Research about Transport economy of Kazakhstan
Kazakhstan, officially Republic of Kazakhstan, has the population of 15,186,000 people and territory 2,719,500 sq km, is situated in central Asia. It borders on Siberian Russia in the north, China in the east, Kyrgyzstan, Uzbekistan, and Turkmenistan in the south, and the Caspian Sea and European Russia in the west. Astana is the capital and Almaty is the largest city. Other major cities include Shymkent, Semey, Aqtobe, and Oskemen. As a country with a market economy, Kazakhstan is an integral part of the global economy and an active participant in the globalization process. The economy of Kazakhstan is the largest economy in Central Asia. It possesses enormous fossil fuel reserves as well as minerals and metals. It also has considerable agricultural potential with its vast steppe lands accommodating both livestock and grain production, Wheat, cotton, sugar beets, and tobacco are the main crops. The raising of cattle and sheep is also important, and Kazakhstan produces much wool and meat. In addition, there are rich fishing grounds, famous for their caviar-producing sturgeon, in the Caspian, although these have been hurt by overfishing. as well as developed space infrastructure, which took over all launches to the International Space Station from the Space Shuttle. Kazakhstan's industrial sector rests on the extraction and processing of these natural resources and also on a relatively large machine building sector specializing in construction equipment, tractors, agricultural machinery, and some military items.Kazakhstan is rich in natural resources, most notably oil and natural gas, but also coal and minerals, including iron ore, chromium, uranium, copper, nickel, cobalt, gold and many others. Kazakhstan has considerable agricultural potential. Development of these natural resources has been hindered by the fact that Kazakhstan is a landlocked country, giving rise to infrastructure and transport cost issues, especially for bulk commodities. Potential export routes are also vulnerable to political and economic instability in neighboring countries. Nevertheless, the abundance of natural resources has attracted considerable interest among international investors, particularly in the oil and gas sectors. Oil and gas is the leading economic sector. Kazakhstan has the potential to be a world-class oil exporter in the medium term. Kazakhstan's economic future is linked to oil and gas development. GDP growth will depend on the price of oil, as well as the ability to develop new deposits. Kazakhstan is the third country in the world for uranium production volumes, and it owns the world second biggest uranium reserves after Australia. It has also the largest silver, zinc and nickel markets in West Asia. What about foreign trade? The share of trade with traditional partners - the CIS and Baltic countries - large, accounting for about 59% of exports and 63% of imports. In this case the main trading partner is Russia. State of CIS successfully develop trade relations with Germany, Turkey, Switzerland, Czech Republic, Italy, China, USA, UK, South Korea and others. Kazakhstan in the world trading system In recent years, Kazakhstan has become more integrated into the world economy. Foreign investment has increased, especially in the oil and natural-gas sectors. In 1994 Uzbekistan and Kazakhstan established a free-trade zone between the two countries, and Kyrgyzstan soon joined the agreement. In July 2010, began operating the Customs Union of Belarus, Kazakhstaёn and Russia. By some estimates, the Customs Union will promote economic development and may provide an additional 15% to the GDP of the participating countries in 2015. Negotiations on Kazakhstan’s accession into the WTO initiated in 1996 are at the closing stage now. Kazakhstan is currently in active bilateral talks with 26 EU countries and is planning to become a full member of the organization by 2012.
Efficient, stable and reliable transport has always been one of the most important factors in the development of any economy in the world. Currently, road transport is becoming increasingly important worldwide. It accounts for a significant amount of freight and passenger traffic. This situation is typical for Kazakhstan from 2010 to 2014 the Number of vehicles (figure 1)
increases at an average annual rate of 6.1% per year; provision of population with passenger cars (figure 2) is also increasing at an average rate of 5.21% per year.￼
At the same time, a significant share of vehicles imported to Kazakhstan from other States, in this connection, it is interesting to consider how the economic crisis changed the structure of import of passenger cars in the Republic of Kazakhstan.
