Western sanctions against Russia force Kazakhstan to seek transport solutions via Turkey

Ankara, Turkey (Ports Europe) May 12, 2022 - Western sanctions against Russia are forcing Kazakhstan to seek transport solutions via Turkey. This means a new significance for the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. TITR allows European companies to bypass Russia, where sanctions have hindered transport routes. Many Russian entities are under sanctions from the international community following Russia’s annexation of the Crimea in 2014. TITR gains new significance - Avoiding Russia Kazakhstan and Turkey have signed an agreement on international combined cargo transportation during the visit of the President of Kazakhstan Kasym-Zhomart Tokayev to Turkey. Kazakhstan signed an intergovernmental agreement on international combined cargo transportation. It is focused on the development of the Trans-Caspian International Transport Route (TITR). TITR is an alternative to the previously used transport route through Russia and Belarus, which were hit by Western sanctions imposed after Russia’s invasion in Ukraine on February 24. Uzkenbaev said that in April 2022 the International Association of TITR was created, uniting owners of the main infrastructure and carriers of Kazakhstan, Azerbaijan, Georgia, Turkey, Ukraine, Romania, Poland and China. The respective transport departments signed a declaration on the development of TITR which provides for the creation of a joint logistics company, the formation of a single tariff and logistics chain. This has attracted automotive carriers. It is also planned to expand the trade fleet with new vessels and the creation of a container hub in the Caspian Sea Port of Aktau in Kazakhstan. As investors, it is expected to attract global container operators like PSA Group, Maersk and MSC. An additional impetus to the development of the project will give the permanent operation of the Baku-Tbilisi-Kars railway line, which will create an optimal route to Turkey with further access to the European railway network. Caspian Sea as a bottleneck of TITR As of September, the number of ships that operate the Caspian Sea line between the Aktau in Kazakhstan and Baku in Azerbaijan will increase from three to six. This will double the cargo capacity of the Middle Corridor, the Secretary General of TITR, Gaidar Abdikerimov, said. Currently, there are three feeder vessels operating regularly between Aktau and Baku, with capacity of 350 TEUs, 125 TEUs and 125 TEUs, or a total of 600 TEUs. A round trip takes up to four days, which means that the three vessels are able to complete five trip per week and to transport some 3,000 TEUs or the TEUs equivalent to 30-40 trains. With the addition of three new container ships in September, this capacity would double to 60-80 trains per week. For comparison, in 2021, the total shipment volume of the China Railway Express on the main route reached 1.46 million TEUs, or about 27,500 TEUs per week. The next bottleneck of the Middle Corridor is the Black Sea (via the port of Poti in Georgia) between Azerbaijan and Constanta in Romania, Istanbul (Turkey) or Burgas and Varna in Bulgaria. Constanta is currently overloaded with rerouted Ukrainian cargo due to the closure of all Ukrainian ports. New container hub in Aktau The Kazakhstan government is planning a new container hub for the Port of Aktau. Minister of Industry and Infrastructure Development Kairbek Uskenbaev said that international sanctions against Russia have forced Kazakhstan to seek alternative routes to export, import and transship cargo. “Negotiations were held with the Singaporean company PSA International on its participation in the implementation of the container hub project. It is expected to attract a container fleet of global container operators such as Maersk, MSC and COSCO Shipping. Expansion of Kazakhstan’s merchant fleet of four ferries is planned with the involvement of private business,” Uskenbaev said. In 2022, Kazakhstan expects its Caspian Sea ports of Aktau and Kuryk to handle some 10 million tonnes of cargo. The increase on 2021 is due to the redirection of 4 million tonnes of export cargo. Due to ruptured of logistics chains in Kazakhstan, following the Russian invasion in Ukraine a month and a half ago, alternative trade corridors for the transportation of export and transit cargo have been developed. On February 24, Russia invaded Ukraine, and one of the immediate effects was the closure of all Ukrainian ports in the Caspian and Azov Seas. Traders are redirecting cargo and seeking new routes to market for cargo which previously used these ports. Russia and Belorussia are excluded as transit solutions. Kazakhstan’s Aktau and Kuryk ports are currently operating at around 25% capacity. The plan is that goods arriving by rail at the ports from Asia can be transported by sea to Baku port in Azerbaijan. From Baku, cargo will be transported by rail to the Georgian ports of Batumi and Poti. Then, sea lines will take goods to Constanta, Romania, or through the Bosporus Strait to Mediterranean Sea ports. From these ports, cargo rail services will bring goods to markets in Europe. Further Ports Europe reading: Three more container ships to double the cargo capacity of the Middle Corridor between Aktau and Baku More Ports Europe news about the Ukrainian crisis More Ports Europe news about the Port of Baku Copyright (C) Ports Europe. All Rights Reserved. 2022.

Western sanctions against Russia force Kazakhstan to seek transport solutions via Turkey

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Western sanctions against Russia force Kazakhstan to seek transport solutions via Turkey

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