nahodka

Shubarkol

Серахс

Lokot

Khorgos

Dostyk

Yekaterinburg

Petropavlovsk

Omsk

Saint Petersburg

Уральск

Poti

Chop

Ablyk

Saryagas

h

Sarakh

s

1

2

3

4

5

6

Naushki

Zabaykalsk 7-1

7-2 7-3

8

ASTANA

KAZAKHSTAN

Georgia

Baku

Ozinki

Saksaulskaya

Shymkent

Almaty

Ukrain

Brest

Moscow

Beineu

Route Distance, km

Lianyungang – Riga – Krasta exp. 9 754

Lianyungang – Brest – Severny exp. 9 654

Lianyungang – Chop exp. 10 184

Lianyungang – Poti exp. 9 195

Lianyungang – Ablyk 6 128

Lianyungang – Sarakhs exp. 6 721

7-1 Nahodka exp. – Brest – Severny exp. 10 504

7-2 Zabaykalsk exp. – Brest – Severny exp. 7 739

7-3 Naushki exp. – Brest – Severny exp. 6 981

Building of a railways line

Zhezkazgan – Beineu

Length – 988 km;

Cost – 3.9 bill. USD

Volume of transportations to 2020 – 13

mln.t/year

Reduction of distance of a route Dostyk st. –

Aktau st. on 1200 km;

Beginning of implementation – December, 2012

АО НК КТЖ 7

Transportation of containers on routes through Kazakhstan (US dollars)

JSC «NC «KTZ»

Route 2

GRS / ORS*

TEU FEU

loaded loaded

Lianyungang – Brest – Severny exp. 3 104 5 964

Route 3

GRS / ORS

TEU FEU

loaded loaded

Lianyungang – Chop exp. 3 054 5 859

Route 1

GRS / ORS

TEU FEU

loaded loaded

Lianyungang – Riga – Krasta exp. 3 055 5 878

Route 6

GRS / ORS

TEU FEU

loaded loaded

Lianyungang – Sarakhs exp. 2 474 4 895

Route 5

GRS / ORS

TEU FEU

loaded loaded

Lianyungang – Ablyk 2 498 4 753

Route 4

GRS / ORS

TEU FEU

loaded loaded

Lianyungang – Poti exp. 3 158 6 129

Trans-Siberian route Distance, km

GRS / ORS

TEU FEU

loaded loaded

7-1 Nahodka exp. – Brest – Severny exp. 10 504 1 230 2 227

7-2 Zabaykalsk exp. – Brest – Severny exp. 7 739 1 255 2 258

7-3 Naushki exp. – Brest – Severny exp. 6 981 1 216 2 190

Flexible reaction of The Republic of Kazakhstan to market condition

In immediate prospects it is supposed to establish competitive door-to-door tariff rates

Creation of the common multimodal logistics operator Will allow to carry out a complex of

services and to organize container service on routes

Southeast Asia - Europe

Alternative route

Realization of the project of a container train Chungking - Duisburg

*GRS – The Government Rolling Stock

*ORS – The Own Rolling Stock

Chungking– Dostyk Distance – 3777 km

Speed – 641 km/per day Time – 5,9 days

Chungking

Duisburg

Dostyk– Ozinki Distance – 3025 km

Speed – 890 km/per day Time – 3,4 days

Ozenki– Krasnoe Distance – 2058 km

Speed– 792 km per day Time – 2,6 days

Krasnoe– Brest Distance – 609 km

Speed– 1015 km/per day Time – 0,6 days

Brest– Duisburg Distance – 1 300 km

Speed– 500 km/per day Time– 2,6 days

Dostyk

Ozenki

Krasnoe

Brest

Total distance – 10 769 km Average speed – 605 km/per day

Travel time – 17,8 days

Near future 12 days for transportation

New Silk Road

АО НК КТЖ 8

Chita

Urumqi

Shanghai Hong Kong

Lanzhou

Teheran

Mumbai

Reykjavik

Istanbul

Xi’an Ulan-Ude

Xiangtang

Hamburg

Pardubice

Shenzhen

Kiew

Warschau

Moscow

Wien Kars Baku

T’Bilisi

Saratov

Beijing

Novosibirsk

Ulan Bator

Almaty

Astana

Zabaikalsk

Trans-Siberian route

Air transit

Tariff $ 127,1

Trans-Kazakhstan route Single tariff– $ 92

South route

China Kyrgyzstan $ 111 $ 65 Uzbekistan $ 99 Turkmenistan Azerbaijan $ 84 $ 106

Tariff rate in other

countries ($):

