With the launch of the special economic zone “Khorgos – East Gate” in Kazakhstan, the transit potential of the country is actively realized, the republic becomes a serious player in the global cargo market. Potential and prospects for the new project are undeniable. Already, at the stage of completion of construction, Khorgos actively attracts potential investors.

Saving time and money

According to Hisham Belmaashi, Deputy Director for Commerce of KTZE-Khorgos Gateway LLP, the new project is primarily of interest to companies involved in the transport of goods between Southeast Asia and Europe, as well as towards Central Asia. Now the cargo movement in these areas is in two ways – by air and by sea. However, with the opening of a new railway from the western China Lianyungang Port to the border with Kazakhstan – Altynkol station near Khorgos – carriers and cargo owners will reconsider their strategy. Moreover, we are talking not only about cargo logistics, but also their production.

Hisham Belmaashi.

— From Lianyungang Port through the whole territory of China to Khorgos, the train goes 5 days. From here, overloaded in a matter of hours, the containers will be delivered to Europe within 9-10 days. Thus, from the east of China to Duisburg (Germany), the cargo will be delivered in two weeks, – says Hisham Belmaashi. – If the customer decides that the cargo needs to be delivered by air from the border to Europe, the road from Khorgos to the Almaty airport on the new Western Europe-Western China highway, which is expected to be commissioned in a year, will take 2 hours.

And now let us compare the railway with other modes of transport. By sea, shipping the goods in the same direction will cost less, but the transportation time will take 35-40 days! By air it is much faster – 3-5 days, but this method of delivery is several times more expensive than the railway, and there are big limitations on the capacity of aircraft. Thus, the railway route through Khorgos is the most optimal in cost and time way to deliver cargo. And this is becoming a new unique offer for the global cargo market. SEZ “Khorgos – East Gate” will play a key role here.

Executive Director of the management company SEZ “Khorgos – East Gate” Zhenisbek Jurtanov notes: the area allocated for the construction of a special economic zone (SEZ) makes 4591 hectares. It consists of three sectors.

The first is a dry port, which is the key link of the SEZ and ensures its connection with Altynkol station. It works on the same principle as the seaport. However, cargo in containers here will be delivered not by ships, but by trains. Containers are unloaded, stored and then formed by directions. For example, Chinese containers will be delivered here, and they will be reloaded into Kazakhstan trains or road transport, which will carry the cargo further through Kazakhstan, to Russia, Central Asia and Europe.

The second sector is the logistics zone, in which logistic companies or directly manufacturers of goods build warehouses. In these warehouses, containers with cargo – clothing, electronics, building materials and many others, coming from a dry port, will be processed and further distributed in the directions in accordance with the instructions of the customer. Let us say 1000 boxes with sweaters to Germany, 500 boxes to Poland and so on. The companies here will have their warehouses and all relevant infrastructure.

The third sector is the industrial zone. It will include industrial facilities. The raw materials, spare parts, components, semi-finished products for the production of finished goods delivered here are exempted from payment of customs payments. Finished goods for sale in EEU countries in certain cases will also not be subject to duties. This is an excellent solution for manufacturers collecting products at Chinese plants for the EEU market. Kazakhstan will also have its own benefit – new jobs will open in our country.

As in Dubai, but better

In accordance with the decree of the President of Kazakhstan, for its development the SEZ “Khorgos – East Gate” will include the following activities:

— maintenance of warehouse and auxiliary transport activity;

— production of food products;

— manufacture of leather and related products;

— manufacture of textile products;

— production of other non-metallic mineral products;

— production of chemical industry products;

— manufacture of finished metal products except for machinery and equipment;

— manufacture of machinery and equipment not included in other categories.