ISSN 1880-8468
Technical Report ofInternational Development Engineering࿖㓙㐿⊒Ꮏቇႎ๔TRIDE-2010- 04

March 15, 2010

Shinya Hanaoka, Tomoya Kawasaki
Survey Report on Freight Transport in
Landlocked Countries in Central Asia
(English version of TRIDE-2010-01)

Department of International Development Engineering,
Graduate School of Science and Engineering,Tokyo Institute of Technology
http://www.ide.titech.ac.jp/TR

Survey Report on Freight Transport in Landlocked Countries in Central Asia

March 2010

Shinya Hanaoka*
Tomoya Kawasaki*** Associate Professor, Department of International Development Engineering, Tokyo Institute of Technology* 2-12-1-I4-12, O-okayama, Meguro-ku, Tokyo 152-8550, Japan* Tel/Fax +81-3-5734-3468, E-mail: hanaoka@ide.titech.ac.jp** Doctoral Student, Department of International Development Engineering, Tokyo Institute of Technology

Table of Contents
1. Background and Purpose of Survey ……………………………………………...………..

1

2. Survey Schedule …………………………………………………………………………...

2

3. Basic Data …………………………………………………………………………………

3

3-1 Uzbekistan ………………………………………………………………………......

3

3-2 Kazakhstan ………………………………………………………………………......

5

3-3 Logistics Performance Index ……………………………………………………......

8

4. Site Survey and Interview …………………………………………………………………

10

4-1 Uzbekistan ………………………………………………………………………......

10(1) Uzbekistan/Kazakhstan Border (Yallama) ………………………………….......

10(2) State Customs Committee ………………………………………………………

11(3) State-Joint-Stock Railway Company ……………………………………...……. 13(4) Uzbek Agency of Road and River Transportation ……………………………… 18(5) Association of International Road Carriers …………………………………......

20(6) Association of International Forwarders of Uzbekistan ………………………...

21(7) Railway Container Terminal ……...……………………….……………………. 24(8) Ministry for Foreign Economic Relations, Investments and Trade …………...... 25(9) JICA Uzbekistan Office ………………………………………………………… 25
4-2 Kyrgyzstan ………………………………………………………………………......

26(1) JICA Kyrgyz Republic Office ………………………………………………......

26(2) Kyrgyzstan/Kazakhstan Border ………...………………………………………. 26
4-3 Kazakhstan ………………………………………………………………………...... 28(1) Kaden Transport Service / Almaty I Railway Container Terminal ……………... 28(2) Research Institute for Transport and Communications …………………………

30(3) DAMU ………………………………………………………………………...... 32(4) Kazakhstan/China Border (Khorgos) …………………………………………...

35

5. Questions ………………………………………………………………………………...... 35
Acknowledgements …………………………………………………………………………..

36

References ……………………………………………………………………………………

36

1. Background and Purpose of Survey(1) Background
Landlocked Countries (LLCs) have no seaport by their nature. For this reason, maritime
transport, which, characteristically, has a low unit transport cost, cannot be used within theirterritories. Thus, land transport (truck, rail, etc.) must be used through Transit Countries (TCs)for accessing the seaport from LLCs. It is reported that the level of economic growth in LLCs is
reduced by 0.5% because of their lack of seaports (Sachs et al., 2004); this lack also means that
14% of all export earnings have to be paid to TCs (Collier, 2007).
NELTI (2009) reported that transport operators working in LLCs are frequently charged an
unofficial fee, which is not at all necessary, in order to transport the freight over the border. Since
all LLCs, except in Europe, are normally surrounded by developing countries, the infrastructure
conditions in TCs are sometimes insufficient for haulage. Moreover, these LLCs are exposed toseveral freight transport risks such as damage to their commodities, theft, and delay.
The problem of freight transport in LLCs has been a matter of concern voiced by several
international organizations, as can be seen in documents such as Almaty Declaration1, which was
adopted in 2003. UNESCAP (2003) attempts to assist
the decision-making of the LLCs in terms of their route
144
Almatychoices and/or sea port access mode choices by
108
presenting the graphs shown in Figure 1. However, this72
Dostykgraph does not express the “real cost” of transporting
36
Lianyuanthrough TCs, which is a significant risk factor for
Alashankou
LLCs.

Total Shipment Charge:$3,0100(2) Purpose
In order to carry out a quantitative risk analysis, aninterview survey was conducted in Uzbekistan andKazakhstan. The routes that Uzbekistan and Kazakhstan
are using and the treaties in place on their freighttransport activities are assessed. Therefore, this study
attempts to explore three aspects that affect LLC’s
transportation: (1) freight transport route, (2) related
treaties, and (3) freight transport risks. The phrase“(confirmation required)” is added in the contents incases where the evidence was inconclusive.
1

1,500

3,000

4,500

6,000

Adding risk factor
e.g. Delay in TCs
Almaty144

108

Delay Occurredin TCsTotal Shipment Charge:$3,010+α

Dostyk72
Alashankou

36

Lianyuan

0

1,500

3,000

4,500

Figure 1: UN Methodology and Risk Factors*Based on UNESCAP (2003)

The Almaty Declaration was adopted at the international ministerial meeting from August 25–29, in Almaty. This declaration
contains recognition of the problems encountered by freight transport in LLCs, strengthens international cooperation, andhighlights the importance of continuing discussions.

1

6,000

2. Survey Schedule
2009
September 27 (Sunday)
11:00–13:00

Visiting the Uzbekistan/Kazakhstan Border (Yallama)

