China and Kazakhstan to Establish Three Shared Oil Terminals in 2023
Kazakhstan and China are set to establish a network of logistics hubs in 2025, with proposed complexes in Almaty, the Moscow Region of Russia, and Alyat, Azerbaijan. These projects aim to boost regional connectivity and economic cooperation.
According to Kazakhstan Temir Zholy (KTZ) national railway company, these plans were officially approved during a meeting between KTZ Chairman Nurlan Sauranbayev and Fan Hongwei, party secretary of Xi'an. By 2026, Kazakhstan aims to complete a fully operational East-West terminal network, which includes proposed logistics centers and terminals in Svisloch, Belarus, and Budapest, Hungary.
Last year, the volume of transportation at the Xi'an joint cargo terminal, a significant hub on the Trans-Caspian International Transport Route, increased 33-fold. Over 5,000 trains departed from the Xi'an dry port in the China-Europe direction, accounting for 25% of all shipments on this route - a record high. Additionally, Kazakhstan and Xi'an continue to advance international logistics projects, investing over $200 million.
This network of logistics hubs is expected to strengthen economic ties among participating countries by improving transportation and logistics capabilities, reducing transit times, and increasing trade volumes, including e-commerce. While specific details regarding the involvement of Azerbaijan, Belarus, and Hungary were not provided, the overall improvement in regional logistics could positively impact broader trade initiatives.
Key initiatives within these projects include the development of a navigable river corridor connecting Russia, Kazakhstan, and China, upgrades to rail infrastructure, and construction of a logistics park in the Abai Region by Chinese investors. The establishments of a trade and logistics hub in the Moscow Region and a terminal in Alyat, Azerbaijan, are also part of these ambitious plans.
These logistics projects are essential for Kazakhstan's role as a key transit hub, benefiting trade and economic cooperation between China, Russia, and other countries in the region. By optimizing transit routes and cargo handling efficiency, these projects aim to increase trade volumes and foster enhanced economic cooperation.
In the context of regional connectivity and economic cooperation, the establishment of logistics hubs in 2025 is anticipated to involve not only Kazakhstan, China, and the stated locations, but also potentially Belarus and Hungary, as Kazakhstan plans to complete a fully operational East-West terminal network including proposed logistics centers in Svisloch, Belarus, and Budapest, Hungary by 2026. The improvement of these logistics networks could boost finance and business opportunities, especially in e-commerce, as well as enhance transportation capabilities, reducing transit times and increasing trade volumes.
