CENTRAL ASIA TRADE AND TRANSPORT
FACILITATION AUDIT
NATIONAL REPORT
KAZAKHSTAN
Initiated by:
The Worldbank, USA
Written by:
NEA Transport research and training, The Netherlands
Our reference:
(D20020447\23060)
March 2003
Central Asia Trade & Transport Facilitation Audit
National Report Kazachstan
CONTENTS
page
1
INTRODUCTION................................................................................................... 3
1.
TRADE TRENDS, AND PERSPECTIVES ............................................................ 5
2
TRANSPORT AND INFRASTRUCTURE ............................................................. 7
3
TRADE ENVIRONMENT .................................................................................... 15
4
TRADE, TRANSPORT AND BORDER PRACTICE ............................................ 17
5
CUSTOMS CLEARANCE AND MISCELLANEOUS CHECKS ........................... 24
6
KEY IMPEDIMENTS IN TRADE AND TRANSPORT .......................................... 27
7
TRADE AND TRANSPORT ACTION PLAN ....................................................... 32
Annex 1
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Major technical assistance and investment projects
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1
INTRODUCTION
The study
This is the country report for Kazakhstan in the framework of the Central Asia Trade
and Transport Facilitation Audit. The project has been financed by the World Bank and
commissioned to NEA Transport research and training in The Netherlands.
Main objectives of the study are to:
 Identify and describe the main impediments in the domain of trade and transport
facilitation to increased international trade for Central Asian countries;
 Formulate priority actions to be taken by Central Asian governments to remove
these impediments.
During the project three experts on transport and logistics of NEA have been traveling
through Central Asia, visiting Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and
Turkmenistan. Each country has been visited by one expert for at least one week.
During this week numerous meeting have been arranged with the Government and the
business circles.
The project has resulted into one Synthesis Report and a Country Report for each of the
Central Asian states. The result was only possible thanks to the excellent support of the
World Bank including its regional offices, and the people whom contributed during all
the meetings that were organised in Central Asia. This draft report vastly benefited from
guidance and comments from the World Bank TTFCA team. The report however,
reflects the findings of the consultants and is not to be seen as the views of the World
Bank.
We are grateful that we were able to work with them. This report has been elaborated by
Arthur Gleijm (team leader), Harrie de Leijer, Menno Langeveld and René Meeuws, in
co-operation with experts from NIIT in Kazakhstan.
This report
After this introduction this Country Report consists of a chapter on trade trends,
transport flows and the infrastructure. The third chapter is devoted to the ongoing
reform process. Chapter 4 introduces the country’s trade, transport and customs
practice. Key impediments in trade and transport are presented in chapter 5. The
Country Report is finalised with a trade and transport action plan. In annex 1 the
interviewed stakeholders are listed while Annex 2 consists of the major technical
assistance and investment projects.
With its natural resources, including enormous resources of all type of mineral fuels,
Kazakhstan has considerable potential for economic growth, provided it is able to
develop efficient corridors to world markets. Kazakhstan’s geographic position in the
region also gives it the opportunity to play an important role in the development of
regional trade and social stability in Central Asia, and benefit from transit trade.
However, both poor transport infrastructure and non-physical barriers increase the costs
of shipping, and may well discourage the development of these activities.
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1.
TRADE TRENDS, AND PERSPECTIVES
Table 1 presents the indicative trade trend in recent years. The Russian crisis in 1998
showed the vulnerability of the Kazakh trade balance with a high dependence on the
world market of raw materials. Along with the decrease of foreign trade, total freight
flows also went down. However, recovery started in 2000, with a growth of 35% of the
international freight flows, continuing in 2001 with almost 10%, due to the expansion of
the Russian economy. (Export and import growth rates in 2000 and 2001 respectively
were: Exports, USD 9,615 million and 9,000 million; Imports, USD 6,850 and 6,400.)
Table 1:
Kazakhstan – Trends in trade between 1995-19991 2
China
Imports
Exports


Russia


Europe


USA


Intraregional


Caucasus 3


Source: World Bank, Extended Concept Note, Original data from UN COMTRADE; IMF Direction of
Trade Statistics.
Notes:
1. Biggest increase in exports is to China and Iran, and for imports, USA. Biggest partner, by
value: Russia and Europe
2. Biggest increase in imports to Russia, and for exports, USA. Biggest partners by value: Russia,
Kazakhstan
3. Poor unreliable data; the volume of trade is very small.
Though Russia is still the most significant partner for Kazakhstan (over 50 percent of
foreign trade), a downward trend is apparent. Medicines/ pharmaceutical products
constitute almost 80% of imports from Pakistan. Trade with Iran and the Caucasus
(Azerbaijan, Georgia, and Armenia) is still small and the trends are not so clear.
Kazakhstan’s imports from the US reflects a dramatic increase from US $64 million in
1995 to US $349 million in 1999 while imports from Europe doubled during the same
period. Though growth in exports to the US are not nearly of the same magnitude, there
is a substantial increase ($44 million in 1995 to 81 million in 1999). Exports to
Afghanistan increased by almost 4 times between 1995 and 1999, with exports of
cereals showing a marked increase in 1998 and 1999 (over 40% of total trade).
Exports from Kazakhstan are largely medium value, bulky, non-perishable
commodities, such a non-ferrous metals, iron/steel and petroleum based products.
Kazakhstan’s export of oil and other petroleum related products, second only to nonferrous metals, has increased from $75 million in 1995 to $100 million in 1999.
Kazakhstan’s exports to China increased from US $ 284 million in 1995 to US $472
million in 1999, though over 80% continued to be iron and steel, ferrous and nonferrous metals and petroleum related products.
An indication of recovery is that world energy consumption is growing and for 80% it
will be covered by mineral fuel – oil, natural gas and coal - up to 2020, which is an
important factor for Kazakhstan. Although the consumption of coal will slightly slow
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down in the CIS, China and India, the neighboring worlds’ leading consumers, will
increase their demand. The major mines for coal and ferrous and non-ferrous minerals
are situated in the center and east of the country, around oblasts such as Karaganda,
Pavlodar and Kostanai. The steel market is expected to be stable for the coming two
years, but Russia will increase its production volume and the diversity of products.
Kazakhstan is the sixth producer of grain in the world, although exports went down last
year, due to the fall in world prices. Grain is grown in the North of Kazakhstan, and
transported via Almaty to the West of the country.
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2
TRANSPORT AND INFRASTRUCTURE
Easy access to seaports of the Baltic and Black seas and the Persian Gulf is crucial not
only for the oil and gas industry in Kazakhstan, but also because of the significance of
the Russian market. Most of the transport is by rail, pipeline transport takes the second
place, road transport comes third, and maritime transport is fourth.
Rail
Mining and metallurgical products account for over 85% of the total freight traffic on
the railways in Kazakhstan. Most of the grain is transported by rail, until recently to the
port of Muuga in Estonia, but now also via Aktau to Iran. However, 40 to 50% of the
grain is still shipped through the Black Sea and Baltic ports, as the capacity of the port
of Aktau is limited to 350,000 tons a year.
Transportation by rail depends heavily on an ageing infrastructure that has a total of
14,400 kilometers of track, excluding industrial lines. There are 5,500 kilometers of
double track, and about 4,000 kilometers of track is electrified. However, the volume of
transportation by railway transport increased by almost 10% in 2001, but, due to
expected pipeline development, oil transport by rail over the coming 10 to 20 years is
expected to drop dramatically.