September 28 (Monday)
10:00–11:00

State Customs Committee

11:40–13:00

State-Joint-Stock Railway Company

14:20–15:20

Uzbek Agency of Road and River Transportation

15:50–16:50

Association of International Road Carriers

September 29 (Tuesday)
10:00–11:00

Association of International Forwarders of Uzbekistan

11:30–12:00

Ministry of Foreign Economic Relations, Investments, and Trade

14:00–16:00

Visiting the Railway Container Terminal

17:00–17:30

JICA Uzbekistan Office

September 30 (Wednesday)
11:00–13:00

JICA Kyrgyz Republic Office

13:00–19:00

Visiting the Kyrgyzstan/Kazakhstan Border

October 1 (Thursday)
10:00–11:30

Kaden Transport Service / Almaty I Railway Container Terminal

13:00–14:00

Research Institute for Transport and Communications

October 2 (Friday)
10:00–11:30

Visiting the DAMU Logistics Center

October 3 (Saturday)
10:00–16:00

Visiting Khorgos (Cancelled)2

3. Basic Data
3-1 Uzbekistan(1) Population
27,606,007 (as of 2009)
Source: CIA (2009)(2) GDP
Immediately after achieving independence from the former Union of Soviet Socialist Republics(USSR), Uzbekistan’s level of economic growth declined. After passing through these difficult
times, the country began, after 1996, to experience positive economic growth, and Uzbekistan
finally achieved a +10% GDP growth rate in 2007. The GDP per capita in 2009 is estimated tohave reached 2,805 USD (IMF, 2009). This indicates that the growth rate in 2009 against theprevious year is +6.52%, which implies that Uzbekistan has not been widely affected by the
recent economic crisis. On the other hand, the GDP growth rate in 2009 in Kazakhstan is
expected to be negative because of the economic crisis.

3,000

12
GDP Growth Rate
8

2,000
4
1,500
0
1,000
-4

500

2009 est

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

-8
1993

0
1992

GDP per Capita (USD)

GDP per Capita

Figure 2: Change in GDP Per Capita and Economic Growth Rate in Uzbekistan
Source: IMF (2009)

3

GDP Growth Rate (%)

2,500

(3) Trade Partners(a) Export: 10.37 Billion USD (as of 2008)
Source: CIA (2009)
RussiaTurkeyKazakhstan
Bangladesh
China
UkraineJapanUSTajikistan
Others
0

5

10

15

20

25

30
(%)

Figure 3: Trade Partners of Uzbekistan (Export)
Source: CIA (2009)(b) Import: 7.07 Billion USD (as of 2008)
Source: CIA (2009)
RussiaChina
S. Korea
Germany
Kazakhstan
TurkeyUS
Others
0

5

10

15

20

25

30
(%)

Figure 4: Trade Partners of Uzbekistan (Import)
Source: CIA (2009)4

(4) Type of Goods (as of 2008)
Source: CIA (2009)(a) Export
cotton, gold, energy products, mineral fertilizers, ferrous and non-ferrous metals, textiles, foodproducts, machinery, automobiles(b) Importmachinery and equipment, foodstuffs, chemicals, ferrous and non-ferrous metals

3-2 Kazakhstan(1) Population
15,399,437 (as of 2009)
Source: CIA (2009)(2) GDPIn a trend that is similar to Uzbekistan, in the years immediately after gaining independence fromthe former USSR, Kazakhstan’s economic growth in terms of GDP was recorded as negative.
Subsequently, the country managed to achieve continuously high economic growth because of its
abundant natural resources, particularly oil. In 2000, it reached the 10% mark (12.44%), andmaintained an economic growth rate of over 10% until 2007. Nevertheless, the growth rate
drastically decreased until it reached 5.30% in 2008 and finally, a negative rate is expected tohave occurred in 2009. One of the reasons for this decline in economic prosperity could be that
their industrial sectors, which are highly dependent upon oil production, have been affected by
the relatively low price of crude oil recently.

5

14,000

20
GDP Growth Rate

15

GDP per Capita (USD)

GDP per Capita
10,000

10
8,000
5
6,000
0
4,000
-5

2,000

2009 est

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

-10
1992

0

Figure 5: Change in GDP Per Capita and Economic Growth Rate in Kazakhstan
Source: IMF (2009)(3) Trade Partners(a) Export: 71.97 Billion USD (as of 2008)
Source: CIA (2009)
China
RussiaGermany
Italy
Romania
FranceTurkeyOthers
0

5

10

15

20

25

30

35

Figure 6: Trade Partners of Kazakhstan (Export)
Source: CIA (2009)

6

40

45
(%)

GDP Growth Rate (%)

12,000(b) Import: 38.45 Billion USD (as of 2008)
Source: CIA (2009)

RussiaChina
Germany
UkraineOthers

0

5

10

15

20

25

30

35

40
(%)

Figure 7: Trade Partners of Kazakhstan (Import)
Source: CIA (2009)(4) Type of Goods
Source: CIA (2009)(a) Export (as of 2001)
oil and oil products (59%), ferrous metals (19%), chemicals (5%), machinery (3%), grain, wool,
meat, coal(b) Import (year is unidentified)machinery and equipment, metal products, foodstuffs

7

3-3 Logistics Performance Index
The Logistics Performance Index (LPI) is an indicator standardized by the World Bank (WB)
representing the “friendliness” of countries where worldwide logistics operators operate andthose with whom they trade (WB, 2010). This is evaluated by the following seven parameters:(1) customs, (2) infrastructure, (3) international shipments, (4) logistics competency, (5) tracking
and tracing, (6) domestic logistics costs, and (7) timelines. A questionnaire form is distributed tooperators on the ground worldwide (global freight forwarders and express carriers). In thequestionnaire, interviewees are asked to rank each item for each country according to five levels.
In 2010, according to the LPI, Uzbekistan and Kazakhstan are placed at 68th and 62nd place,respectively, out of 155 surveyed countries. Germany achieved the highest LPI score. Table 1
shows the 2010 LPI ranking and score of the top ten countries, together with the ten Asian LLCs,
as defined by UN-OHRLLS (2009). The top ranking Asian LLC is Kazakhstan, at 62nd place(LPI: 2.83) and the lowest ranking is Nepal, at 147th place (LPI: 2.20). The average score for
Asian LLCs is 2.46, which is quite low compared to the world average score (2.87). From thesefacts seen above, it can be inferred that being an LLC increases the number of disadvantages ofeach country with regard to freight transport.