Spain – 267

Germany – 289

Grate Britain – 219

France – 270

Turkey – 124

All tariffs are given for the B-747, 300 to 400 tons

JSC «NC «KTZ»

Aturau

Karagandy

АО НК КТЖ

International automobile corridor

Western Europe - Western China (New Silk Road)

Moskow

RUSSIA

KYRGYZSTAN

Krakow Karaganda

Aktau

МОНГОЛИЯ

AFGANISTAN

St. Petersburg

Lanzhou

Beijing

Т

Shanghai

Helsinki

Malmoe

Stockholm

POLAND

Warsaw Poznan

UKRAINE

Харбин

CHINA

Hangzhou Chengdu

Vuhan

IRAN

IRAQ

SYRIA

TURKEY

Urumqi

Zhezkazgan

Aktobe

Kostanay

TADZHIKISTAN

Mazar-i-Sharif

Uralsk

Baku

Poti

Tabriz

Dostyk

Khorgos

Petropavlovsk

ASTANA

Lianyungang

Alashankou

Ozinki

Brest

Chop

Khodzhdavlet

GEORGIA

Beyuk-Kyasik

Shymkent

Zilupe

Posing

Farap

Almaty

Наушки

Забайкальск

Kyzylorda

Aralsk

Total length of the corridor - 8 445 km

The length of the corridor in RK - 2 787 km

to be reconstructed - 2452 km

I technical category - 1391 km (border of China - Kyzylorda)

II technical category - 1061 km (Kyzylorda - border of the

Russian Federation)

the estimated speed - 120 km / h

By 2020, the volume of cargo transportation increased by

2.5 times (from 13 million tons to 33 million tons per year)

2010 - 417 km

2011 - 780 km

2012 - 700 km

2013 - 263 km

2014 - 292 km

KAZAKHSTAN

JSC «NC «KTZ» 9

4- line - 1390 km (cement concrete - 1 003 km)