Until 2009 USD500 million is expected to be spent on the renewal of the rolling stock,
of which 70% is depreciated. There are currently discussions with EBRD, but no
decision has been taken yet about financing the program. The major technical
assistance and investment projects are mentioned in Annex 2 of this Report.
Pipeline
The current pipeline (oil and gas) infrastructure is fragmented and aimed at supplying
Russia. The most important pipeline is 2,896-kilometres long in western Kazakhstan,
and runs from Uzen to Samara via Atyrau; it carries most of Kazakhstan’s oil exports.
The present capacity is far from sufficient to carry the growing supply of oil. It has been
decided to go ahead with three multi-billion US dollar pipeline projects, the TransCaspian, the Baku-Ceyhan, and the Blue Stream pipeline. There are also hopes to build
an export pipeline to China. In the long run, oil transport through a pipeline to Bandar
Abbas is considered as the shortest, cheapest, and safest way to move oil and gas from
the Western region of Kazakhstan to the open seas.
Pipeline traffic increased by 35 percent in 2001.
Road
The classified inter-city road network is 87,841 kilometers long and includes 17,380
kilometers of national roads (93% paved) and 70,461 kilometers of regional roads (57%
paved). Due to the distances road transport is basically used for the shipment of urgent
deliveries and temperature controlled transport. In 2001, the volume of international
road transportation decreased by 20%. Most of the road cargo is transported through
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Russia and Byelorussia. About 80% of the international road transport business is
between Kazakhstan and Europe.
The major technical assistance and investment projects are mentioned in Annex 2 of this
Report.
Maritime
As a result of the reconstruction of the port of Aktau and the beginning of the Caspian
railway ferry operations, the volume of international transport by sea increased by 69%
in 2001.
Route preference
For most shippers, reliability of the route, both is terms of safety and expected
transportation costs, is the main factor for the choice of a mode of transport and
itinerary.
The most reliable routes are via the Russian territory, to the Baltic and Black Sea ports.
Railway operations through the Russian territory are considered to be very reliable. The
Baltic ports are preferred because of their better quality, regardless of visa difficulties
encountered by drivers, and although they are more expensive. (Even more so that
Russian ports are providing discounted services.) To reach the EU, and even Southern
Europe, the main rail and road route is through Russia (Almaty – Karaganda – Astana –
Petropavlovsk – Ekaterinburg – Nizhny Novgorod – Moscow – Minsk – Warsaw –
Berlin). Cargo originating from or destined to the US is shipped via ports in the Baltic
States or St. Petersburg.
There are two major options for traffic to Japan, the Trans-Siberian railway line, or the
road through China. The former has the advantage of a tracking system but it is more
expensive (especially port handling cost), while the china route is considered reliable as
the latter.
Road transport through Iran is considered to be difficult. There are many obstacles
encountered in dealing with the Iran Customs, allegedly to protect the Iranian transport
sector. Most of the business is therefore carried out by Iranian carriers. There is little
rail transport, because of lack of tracking of freight, and long border crossing delays.
Another possible corridor is through China, India and Pakistan. A multilateral
agreement was signed between Kazakhstan, Kyrgyzstan, China and Pakistan, to deenclave the port of Karachi. although the road is good, it involves crossing mountain
passes as high as 4,500 meter. So far the corridor only exists on paper.
The Caucasus is usually avoided, as it is considered unsafe, and involves numerous
border crossings. Ukraine is avoided, also for security reasons.
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Table 2:Kazakhstan – Transport mode
Export Modal Split 1999
Export Modal Split 2000
Road
2%
Pipeline
21%
Road
4%
Rail
Road
Rail
Pipeline
Road
Rail
98%
Rail
75%
Im port Modal Split 2000
Im port Modal Split 1999
Road
17%
Pipeline
11%
Road
16%
Rail
Rail
Road
Road
Pipeline
Rail
83%
Rail
73%
Source: TRACECA Statistics
Cost effectiveness: Rail compared to road
For both railway and road transport, 60 to 80% of the freight rate is related to the actual
cost of transport. Especially handling costs in ports and terminals are often high, partly
because of lack of sufficient price competition for certain services.
For road transport, the rest of the amount consists of costs incurred at border crossings,
terminals, delays, customs charges, and international road user charges.
The composition of freight rates in road transport is as follows:
Transport costs:
Terminal costs:
Border crossing costs:
Customs costs:
Road user costs:
Insurance costs:
Hidden costs:
60%
5-10%
3-10%
5%
2-5%
3-5%
2-10%
In railway transportation the rest of the amount is due to the cost of returning empty
containers and the cost of transporting the goods by road to the railway terminal, etc.
The composition of freight rates in rail transport is as follows:
Transport costs:
Return of empty container:
Road transport to/from terminal:
50 - 80%
30 - 12%
15 - 20%
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Terminal costs:
Customs costs:
Hidden costs:
2 - 3%
2%
2%
Other charges that are not directly related to any services (hidden costs) are about 2% in
railway transport and 2% to 10% in road transport.
Depending on the world market prices of the commodities, for certain goods
transportation costs may amount up to 50% of the value of the goods. For example, it
was estimated that, due to transportation costs, a ton of grain from the US delivered in
Novorossiysk is cheaper than a ton of grain originating from Kazakhstan.
Overall, given the bad condition of the road network in Kazakhstan, the long distances
that have to be covered and the international experience of the railways in the rest of the
CIS, compared to road transport, railway transportation is the cheapest and most
attractive option for international transport.
Issues
Kazakhstan now faces three categories of issues in the area of transit:



Geographical. It is a landlocked country, and while it can derive significant
benefits from transit originating in other enclaved countries, it is also dependant
on policies imposed by neighbors. Although most of the traffic is going through
the north (Russian) route, the need for diversification will impose the
development of new corridors, as well as the improving of the existing ones.
Commercial. There is fierce competition (about 60 percent of oil exports are
transported by Russian companies), and a risk of unused rail transport capacity
when the new pipeline network is completed. Although reliable, exports
through Russia are often subject to administrative complications destined to reroute shipments to Russian ports instead of Baltic ones. This leads to
considerable cost increase.
Operational. While the road through China is reputed reliable, procedural
constraints (insurance, transshipment) involve extra delays and costs.
Practically all the non-Russian routes are considered either unsafe (Caucasus,
Ukraine), or over-burdening in terms of procedures (Iran).
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Main export products Kazakhstan in 2000 ( tons)
Product
Crude Oil Coal
Destination country
Kyrgyzstan
Tadjikistan
Turkmenistan
Uzbekistan
Russia – Asia
China
Europe W& S
(35,5%)¹
(31,1%)
Other ores
incl. salt
Grain and
cereals
Other ferrous Manufactured
and nongoods and
ferrous metals other
Scrap metal
Other chemical
products
Petroleum products
Other construction
materials
(8,6%)
(7,3%)
(6,6%)
(2,1%)
(1,3%)
(1%)
(2,8%)
(2,6%)
0
0
0
0
6.178.034
714.463
5.808.869
677.068
0
0
0
25.072.976
0
0
7.592
0
8.235
155.619
6.899.108
2.678
463
120.645
398.995
5.031
679.841
2.661.180
0
201.921
9.044
628
2.333
29.943
332.066
1.667.741
1.249.251
156.756
30.715
47.898
517.776
1.425.024
34.922
17.194
2.090
0
0
20
323.079
1.575.819
29.282
5.008
553
386
5.901
1.493.185
11.670
38.789
66.280
4.375
2
0
48.121
0
849.837
759.741
127
0
1.423
63.842
11.581
0
Sub total, in tonnes²
12.701.36
6
25.750.044
7.073.695
4.067.613
3.291.006
2.230.285
1.930.290
1.555.492
925.315
836.714
Total export to all
countries, in tonnes
29.393.17
4
25.750.278
7.136.941
6.086.303
5.472.847
2.352.289
2.171.307
1.740.689
1.066.244
839.295
Source: TRACECA Statistics
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Main import products Kazakhstan in 2000 (tons)
Product
Crude Oil
Origin country
Kyrgyzstan
Tadjikistan
Turkmenistan
Uzbekistan
Russia – Asia
China
Europe W& S
Coal
Other
ores incl.