Figure 8: Logistics Performance Index in the World
Source: World Bank (2010)8

Figure 9: Landlocked Countries in the World (Red: Doubly Landlocked Country)
Source: CIA (2009)
Table 1: LPI Ranking of the Top Ten Countries in the World and the Top Ten Landlocked
Countries in Asia in 2010
Top 10Rank

Landlocked Country in Asia

Country

LPI

Rank

Country

LPI

1

Germany

4.11

62

Kazakhstan

2.83

2

Singapore

4.09

68

Uzbekistan

2.79

3

Sweden4.08

91

Kyrgyzstan

2.62

4

Netherlands

4.07

114

Turkmenistan

2.49

5

Luxembourg

3.98

118

Lao PDR

2.46

6

Switzerland

3.97

128

Bhutan

2.38

7

Japan

3.97

131

Tajikistan

2.35

8

United Kingdom

3.95

141

Mongolia

2.25

9Belgium

3.94

143

Afghanistan

2.24

10

Norway

3.93

147

Nepal

2.20

Source: World Bank (2010)9

4. Site Survey and Interview
4-1 Uzbekistan(1) Uzbekistan/Kazakhstan Border (Yallama)
The site survey at Yallama, which is on the Uzbekistan/Kazakhstan border and is a crossing point
exclusively used for trucks, was conducted from 11:00 to 13:00 on September 27. Yallama islocated approximately 80km southwest from Tashkent (approximately 40 minutes by car), as
Figure 10 shows. Two checkpoints had to be passed on the journey between Tashkent andYallama.

Figure 10: Location of Uzbekistan/Kazakhstan Border (Blue: Yallama, Red: Gisht-Kuprik)

Picture 1: Yallama (Uzbekistan Side)

10The border crossing at Yallama is open between 8:00 and 20:00. According to the driver who
was first in the queue on the morning of the survey, he had arrived at Yallama the evening before.
He transported freight from Kazakhstan to Uzbekistan, and when he was surveyed, was returning
to Kazakhstan. Thus, his truck was empty. As shown in Picture 1, approximately ten trucks werequeuing in front of the border waiting for it to open. Officially, Yallama is reserved exclusively
for trucks; despite this, it was observed that some local passengers were also using this border
point to cross between the two countries. After visiting Yallama, we headed to the Gisht-Kuprik
border, located at nearby Tashkent as shown in Figure10. However, the border was closed andprotected by border guards. Gisht-Kuprik has been closed for approximately one year as it isundergoing renovation.

(2) State Customs Committee
The State Customs Committee was interviewed on September 28, between 10:00 and 11:00.
Cargoes that are bound for Europe from Uzbekistan are generally transported via Kazakhstan
and Russia. Other routes to Russia are available, such as the route that goes via the Caspian Sea
and Bandar Abbas seaport (see Figure 11). However, in general, seaports in Pakistan (e.g.,
Karachi seaport) are rarely used. Iran is not a member of the Agreement on Freight Transport,
which is related to customs bonds in CIS (Commonwealth of Independent States) countries. In
this agreement, procedures for border crossing and cargo inspection in CIS are exempted for
haulages that take more than two border crossings. For example, on the route ofUzbekistan-Kazakhstan-China, under the agreement, cargo inspection is not required whenentering Kazakhstan. However, cargo will be inspected at the border of Kazakhstan/China since
China is not a member of this agreement. Due to the above agreement, customs duties,
entrance/departure fees, and transit fees in CIS countries and Russia are comparatively lower
than those levied when passing/entering China (confirmation required). However, in CIS
countries, additional processing fees (e.g., filling invoices) are charged. This revenue is used forroad construction and maintenance.
The rates of customs duty are determined according to the weight and volume loaded, as
stipulated in the agreement mentioned above. Nothing is charged for trucks with a cargo weightof less than 40 tons. Since there is no customs duty charge levied when good are transported byrail haulage, regardless of their weight and volume, total cargoes of more than 40 tons per
haulage tends to be transported by railway. As stipulated in the agreement, permission fortransporting by truck in Kazakhstan and Russia is not required. Permission is also not necessary
when transporting along the Iranian route, even though Iran is not a member of the agreement.
Thus, Uzbek trucks can be driven in Iran. The border for the rail crossing is open 24 hours, andthe processing time is comparatively shorter. On the other hand, the border crossing for trucks is11

only open between 9:00 and 18:00, and there is a longer processing time required than there isfor rail. The types of export goods that are transported are mainly daily goods, cotton, andautomobiles, which are mainly exported to Russia, China, and Europe. On the other hand, import
goods are mainly oil, electrical goods, and daily goods. Similar to the case of exportation, they
are imported from Russia, China, and Europe.
RussiaKazakhstan

Caspian Sea

Vostochny (Vladivostok)
SeaportDostyk/Alashankou
Uzbekistan

Turkmenistan

Kyrgyzstan

Nakhodka
SeaportTajikistan

CLB
Iran

Afghanistan

China

Lianyungang Seaport
Shanghai Seaport

Pakistan

Bandar Abbas Seaport
Karachi Seaport
India

South East Asia

Figure 11: Location of Each Point
In the case of haulage between Uzbekistan and Japan, the China Land Bridge (CLB) via
Dostyk/Alashankou (Kazakhstan/China border) is generally the land route used to access theseaport of Lianyungang. For haulages bound for South East Asia, maritime transport via theseaport of Bandar Abbas is chosen, due to high cost of land transport via China.
Several procedures and inspections are conducted along the way. In the case of exports, they are
conducted at the departure stations of the other country and border crossing points. In the case ofimports, the inspections and procedures are conducted at the border crossing points and thearriving stations in the country. Suspicious cargo is usually inspected at the border crossing point.
An infrared scanner is installed at the Uzbekistan border. For imported cargo from China,
inspection is always carried out using radial rays. For cargo from Afghanistan, a very strict checkis undertaken in order to prevent dangerous objects from being imported into Uzbekistan (e.g.,
drugs and guns).

12(3) State-Joint-Stock Railway Company
The interview with the State-Joint-Stock Railway Company (SJSRC) was conducted from 11:40
to 13:00 on September 28.
The modal share of rail haulage accounts for approximately 80% of all Uzbekistan’s container
freight transport (confirmation required). The remaining 20% are transported by truck, which
accounts for the high modal share in Uzbek domestic short-distance freight transport. Thirty
percent of exported goods of Uzbekistan are natural resources (mostly oil) that are exported toEurope and China. Some of their goods are exported to Afghanistan. On the other hand, there isrelatively little import volume for natural resources.
Table 2: Trade Partners and Corresponding Goods of Uzbekistan According to SJSRC
ExportImportPartner
1. Europe (via Bandar Abbas)
2. China (via Dostyk/Alashankou)
3. Kazakhstan, Russia, Europe
4. Afghanistan
5. Kyrgyzstan, Turkmenistan,
Tajikistan
1. China (via Dostyk/Alashankou)
2. Europe
3. Russia
4. Korea (via Lianyungang andDostyk/Alashankou)