2-line - 1062 km (cement concrete - 76 km

АО НК КТЖ

Within World Bank LPI index of logistics systems effectiveness Kazakhstan

takes 62nd place as of 2010

LPI General

Rating of

Kazakhstan

Customs

Effectiveness

Quality of

infrastructure

Simplicity of the organizing

international transportation

Competence in

logistics

Possibility to track

cargoes

Keeping to terms

of delivery

62

94

27

68

89

102

1

Kazakhstan

Russia

China

Uzbekistan

Azerbaijan

Ukraine

Germany

79

32

Kazakhstan

1

32 China

Luxemburg

Uzbekistan

Russia

Azerbaijan

Ukraine

107

117

135

115

27

Germany 1

China

57

70

79

Uzbekistan

Ukraine

Russia

Kazakhstan 57

83

104 Azerbaijan

Singapore

Kazakhstan

Azerbaijan

Uzbekistan

27 China

55

83

84 Ukraine

96 Russia 96

29 29

1 1 Switzerland

29 China

73 Kazakhstan

Ukraine 77 77

91

89

88 Russia

Uzbekistan

Azerbaijan

30

1

China

Switzerland

Kazakhstan

Azerbaijan

Russia

Ukraine

85

91

112

97

63 Uzbekistan

1

86

36

50

100 Azerbaijan

114 Ukraine

86 Kazakhstan

China

Uzbekistan

Luxemburg

Source: Connecting to Compete Report 2010, LPI World Bank

10 JSC «NC «KTZ»

АО НК КТЖ 11

China

Russia

European Union

India

Middle

Asia

Kazakhstan

Volume data of external trade between EU and China in 2010 bln $

Source China ЕU ЕU China Total

UN Comtrade (UN external

trade data) 299 113 412

WTO (World Tade

Organization) 376 150 526

External trade volume, bln, $

59

8

6

4

22

10

6

781 526

155 Russia - China

Russia – Middle Asia

China - EU

Russia - India

China – Middle Asia

2010

2020

~$1 trillion by 2020

The volume of trading operations between neighboring countries will increase 1,5

times and reach $1 bln by 2020 which will create Kazakhstan`s transit potential

The neighboring countries external trade volume by 2020 year, bln USD

The global transit air freight with

the direction China – Europe is

forecasted to reach 17 mln TEU

by 2020 (170 mln tons), in 2010

-11,7 mln TEU (117 mln tons).

The growth of freight - 45%.

Kazakhstan is aiming to attract

8% of this cargo flow (1,5 mln

TEU, 15 mln tons)

Source: UN Comtrade; AECOM

* According to the estimations of International Monetary Fund, international trade volume between Europe and South-East Asia countries in 2020 was 932 bln. US D

JSC «NC «KTZ»

АО НК КТЖ

The volume of transit cargo flow through the RK is expected to grow about 3 times

and reach 46 million tons by 2030

12

Transit cargo flow forecast

Source: UN Comtrade, Strategy Partnership / AECOM

The «Others» category includes cargo flow RF-Iran-RF, EU-Korea-EU, EU-Japan-EU, RF-Korea-RF, Korea-Uzbekistan, RF-Japan-RF, Korea-ТТК, Japan-ТТК, Japan-Uzbekistan and others.

Directions «West - East», «North - South» and «China - CAR»

form the base of the RK transit cargo flow

Corridors «West - East» and «South-East Asia -

CAR» will be the most overloaded

Forecast of the transit through the RK, 2010-2030 , mln tons

17%

Share in the total

cargo flow, 2030

2025П 2030П

RF-Kyrgyzstan-RF

RF-Uzbekistan-RF

China-EU-China

China-RF-China

2010

45

40

35

30

25

20

15

10

5

0

50

China-Uzbekistan-China

China-Iran-China

Others

RF-Tadzhikistan-RF

2020П 2015П

16%

13%

8%

8%

10%

7%

22%

The Kazakhstan key transit corridors1

Corridor «North-South»

Corridor «West-East»

Corridor «South-East Asia - CAR»

Corridor Freight volume

2010, mln tons

Freight volume

2030, mln tons

Freight

increase in

2010-2030

North-South 7 295 18 350 2,5, times

West-East 2 571 17 293 6,7 times

South-East Asia

- CAR 1 440 8 207 5,7 times

Others 2 668 3 965 1,5 times

Volume of transit cargo flow by corridors

1The line width corresponds to

cargo flow in 2030

JSC «NC «KTZ»

АО НК КТЖ 13

Kazakhstan’s transport logistics system development should consider key

tendencies in the development of neighboring countries (specially China)

"Big Jump" Uniform Transport Strategy and

«Go West» Program of Accelerated

Development of the Western Provinces will

accelerate the development of the Western

provinces

■ Scale projects on building transport

infrastructure, building new roads and rail

ways

■ The country development politics is directed to

cut the distance between economically

developed coastal regions and

underdeveloped Western regions in China by

means of:

‒ Infrastructure development

‒ Investments in new manufactures

‒ Foreign capital attraction

‒ The environment protection

strengthening

‒ Education development and professional

workforce attraction

China’s external trade volume, bln USD

1 394761 969 1 217 1 428 1 201

1 578

1 0041 131956791660

2005 2006 2007

1 760 2 173

2008 2009 2010

1 421

Import

Export

2 559 2 205

2 972

Factors allowing for transit growth through

China-Kazakhstan border

Sintszjan-Uigur Independent Area -

the region of active growth in China

The RK transport-logistics system requirements: calls, tendencies, forecasts

JSC «NC «KTZ»

