Railway Network Development

KHROMTAU - ALTYNSARINO – SHUBARKUL AKSU - DEGELEN SHAR – UST-KAMENOGORSK  Length: 404 km  Length: 2 14 km  Length: 187 km  Length: 150 km  Implementation period: 2002-2004  Implementation period: 2012-2016  Implementation period: 1998-2001  Implementation period: 2005-2008

Aksu

Altynsarino Ust-Kamenogorsk

Khromtau Degelen Arkalyk Shar Shubarkol

Zhezkazgan

Beineu Borzhakty Zhetigen Korgas Uzen Shu

Ersai State border

BORZHAKTY – ERSAI ZHEZKAZGAN - BEINEU ZHETYGEN – KORGAS  Length: 14 km  Length: 1036 km  Length: 293 km  Implementation period: 2014-2016  Construction period: 2012-2016  Implementation period: 2009-2012

UZEN – STATE BORDER ALMATY – SHU (second tracks)  Length: 146 km  Length: 112 km  Construction period: 2009-2012  Implementation period: 2015-2017 Almaty station bypass railway

Project details

Length: 73.2 km Projected freight volume: 17 mln. tons/year

Impact: - Reduced travel time for shipment, which transit via Almaty station by 2 days; - “Relieving” Almaty station by 40 %.

Number of jobs: During construction – 1,425 people; During operations – 495 people.

Construction period: 2020 – 2022 ALMATY The project includes

Railway line – 73.2 km; Railway bridges – 16 units; Road flyover – 1 unit. Regional TA for Railway Network Development

Current status of the railway sector

Strengths Weaknesses

- An international transport hub - Unsatisfactory condition of railway - Transit freight flows infrastructure, rolling stock - 5 MTK railways crossing the country: - The legal framework is not consistent with the 1) Northern corridor of the TransAsian Trunk Railway (TATR); 2) realities and current challenges Southern Corridor of TATR; 3) Central corridor of TATR; 4) TRASECA; 5) North-South S W O T Opportunities Threats (risks)

Increased speed of trains traversing the Stagnation in sector modernization country Reduced traffic volume and trade turnover Application of new technologies Transport operations by other transport modes Digitalization of processes Multimodal transport development

SWOT- analysis of railway transport clearly demonstrates the current situation of the industry. To eliminate risks and threats, it is necessary: 1. To develop a long-term comprehensive program for development of the transport and logistics complex in the Republic of (relationships); 2. To conduct an in-depth analysis of the legal framework regulating operations of railway enterprises and the requirements to rolling stock; 3. To a program to identify and eliminate bottlenecks in public and non-public transport infrastructure (infrastructure requirements). Therefore, there is a need to attract funding from regional technical assistance for railway sector provided development provided by the Asian Development Bank. Implementation progress by 2018

Astana – Kostanai - Chelyabinsk- 891 km Financing – RB Completed in 2014 Astana - - 171 km Financing – RB, NF Completed in 2016

Kostanai ASTANA - Beineu - 396 km Financing – loans Completed in 2009 Temirtau ALmaty – Taldykorgan - 245 km Financing – RB, NF Completed in 2017

Western Europe - Western China – 2 452 km Atyrau Financing – IBRD, EBRD, ADB, IsDB, JICA Completed in 2016

Taldykorgan Beineu

Kyzylorda

ALMATY Beineu – Aktau - 470 km Financing – loans from ADB, Rep. Budget Completed in 2017 Eurasian Road Corridors CIVIL AVIATION INDUSTRY INDICATORS

Transported passenger Served passenger

mil. pax mil. pax 14,5 15,0 12,1 12,2 10,9 7,9 10,2 7,4 9,4 6 5,5 5,9 4,6 5,0

2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 900 Transit of passengers thous. pax During 2010 to 2017 the number of transit 620 passengers of Kazakhstan airlines increased 478 more than 30 times from 20 thousand to 620 thousand passengers per year 220 250 250 120 70 20

2010 2011 2012 2013 2014 2015 2016 2017 2018

• Number of transported passengers 500 thousand.pax. 2018 Increased by 7% compared to 2017 • Number of served passengers 500 thousand.pax. Increased by 3% compared to 2017 2 International air services

7 Financial center International 96 routes Operated: Plans: Frankfurt Singapore (2019) London Tokyo (2019) Kazakhstani Dubai Shanghai (2019) 2 airlines Seoul New-York (2021) Beijing Paris foreign airlines Moscow CIS– 23 54 routes

International air transportation structure

Air Astana 11% 12% Lufthansa 11% 10% Turkish airlines Increase of the number of international 11% 7% UIA routes Aeroflot 38% SCAT 89 87 88 96 96 other foreigh aircompanies 73 48% - air companies of RK 52% - foreign airlines

2013 2014 2015 2016 2017 2018 4