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Home » Global Trade News » Kazakhstan Redefines Global Trade Routes
Last updated on January 18, 2024 by Ben Thompson

Kazakhstan Redefines Global Trade Routes

In an era marked by global economic shifts, Kazakhstan’s strategic location is increasingly pivotal for major world powers. Central Asia, led by Kazakhstan, is a crucial transit hub in today’s global connectivity landscape. The Ukraine conflict and escalating tensions between Russia and the West have amplified the need for alternative trade routes between Asia and Europe, spotlighting this region.

Kazakhstan, Central Asia’s largest nation, is reasserting itself as a key player in global commerce, reminiscent of its historical role in the Silk Road. Offering a more direct, cost-effective transit path between Europe and Asia, Kazakhstan has seen a 19% rise in freight volume in 2023, with container transportation up by 15%. This growth is part of a broader trend: Kazakhstan’s transit traffic is expected to jump to 35 million tons by 2029, bolstered by a 3% increase in rail cargo transport to 246 million tons.

China, heavily investing in the Belt and Road Initiative, relies on Kazakhstan for trade with Europe and beyond. China’s use of Kazakhstan’s routes has surged, comprising 27% of the country’s transport flow, translating to 6.2 million tons. Rail transport between Kazakhstan and China increased by 22% from 2022, indicating a shift from traditional maritime routes to land-based alternatives.

Western countries are also turning to Central Asia, especially Kazakhstan, for Asia-bound trade, given the strained relations with Russia. The Trans-Caspian International Transport Route (TITR) has seen an 88% increase in cargo volume in the first nine months of 2023, reaching 2 million tons. Kazakhstan’s TITR cargo doubled to 1.5 million tons, while the Northern Route saw a 40% decline.

Major infrastructure projects in Kazakhstan, like the Moiynty Railway, Bakhty-Ayagoz Railway Line, and Aktau Port Container Hub, aim to boost capacity and efficiency in trade. These investments, crucial for enhancing Central Asia’s transit capabilities, position Kazakhstan as a cornerstone in the evolving landscape of global trade, emphasizing the significance of land-based transit for environmental and diplomatic endeavors.

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