АО НК КТЖ

Moscow

RUSSIA

KYRGYSTAN

ICELAND

Antequera

ITALY

ASTANA

Qaragandy

MONGOLIA

INDIA

PAKISTAN

MYANMA

LAOS

TAILAND

PHILLIPINES

Kaohsiung

Pusan

Hakata

Saint Petersburg

Lanzhou

Beijing

Tensing

Shanghai

London

Paris

Cordoba

SPAIN

Lisbon

Helsinki

Hamburg

Stockholm

POLAND

Warsaw

UKRAINE

GERMANY

Rome

Guangzhou

Shenzhen

Kharbin

CHINA

Dalang Seul

Chengdu IRAQ

OMAN

IEMEN

UAE SAUDI ARABIA

EGYPT

SURIA

TURKEY

LIVIA

ALGERIA

ТU

NIS

IA

Женгжоу

Urumqi

TRANSIT ROUTE MAP (KAZAKHSTAN – NEW SILK ROAD)

Arkalyk

Saksaulskaya

Aktobe

Pavlodar

Kostanay

Kashgar

Mazari

Sharif

Gerat

Uralsk

Kars

Ashkhabad

Almaty Shymkent

Tebriz

Bereket

Semey

Bandar Abbas

Lianyungang

Urumchi

Brest

Istanbul

Nakhodka Erlyan

Zabaikalsk

Turkmenbashi

Qurquduk

Shubarkol

KAZAKHSTAN

Osh

Kazvin

Serakhs

Astara

Baku

lokot

Khorgos

Petropavlovsk

14

Zhezqazgan Shalkar

Beineu

Bukhara

TADZHIKISTAN

Aktau

GEORGIA

FRANCE

IRAN

Gorgan

Akhalkalaki

Tbilisi

In order to develop the transit potential in 2011, completed the railway lines: 1. Khorgos - Zhetygen length - 293 km; traffic seven million tons by 2020 y. 2. Uzen-state border with Turkmenistan length - 146 km; traffic volume by 2020 year, 6 million tons.

Узень

At the end of 2012 plans to build railway line Zhezkazgan - Beineu

length - 988 km; the cost – 3.9 bill. USD Traffic volume by 2020. - 13 million tons / year beginning of implementation - December 2012 increase in the volume and speed of traffic; straightening and reducing the distance the route of Dostyk station - port Aktau on the 1,200 km; development of the regions adjacent to the route.

АО НК КТЖ

Best Practices: hubs and terminal network in Germany has allowed it to

become Europe's largest freight distribution center

15

Source: DB Schenker Annual Report 2010, www.dbschenker.com

Transport and logistics terminals and terminals

DB Schenker partners

Transport and logistics hubs DB Schenker

European network of logistics hubs and terminals

DB Schenker

The network of transport and logistics hub is a

strategic asset

• Hubs are located on key transport corridors in Europe,

covering the freight traffic of the North (Malmo), South

and South-East (Salzburg), West and South-West (Paris)

• The central hub of Friedewald hubs outside of the

united Germany into a single unit, providing efficient

distribution of goods

• Hub network provides multi-modal nature of the

proposal DB Schenker, integrating various modes of

transport

• The strategic location and well-established processes

allow the company to pull over freight traffic throughout

Western Europe

• Cargo traffic in the company in 2010 was as follows:

• w / e: 415.4 million tons

• Air: 1225 tons

• Marine: 1647 thousand TEUs

Zalcburg

Malmoe

Paris Friedewald

JSC «NC «KTZ»

АО НК КТЖ

Kazakhstan will be a powerful transport and logistics hub in the Eurasian space

by 2020 - New Silk Road

Map of Kazakhstan's positioning strategic

reverse traffic

Kunming

Bangkok

Yangon

Bender-Homeini

Kishinev

Praha

Helsinki

Saint Petersburg

Kandalaksha

TLC and hubs on

the territory of the

RK

TLC and hubs in foreign

countries

Gravity cargo for

distribution

The direction of traffic

after the distribution

Murmansk

Arkhangelsk

Vanino

Ulan-Bator

Chita

Beijing

Vladivostok

Dushanbe

Ussuriisk

Changzhou

Seoul Pyongyang

Pusan

Transcontinental corridor "Western Europe -

Western China"