salt
Grain and
cereals
Other ferrous
and non-ferrous
metals
Manufactured
goods and other
Scrap metal
Other chemical
products
Petroleum
products
(35,5%)¹
(31,1%)
(8,6%)
(7,3%)
(6,6%)
(2,8%)
(2,6%)
(2,1%)
(1,3%)
677.068
7.592
120.645
9.044
156.756
2.090
5.008
0
0
398.995
628
30.715
0
553
0
8.235
5.031
2.333
47.898
0
386
0
155.619
679.841
29.943
517.776
20
5.901
25.072.97 6.899.108
2.661.180
332.066
1.425.024
323.079
1.493.185
6
714.463
0
2.678
0
1.667.741
34.922
1.575.819
11.670
5.808.869
0
463
201.921
1.249.251
17.194
29.282
38.789
0
0
0
0
6.178.034
Other construction
materials
(1%)
66.280
4.375
2
0
48.121
759.741
127
0
1.423
63.842
0
849.837
11.581
0
Sub total, in tonnes²
12.701.366
25.750.04
4
7.073.695
4.067.613
3.291.006
2.230.285
1.930.290
1.555.492
925.315
836.714
Total export to all
countries, in tonnes
29.393.174
25.750.27
8
7.136.941
6.086.303
5.472.847
2.352.289
2.171.307
1.740.689
1.066.244
839.295
Source: TRACECA Statistics
¹ = only the 10 main import products are listed here. The percentage is based on all import products, from all countries
² = import of one of the main 10 import products from the 4 Central Asia countries and the top 3 from other export countries
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SCHEME
of basic road network
in the Republic of Kazakhstan
Екатеринбург
Уфа
5
6
Северо-Казахстанская
область
4
7
Samara
8
2
Озинки
Акмолинская
область
Костанайская
область
Западно-Казахстанская область
Атырауская
область
9
Павлодарская
область
3
Карагандинская
область
10
Восточно-Казахстанская
область
Taskesken
1
12
Актюбинская
область
Алматинская
область
13
Urumqi
Кызылординская
область
22
14
Жамбылская
область
15
Мангистауская
область
18
17
16
19
ТАШАУЗ
УРГЕНЧ
Южно-Казахстанская
область
21 20
10
12
13
14
15
16
NIIT
Научно-исследовательский
институт транспорта
Picture 6
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SCHEME
of railways in the
Republic of Kazakhstan
7
Северо-Казахстанская
область
6
8
5
2
Акмолинская
область
Костанайская
область
3
9
Павлодарская
область
4
Западно-Казахстанская область
Атырауская
область
Карагандинская
область
Восточно-Казахстанская
область
Taskesken
1
Актюбинская
область
Алматинская
область
12
Кызылординская
область
10
Жамбылская
область
Мангистауская
область
11
Южно-Казахстанская
область
12
Aksarayskaya
Ozinki
Northern Corridor
Central Corridor
Central Asian Corridor
Western Corridor
8
9
Nikel-Tau
Tobol
Zolotaya Sopka
Petropavlovsk
Kulunda
Lokot
10 Druzhba
11 Lugovaya
12 Chengeldy
13 Beineu
Научно-исследовательский
институт транспорта
Picture 5
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3
TRADE ENVIRONMENT
Trade and transport
The major trade policy aim of Kazakhstan is to integrate the international trade system.
Currently, the country is focused on WTO accession. The foreign trade policy aims at
protecting domestic manufacturers, and promoting export goods and services from
Kazakhstan. Since 1998 the combined tax rates were introduced and import tax rates for
some types of goods were increased in order to improve the trade balance. As a
protection against dumping practices laws on “Antidumping Measures” and “Subsidies
and Compensation Measures” were adopted.
Excise duty rates for petrol and diesel fuels are established in Tenghe, thus excluding
the influence of the foreign exchange market on the price forming of oil products; it also
decreases inflationary expectations.
Trade and transport policies are very much related, as the strategic position in the
corridor is used to protect key sectors of the national economy, both by refusing the
access to the infrastructure network, and by applying certain tariff policies, such as
transport or commodity based subsidies.
The major technical assistance and investment projects are mentioned in Annex 2 of this
Report.
Under UN ECE Kazakhstan is trying to reach a multilateral agreement for bilateral and
transit transport. Little result has been reached so far, largely because of the various
national interests of the participating countries, including Iran and Turkey.
Customs policies
The Eurasian Economic Community (EEC) established on October 29, 2000 (formerly
the CIS Customs Union, which includes Kazakhstan, Belorussia, Russia, Kyrgyzstan
and Tajikistan), is focusing on establishing a free trade regime, a common customs tariff
with common duty abolition, and developing common Customs operations, with
centralized control and management systems. A free trade area virtually exists within
the CIS, but although 60% of the Customs tariffs are unified, the applicable rules and
procedures are not implemented, either at national or field level. This results in
numerous and unwarranted Customs controls.1 In Kazakhstan the reduction of Customs
charges may be balanced by a specific system of protective measures, consisting of
quantitative restrictions, special charges and compensation.
Customs administration
The Customs Committee of Kazakhstan (CCK), which reports to the Ministry of State
Revenues, is a recent organization. It has a staff of approximately 5000, with an
average age of 32, and is organized militarily. The CCK is responsible for 13,000 km
1
As the norms and standards have not yet been implemented fully and uniformly, the targeted
facilitation of international transport under the free trade regime has not been reached.
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of borders, most of which did not exist in the days of the Soviet union. There is some
border patrolling by Customs mobile groups, although the CCK has no autonomous
powers of control outside Customs precincts. (However, Customs seize approximately
60 percent of all drugs.) The CCK processes about 300,000 declarations per year, with
an overall performance ratio of 60 declarations per staff (above the ratio in other
countries in the region), but collects only approximately 17 percent of budget revenue.2
The CCK is organized, besides national headquarters, into 16 regions, and 7 major
offices directly report to headquarters. There are in total 224 Customs locations,
including clearance stations within large enterprises (150 approved warehouses). There
is also a free zone in Astana. The facilities visited by the World Bank mission (Astana
region, Customs house, and warehouse) are well kept and seem adequate, although
possibly oversized. Although the general impression is one of a well disciplined and
organized force, like in other countries, there is a difference between the perception the
KCC has of its performance, and day to day operations as described by transport
operators. The KCC is introducing a comprehensive modernization package to address
some of the issues identified.
The CCK launched a border crossing development program for the years 2003 – 2010,
following a resolution to improve the customs operations, entailing the improvement of
the Customs services, the establishment of an information system and the development
of infrastructure. In total there are nearly 100 border points, including 34 multi entry
border crossing points (passage by all nationalities) and 62 single entry points (only
passage by the two neighboring countries) that will be improved stage by stage, starting
in the south. In total, the investment will cost USD 10.7 million in 2004, 12 million in
2005, 6 Million in 2006 and 2007, and 5.6 million in 2008, 2009 and 2010.