Goods
1. cotton, oil, crops
2. oil, cotton, silk material, plastic, bottle (secondary goods)
3. For Russia: crops, automobile
For Europe: cotton, fertilizer, oil
4. food (wheat, beans), metal, oil
5. metal, cement, oil, fertilizer, construction material
1. electrical goods, construction material, machinery
2. food (unavailable food in Uzbekistan), machinery
3. Russian food, timber
4. automobile parts (shortage of production in Uzbekistan)

The current railway network in CIS countries is mostly a product of the USSR. Thus, it is widely
recognized that the railway system is designed with none of the current border lines in mind. Railhaulage from the Fergana basin to Samarkand, for example, must pass through Tajikistan. Evenon a short journey (approximately 100km) through Tajikistan, 280–300USD per wagon must be
paid to Tajikistan. In order to avoid this, haulage by truck is widely used within this Origin and
Destination (OD). Daily goods and food are the main goods transported in this OD.
Rail haulage transports an approximate average of 30,000 tons/day by 10-car train. Goods suchas automobiles, oil, and material are transported by rail, and the volume of exported goods islarger than that of imported goods. In 1992, the Central Soviet Union Railway Company wasestablished. This company established a treaty in CIS countries that regulates freight transport.
CIS countries are making efforts to reduce empty haulage in CIS countries. Locomotives cannot
cross a border, on the other hand, wagons can. As the volume of cargo that is transported
increases, the accident rate also successfully decreases, due to modernized rail facilities. There
are data that suggest theft occurs in both import and export by rail haulage.

13

Fergana Basin
Passing in Tajikistan

SamarkandFigure 12: Transport Network of Uzbekistan (Red Circle: Passing in Tajikistan)
In terms of the haulage from Uzbekistan that is bound for Japan, the cargo volume itself isrelatively low. However, in the case of transporting to Japan a route via Russia (using the seaportof Vladivostok on the Trans-Siberian Railway (TSR)), Kazakhstan (Dostyk/Alashankou), or
China (seaport of Lianyungang using CLB) is generally used. Similarly, in the case of haulage
from/to Korea, the seaport of Lianyungang is used via Kazakhstan and China. The seaport ofBandar Abbas is only chosen for cargo transported from /to South East Asia and India. Threeroutes are predominantly used for connecting Uzbekistan and Europe by rail: (1) Iran (Bandar
Abbas seaport), (2) Black Sea, and (3) Latvia (Riga seaport2). The seaport of Saint Petersburg is
not used when accessing seaports in Europe.
Due to the difference between the rail gauge size of the CIS (wide) and that in Iran and China(standard), approximately three to four days are needed for processing at the border. Once
procedures for exportation (e.g., filling documents) are completed, no more requests for otherprocedures are required until arrival at the final destination. In most cases, the inspection process
for cargo takes around three hours. However, this time will vary according to the type of goods
that are being loaded into the wagons. Military goods bound for Afghanistan are transported byrail, as it is adjacent to Uzbekistan. The border between Uzbekistan and Afghanistan is open
between 8:00 and 17:00. Iranian wagons cannot enter CIS countries. On the contrary, CIS
wagons can enter Iran (confirmation required). Two to three hours are required to change the2

Riga seaport mostly deals with coal. Most ships overwhelmingly deal with dry bulk. (Freeport of Riga Authority, 2009)14

wagons at the border.

Saint Petersburg Seaport
Riga Seaport
Moscow
Tula

Black Sea

Novorossiysk
Caspian Sea

Bandar Abbas Seaport

Figure 13: Location of Each Point
Table 3: Gauge Size in Each Country
Gauge Size
Country
Wide (1,524mm)
CIS, Russia, Mongolia
Standard (1,435mm)
Iran, Turkey, China
Narrow (1,067mm)
Japan

All changes in the freight transport rules are arranged by the Central Soviet Union Railway
Company in Moscow, and notifications are immediately sent to member countries so thattransport operators can make the required adjustments without confusion. Thus, sudden changes
in the freight transport regulations are unlikely to be a cause of trouble. In addition, regulations
over the transport of hazardous material are also managed in this office.

15

Figure 14: Gauge Size in the World
Source: CIA (2009)
The freight transport risks that are encountered during haulage were assessed using aquestionnaire, which is shown in Figure 15. There are few instances where damage tocommodities occurs during rail haulage; however, in case damage does occur, insurance can beapplied. During the winter season, special containers are used to prevent goods from freezing.
No damage to the commodity due to leaking water was reported; this is probably because thecontainers are of sufficiently high quality. In short, damage is not a serious concern. If thetransport regulations are carefully followed, then vibration is also not a serious problem.
Furthermore, a rule for liquid cargo handling is also in place.
Wagons are in short supply, particularly during peak period of a year. In this case, wagons arerented from Russia or Kazakhstan to cover the shortage. Theft does sometimes occur. In cases
where cargo is stolen, insurance will be paid out to compensate for the loss. The railway
company bears the responsibility for any theft that occurs. Since the capacity of the railway
terminal is sufficient, lack of space is not an issue. Although the railway itself is not broken,
locomotives are themselves sometimes out of order. During the period between the beginningand end of September 2009, there were approximately 20 breakdowns for every 24 billion tonsof haulage in the Uzbek domestic cargo flow. Rail transportation is relatively punctual. However,there is sometimes unnecessary waiting time because 5% of the locomotives do not follow theirtimetables. Language differences at the border crossing point do not cause a problem. For
example, at the border between China and Kazakhstan, Russian speakers can be found. For
Uzbek domestic haulage, when the transport distance is less than 300km/day, a penalty (30% ofcargo price) is levied.

16

Figure 15: One Part of Questionnaire Form for Freight Transport Risks(Distributed in Russian)17

(4) Uzbek Agency of Road and River Transportation
An interview with the Uzbek Agency of Road and River Transportation was conducted from
14:20 to 15:20 on September 28. The Deputy Head of the agency, Mr. Shaalim Sh. Shavakhabov
kindly agreed to be interviewed.