Deli

Dhaka

Kuandzhu

Omsk

Alma-Ata Urumchi

Bishkek

Bucharest Rostov-na-Donu

Ankara Sarakhs

Turkmenbashi

Dubai

Tallinn

Klaipeda

Shymkent Tashkent

Konstanca

Поти

Tbilisi

Kiev

Quryk

Amirabad

Baku Gorgan

Bender-Abbas

Qaragandy

Astana

Aktobe

Aktau

Direction of reverse

traffic

Agent network

Ust-Luga

Ekaterinburg

Moscow

TLC and hubs in the

TC

Minsk

Berlin

Warsaw

Budapest Odessa

Transport and Logistics

Cluster

Novosibirsk

Krasnoyarsk

N.Novgorod

Novorossiisk

Kaliningrad

Ulan-Ude

Khabarovsk

Chingqing

Burgas Sofia

Duisburg Semey

Dostyk

Khorgos

Istanbul

Samara

Tehran

Ashkhabad

Liayungang

Riga

16

By 2020 it is planed to achieve the following indicators: total cargo turnover– 283 million ton-kilometers; (including SPFIID projects realization) transit cargo increase – 28 million tons, including container s- 1.5 million TEUs.

JSC «NC «KTZ»

АО НК КТЖ

The effectiveness and attractiveness of transit routes are defined according to five

principles of logistics

Compliance with the key principles of logistics

17

Speed Service

Cost Security

High speed and stable

timing of passing

through the whole

route

High level of service allowing to

minimize the involvement of a

consignor in the process of

transportation

The security of cargo provided

by the traceability of goods

through the whole

transportation route

Service cost cutting as a

result of cutting the

unproductive expenses

(minimization of

ineffectiveness)

Stability Provision of key parameters of

the route directed to increase

the effectiveness of freight

forwarding

Principles of logistics: Speed + Service + Security + Cost + Stability

JSC «NC «KTZ»

АО НК КТЖ

Customs efficiency in

Singapore

Preparation of shipping documents for export / import:

105 $ и 1 day

Passage of customs control procedures:

31$ и 1 day

Clearance at the port for shipping : 180$ и 1 day

The partnership of trade and logistics companies 1

• Customs is an active and valuable partner for trading company to support the unity of the trading system and development of Singapore as a global trading hub

The use of integrated

information solutions 3 • Integration of different information systems

(TradeXchange ®, New TradeNet ®, eCustoms) trading and logistics companies to government information and analytical systems

Factors of success Description

Implementation of preferential tariffs 2

• Duty-free exports to the country's free trade partners. Support for producers in the design documentation

Simplification of customs

procedures for companies

of airport logistics park 4

• Logistics park operators can seamlessly import and export goods produced on site or paid a tax on goods and services on the territory of the SEZ

Certification of "trusted"

members of the market for

a few checks

• Granting of preferences in the form of rare cargo inspections for companies that meet the requirements in terms of risk of cargo across the border

5

Best Practice: Effective customs - one of the

key factors in the development of Singapore as a global trading hub

18 JSC «NC «KTZ»

АО НК КТЖ

AMS Logistics (Automated System Management Contract &

Commercial Work) JSC "KTZ"

Handling of an application

Transportation plan coordination

Giving the rolling stock

Loading

Formation of bill of lading

Filling in the customs declaration

Checking through the phytosanitary,

veterinary, sanitary-epidemiological,

customs, border control

Release

Opening transaction certificate

Application for transfer of funds, SWIFT

TIR Carnet

Obtaining an export license

Obtaining a certificate in CT Chamber of Commerce

Obtaining a certificate of quality

Obtaining a certificate of conformity in accredited

organizations

Obtaining a phytosanitary certificate

Obtaining permission to export with a veterinary

certificate

Getting the sanitary conclusion from SES

Е-WINDOW Approval: Customs Control Committee, Ministry of Agriculture,

Ministry of Emergency, Ministry of Health (SES), Ministry of

Innovation and New Technologies, Ministry of Transport and

Communications, Ministry of Environment Protection

Establishing

the rules for

the ongoing

processes

tlim

Control model of transport processes through the transportation management center

(Timing)