2
Customs do not collect domestic excise.
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4
TRADE, TRANSPORT AND BORDER PRACTICE
International shippers prefer to contract forwarders and carriers that act globally, also
because the latter are more able to reach results in other countries, having a network of
representative offices. In anticipation forwarders are looking at new concepts of “Global
providers of Logistics Services”. This trend is also triggered because of the need to
create reliable services, independent from monopolistic parties in the transport chain,
such as the railways and the ports.
Both the road transport sector and the forwarding industry have to develop to
international standards of quality and service coverage. Forwarders need to expand their
business and become regional players in the transport chain. According to international
shippers, domestic carriers should improve their services. Even as foreign operators are
more expensive, the clients prefer them as they are considered to be more reliable.
Besides, Central Asian vehicles are often discriminated by neighbouring countries.
Customs legislation
A new Customs draft code was prepared, reflecting international standards, such as the
revised Kyoto convention, and allowing for a more trade-oriented interpretation. It also
provides for selective examination of goods and risk analysis, and streamlines
enforcement and prosecution procedures. The objective of the new code is to ensure
consistency with Russian and EU legislation, and enable regional integration. Customs
control is expected to move away from border point to the final destination of the cargo.
The code was expected to be voted in the fall of 2002. In a very much businessoriented approach, the authorities posted the draft on the internet, encouraging
comments from the trade community. Among the numerous responses, many indicated
a concern that the new legislation (i) may no longer be WTO compliant, (ii) is too
detailed, and (iii) does not provide for modern instruments, such as insurance
guarantees. In addition, for a proper implementation of the law, a comprehensive set of
implementing rules should be established.
Border operations
Three inspecting agencies operate separately at the border: Customs authorities, the
transport inspectorate of the Ministry of Transport, and the road police of the Ministry
of Interior. Depending on the goods, also there are phyto-sanitary and veterinary
controls applied at borders and at the point of destination.
The border police (Immigration service) carry out controls in co-operation with the
Traffic police. Passports of drivers and passengers and the entry visa are checked and
stamped, as well as the vehicle registration document, driver’s license and other
vehicle-related documents. Police controls take, normally, only a few minutes.
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Visa requirements
There are no visa requirements for drivers and passengers from CIS countries, with the exception of
Turkmenistan, with which a mutual visa regime was introduced. Drivers (and passengers) from non-CIS
countries (and Turkmenistan) must obtain the visa before the trip at the embassies or other diplomatic
missions of Kazakhstan otherwise entry into Kazakhstan is not permitted. Procurement of visa directly on
road border crossings is not foreseen.
Customs carry out a visual inspection of trucks and goods. With the exception of TIR
transports, most trucks are opened but detailed controls are only made randomly or in
case of suspicion (e.g. broken seals) or discrepancy between the waybill and the results
of the visual check, or based on targeting. In that case the truck is directed to a shed
where all or part of the cargo is unloaded, checked and reloaded.
For TIR trucks, the seals are checked, and the truck is allowed to proceed. When the
value of the goods exceeds USD 50,000, Customs decide whether the goods will be
escorted to destination, or a deposit or bank guarantee will be submitted at the border.
For non-TIR trucks, a VTD (Internal Transit Declaration) form is filled, and the trucks
are allowed to proceed with or without a deposit or bank guarantee, or under an
escorted convoy (to be decided by Customs). Excise goods or goods shipped to
consignees placed on a black list, or open trucks, must always be covered by a deposit
or bank guarantee of equal value, or must be escorted. The value of the deposit is equal
to the tax and customs fees to be paid for the respective goods.
The delay for reporting incoming vehicles at the point of destination (inland clearance
location or external border) are set by Customs, but cannot exceed 30 days.
There is no principal difference in the procedures followed for road and rail transport
modes other than the type of waybill (CMR versus SMGS), except that there is no
guarantee/deposit requested in case of rail transport. Only for goods of a value of more
than USD 50,000 a guaranty has to be presented before departure.
Except with China, rail borders are inner-CIS borders. There are no strong controls on
wagons except on specific problematic cases (including the case of damage of the goods
or the wagon), when a wagon may be stopped and taken out of the train for a special
and detailed control. Otherwise, the goods move smoothly to their final destination.
however, delays may occur at railway border crossing points when the line crosses
several times the borders, for example between Russia and Kazakhstan. (There are
marshalling yards belonging to Russia in Kazakhstan territory, such as Petropavlovsk,
or the Kazak Lokot station on Russian territory).
The Transit – VTD - form
The VTD is prepared in four copies as described below in accordance with the Customs Instructions:
- The first stays with Customs, where it is registered and used as input in the statistical database (it is sent
from border crossing point to the Department for control of goods delivery of the Customs Committee)
- The second is for the inland Customs house (stays with the representative of the shipper - normally the
driver - until presentation)
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- The third is for the representative of the shipper, and
- The fourth stays in the Customs (it is sent from border crossing point via the Department for control of
goods delivery of the Customs Committee to the Customs at destination).
The VTD form is stamped on passing the exit border. It is then collected and returned to the Customs
Committee for closing of the specific transit passage.
Some commodities are excluded from the transit regimes:
 Commodities that that are not allowed to be imported, e.g.: weapons,
ammunition, etc.
 Drugs and psychotropic substances, etc. and
 Certain publications, or (for exports)
 works of art, antiquities with certain historical, scientific and cultural value
 horns of saiga, maral or dappled deer, or
 cancelled securities
All of those, however, are permissible if a special permission is granted.
In addition, the Government can add special commodities of state safety, moral and
ethical interest, human life and health protection, environmental protection, etc.
Temporary restrictions are sometimes applied for the export of oil, or restraint of import
of agricultural products.
Transport Control Committee (TCC) officials (MoTC) carry out transport controls at
special posts located 500 or more meters after Customs check points. The MoTC posts
are usually installed in mobile vans or container. Trucks are checked for:
 vehicle transit permit
 weight control (total and per axle)
 loading gauge control for maximum height and width
Regulations concerning weights and loading
a.
b.
c.
d.
e.
f.
g.
h.
maximum permissible total truck weight
maximum single axle load
maximum tandem axle load
maximum triple axle load
maximum height
maximum width
maximum length
maximum length
(truck plus trailer)
40.0 tons
10.0 tons
16.0 tons
22.5 tons
4.0 m
2.55 m and 2.6 m for refrigerated vehicles
12.0 m for trucks, busses and trailers
20.0 m for articulated vehicles and road trains
In the near future it will also be possible to carry 44 tons on a truck and trailer combination provided the
tractor has three axles and the trailer has four axles.
A penalty is imposed on trucks entering Kazakhstan with load or dimension bigger than
the legally permissible limits. The level of the penalty depends on the amount that
exceeds the legal limit and is imposed per kilometre of transportation in Kazakhstan:
Table 1 Penalties for excess of weight limits
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Value of excess of total
weight over allowable
weight, tons
From 0.1 to 5
From 6 to 10
From 11 to 15
From 16 to 20
From 21 to 25
Tariff per 1
transport, MRU
0.004
0.006
0.012
0.020
0.030
km
of
Value of excess of total
weight over allowable
weight, tons
From 26 to 30
From 31 to 35
From 36 to 40
From 41 to 45
From 46 to 50
Tariff per 1
transport, MRU
km
0.046
0.067
0.093
0.127
0.172
Similar rates exist for the excess of the axle weight and the loading gauge (length,
width, height). For the axle weight the rates were depending on the percentage of
excess: the lowest rate was implemented for an excess of 1-5 % and equal to 0.022
MRU per 1 km of transport through Kazakhstan. The penalty for excess of vehicle size
is 0.03 MRU per kilometre.
