The cost of cargo transportation through Kazakhstan increased by 14.7%
Kazakhstan railway company KTZ announced its intention to increase the cost of freight transportation by 14.7%. Tariffs will increase not only for domestic routes but also for export and import shipments. The increase will also affect the transportation of empty wagons. The increase in cost will also influence the services of the Silk Road, which in the form of transit passes through the territory of the country.
The carrier began to increase the tariffs in October last year. It is expected that the increase in price will have a tangible impact on the transportation of goods along the Silk Road. The point is that most part of the transportation in Eurasia goes through Kazakhstan. Due to the fact that KTZ raised the price of tariffs, the cost of rail transport along the Silk Road has also increased.
The innovations from the monopolist were negatively perceived by the market participants, who are forced to increase their tariffs as well. For example, Kaztemirtrans, which is the largest operator of railway cars in the country, has already increased the cost of its services. The carrier is engaged in the transportation of bulk cargoes, including grain, agricultural fertilizers, and coal, and announced the growth of operational costs, which was caused by the increase in freight rates.
It should be noted that for quite a long time the cost of Silk Road services was stable. However, the situation changed as a result of the railroad’s tariff increase. Moreover, KTZ does not comment on the reasons for the change in rates. Experts suggest that the increase in prices is due to instability in other sectors of the economy. For example, in Kazakhstan and in the world as a whole, the prices of energy and construction materials have increased, and inflation is rising.
It should be noted that Kazakhstan is an important logistics hub that connects Asia and Europe. At the same time, the country strives to provide quality international transportation services aimed at improving supply chains. And we are talking not only about rail transport, but also road transport.
The road transport sector is now working on the implementation of a digital trade system and the expansion of TIR capabilities. This approach simplifies the accounting of goods passing through Kazakhstan, in addition to eliminating a number of complexities that exist in the global logistics market.
The country pays special attention to the development of transport infrastructure. Now there are problems at border crossings, but thanks to the transition to TIR, they can be avoided in the future. The system operates in many states and allows the use of an electronic base for the movement of goods.
According to the government of Kazakhstan, by 2030 all transport corridors of the country will be modernized, which will open even more opportunities for communication between the European and Asian regions. In addition, new multimodal corridors are being actively developed, which will be able to take the load off the most popular routes.
