The shortage of grain storage capacity in Kazakhstan leads to the fact that immediately after the harvest, farmers try to sell and export large volumes of grain. This in turn leads to congestion on the railway and the introduction of loading bans. The Agency for the Protection and Development of Competition sees expansion of grain storage capacity as one of the solutions to this situation. This is stated in the report on the state of competition in individual product markets and measures taken to limit monopolistic activities for 2023.
“According to information provided by the Grain Union of Kazakhstan, the capacity of grain storage facilities, as well as the insufficient development of elevator capacities and grain storage facilities, leads to an increased load on the railway transport infrastructure. Thus, the gross grain harvest in Kazakhstan in 2022 reached about 22.1 million tons, while the capacity of grain storage facilities in this period is only 10.4 million tons. The amount of grain declared for transportation turned out to be much higher than the capacity of the railway network,” the report says.
In this regard, AZRK sent recommendations to the Ministry of Agriculture to consider the possibility of expanding elevator capacities and grain storage facilities in order to reduce the load on the railway transport infrastructure. The department emphasized that the construction of granaries would ensure uniform and continuous export of grain throughout the entire period.
In addition, the transportation situation is complicated by the shortage of shunting and mainline locomotives, as well as the reduced capacity of the railways.
According to the Ministry of Transport, amendments to the legislation are currently being discussed, which provide for the separation of the National Infrastructure Operator from KTZ with its further regulation by the authorized body. Next, it is planned to consolidate the role of the National Transport and Logistics Company at the legislative level.
Also, in order to update the rolling stock, 113 locomotives were purchased at the expense of KTZ in 2023. By 2028, it is planned to purchase 559 locomotives, including 193 electric locomotives and 366 diesel locomotives.