This means for example:
 the penalty for exceeding the total permissible weight by 10 tons is approx. 3 US
cents per km, while for exceeding by 20 tons is approx. 11 US cents per km
 the penalty for exceeding the permissible axle load by 10% is approx. 12 US cent
per km, while for exceeding by 20% is approx. 18 US cent per km
 the penalty for exceeding vehicle size is approx. 16 US cent per km
Technical standards
Normally, trucks have to conform with technical standards too. This control is
nevertheless not carried out, except for overloading and oversized goods.
In the near future controls will be introduced for using tachographs in international road
haulage. Kazakhstan has signed the relevant AETR convention already in 1995, but did
not implement it into national law and, therefore, did not yet implement the use and
control of tachographs. One of the reasons was that Russia had not signed the AETR
agreement. In 2001 the relevant national rules were implemented accompanied by
training of the controlling staff of TCC.
Compliance with maximum permissible loads is carried out with portable or fixed
weighbridges. So far, only six border crossings are equipped with such equipment. By
2003 all border crossings will be equipped accordingly.
Compliance with maximum permissible dimension is carried out on the spot, whereby
suspicious trucks are required to pass under a simple loading gauge testing device, i.e. a
beam fastened at a certain height.
Usually, transport controls take only a few minutes if there is a transit permit. In the
opposite case, one hour is necessary. Weight and loading gauge controls are made to
those trucks that visually seem to be suspicious.
Border clearance time
There are no delays at the border crossing points caused by excess traffic. Only the
Petropavlovsk border crossing occasionally shows excess traffic conditions and some
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crossing delays. Overall, the operators and authorities assess that the border clearance
time is 30 minutes for TIR trucks, and 2 - 4 hours for other lorries, except in cases of
detailed controls, when the duration may reach several hours or even days, depending
on the problem.
Road permits
There are bilateral agreements between Kazakhstan and 27 countries3 on international
road transport. A major issue of those agreements is the system of exchange of entrance/
transit permits for vehicles from the signatory countries. In accordance with those
agreements the transit of vehicles is free of charge within the limits set by the bilateral
permit quotas. Above this specific number of permits, vehicles entering Kazakhstan are
obliged to pay a transit fee. The same is goes for vehicles from countries not having a
valid bilateral agreement with Kazakhstan.
Transit fees
The transit fee is defined as follows:
- Fee of 200 MRU (1 MRU monthly rate unit = 823 Tenge for the year 2002, which is equal
approximately to USD 5.40) for entry of a foreign truck to Kazakhstan, either to pick up goods from an
origin in Kazakhstan for transportation to a destination located in a third country, either for delivering
goods from a third country to a destination in Kazakhstan
- Fee of 60 MRU for passage of a foreign truck in transit through the territory of Kazakhstan to a point of
destination located outside Kazakhstan
- Fee of 60 MRU for passage of a foreign truck through the territory of Kazakhstan either delivering
cargo to a point of destination located in Kazakhstan, either picking-up cargo from an origin point in
Kazakhstan
- It is also required that Kazakh trucks pay 10 MRU for international transportation to the borders and 55
MRU per year for regular transportation to the Chinese border.
Only operators licensed for international transport can use the permits. A truck without proper license and
without a permit is not allowed to enter Kazakhstan. International transport licenses are issued by the
Local Authorities against 20 MRU.
There are no permits with Russia applied for bilateral traffic and transit through Kazakhstan; therefore
Russian trucks do not have to pay the above mentioned transit fees. There are also no permits applied for
Uzbek and Turkmen trucks. Thus, when carrying goods in transit, Uzbek and Turkmen carriers are also
not asked to pay 60 MRU. But for import/export to Kazakhstan, they are obliged to pay 60 MRU.
Iran is a special case. Even as there are bilateral agreements on international road transport, transit
permits were not exchanged. Iranian trucks are allowed to enter Kazakhstan paying the transit fee of 60
MRU. On the contrary, Kazakhstan trucks are not allowed to enter Iran.
3
These are Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Russian Federation, Tajikistan,
Turkmenistan, Uzbekistan, Ukraine, Bulgaria, Hungary, Germany, Spain, Latvia, Lithuania, The
Netherlands, Poland, Finland, France, Czech Republic, Estonia, Iran, People’s Republic of
China, Mongolia, Pakistan and Turkey. Agreements with a few of them were not yet ratified.
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Subsequent controls
There are thoughts to impose in the future new controls related to the amount of diesel
with which foreign trucks enter in Kazakhstan. This is important given the lower price
of diesel in some neighbor countries, i.e. in Russia, Uzbekistan and Turkmenistan.
In the recent past, transport controls used to take place at inland stations located along
the major roads of the Republic. Nevertheless, since September 2000 (Governmental
Order 1358) most of the inland checks have been abolished, and continue only in
specially designated zones and on control posts of Frontier Department of Committee
on the National Security.
The Chinese border
The case of China is very specific. This country is not a member of IRU, therefore TIR
is not recognized. TIR trucks are not allowed to enter. All goods to China must be
shipped (CIF) to SINATRANS warehouses located close to the border and cannot
continue further inland. Chinese trucks may enter into Kazakhstan and deliver goods up
to warehouses in the border zone (currently there are three licensed terminals), and in
special cases Chinese trucks may follow until Almaty or other cities located close to the
border. The current amount of bilateral permits barely caters for bilateral trade.
At the Chinese border, all forms have to be translated into Chinese and vice versa. The
VTD is filled-in by Customs brokers or, if there are no brokers, by Customs officers. In
Druzhba, all goods must be unloaded and reloaded. For goods coming with wagons for
which bogies are changed or in containers, the controls from the Kazakhstan side are as
mentioned above. For railway wagons without bogie change, goods must be unloaded
and reloaded.
Goods in transit by road through Kazakhstan must be unloaded and reloaded at the
Kazakh - Chinese border to vehicles of own nationality.
Practically customs controls are applied in the same way for road as for railway
transportation, for import/export or transit of goods. However, in road transport only
vehicles under TIR - which constitute only 10% of all traffic - clear Customs controls
without serious delays. The need for frequent visual checking of goods, the need to
issue a guaranty or bank deposit or form an escort or convoy causes serious delays to
vehicles in transit, ranging between 4 hours to 10 days. Rail transport also varies from 1
day, if all documents are well filled out, until full blockage, in case of non-fulfilment of,
even small requirements of the SMGS. For speeding up the clearance process often
additional charges are often requested. Delays can be long and uncertain.
Issues and remedial actions
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





The successive border controls are overlapping, competencies are not clear and
all agencies require in turn to see a full set of documents, while rules are
interpreted differently.4
Practically 100 percent checking is time-consuming, and does not prove
effective. The decision to inspect a vehicle is made arbitrarily, with little or no
analysis of the risk. The black list concept is prone to abuse.
The convoy system is expensive (convoys consist of at least five trucks, hence
delays until all the trucks are assembled), and does not provide, according to
international experience, serious guarantees of representation of the goods.
Although VTD are prepared, they are not always collected at final exit, thus
leaving transit operations un-discharged. Guarantees are often set arbitrarily by
Customs.