Deviation from tlim Fixing

in ACS Logistics

Consideration of the

incident

Identification of

responsible persons Taking Action

Exchange

Report

Report

Evaluation of KPI and taking actions

by the JSC “NC ”KTZ” management

t 1

t 2

t 3

t 4

t 5

t 6

t 7

Evaluation of KPI and taking actions

by state agencies management

t 1

t 2

t 3

t 4

t 5

t 6

t 7

t 8

t 9

t 10

LPI

Doing Business

Influence on the

Kazakhstan’s

rating

t 8

JSC «NC «KTZ» 19

АО НК КТЖ

ALASHANKOU

Controlling bodies

Ministry of Agriculture, Ministry of Health,

Customs control committee of the Ministry of Finance

DOSTYK

KAZAKHSTAN

CHINA

Cargo sender

Technology of the registration of documents on the border "Electronic train“ on the “New Silk road”

It will allow to reach internationsl specifications on

receiving - sending of trains of the OCR

1 MINUTE ON LINE/AXIS OR APPROXIMATELY 2-3

HOURS ON TRAIN (STRUCTURE)

ADVANTAGES OF THE TECHNOLOGY

It will provide unobstructed pass and exception of

delays of trains

It will cut expenses connected with registration and idle

time

5. Sending of e-documents with corrections

4. Sending of e-documents for correction

1. Sending of e-documents to the portal

1. Registration of documents for cargo sending

8. The agent transfersdocuments

7. The forwarding agent (KTS) prints the corrected

documents

6. Sending of e-documents to the

agent

2. Transfer of e-documents for checking

3. ERROR FOUND Sending of

e-documents to the portal

The worker of station

KAZLOGISTICS WEB-PORTAL

ASM logistics ASM CCW

The customs representative

(Broker)

It will allow to accept the necessary information from

China, minimizes contacts and corruption

REALIZATION OF THE FIRST STAGE APRIL - MAY, 2012

ASM logistics

ASM CCW

ASM CCW

Electronic

train

Agency

network

PROVIDER OF SERVICES

State bodies:

• Customs

control

committee

•Ministry of

Industry and

New

Technologies

•Ministry of

Agriculture

•Boundary

service NSC

RK

CLIENT

INTEGRATION OF SYSTEMS WORK WITH APPLICATION OF CIM/SMGS - APPLICATION AS THE TRANSIT DECLARATION

and other countries

REALIZATION OF THE SECOND STAGE 2012-2013

1st stage

2nd stage

JSC «NC «KTZ» 20

АО НК КТЖ

Chongqing

Duisburg

Electronic train – increasing of attractiveness of the "New Silk Way" route

Dostyk Perfection of information support of boundary transitions

(transition points)

Introduction of a principle of a uniform electronic window

DEVELOPMENT PROSPECTS

Monitoring of transportations on the international

transport corridors, forecasting of movement of trains

and train cars on transport corridors

Creation of the international IT–system for maintenance

of equal access of carriers and operators of a rolling

stock to a railway infrastructure

Creation of an electronic stock exchange of the train

cars used as inventory park.

Khorgos Saryagash

Port Aktau

Monitoring of current train position on railway sites and stations, loadings of

export and unloading of import cargoes, and also presence of transit and import

cargoes on the adjacent railways

JSC «NC «KTZ» 21

АО НК КТЖ

ALASHANKOU

DOSTYK

KAZAKHSTAN

CHINA

Infrastructural measures to increase the capacity border checkpoint Dostyk-Alashankou

Pilot Project "Dostyk-Green Corridor"

Increase in export, import and transit

of goods

Project results

Existing two lines: a narrow and broad

gauge, the length of 12 km.