The reduction in the production of cars in Kazakhstan
The study shows that car production in Kazakhstan has also declined, especially in 2015, reflecting a decrease in incomes and the increased import of cars from Russia.
On state regulation in the automotive market and support the production of cars in Kazakhstan
To maintain domestic production in Kazakhstan, necessary measures of state support. Is currently implementing a number of restrictive measures to promote domestic products: restrictions on the import of cars that do not meet the requirements of safety and environmental protection;
the increase in tax fees and duties while simultaneously implementing the program of preferential car loan.
Overall, these measures appear quite effective: the share of sales of cars of Kazakhstan production increased from 11.03% in early 2015 to 17% at the end of the year, and according to market dynamics, will continue to grow in 2016.
Insights: what cars would enjoy massive demand in the market of Kazakhstan
The analysis shows that the automotive market is increased consumer demand for more affordable cars by a decline in interest in expensive brands, therefore in the future we should expect further increase in the proportion of vehicles from Russia and China. The second group is a commercial service facilities, motels, campgrounds, gas stations, service stations, terminals, etc. unfortunately, due to the lack of effective oversight and regulation by governmental bodies, the highway service facilities appear spontaneously in violation of the Law of RK on the roads. The main condition for the development of road transport is the condition of the road network and car service. Kazakhstan has not developed the industry in the automotive industry that highlights the problem of replenishment of the fleet. In the Republic is low security landscaped roads, which increases the cost of carriage of goods by road
Railway transport is the main mode of transport of Kazakhstan, it performs almost 70% of freight turnover of all modes of public transport usage. At the operational length of Railways of the Republic takes 3rd place in the CIS after Russia and Ukraine. However, the density of Railways in Kazakhstan is quite low and does not satisfy the needs of the Republic. In 1958 on the basis of the Turkestan-Siberian railway was established the largest in the USSR, the Kazakh railway, which in 1976 to improve the efficiency of rail transport has been divided into 3 roads — Almaty, West Kazakhstan and Celenu.
The infrastructure of transport complex of the Republic railway transportation occupies a monopoly position. Railway lines, their passage in a particular territory, the quality or cost of transport have a significant impact on regional and sectoral economic development. The message of the President of the Republic of Kazakhstan "Kazakhstan — 2030" States: "the Task of Kazakhstan is to ensure the competitiveness of the domestic transportation-communication complex on the world market and increase trade flows through our territory."
In this regard, the national programme of railway transport development provides for two priority areas: — implementation of projects on creation of TRANS-Asian and Eurasian railway; — construction of new Railways and domestic use.
An important problem is the creation of an internal railway network. The specificity of rail transport, which requires large volumes of capital investments that do not bring instant profits, makes problematic investment in the industry. However, the need for further development of the productive forces of the country requires the construction of new Railways and domestic use. With the growth of integration at the international level, the expansion of ties between East and West has increased the need for the organization transcontinental and sub-regional corridors through the territory of Kazakhstan. The territory of Kazakhstan, provided a combination of national freight flows with potential for transit, could become one of the key elements of the TRANS-Asian railway. Of particular importance to integrate the national economy into the global economic space, given the inland location of Kazakhstan, will have the extension of transport flows by rail from China, Russia, Middle East and connection to European transport routes. Between Turkmenistan, Kazakhstan and Iran signed an Agreement on construction of a new highway that is scheduled to start on the East coast of the Caspian sea. This route, first, expanding the transportation routes of Kazakhstan, and secondly, expanding transit opportunities of the Republic in connection with Russia's interest in this project. Strengthening of existing transport lines of Kazakhstan put forward a number of issues are as follows: — wear and a large retirement parks cars, medium thrust and the dependence from abroad in the absence of own production; — limited financial resources and insufficient scientific provision of the industry; — insufficient legislative protection of the rights and interests of railway transport and national carriers.
The configuration of the rail network was formed under the influence of two factors: first, is the growth of inter-regional and inter-Republic flows in the result of the development of mineral deposits and virgin, and secondly, the growth of transit cargo flows. Railway transport of the Republic adequately service inter-regional, inter-Republican and transit cargo, some worse prepared rail network for freight between the regions of the republics.