Unless China accedes to the TIR Convention, given the fast development of this
country and the resulting import and export potential, the border transshipment
requirement will always limit transit through Kazakhstan.
For empty trucks a specific Certificate of foreign empty transport vehicle import
has to be filled. The procedure for incoming empty containers or empty
containers re-exported is more complex as they are considered normal
commercial goods. For containers a separate form of temporary admission has
to be filled out by the carrier or importer in order not to pay duties for them and
to be able to re-export them. The procedure is very complex.5
Officials of the Transport Committee consider the collection of transit fees as a
main revenue generation source in Kazakhstan and a way to finance road
development.
4 An Order, aimed at reducing the delays imposed on vehicles entering Kazakhstan caused by
multiple controls, has decided to create unified check points for international road transportation
on Kazakhstan frontiers whereby police, Customs, transport and other controls are carried out
“under one roof”. Such new border control points are being built at the border with China and
the border with Kyrgyzstan.
5 A new processing of means of transport, including empty containers is now envisaged, that will
waive administrative fees.
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5
CUSTOMS CLEARANCE AND MISCELLANEOUS CHECKS
Clearance procedure
Clearance takes place at inland facilities, which are open from 9 to 7 P.M., although
overtime clearance is available, with the payment of a service fee.6 Advance and
periodical declarations are possible (at Astana Customs house, 10 importers who lodge
15 percent of all declarations are approved under this scheme). It is not compulsory to
use the services of brokers (79 are licensed throughout Kazakhstan, but it is likely that
under new licensing requirements for a $20,000 deposit per broker, the smaller
companies will be eliminated). Clearance is partly computerized, using a locally
developed software. In Astana Customs house, which handles on average 30
declarations per day, there is a six step declaration processing, which may overemphasize bureaucratic requirements, to the detriment of expediting legitimate traffic
and detecting irregularities:






Preliminary: Declarations are registered at a currency control position
Lodging: The acceptance window verifies the trade code, and receives the
electronic and paper versions of the declarations
Declarations move to the documentary and nomenclature check position
(Kazakhstan utilizes the CIS nomenclature)
Declarations move to the non tariff check position (where contingents are
verified)
Duties are calculated
Payment is made in cash or through a bank
Declarations are transferred electronically from one position to the next, and the paper
copy, which is aligned to the international Single Administrative Document (SAD), is
stamped at each stage. At the end of the process, the head of the unit appoints an
examining officer for the physical verification of the goods. Approximately 80 percent
of all declarations lead to such an examination , but the rate of detection of irregularities
is very low (according to Customs, physical examination is essentially a deterrent,
although management is keen on introducing selectivity). After clearance, declarations
are audited, and additional verifications may take place at the importers’ premises. In
contrast to upfront checks, these post-release checks tend to reveal frequent violations
or errors.7 Brokers and importers may be prosecuted for involuntary violations, and the
concept of due diligence is not well recognized.
Valuation
Although Kazakhstan applies the GATT valuation principles which recommend the use
of the invoice value, and a valuation agreement within the EAEC is under preparation, a
minimum price list system still appears to be in use in the CCK. In addition, a contract
was recently signed with a private company to carry out valuation checks. The
6
There is a 0.2 percent ad valorem Customs processing fee, which is doubled in the case of
out-of-hours clearance. For railway clearance, an additional fee of USD14,00 is charged for
each wagon.
7 There is an annual control plan for auditing importers.
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contractor will select up to 20 percent of all declarations lodged, carry out a valuation
survey, and collect .75 percent of any additional revenue assessed. The selection
criteria and methodology for this scheme have yet to be introduced.
Computerization
The Customs clearance computer system was locally developed by a private firm, and is
partly managed by the CCK’s IT department, which is also in charge of foreign trade
statistics. So far, computerization has essentially focused on equipment and
telecommunications, but a comprehensive declaration processing system is now under
preparation, which will include automated clearance, valuation checks, follow-up on
violations, Customs regimes, end-use and delivery control; there seems to be no clear
operational phasing at this stage. A Monitoring system for transit is also under
development, and the CCK routinely exchanges transit data with Russia and participates
in the Safetir discharge of TIR carnets. Further developments will also include transit
discharge by e-mail between Customs locations.
Clearance delays
The time it takes to release the goods is not clearly established: Although Customs
maintain that in most cases declarations are processed and released in under 90 minutes,
importers claim it takes several days to clear an import. An average estimate is that it
takes at final destination between 3 hours and a few days, and for exports between one
day, usually 2-3 days, and a maximum 10 days.8
The difference can be explained by different approaches to measuring the time.
Customs count from the moment when the declaration is initially accepted (i.e., all
supporting documents are produced, and the declaration is properly filled), whereas
importers have to obtain and submit numerous documents (up to 14 different forms,
certificates, and applications, issued by different agencies), which may take time to
establish. Also, declarations may be turned down, on different grounds, at the Customs
acceptance position, thus increasing pre-lodging delays. It is notable however that there
is a trade facilitation desk operating at Astana Customs house, manned by two Customs
officers.
Other checks
Currently there are no official ecological controls imposed in Kazakhstan. Some Local
Authorities (e.g. Almaty and Astana) have made an effort in the past to impose and
charge such controls through requiring a certain fee in case of not using an urban bypass or for a vehicle crossing an urban area. These Local Authorities are not supposed
to impose any controls of this kind or charge trucks for local regulations.
Several commodities, when imported in or exported from Kazakhstan are subject to
phyto-sanitary or veterinary controls. Typically, these are products that are subject to
quarantine. These commodities are:
 Seeds and agricultural products, forest and decorative plant materials, plants and
their parts and any other plant products
8
Obtaining import licenses pursuant to a special commodity list may take between
3 weeks to 3 months, whereas legally it should be dealt with within 1 month.
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

Agricultural machines and equipment for cultivation, transporting, packaging of
all types, packaging materials, goods and products from vegetable material,
monoliths and samples of soils, which can transfer the objects that are subject to
quarantine.
For all the above commodities, it is necessary:
 for import, to have the Importing quarantine permission
 for export, to have the phyto-sanitary certificate
When shipping food products that have animal origin, it is necessary:
 for import, to have the veterinary certificate of national veterinary services of
importing country
 for export, to have the certificate given by the regional services of Main
Veterinary Department(s)
 Traffic police: Inland road blocks/barriers are manned with Traffic Police. The
origin of their presence can be traced back to the Soviet times, when mobility of
people and cargo was kept under strict control. Now, their existence is explained
by the concern for security. They are however opportunities for rent seeking and
pose both a financial and a time barrier to traders/transport operators.
Insurance
Currently the quality of insurance services in Kazakhstan is poor and covers only
compulsory insurance, such as for civil liability. Nevertheless, the risks covered by such
insurance are limited to USD2,000. Driver’s life insurance, vehicle insurance and cargo
insurance are not compulsory and seldom applied, as they are considered to be
expensive.
It is common practice that cargo insurance is bought by the owner of the cargo, and in
particular used for imported goods. Vehicles from Kazakhstan going to Europe have to
buy a “Green Card” insurance before entering Central Europe and foreign vehicles
entering Kazakhstan have to buy local "civil liability insurance”. This type of insurance
does not apply in Russia.
Issues



Classification difficulties provide the opportunity for multiple sampling.9
Valuation provides for minimum price lists, which encourage negotiations
between importers and Customs.
In the case of railway transport, controls are limited. A single administrative
document is filled out for each wagon or for a unit (block) train and there is no
necessity for deposits or guarantees, unless the value of goods is above
USD50,000. However, the nomenclature of goods used by the railways is
different from that of the customs, requiring a "translation” of the documents
accompanying the goods.
