The priority of transporting goods by rail was discussed at a meeting of the headquarters for export issues chaired by the Minister of Trade and Integration of the Republic of Kazakhstan Arman Shakkaliev and the chairman of the presidium of the Atameken National Chamber of Entrepreneurs Raimbek Battalov.
Today, the bulk of finished Kazakhstani products are sent to Russia, the countries of the European Union, Uzbekistan and China. About 60% of export cargo traffic is accounted for by coal, petroleum products, non-ferrous metal ores, fertilizers and flat products.
“We see that the total capacity of railways at the end of last year is 196 million tons - these are calculated data. At the same time, it is necessary to take into account the seasonality of cargo transportation: almost 40 percent of exports occur in the 4th quarter. To streamline freight transportation by rail, we need to jointly set priorities. KTZ, like any structure, wants to work predictably and on a planned basis. Therefore, it is necessary to develop a methodology for how to optimize the transportation plan for export goods in conditions of a shortage of rolling stock. This is a key issue,” Arman Shakkaliev addressed the meeting participants.
When developing a plan, it is proposed to focus primarily on processed products and goods with high export efficiency in certain seasons. According to QazTrade calculations, the priority list can include oils and fats, products of the flour-grinding industry, flour products, basic metals, engineering products, fertilizers and drinks.
Managing Director for Production Processes of JSC NC KTZ Bauyrzhan Urynbasarov confirmed the presence of imbalances in cargo transportation by rail.
“In May - mid-June, we experienced a decline in transportation. Only supplies from the mechanical engineering industry are stable. For the rest the coefficient is low. In general, for 9 months of 2023, the total volume of exports by rail increased by 7.4% and amounted to 62.9 million tons. Of these, the greatest growth was shown by iron ore - 2 million tons, grain - 2 million tons, our exporters of chemicals, fertilizers and non-ferrous ore showed good results,” stated a KTZ representative.
He also said that the national company has now created a working group to develop a Program for a dynamic model of infrastructure loading. The document will take into account the specifics of Kazakhstan’s railways and carrying capacity, as well as the priority of cargo and directions.
“Until this moment, we, together with business representatives at a headquarters meeting, need to determine priorities and a list of goods,” said Bauyrzhan Urynbasarov.
As for the supply of export goods to China through the Alashankou station, according to KTZ, the situation regarding the reception of container trains will improve in November, when the reconstruction of the transshipment terminals is completed.
“The essence of today’s headquarters meeting is to determine parities and priorities. Our headquarters must clearly control the parities of transit and export, as well as priorities for wagons. In order to formulate a carriage plan for November in the near future. We, for our part, as the National Chamber of Entrepreneurs, are ready to make consolidated proposals on the directions of cargo of crop products, grain and mining and metallurgical complexes, to work out plans with our commodity producers,” said Raimbek Battalov, Chairman of the Presidium of the Atameken National Chamber of Entrepreneurs.
The head of the Scientific and Production Enterprise also raised the topic of ensuring export supplies of feed grain, which due to weather conditions this year our producers had a lot of.
Following the meeting, business representatives agreed to submit plans for November for rail deliveries of export cargo to KTZ by October 11, 2023 in accordance with the rules.
“Before October 11, NPP will provide a consolidated plan for wagons for November. Now we must agree together and say what kind of ranking there is by type and volume of goods, in what directions we need exports, so that all this data can be included in the program for a dynamic model of infrastructure loading. While this program does not exist, we, as the headquarters for optimization of transportation, will determine priorities manually, and KTZ will focus on this plan,” summed up the Minister of Trade and Integration Arman Shakkaliev.