Picture 2: Picture with Mr. Shavakhabov (3rd from right)
The agency’s mission is predominantly focused on management and coordination in relation to
freight transport, and it has branches in 12 states. It is currently focusing on non-profit works,
which include the development of regulations and the provision of permission for undertaking
haulage in Uzbekistan. The permission for transit cargo to be transported is provided by the statecustoms committee. When concluding an agreement on road transportation, this organization acts
as a representative of Uzbekistan. It is also involved in the privatization of automobile industry, aroad development program with regard to the registration of vessels, and capacity development.
There are three types of routes used to export to Europe: (1) via Turkmenistan and Bandar Abbas
seaport, (2) via Kazakhstan and Russia, and (3) to Georgia via the Caspian Sea by ferry andBlack Sea. There are three other routes, although only a small amount of transport travels onthese routes: Kazakhstan-Russia-Belarus/Ukraine(-Europe), and Iran-Turkey(-Europe).
Uzbekistan has an agreement with Turkey regarding transit. There is also a trilateral agreement
between Kazakhstan, Uzbekistan, and Turkmenistan. According to this agreement, othercountries’ trucks must declare their route when entering these three countries. Trucks are
forbidden to take any other route besides those that they have declared. Uzbekistan, Kyrgyzstan,and China also have this type of agreement.
A state-owned-company is in charge of road construction and maintenance in Uzbekistan. Thereis no ministry for construction and transportation. The budget that is allocated to this comes fromthe national budget (confirmation required). There is no tollway in Uzbekistan. Truck operatorsin Uzbekistan are either large-scale companies (100–200 vehicles owned, 30%) or small-scalecompanies (10–20 vehicles owned, 70%). Large-scale companies own containers and use full18

trailers for 20 tons. Those trucks are expected to have obtained permission from their destination
country and the drivers should own an international driving license for international haulage; thisis not necessary for domestic haulage.
When trucks come from Iran to Uzbekistan, any gasoline that they have over the permitted limitof 500 liters will be confiscated since the price of gasoline in Iran is lower than it is in CIS
countries. In Iran, Iranian trucks are given priority over other countries’ trucks. For example,
Iranian trucks can pass the border without waiting in a long queue. In Uzbekistan, trucks mustqueue regardless of their nationality. The Iranian border is open between 9:00 and 16:00.
To access the seaport of Bandar Abbas, ferries must be used for crossing the Am Darya River in
Turkmenistan. Only one ferry operates on this line and it can only take 20 trucks. It operates
between 9:00 and 17:00, and the fare is 100USD/vehicle. Since this ferry is quite inconvenient,Uzbekistan, Ukraine, the EU, etc. are proposing to construct a new bridge. Nevertheless, there
has been no response from Turkmenistan so far. During the winter season, rail is used as analternative transportation mode, since the river is frozen.

Figure 16: Location of Am Darya River
Trucks of Russia, Kazakhstan, and Kyrgyzstan are not required to pay any fee when entering
Uzbekistan (confirmation required). However, Turkmenistan and Tajikistan have to pay an
entrance fee since they are not member of the agreement. Accordingly, trucks from Uzbekistan
also have to pay an entrance fee when entering Turkmenistan and Tajikistan. Up to 800 vehicles
from Turkey can be in Uzbekistan at any one time, without paying a fee (confirmation required).
In case more than 800 vehicles are in Uzbekistan, an extra fee is levied.
The TIR (Transport International Routier), an international treaty on freight transport, outlines
effective regulations for border crossing. Under the TIR, once cargo is inspected at the departure19

point, the freights are bonded and the TIR sticker is put on the trucks. This sticker means that thetrucks will not need to be inspected again in transit countries. Trucks with the TIR sticker canpass other customs clearance points automatically.

Figure 17: Member of TIR
Source: UNECE (2009)
Normally, when cargoes are damaged, insurance is paid out to cover the loss. Currently, there areinsufficient scanners for cargo inspection at border points. This is one of the causes of delay.
For truck haulage, there are several possible final destinations, such as Finland (14 days),
Kashgar (three to four days), Bandar Abbas (three to four days, 3,000–4,000USD/20 tons truck)
and Turkey (seven to ten days, 2,000USD/truck).

(5) Association of International Road Carriers
An interview with the Association of International Road Carriers took place from 15:50 to 16:50
on September 28. Prof. Kakhramon M. Sidiknazarov, the president of this association, kindly
agreed to be interviewed. This association is an NGO to which approximately 30 companies
belong; it is conducting a monitoring survey in conjunction with the IRU (International Road
Transport Union) to facilitate truck haulage. This is one of ADB’s CAREC (Central Asia
Regional Economic Cooperation) programs. Afghanistan is also included in this program. The
main missions of the association are (1) supporting cross-border procedures, (2) proposing
revised amendments that are related to automobile bills, and (3) educating drivers.
20

The exportation of cotton and importation of dairy goods are the dominant goods that are tradedwith China. For Russia, the exportation of crops is the dominant good and the importation ofelectrical goods is dominant in Turkey. The dominant destinations for Uzbek truck companies are
Iran, Turkey, Russia, and Kazakhstan. Some goods are also transported to Ukraine, Belarus,
Poland, Germany, and Italy. A route to Urumqi via Kyrgyzstan is currently under construction,funded by Uzbekistan, Kyrgyzstan, and China. There is some cargo flow between Uzbekistan
and Tajikistan; however, Tajikistan is not used as a TC
Since Kazakhstan is very vast, it is difficult to manage and maintain the country’s roads. The
lack of facilities for drivers (e.g., rest areas) has often been pointed out. They have a list ofdifficult locations to cross the border point. The sandy desert also causes problems for theengines, which sometimes break down. Unexpected delays at the border can cause serious
problems. When entering Uzbekistan, the only payments that are made at the border are thedeparture and entrance fees. The fees that are collected are allocated to the road fund of
Uzbekistan. Kazakhstan has the same system as Uzbekistan. Another risk factor is the problem
of expiring visas while drivers are waiting for the ferry to Mersin seaport in Turkey.
In Tashkent, there is no large truck terminal except for the logistics center, which is used to store
exporting cargoes, such as cotton and dairy goods. The factors affecting the route choices can besummarized as follows: (1) Unexpected delays and inconvenient procedures at the border (theaverage speed of the truck is only 26km/h), (2) infrastructure conditions, (3) the time required toacquire a visa (in Iran, the process is very time-consuming), and (4) the time required for theacquisition of import permissions.

