CHINA , EUROPE AND RUSSIA IN THE GAME
For China , Kazakhstan is a crucial component in the execution of the ‘ One Belt , One Road ’ initiative and , specifically , the Middle Corridor . In spring 2023 , Shandong Port Group Corporation announced plans to develop a significant warehouse cluster and dry port near Almaty .
A closed logistics cycle is gradually taking shape between China , Kazakhstan and Russia . This involves consolidating cargo bases in Xi ' an ( China ) and Selyatino ( Moscow region ) and organising transit traffic through Kazakhstan . The capabilities of Lianyungang port , the dry port in Xi ' an , and the free economic zone " Khorgos-Eastern Gate " will be actively utilised , Xinhua News Agency reported .
The European Union is also turning its attention to Central Asia . During the January 2024 investment forum ‘ The Global Gateway ’ in Brussels , European Commission Executive Vice President Valdis Dombrovskis presented an EU-led investment plan for the Middle Corridor totaling € 10 billion .
Meanwhile , Russian private market players are significantly boosting Kazakhstan ' s warehouse infrastructure . Online marketplace Wildberries has announced plans to launch two logistics centres next year — one in Almaty , spanning 100,000 sq . m ., and another in Astana , covering 150,000 sq . m . The total investment in these facilities amounts to $ 132 million , covering construction costs alone , not including equipment and warehouse inventory .
Meanwhile , Ozon ’ s 38,000 sq . m . full-field centre in Astana , launched in early 2023 , is expected to expand by 30,000 square metres in the near future . Additionally , the
Share of investments in fixed capital allocated to transport and warehousing in Kazakhstan
Russian e-commerce giant has announced the construction of a 42,000 sq . m . logistics facility in the Almaty region , requiring an investment of $ 31 million .
The Russian Export Centre offers asset insurance for manufacturers and distributors operating internationally , covering up to 90 % of the amount owed by foreign counterparties that fail to meet their obligations . This is particularly valuable in Central Asia , a region perceived as having persistent risks of economic and socio-political instability .
Central Asian countries have much to achieve to bring their logistics to the required level . In addition to constructing warehouses and transport routes , they must continue developing their human capital , investing in digital infrastructure , reforming legislation and fiscal policies , ensuring property rights protection and promoting regional integration .
If these efforts come to fruition , Central Asia could see the development of up to 20 million sq . m . of quality warehouse space . The growth potential is considerable , with demand expected to increase by 4.6 times in Kazakhstan , 8.8 times in Uzbekistan and 20 times in Tajikistan .
PHOTO : EVGENY MATVEEV / UNSPLASH
Source : Qazstat
1
Annual GDP growth reaches 4.5-5.5 % in Kazakhstan and 7.0 % in Kyrgyzstan and Uzbekistan ( EBRD forecast for 2025 ).
2
Also known as the Trans-Caspian International Transport Route ( TITR )
3
“ Concept for the Development of Transport and Logistics Potential of the Republic of Kazakhstan until 2030
4
Here and further , including OPEX , excluding VAT
5
Depending on currency exchange variations
6
The shortage in the warehouse segment has led to a trend of irrevocable contracts with terms of up to 10 years , allowing investors to recoup their investments well before the contract expires . Such long-term agreements are unique to this segment . Another outcome of this shortage is the growing popularity of the Built-to-Suit ( BTS ) format , where a developer constructs a complex tailored to a specific customer . The tenant agrees to long-term commitments from the outset , ensuring 100 % occupancy and stable income for the owner . In the current market , 93 % of potential clients are willing to opt for the BTS option .
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