New railway line the narrow and broad gauge

Reduced wear of existing

infrastructure

Increase in revenues of the carrier,

freight forwarding services

Increase in turnover in the cargo

terminal network

Export – Import

Will be developed:

1) ASM "wagon-train terminal”

2) construction of Kazakhstan's terminal at the

Alashankou Dostyk Urumqi Aktogai stations)

3) construction of an additional, double track line

(narrow and wide track gauge)

TERMINAL

ASM

JSC «NC «KTZ» 22

АО НК КТЖ

Key initiatives on achievement of the goal state of the transport logistics system are

focused in the infrastructure, legislation, modernization of the market model and

introduction of IT-technologies

23

2015 2016 2012 2013 2014

Development of legislative and regulatory framework

Construction of the rail line Zhezkazgan-Beineu

Reconstruction of the “Western Europe-Western China”

Transcontinental corridor

Creation of an external and internal network of the transport logistics

system

Creation of an industrial logistics hub Khorgos

Creation of international coordination secretariats for transit corridors

Introduction of innovative technologies and processes

Introduction of new principles of the customs activity

Introduction of IT-technologies

Popularization of the logistics service, creation of the training system

Initiative

Expansion of the seaport Aktau, construction of a port Kuryk

Creation of the developed market of transport logistics services

Creation of a national logistics integrator

Development of the transport infrastructure

Key initiatives provided within development of the transport logistics system of

the Republic of Kazakhstan

JSC «NC «KTZ»

АО НК КТЖ

Some target indicators of development of transport logistical system of Kazakhstan

Republic on immediate prospects until 2020

24

Indicators Units of

measure

Fact

2010

End of

2015

End of

2020 Comments

Transport

component in

gross domestic

product

% 8,1 7,9 7,5

Reflects expenses for transportation in total

amount of the created added cost in economy

The lower is an indicator, the higher is the

efficiency of transport-logistical system

In separate years the given indicator reached the

level of 6,9 – 7,1 % in the USA

Place in

LPI rating

position 62 50 40

The quality standard reflecting efficiency of

transport system on such parameters, as

efficiency of customs procedures, quality of an

infrastructure, cost of transport services,

observance of terms of delivery etc.

First place belongs to Germany

Share of services

% 8 15 25

Reflects a share of complex logistical services in

total amount of incomes of a transport logistical

complex

The higher is an indicator, the higher is the level of

development of services

At the leading transport-logistical companies the

given indicator is reached 30-40 % (Europe)

JSC «NC «KTZ»

АО НК КТЖ

Khorgos and Aktau Sea Port are located on the Gate in Customs Union territory (New Silk Way)

25

Khorgos

Port Aktau

RUSSIA

BELARUSSIA

KAZAKHSTAN Dostyk

Customs Union Parameters

CHINA

MONGOLIA

SOUTH KOREA

EUROPE

Area (km ²) 20 006 960

CDP ($ bln)

1449,1

Population (mln) 167,6

Volume

of industrial

production ($ bln)

1075,6

single customs territory, free trade zone

single trade policy

single customs regulations

single customs tariff and nontariff measures SEZ“Khorgos – Eastern Gate” Western Gate –Aktau Sea Port

JSC «NC «KTZ»

АО НК КТЖ

Components of SEZ:

• International Center for Boundary Cooperation (ICBC)

• Dry Port (Inland Port)

• Industrial Zone

• Residential Zone

Strategic sites:

• Airport

• Altynkol Station

• Zhetygen-Khorgos Railway

• West Europe – West China Highway

• The possibility of direct access to port Aktau

Total cost of project – 3.5 billion USD

• Public funds – 0.7 billion USD

• Private investments – 2.8 billion USD

Tax and customs privileges and preferences

• CIT - 0 %

• Land tax- 0 %

• Property tax - 0 %

• VAT - 0 %

• Release from payment for the use of land for up to 10 years

• Increase maximum level of depreciation on software from 15% to 40%

• Regime of a free customs zone

• Simplified way to attract the work force

• SEZ participants’ legal protection guarantee

Benefits to investors:

• Provision of infrastructure facilities (power, heat, water, • CBS) by government • Simplified procedure for labor importation

• Guarantee of legal protection of SEZ participants

SEZ“Khorgos – East Gate” (New Silk Road)

Priority activities:

• Warehousing and supporting transportation activities;

• Food production;

• Leather goods manufacturing;

• Textile manufacturing;

• Nonmetal mineral product manufacturing;

• Chemical products manufacturing;

• Manufacture of metal products other than machinery and equipment;

• Manufacture of machinery and equipment not elsewhere classified;

• Construction of buildings for exhibitions, museums, warehouses and offices in accordance with the design estimate documentation.