(6) Association of International Forwarders of Uzbekistan
An interview with the Association of International Forwarders of Uzbekistan took place from10:00 to 11:00 on September 29. Mr. Davronbek Kh. Khamraev, a General Director of thisassociation, kindly agreed to be interviewed. Mr. Davronbek Kh. Khamraev kindly prepared six
problematic routes before the interview survey and offered us material (in Russian). This
association is a member of the FITA (The Federation of International Trade Associations), whichworks predominantly to protect carriers’ right to transport and the adherence of international
standards. This association cooperates with CAREC.

21

Picture 3: Picture with Mr. Khamraev (2nd from left)
Risk can be divided into avoidable and unavoidable. The inflow of drugs from Afghanistan isalmost unavoidable. There are some risks, however, which are not impossible to avoid, forexample, (1) delay at border, (2) visa procedures, (3) commodity damage (not only in centralAsia), (4) unofficial payments (charged by the border guard) and (5) lack of rest facilities fordrivers.
With these factors in mind, the seaport of Bandar Abbas is often chosen as the seaport to access
Europe. CLB is used on the east side of Uzbekistan for accessing to seaport over TSR because
CLB has a shorter transport time and a lower fare (half of TSR). In the case of transporting
goods to South East Asia, the seaport of Karachi is preferable since it is the fastest route fromUzbekistan. Nevertheless, it is now impossible to pass through Afghanistan due to the security
problem.
Carriers in central Asian countries are allowed to travel in China for up to 300km. Travelingmore than 300km is forbidden. In order to facilitate procedures at the border, JICA has installedscanners at Uzbek border points. In central Asia, containers are not popular. One of the reasonsfor this is that lack of containers; further, there is a difference in rail gauge size at the border
between China and Kazakhstan. However, they are relatively popular on the Iranian route. Dueto this, transshipment must be done by changing wagons. This factor can adversely affecttransport time.
As for routes bound for Europe, trucks are generally used via Kazakhstan and Russia, a journeythat takes five to seven days. Transport costs are about 4,000–5,000USD/truck. For the Iranianroute, transport time is approximately 20 days and the transport cost is 2,500–3,000USD/truck.
On this route, the final destinations in Europe are Greece, Bulgaria, and Italy. One route does run
to France via the Caspian Sea; however, it is very rarely used. For transporting to North America,
there is a route via the Caspian Sea and the Black Sea (using rail) and this is sometimes used.
International transport routes are used subject to the political situation. In the case of using rail22

transport to the seaport of Bandar Abbas, the transport time increases by approximately 30% dueto the transshipment at the border of Turkmenistan/Iran, which is necessary due to the differencein gauge size (wagons needed to be changed). Transport costs are reduced by 20–30% whenusing haulage rather than truck. On the route of Dubai-Iran-Uzbekistan, container transport isused.
To transport from non Central Asia to Central Asia, plenty of procedures are necessary. In
addition, permission by FITA is required. In any instance where the cargo passes through a
country that is not a member of FITA, the carrier needs to be changed at every border.
Since the procedure for custom clearance takes very long time, it becomes quite a burdensome
process for carriers. Unofficial payments (kickback) are also a serious problem, particularly at
the Uzbekistan border with Kazakhstan and Kyrgyzstan. The condition of the road infrastructure
in Kazakhstan does not satisfy international standards. On unpaved roads, it is not even possible
to travel at the speed of 50km/h. In order to improve this situation, road maintenance is being
planned by ADB and WB. Foreign carriers are complaining about the poor conditions and thelack of facilities (e.g., rest area and communication facilities) along the roads of Uzbekistan.
For rail and truck usage, as the following decisions normally apply: (1) rail is chosen when cargovolume is high, (2) rail is chosen of the case shipper or forwarder is sensitive to transport cost,and (3) truck is chosen when a shorter transport time is required. The most attractive benefits oftruck haulage are the short transport time and point-to-point transport.
In Uzbekistan, the carrier’s market (truck and air) had been liberalized, which has led to severe
competition in terms of transport fare. However, the number of trucks is still insufficient. Mostof them have been in use since the time of the former USSR; thus, the trucks themselves should
be renovated. Moreover, only 10% of all trucks comply with the Euro II emission standard. On
the other hand, there are 100 times more truck operators in Iran than there are in Uzbekistan andthe Iranian trucks are more up-to-date.
The main problem in the rail services is that of monopoly. However, there are alternatives to thismonopolized Uzbek route. Since international carriers are able to choose other routes, it isdifficult for the Uzbek railway company to raise their rates.
The transport time from Uzbekistan to Iran is approximately seven to ten days (confirmation
required). When China is the final destination, the usual land transport route passes throughKazakhstan. The total transport time from Uzbekistan to the seaport of Lianyungang using CLB
takes around 14–20 days.

23

(7) Railway Container Terminal
A site survey of the railway container terminal managed by Sarq Trans Servis (Transport
International Forwarding) was conducted on September 29 for about one hour from 14:00. Mr.
Abdugaffar Mirzaev (director) and Mr. Sadikov Surat (manager) kindly allowed us to survey theterminal. This terminal was established in 1995 as a state-owned-company and it was eventually
privatized in 2002 as a joint venture. This company owns another railway terminal in Tashkent,
which is a public terminal run as joint venture with a Russian company. The choice regarding
which terminal is used out of the two possibilities is undertaken by the clients themselves. The
terminal usage fee is almost the same at each terminal but the fee at the terminal in Tashkent isslightly higher. The terminal in Tashkent is slightly bigger. Moreover, bonded warehouses areavailable in the public terminal where clients can process their customs clearances.

Picture 4: Container Terminal in Tashkent
All domestic haulage in Uzbekistan departs from this terminal by truck. Chinese and Koreancontainers are the most numerous, and there are relatively few European or Japanese containers
There are 200–250 TEU numbers of rail operations from China per week (15–20 times/week).
Empty haulage accounts for approximately 30% of Uzbek importation. Most exportation fromUzbekistan is empty haulage. China sometimes requests to return empty containers that are in24

Uzbekistan. In this terminal, the maximum cargo volume is 12,000TEU/year; this makes it thelargest terminal in Central Asia, in terms of the cargo volume being dealt with. Wagons aremostly Russia- and Uzbekistan-registered. If one country wishes to use other countries’ wagons,a rental fee per container is levied.