9
The new Customs code will however introduce binding tariff advice, which is an international
standard procedure.
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6
KEY IMPEDIMENTS IN TRADE AND TRANSPORT
The various legal and administrative barriers faced in transport do not permit the full
exploitation of the transit potential of Kazakhstan.
Trade
Each CIS country strives to enter the global markets independently, pushing its
neighbor’s aside. One-sided and comparable economies producing similar products are
one of the main causes of protective behavior at all levels. It results in customs barriers
and quotas for strategic goods.
In many sectors competition is developed insufficiently leading to overpricing and poor quality
of service. Prices are often established by means of sector agreements and division of the
market.
Customs
One of the significant impediments in trade is the imperfection of customs services, in
terms of services (bureaucratic and complex procedures, little transparency, changing
rules, various interpretations) and infrastructure (poor automation and communication
equipment and below standard customs housing and facilities). This leads to an increase
of transport costs, due to delays and additional (unofficial) payments.
Another impediment is the lack of co-ordination between the customs authorities and
the road inspectorate and road police. This causes serious delays and additional costs,
both at border crossing points and inland. Competencies do overlap and responsibilities
are not always clear. Sometimes also the lack of co-ordination between the different
levels of certain authorities causes differing viewpoints the implementation of the rules
and regulations.
Another customs related problem is the deposit requirements for cargo in transit. Due to
the required deposit, both the size of it and the expected duration of the return of the
funds, transport of certain goods have come to a complete standstill.
With excise goods or if the value of the goods is higher then $ 50,000 a guarantee or
deposit or the participation in a convoy is required, even if a specific TIR document is
issued. This ruling is contrary to the TIR convention and the Safe-TIR system and adds
up to transit costs and times.
If the value of the merchandise exceeds a specific amount or if the client is not reliable,
the customs officer at the border may require a convoy with escort. If the amount of the
value is lower, it is at his discretion of the officer, if a convoy is required.
In case of deposit or bank guarantee, the value is equal to the tax and customs fees to be
paid for the respective goods.
After arrival of goods at the place of delivery, customs will issue a certificate on
confirmation of goods delivery under customs control (supplement to Order No 106 P
of SCC of April 23, 1997). One copy is given to the carrier, one forwarded to the
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special Control Unit of the Government (“Department for control of goods”) and one
will stay in the Customs inland office of destination, where it is registered. When this
document is presented to Customs, the deposit will be paid pack or the guarantee
deemed to be redeemed.
The application of guarantees as such does not seem to create any difficulties in
Kazakhstan, because the banking system is working quite well. The cost of guarantees
(and also in the case of deposits the related interest), however, is relatively high, the
applied procedure in practice is complicated and no different kinds of guarantee
according to the kind of need (e.g. global or single guarantee) are available. For these
reasons the system of convoys seems to be preferred.
Convoys constitute a problem insofar, as in many cases it has to be waited till a certain
number of trucks is assembled, which then would be accompanied by a customs officer
from the border point in a car, carrying all the papers, or an officer accompanying the
truck for several hundred kilometres (under the same conditions as described above for
the application of the TIR System).
In road transport all trucks with Chinese goods that enter Kazakhstan are stopped to
open a TIR carnet, either at the border or inland. At the border crossing all goods have
to be unloaded from the Chinese trucks on to vehicles form Kazakhstan or Russia. The
other way around, goods coming from Kazakhstan have to be delivered at a
SINOTRANS warehouse and loaded on to local trucks.
For rail transport between China and Kazakhstan the delay is caused by the gauge
change. Only goods in containers and in some cases wagons for which bogie change is
applied - less than 30% of wagon throughput - are not required to be reloaded between
Chinese and CIS width gauge wagons
With Russia and Uzbekistan less problems are experienced, as both countries are
members of the Customs Unions, in principle applying the same rules and documents.
Though all trains have to stop at the border, not every wagon is controlled. In particular
delays are faced with container trains, due to insufficient automation and a lack of
scanning devices.
In particular Chinese cargo causes problems at the Russian border, not accepting
Chinese cargo under the TIR system. This means that the owner of the cargo has to fill
out all requirements at the border, which is virtually impossible. As a result, trucks with
Chinese cargo have to drive in convoy, adding the costs up to USD1,000 per trip.
Pursuant to Iranian ruling it is stipulated that own hauliers are preferred in operating
transit transport. Beside, both Iranian and Turkish customs requires additional
documentation, making the operations virtually impossible. At the same time Iranian
and Turkish hauliers may obtain transit permits to enter Kazakhstan at the border.
As in many other CIS countries, in Kazakhstan the following set of documents is
required for customs clearance, also for cargoes under TIR coverage.
Passport of driver
 Export document
 CMR waybill
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





Transport document
Invoice/bill
Certificate of ownership of the goods or authority for the driver to act for him
Certificate of origin (if preferential goods are to be imported)
Permission (for certain types of goods)
Document on Quality or License for Veterinary or phyto-sanitary goods
This practice is not in accordance with the TIR convention and the effect of using a TIR
carnet is reduced, because some documents are only available at the place of origin or
destination.
Regarding physical controls and risk analysis, the general administrative rules about:
 how to organise the controls,
 the purpose of controls,
 time and place of conducting them,
 matters concerning the control-staff and equipment,
 the procedure,
 the reporting about it and
 instructions concerning the procedure for establishment and marking of a Zone
of Customs Control
are contained in Order No. 50 of 15 February 2001. They do not deal however with the
question, if and how far controls have to be expanded, when there is no suspicion of
criminal activity.
In principle all goods imported to Kazakhstan are to be transferred via a domestic transit
system to the inland customs house of destination. In this case, the clearance at the
border should be a relatively straightforward procedure. However, this is not the case. A
full and complete document check takes place at the border installation for each
commercial vehicle. After the lengthy document inspection, a decision is made by an
inspector as to whether a physical inspection should be undertaken.
Practically every truck is opened, looked into and then the doors closed again. The
fundamental purpose of this control is to confirm the content of the vehicle to ensure
that the goods arrive at the inland customs house of destination in good shape and as
stated. Nevertheless, the present system is not optimal to achieve the stated goals and is
ultimately laborious and time consuming.
Railways
Under the old days the railway tracks have been built in the direction Moscow, North –
South. The East – West connection is underdeveloped and should be expanded, also to
use the Caspian ports more efficiently.
There is a lack of adequate general maintenance and most of the rolling stock is short in
supply, resulting in a poor technical condition of the main railway assets. During the
last years the renewal of the rolling stock has come to a complete standstill. Over 50%
of the railway wagons are exhausted and should be replaced immediately.
The railway information system is poor and clients are not sufficiently informed about
the duration of the trip and the location of the goods.
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At Sarakhs, on the border between Iran and Turkmenistan, with 1 million ton annually,
the capacity of the railways is far too low, due to the gauge change,
Railway freight tariffs are often high on those relations where Kazakhstan is the
demanding party. Russia for example applies a difference between domestic and transit
tariffs. The latter might be twice the price of the price domestic carriers are charged for.
The tariffs in Kazakhstan are expected to increase, as the cost recovery of the railways
has to be improved.
In combined transport the lack of a single operator for container transportation on each
route impedes the proper management of the whole transport chain, from origin to
destination,
As to container transport, the lack of a common through-tariff for container
transportation from origin to destination along the railway transport corridors endangers
the development of this type of transport. It is one of the main reasons for the absence
of regular container services on the connection China, Kazakhstan, Russia, Byelorussia,
Poland and Germany.
