Logistics and Transport Competitiveness in Kazakhstan ECONOMIC COMMISSION FOR EUROPE LOGISTICS AND TRANSPORT COMPETITIVENESS IN KAZAKHSTAN UNITED NATIONS Geneva, 2019 © 2019 United Nations All rights reserved worldwide Requests to reproduce excerpts or to photocopy should be addressed to the Copyright Clearance Center at copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to: United Nations Publications, 300 East 42nd St, New York, NY 10017, United States of America. Email: [email protected]; website: un.org/publications The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the United Nations or its officials or member Sates. Financial support from the Russian Federation to produce this publication is gratefully acknowledged. United Nations publication issued by the United Nations Economic Commission for Europe ECE/TRANS/286 ISBN: 978-92-1-117205-8 eISBN: 978-92-1-004218-5 Sales no.: E.19.II.E.25 ACKNOWLEDGEMENTS ACKNOWLEDGEMENTS This publication has been prepared by Professor Anatoli Molokovitch, Associate Professor of the School of Business and Management of Technology of the Belarus State University. The author worked under the guidance of, and benefited from significant author contributions from Francesco Dionori, Chief of Transport Networks and Logistics Section, Sustainable Transport Division, UNECE. The author would like to thank the Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan and all those who provided significant input and data for the preparation of this publication. Information is current to December 2018. iii LOGISTICS AND TRANSPORT COMPETITIVENESS IN KAZAKHSTAN UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE (UNECE) The United Nations Economic Commission for Europe (UNECE) is one of the five United Nations regional commissions, administered by the Economic and Social Council (ECOSOC). It was established in 1947 with the mandate to help rebuild post- war Europe, develop economic activity and strengthen economic relations among European countries, and between Europe and the rest of the world. During the Cold War, UNECE served as a unique forum for economic dialogue and cooperation between East and West. Despite the complexity of this period, significant achievements were made, with consensus reached on numerous harmonization and standardization agreements. In the post-Cold War era, UNECE acquired not only many new member States, but also new functions. Since the early 1990s the organization has focused on analyses of the transition process, using its harmonization experience to facilitate the integration of Central and Eastern European countries into the global markets. UNECE is the forum where the countries of Western, Central and Eastern Europe, Central Asia and North America – 56 countries in all – come together to forge the tools of their economic cooperation. That cooperation concerns economics, statistics, environment, transport, trade, sustainable energy, timber and habitat. The Commission offers a regional framework for the elaboration and harmonization of conventions, norms and standards. The Commission's experts provide technical assistance to the countries of South-East Europe and the Commonwealth of Independent States. This assistance takes the form of advisory services, training seminars and workshops where countries can share their experiences and best practices. iv TRANSPORT IN UNECE TRANSPORT IN UNECE The UNECE Inland Transport Committee (ITC) facilitates the international movement of persons and goods by inland transport modes. It aims to improve competitiveness, safety, energy efficiency and security in the transport sector. At the same time it focuses on reducing the adverse effects of transport activities on the environment and contributing effectively to sustainable development. The ITC is a: x Centre for multilateral transport standards and agreements in Europe and beyond, e.g. regulations for dangerous goods transport and road vehicle construction at the global level x Gateway for technical assistance and exchange of best practices x Promoter of multi-country investment planning x Substantive partner for transport and trade facilitation initiatives x Historic centre for transport statistics. For more than six decades, ITC has provided a platform for intergovernmental cooperation to facilitate and develop international transport while improving its safety and environmental performance. The main results of this persevering and important work are reflected in more than 50 international agreements and conventions which provide an international legal framework and technical regulations for the development of international road, rail, inland water and intermodal transport, as well as dangerous goods transport and vehicle construction. Considering the needs of transport sector and its regulators, UNECE offers a balanced approach to and treatment of facilitation and security issues alike. v LOGISTICS AND TRANSPORT COMPETITIVENESS IN KAZAKHSTAN CONTENTS Executive Summary...................................................................... xiii 1. Brief Analysis of the Economic Situation in Kazakhstan ...................... 1 1.1. Main indicators of the social and economic situation .................... 1 1.2 Transport in Kazakhstan ...................................................... 6 2. Road Transport in Kazakhstan .................................................... 13 2.1 Analysis of the road sector ................................................... 13 2.1.1 General information about roads....................................... 13 2.1.2 Characteristics of the road network ................................... 15 2.1.3 International road network.............................................. 25 2.1.4 Main highways of national importance and their upgrading ........ 32 2.2 Analysis of the state and development of road transport ............... 41 2.2.1 General characteristics of road transport............................. 41 2.2.2 Road traffic accidents.................................................... 44 2.2.3 Transport of goods by road .............................................. 45 2.2.4 Transport of goods in international traffic............................ 51 2.3 SWOT analysis of the road sector and road transport .................... 58 2.4 Recommendations for the development of the road sector and road transport .................................................................. 60 2.4.1 For the road sector ....................................................... 60 2.4.2 For road transport ........................................................ 61 3. Rail Transport in Kazakhstan ..................................................... 63 3.1 History of the development of rail transport in Kazakhstan............. 63 3.2 Characteristics of the infrastructure and volumes of transport by rail 66 3.3 International rail transport................................................... 71 3.4 Railway cooperation with international organisations ................... 86 3.5 SWOT analysis of the railway sector ........................................ 87 3.6 Recommendations for the development of rail transport ............... 89 4. Water Transport in Kazakhstan................................................... 91 4.1 Inland water transport ........................................................ 91 4.2 Sea Transport................................................................... 101 4.3 SWOT analysis for water transport .......................................... 106 4.4 Recommendations for the development of water transport ............ 108 5. Civil Aviation in Kazakhstan ...................................................... 109 5.1 Civil aviation regulation ...................................................... 109 vi CONTENTS 5.2 Civil aviation assets............................................................ 109 5.3 Main airlines .................................................................... 110 5.4 Transport of passengers and cargo by air .................................. 113 5.5 SWOT analysis of the state of civil aviation................................ 117 5.6 Recommendations for the development of civil aviation ................ 118 6. Logistics in Kazakhstan ............................................................ 121 6.1 SWOT analysis of the logistics sector ....................................... 133 6.2 Recommendations for the development of logistics...................... 134 7. Legislation in the Transport Sector .............................................. 137 7.1 The regulatory and legal framework in the field of transport .......... 137 7.2 Proposals for harmonization of the legislative framework in the field of international freight transport ........................................... 139 7.3 Recommendations for legislation............................................ 141 8. Prospects for the Development of Transit and Transport Logistics in Kazakhstan ....................................................................... 145 8.1 Development of transit and logistics in Euro-Asian transport ........... 145 8.2 Kazakhstan perspective of the development of transit and logistics .. 148 9. Conclusions.......................................................................... 151 Annex ...................................................................................... 155 References...............................................................................