(8) Ministry for Foreign Economic Relations, Investments and Trade
A courtesy visit to the Ministry for Foreign Economic Relations, Investments and Trade ofUzbekistan was conducted on September 29, between 11:30 and 12:00. Mr. Rustam T. Azimboev(Director of Department for the Transport Maintenance of Foreign Economic Activities) and Mr.
Khamidulla F. Rakhmatullaev (Senior Officer of Department for the Transport Maintenance ofForeign Economic Activities) kindly assisted our survey in Uzbekistan. During this visit,
cooperation with further data collection and the submission of a report regarding this survey waspromised.

(9) JICA Uzbekistan Office
A brief interview regarding economic condition of Uzbekistan to JICA Uzbekistan Office wasalso conducted. The JICA Representative Mr. Naoki Nihei kindly agreed to be interviewed.

25

4-2 Kyrgyzstan(1) JICA Kyrgyz Republic Office
An interview with the JICA Kyrgyzstan Office took place for one hour from 11:00 on September
30. The JICA Resident Representative Mr. Hideaki Maruyama and Representative Mr. Seiju Imaikindly introduces JICA expert Mr. Toshio Kimata, who is dispatched as an expert for roadmaintenance. An interview was conducted with Mr. Kimata for one hour from 12:00. Several
resources such as trade data, the Kyrgyz domestic road network, and a report on Kyrgyz urban
planning that had been written by Mr. Kimata were provided by Mr. Kimata.
In Kyrgyzstan, rail haulage is not common, and it accounts for only 5% of all cargo flow. On theother hand, haulage by truck accounts for 95%. As for haulage bound for Tajikistan, rail isnormally used to transport fuel. The road conditions in Kyrgyzstan and Tajikistan are extremely
poor. The training of road engineers is an urgent issue, since few engineers are comfortable with
USSR-era technology nowadays. The route between Bishkek and Torugart (the check posts on
the Kyrgyzstan/China border) is an arterial road for large trucks. This route is currently undersidewalk maintenance paid for by ADB and a loan from China.
According to the National Bank of the Kyrgyz Republic (2006), the largest trade partner of
Kyrgyzstan in 2006 in monetary terms is Russia for both import and export. In the case of export,
Uzbekistan, Kazakhstan, Afghanistan, and China follow Russia in turn. The types of goods thatare exported are mostly noble metals (pearl, precious stone) and minerals (including energy). In
the case of import, China and Kazakhstan follow Russia in turn. Types of goods are mainly
mineral (including energy), followed by automobiles.

(2) Kyrgyzstan/Kazakhstan Border
We crossed the Akzhol/Kordai (the Kyrgyzstan/Kazakhstan) border in the afternoon of
September 30. Akzhol was very crowded, as is shown in Picture 5, thus it took one and a half
hours to cross the border. There were several facilities at Kordai (Kazakh side), for example, agas station, and a rest area. There were a few trucks, but there were mostly local passengers.
After entering Kazakhstan, we drove eastwards along the border for 20 minutes, and finallyarrived at Akty-lek/Karasu (Kyrgyzstan/Kazakhstan) border. This check-post is supposed to be
for the exclusive use of trucks; however, we observed many passenger cars, as Picture 5 shows.
The traffic volume on the Akty-lek/Karasu border was much lower than that on the
Akzhol/Kordai border. There was nothing there other than facilities used for the bordercheck-post.

26

Figure 18: Kyrgyzstan/Kazakhstan Border (Blue: Akzhol/Kordai, Red: Akty-lek/Karasu)

Akzhol (Kyrgyzstan Side)

Kordai (Kazakhstan Side)

Karasu (Kazakhstan Side)
Picture 5: Border of Kyrgyzstan/Kazakhstan

27

4-3

Kazakhstan(1) Kaden Transport Service / Almaty I Railway Container Terminal
An interview with Kaden Transport Service and a visit to Almaty I container terminal was
conducted for an hour and a half from 10:00 on October 1.
In this terminal, Russia and China cargo make up a high proportion of both import and export.
On the other hand, the container terminal near Almaty station deals mostly with cargoes boundfor Europe and North America. Exportation to Russia mainly passes through Novosibirsk, this is
usually done by railway. The goods that are transported are predominantly food goods (normallyjuice). There is route via Astana, however, it is rarely used. The final destinations in Russia aremostly big cities such as Moscow, and Saint Petersburg. Goods from China are mainly
construction materials. Haulage bound for East Asia and India does not use the Bandar Abbas
seaport but Lianyungang seaport in China. The seaport of Nakhodka, Vladivostok (Vostochny),
and Shanghai are also used (see Figure 11). The condition of all the railways in countries thatused to be in the former USSR are about the same since they were constructed in the era offormer USSR.
The UN Special Programme for the Economies of Central Asia (SPECA) promotes regional
cooperation in Central Asia. The missions of SPECA are to strengthening economic cooperationin Central Asia and encourage integration of the Central Asian economy into a world economy.
There are currently seven members of SPECA: Afghanistan, Azerbaijan, Kazakhstan,
Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
Transshipment time at the Kazakhstan/China border is approximately one to three days for
500–600 train-cars, because of the difference in gauge size. The border is open from8:00–20:00.
The Kazakhstan/Russia border is open 24 hours. Due to the congestion in Dostyk, there are plans
to increase the capacity in Khorgos. It is relatively easy to pass through the border and tocomplete the requisite procedures for customs clearance. Automatic scanners for cargoinspection are installed at the border of the Semipalatinsk route. Thanks to this equipment,
procedures at the border can be completed in a few hours.
The Union for Customs Clearance began operating among the three countries of Kazakhstan,
Russia, and Belarus on January 1, 2010. Subsequently, from June 2010, this will become fully
effective. It is hoped that this will mean that any custom clearance procedure will have to becompleted only once, and therefore freight will be able to travel freely among member countries.
Tajikistan and Kyrgyzstan are now only observers in this union, although they are expected to
become members in the future.

28

Picture 6: Almaty I Container Terminal
The Almaty I container terminal was operated by a state-owned-company until 1998, after which
it was privatized. Thirty percent of the capital is held by the railway company. It takes up an areaof 17.9 ha and the volume of containers that it deals with is 1,500TEU/month. The frequency of
the rail operation is twice per day. Cargo bound for Russia leaves at noon and those bound for
China leave at night. Approximately 50 wagons are carried in one operation. Empty haulage ismainly haulage that is bound for Russia. Haulage between Kazakhstan and Turkey is transported
mainly via Central Asia by truck. When entering Turkmenistan, it is necessary to obtain a visa.
There is another route to Turkey, which goes via Novosibirsk and the Black Sea by ferry.

