Khorgos-East Gate helps Kazakhstan grow as logistics hub between China and Europe

Creating the best conditions for attracting direct foreign investments, developing exports, competitive production, transport and logistics industry and improving the transit potential of Kazakhstan between Europe and China are the main characteristics for which the authorities have decided to set up the free economic area “Khorgos-East Gate”. Due to its geographic position, the most important advantage consists in its potential to form an industrial cluster that delivers opportunities for the development of international cooperation.

The area is located in the south-east of Kazakhstan in Panfilovskiy, Almaty region, (1 km away of Kazakhstan’s border with China) and includes Khorgos International Centre for Cross-Border Cooperation, centres for trade activities, a negotiation platform (526 ha), a dry port, a complex for transport and logistics, an industrial area and a space for industrial companies.
The project is included in the strategic plan for the development of Kazakhstan by 2020 and the total cost of the project is of around EUR 2.6 Billion, EUR 550 Million of which come from the state budget and around EUR 2 Billion from private investments. The area dedicated to container transport with a total capacity of 80,000 TEUs/year (container yard) requires investments of USD 29.78 Million which will be granted through a bank loan. As part of the Khorgos-Eastern Gates, the area dedicated to container traffic is the reloading point in Khorgoswhich will deliver all integrated services for the arrival and departure of trains which cross the border of Kazakhstan and of China. For 2013, the company responsible for this project, Tranco Logistics Group, plans to implement the development of the main phases concerning the construction of the railways, of a terminal and of a building of offices and expects to launch container handling and transport operations by the end of 2014. The objectives of integration and development of the transport and logistics system are implemented by Kazakhstan Railways (KTZ) which signed a memorandum of cooperation in November 2012 with Kazyna Capital Management, BRK Leasing and Kazakhstan Development Bank for attracting investments and the financing of the projects included in the Khorgos – East Gate and in Khorgos International Cooperation Centre. In this context, Kazyna Capital Management will have to consider the possibilities of attracting investors to deliver direct investments, the Development Bank will be responsible for the financing of projects in the private business environment and the attraction of direct investments and BRK – Leasing will grant financial services by making available loan instruments for the private sector.
The free economic area “Khorgos-East Gate” will be connected to the logistics centres of Aktau Port, to those of Uzbekistan and China and will integrate the products delivered by Kazakhstan in the global production system, for the
realisation and delivery of innovating and competitive products compliant to international standards. The development of a favourable investment area and the attraction of national and foreign investments for the implementation of projects will contribute to the development of Kazakhstan and China and of the entire region and will integrate the area in the transport system between Europe and Asia, not just at the level of trade. They  will also gene-rate the improvement of legislation and techniques for the administration and implementation of projects.

[ by Pamela Luică ]
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