International

airport

Industrial zone

Dry Port

Residential

zone

Altynkol Station

Reserved

zone for

SEZ

ICBC

Highway Western China and Western Europe

Concept of development plan and Feasibility Study prepared by AECOM 26

STATE PROGRAM OF FORCED INDUSTRIAL-INNOVATIVE

DEVELOPMENT OF THE REPUBLIC OF KAZAKHSTAN FOR 2010-2014.

NOVEMBER 29, 2011 PRESIDENT OF THE REPUBLIC OF

KAZAKHSTAN SIGNED A DECREE ON THE ESTABLISHMENT OF

SPECIAL ECONOMIC ZONE “KHORGOS – EAST GATE”

CCP

China

АО НК КТЖ

Traffic flows through the Aktau Sea port (New Silk Road)

Baku

Tbilisi

Dzhekhan

Zhezkazgan

Aktau

Khars

Akhalkhalaky

Amirabad

Beineu

Dynamics of cargo handling at the port of Aktau in the period from 2006 to 2010, and 11

months of 2011. (tons)

№ Type of Goods 2006 2007 2008 2009 2010 2011

(11 month)

1 Oil 9 961 9 293 8 903 11 308 9 568 7 477

2 Metal 1 029 1 162 1 511 1 715 1 963 1 822

3 Grain 117 188 266 560 406 247

4 Others 57 92 105 195 310 304

5 Farry 311 238 228 222 603 1 284

6 Всего: 11 472 10 972 11 011 13 998 12 850 11 134

During the forum, "The New Silk Road“, held in Astana the some

China's global carriers have expressed interest in the presence of

the Aktau port. There is an opportunity to attract investment in the

Project "Expansion of the port in the north"

27

Western Gate –Aktau Sea Port (2020 is planned for transshipment of bulk and container

goods up to 12.5 million tones and 1.3 million tons oil cargoes)

ASTANA

Georgia

Armenia

Turkey

Batumi

Kazakhstan's oil terminal

JSC «NC «KTZ»

Poti

Dostyk

Khorgos

Afghanistan

Tajikistan

Iran

Uzbekistan

Kazakhstan

Bagdat

Kirgizstan

Karaganda

Sirinagar

АО НК КТЖ

Collaboration in transport logistic development and investment field

28

Participation in the development of Special Economic Zone Khorgos -

East Gate (SEZ operation – 3 PL provider and investment fields)

Participation in the development of the Aktau Sea Port - Western

Gate (near future Aktau Sea Port under trustee operation of JSC NC

KTZ),

Participation in construction projects for transport and logistics

centers and industrial enterprises (providing work and quality of

transport services)

Participation in joint transport and logistics products (joint venture,

development of agent sales network, a network of terminals on the

Trans-Eurasian routes)

Cooperation and best practice exchanges. Joint Consulting in the

development of transportation projects, transportation process, new

technology and supply chain management.

JSC «NC «KTZ»

АО НК КТЖ

Second International transport-logistics Business Forum

(2012 September)

2st International Transport — Logistics

Business-Forum «Silk way»,which will be held on

September 2012 in Kazakhstan

Forum is the first and one of the global events in the

field of logistics, chain supply management in the

territory of Kazakhstan and CIS countries.

http://www.kazlogistics.kz

29

This event is organizing by the results of the first forum in 2011

which brought together over 500 participants including

representatives of major railway administration and transport -

logistics companies.

A number of agreements signed today are working on joint

projects in transport logistics business, including the organization

of pilot projects of container block trains.

Forum is a investment platform and dialog development

between transport and investment companies and the

emergence of partnerships for the implementation of joint

projects.

АО НК КТЖ 30

JSC «National Company

«Kazakhstan Temir Zholy»

Yerkhat Iskaliyev

Vice-president of logistics

Tel: +7 (7172) 60 43 08

E-mail: iskaliev.e@gmail.com

Website: www.railways.kz

A holding structure which provides the functional integrity and

controllability of railway sector in the transportation process. It

executes the function of the magisterial railway network operator,

passenger and cargo rail transportation and the development of

transport logistics in Kazakhstan

JSC «NC «KTZ»

Thank you for attention