This year, 21 assets of the Kazakhstan Temir Zholy group will be privatized, including the Aktau International Sea Trade Port and a number of regional airports under the management of KTZ, the company’s director Kanat Alpysbaev announced.
“We expect the active participation of Kazakhstan and foreign investors in the implementation of the program of state privatization,” Alpysbayev said. He explained that the measures will improve the investment climate and business environment and will contribute to the growth of country’s GDP.
One of the country’s priority envisages the improvement and the expansion of the business environment and for its implementation, active work is ongoing to bring the KTZ group’s companies into a competitive environment. These measures are carried out within the framework of the state privatization program and the company’s Development Strategy.
In accordance with the instructions of the Head of state and the Government of Kazakhstan, KTZ was transformed from a railway company into a transport and logistics holding company. The holding company faces the task of realizing the transit potential, becoming Kazakhstan’s business and logistics hub of the New Silk Road. “The target structure of the KTZ group’s companies is currently being formed through the consolidation of core assets and concentration in the main segments of the transport and logistics business, as well as the privatization of non-core auxiliary assets,” Alpysbayev said.
During the first stage of the second phase of privatization (2014-2015), 21 assets were realized for a total of KZT 42.4 billion (USD 134.5 million).
In order to attract foreign investments, 50% of the shares in Lokomotiv Kurastyru Zauyty were sold this year to General Electric. At the beginning of 2017, KTZ sold a 50% stake in Astyk Trans and a 78% stake in Kazakhstanskaya Vagonostroitelnaya Kompania for KZT 5.3 billion (USD 16.8 million) and KZT 1.8 billion (USD 5.7 million) respectively. Astyk Trans is an equally owned joint venture by KTZ’s subsidiary Kaztemirtrans and Russian rail operator Rusagrotrans. Kazakhstanskaya Vagonostroitelnaya Kompania is a Kazakhstan railway wagon producer.
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