Water transport is divided into sea and river. Maritime transport currently operates only in the Caspian sea, where there are ports through which the connection of Kazakhstan with Azerbaijan, the Lower Volga region, Turkmenistan, Dagestan and Iran. Mainly on the Caspian sea transported oil and oil products, construction materials, fish, machinery and equipment. Transportation of oil and oil products began in 1996 with the commissioning of the complex facilities for oil loading into tankers.
Through the ports of Bautino and Aktau, which play an important role in the development of transport and economic ties Mangyshlak industrial district, the export of building material (limestone), oil, and imported cement, timber, machinery and equipment. Before the navigation was implemented on the Aral sea, when through the port of Aralsk held a relationship with Uzbekistan via the port of Muynak in Karakalpakstan. The predominant types of cargo was cotton, rice, melons, fish, forest. River transport plays a significant role in the development of relations with the near abroad and domestic relations. On the main navigable river, Ertis Kazakhstan is associated with the Omsk and Tyumen regions of Russia on export of cement and the import of timber and oil. Intercity communications on this river are taking place between East Kazakhstan and Pavlodar regions, dominated by construction materials (cement), grain and petroleum products.
It should be noted that rivers of Kazakhstan are not abounding and large fluctuations in depth by season, so you need to increase the depths of rivers to ensure the growth of traffic volumes. For the development of water transport of Kazakhstan needed construction and reconstruction of a number of harbours and marinas, ship repair and shipbuilding enterprises, and the completion of the shipping boats and barges increased weight. Currently the system of water transport of Kazakhstan has created the 7 Republican state enterprises of the waterways as well as Passenger Agency in Aktau, Pavlodar, Semipalatinsk and Ust-Kamenogorsk on the basis of the privatization of the passenger fleet and river stations. Available ports on the Caspian sea — Aktau, Balykchi, Bautino, Yeraliyev, Fort Shevchenko can become transit points of traffic. The reconstruction of Aktau port the European Bank for reconstruction and development has allocated a loan to Kazakhstan in the amount of $ 54 million. It is going to turn into the largest transshipment point in the international trade of the Caspian countries. Now it is working in the RSE "Aktau sea port". Modernization of port facilities, primarily to affect the terminals. For the supply of equipment concluded 5 contracts, 3 of them-e Germany 2 — Japan.
Developed the project of creation of its own fleet, worth 94 million dollars. At the first stage it is planned to form the Shipping company of 10 units of vessels (5 tankers and 5 bulk carriers) that meet the Convention's requirements. The Strategy of investment-innovative development of Kazakhstan for 2003 2015 noted that the port of Aktau is an important structural element. It has modern and updated infrastructure: Railways, roads, underground communications, mooring and mobile cranes, and
The inland location of Kazakhstan requires the growth of air transportation. 8 the country was 58 airlines, of which 13 were national with state ownership, the share of which in all kinds of passenger traffic is 85-90%. There is an active process of creation of the National airline "air Kazakhstan". 9 airports transformed into an independent JSC, and 12 airports of regional significance remained in the regional airlines. To form a new fleet in the near future, envisages the privatisation of the company "air Kazakhstan" by selling a 30-40% stake to investors for individual projects with the aim of upgrading the fleet through leasing and acquisition of vessels of a high class.
Large airports in Kazakhstan is highly promising as a staging post between Europe and Asia, North and South, which makes them favorable for attracting foreign and domestic capital. Through the airspace of the Republic takes air routes TRANS-Asian route system. The main directions of transit flows through Kazakhstan are the flows from Europe to South-East Asia.
Existing demand for use of airspace requires: — early aircraft fleet renewal; — elimination of receivables and payables; — major upgrade of all airports of the Republic; — increase the degree of coordination airlines operating on the transport market; — improvement of technical means of air traffic control, navigation and communication.