Besides the share of the leasing cost of the container in the total transport tariff rate is
very high, due to disbalance between inward and outward loads.
Road
The conditions of the roads are quickly deteriorating, with a progressive loss of bearing
capacity. Little maintenance is carried out to either roads or bridges and in some areas
freight can only be transported at slow speed.
Profitability and financial standing of the operators are not too strong.
Poor local distribution and the lack of vehicles complying with international standards
leads to a loss of market share. Also there is an urgent need for vehicles to move
specific commodities, such as grain and refrigerated goods. For these reasons the
competitive position of carriers from Kazakhstan in comparison with international
operators is difficult.
The purchase or leasing of high standard vehicles is complicated taking the financial
situation of a lot of road haulage operators and given the annual interest rates of 25 –
30%. Banks are reluctant to give loans to the transport industry.
Forwarding
Currently liabilities of the forwarder are not clearly described in the law, especially
causing problems between forwarders in relation to goods in transit.
In regional transport, only a few forwarders are able to offer clients a full and global
service. As a result the shipper, either through an agent or directly, has to enter into a
contract with forwarders in each country along the transport chain, raising freight tariffs
and causing unclear responsibilities and liabilities.
At the moment the use of the FIATA bill of lading is no common practice. The
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document has been proposed to be included in the new customs legislation, to be
accepted as transport document and for the clearance of the goods. So far commercial
circles and the banks do not always accept the document in line with the international
practice.
Other facilities
Caspian ports both in Kazakhstan (capacity 200,000 – 300,000 tons) and Iran have poor
facilities and insufficient capacity to handle the supply of goods. Especially the
handling and storage facilities (13,000 tonnes for grain in Aktau) for certain
commodities should be increased.
In general Western shippers do feel the lack of high standard warehousing facilities and
services as a problem. Currently no warehousing operator is able to meet the
international standards.
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7
TRADE AND TRANSPORT ACTION PLAN
Action:
Description:
Assistance in the uniform implementation of the new Customs Code
Long term and practical assistance in the implementation of
international customs rules and procedures by the deployment of
international customs officers.
Beneficiary:
Customs authorities, trade and transport industry
Priority:
1
Ongoing reform: Technical assistance of the EC and USAID. ADB, related to
infrastructure projects.
Action:
Description:
Masterplan for the development of a terminal and warehouse network
The development of a terminal and warehouse network, with special
emphasis on bonded facilities. The upgrading and extension of the
storage facilities in the port of Aktau should get special attention. The
participation of the private sector is a condition.
Beneficiary:
Customs authorities, trade and transport industry.
Priority:
2
Ongoing reform: None
Action:
Description:
Strengthening the road transport sector
Technical assistance to strengthen the road transport sector by
enhancing the role and power of the Ministry of Transport and
Communications, the transport inspectorate, the road police and the
level playing field of the road haulage industry.
Beneficiary:
Ministry of Transport and Communications and the road transport
industry
Priority:
1
Ongoing reform: None
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Action:
Description:
Combined transport and containerisation study
Promotion of the combined transports with the aim of increasing
containerisation (shipping line and railway containers) providing
faster, cheaper and safer transportation. Development of regular
shuttle services. The participation of the private sector is a condition.
Beneficiary:
Transport industry (rail and road)
Priority:
2
Ongoing reform: None
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33
Annex 1
Major technical
assistance and
investment projects
Major technical assistance and investment projects
Name
Financier and budget
Objective and results
Recipient
Kazakhstan – Road transport restructuring project
WB US USD100 Million
To increase the efficiency of road transport in Kazakhstan,
specifically by reducing vehicle operating costs by improving
the national roads network, improvement of the performance of
the Department of Roads, developing the road construction and
maintenance industry, improving the regulatory framework for
road transport and its enforcement and reducing the negative
impacts of road transport on the population, mainly road
accidents and air pollution. Expected results are improved
reliability of road transport, reduction of vehicle operating costs
and reduce future reconstruction needs on important sections of
the national roads network.
Kazak traffic and transport sector, Department of Roads,
Department of Road Transport.
Name
Development of Road sector Almaty - Bishkek
Financier and budget
0,40 million
Objective and results
EBRD USD28,5 million, ADB USD 52 million, EC USD
The objective is to facilitate transport between Almaty and
Bishkek. The Kazakhstan project includes the
rehabilitation of road with a length of 204 km, consulting
services rendering, purchase of equipment for road and
laboratory maintenance, purchase of customs equipment
for border-crossing point. The project envisages the
reconstruction of life-expired layers of pavement and of
two the most difficult sections of Kordai pass. These
measures will allow to improve the transport passage and
to secure the road safety.
Recipient
Ministry of Transport and Communications.
Name
Financier and budget
million
Rehabilitation of road bypass Karaganda – Astana
IBD USD 59,57 million, Government of Kazakhstan USD 9,75
Objective and results
Road construction works regarding sections Karaganda Osakarovka (87km), Osakarovka - Vishnevka (43km),
Vishnevka - Astana (54,5km), estimated time of
completion in December 2002.
Recipient
Ministry of Transport and Communications
Name
Financier and budget
Roads rehabilitation of roads in Western Kazakhstan
Total USD 208,9 million, of which USD 52,02 million
Government of Kazakhstan
Objective and results
The objective of this project is to increase the efficiency
and safety of the main road sections in West Kazakhstan
by rehabilitating the priority roads, as well as by
increasing the level of roads maintenance and operation.
The project will be realized during the years is 2000 2005.
- Atyrau - Uralsk, 492 km;
- Karabutak - Aktobe, 213 km;
- Karabutak - the border of Kostanay region, 249 km.
Recipient
Ministry of Transport and Communications
Name
Financier and budget
Objective and results
Recipient
Rehabilitation of road Almaty - Gulshad
WB (508 km), IBD (88 km)
The section is divides into different contracts with the purpose
for local road-building companies to participate in the tender.
At present this Project is realized, estimated completion date is
September 2002.
Ministry of Transport and Communications
Name
Financier and budget
Rehabilitation of road Akchatau - Karaganda
ADB, Government of Kazakhstan
Objective and results
Approved in April 2000. Local staff will do not less than
75% of the works; there are stipulations for obligatory use
of local construction materials, machinery and equipment.
Recipient
Ministry of Transport and Communications
Name
Financier and budget
Rehabilitation of road Almaty - Khorgos
ADB
Objective and results
Feasibility study phase
Recipient
Ministry of Transport and Communications
Name
Financier and budget
Rehabilitation of rail Almaty – Astana (1331 km)
USD 61,2 million (railway rehabilitation), USD 6,1 million
(electric power supply rehabilitation), USD 0,9 million (alarm
and communications system), maintenance workshop (USD
38,7 million)
Objective and results
Basic aim of the project is to reduce the train travel time to
12-14 hours and improve the traffic capacity.
Recipient
Ministry of Transport and Communications
Name
Construction of rail Altersara – Gromtau (400 km)
Financier and budget
Estimated USD 200 million, the government is supposed
to finance 84% (not yet allocated) of the contract sum,
while the railways will allocate USD 30 million.
This railway line should provide a direct link between
Kytaurau – Aaktobinsk, through to Russia. The line would
be constructed along the alternative railway line at the
Russian side of the border, mainly to avoid high tariffs for
transit.
Objective and results
Recipient
Ministry of Transport and Communications