To Moscow, Tula

RussiaNovosibirsk

Petropavlovsk

AstanaSemipalatinsk

AktobeKazakhstan
Caspian Sea

BeineuDostyk/Alashankou
AlmatyYiningKhorgos

UrumqiSimkent
Uzbekistan

Kyrgyzstan

Turkmenbashi

China

Turkmenistan
Tajikistan

Figure 19: Location of Each Point29

(2) Research Institute for Transport and Communications
An interview with the Research Institute for Transport and Communications was conducted forone hour from 13:00 October 1. The Head of Complex Transport Problems Department, Ms.
Gulnara Bekmagambetova and Mr. Roman Andrutskiy kindly agreed to cooperate with oursurvey.
In the case of transport to Russia (Moscow), the route via Petropavlovsk is the fastest. The mostpopular routes in Russia are the six routes, including the route discussed above (via
Petropavlovsk) that are shown in Figure 20. The Eurasian Economic Community (EurAsEC)
designates corridors for both international and domestic transportation. In Figure 20, theinternational corridors are highlighted in red and domestic are highlighted in blue.

Figure 20: Main Corridors in Kazakhstan by EurAsEC(Red: International, Blue: Domestic Corridor)*Courtesy of Research Institute for Transport and Communications
The highest traffic volume section in Kazakhstan is found between the area approaching the
Chinese border and the Kyrgyzstan border via Almaty. Most of the traffic on this route is transit.
The volume of container cargo is relatively high between China and Almaty. The otherKazakhstan/China border, other than Khorgos, is located in the Northeast. Cargos that use thisborder are mostly bound for destinations inside Kazakhstan. The national road of Kazakhstan,which is runs between Kazakhstan and Russia via Aktobe is very long and in bad condition. In
particular, the western parts of Kazakhstan and the road to the Caspian Sea are in poor condition.
30

ADB plans to renovate these roads. For Kazakhstani cargo that passes through Uzbekistan, theshipment charge that is levied is relatively high, but a visa is not required. From Kazakhstan toTurkey, there are routes that go via central Asia and Russia, but the former is rarely used. The
latter route uses a ferry to cross the Black Sea. For haulage in Turkmenistan, Kazakh drivers
must obtain a visa. The customs clearance fee is high.

Figure 21: Railway Network in Kazakhstan*Courtesy of Research Institute for Transport and Communications
Kazakh organization is bureaucratic, thus, the facilitation of information exchange among eachorganization (border guards, customs clearance, transport-related organizations,sanitation-related organizations, quarantine-related organization) is important. The government iswilling to manage all of the above organizations except border guards, to ensure that theprocedure facilitation is efficient. Legislation is examined by the government. The systems thatare in place to deal with customs clearance are insufficient both in terms of hardware andsoftware.

31For border crossing by truck, trucks with the TIR sticker are exempted from cargo inspection at
the border (China is not a member of TIR). Trucks that originate from China and are en route toEurope are changed to TIR trucks in Kazakhstan. Kazakh trucks are permitted to travel up to
Urumqi because of a bilateral agreement with China. Chinese cargo is transshipped at Khorgos (aborder cooperation center, and a neutral place managed by both countries). The distance between
Almaty and Moscow by truck is 4,000km and the transport time is three to four days. The
transport cost is about 1.5USD/km; however, this depends on carriers and insurance, etc. The
transport time by rail between Almaty and Moscow is 4,000km and it takes around 10–12 days,
whereas the route between Shanghai and Dostyk takes about one week. In rail haulage, travelingmore than 300km/day is forbidden under the international treaty. However, the journey does takemore than ten days due to waiting time. Transport time between Almaty and Moscow depends ontransit stations. The rail fare is different depending on whether a private or a state-owned
company is being used. In the case of container cargo, the higher price is one and half times
higher than that of normal cargo. For the exportation of daily goods being transported
approximately 2,000km, 1,400USD/20’ is charged in Kazakhstan and 2,900USD/20’ in Russia.
In the era of former USSR, theft was quite common. However, this does not occur frequently
nowadays and neither does commodity damage. If this does occur, insurance can be used tocompensate the costs. The actual conditions of unofficial payment were surveyed by the union ofsmall and medium enterprises. According to this survey, the situation is better now than it has
been before.

(3) DAMU
An interview with DAMU was conducted for an hour and a half from 11:00 on October 2. The
chief of the railway terminal Mr. Zharlkasn Aitbaev and Mr. Abzal Shakual kindly agreed to beinterviewed and allowed us to survey the site.

32

Figure 22: Location of DAMUDAMU’s large-scale logistics terminal is located in the suburban area of Almaty, which is shownin Figure 22. This logistics terminal extends 210ha, and includes their own energy supply system
and an electric power plant as well as several logistics related facilities, such as customs house,
warehouse for customs clearance (10ha), and bonded area. The operation of this terminal wasstarted in 2007, and it opened officially on July 24, 2008. The president of Kazakhstan, Mr.
Nazarbayev, attended the opening ceremony. Half of the terminal is used as a depot (110ha) andthe other half is used as industrial zone. The infrastructure required for the site’s energy andwater, which is underground, has already been completed, while the ground-level part wascompleted six months later (as of October 2009). This terminal is located 1km from Jetisu stationand faces onto Horgos road. Horgos road is quite an important arterial road that is part of ADB’s
project. The railway in this terminal extends 15km. None of the construction has been fundedpublicly and all the vehicles are privately owned.
This logistics terminal is the largest in Kazakhstan. DAMU owns another warehouse in the cityof Almaty, and it has plans to construct similar logistics terminals in Astana (60ha) and Aktobe(240ha). Transit cargo from Russia and Europe is expected to use Aktobe, an important bordercrossing, whereas Astana is expected to be used by cargo bound for central Russia. Constructionof a logistics terminal, which is the same size as the terminal at Almaty, is being planned for Tula(approximately 160km south of Moscow, see Figure 13). It is considered a relay point that will
be used from Aktobe due to high volume from Aktobe. The warehouse of DAMU is sometimes
rented out only for the storage of commodities. This terminal mainly deals with cargoes boundfor Central Asia, Mongolia, and China. Trade (import and export) from/to China passes throughDostyk and Khorgos. Daily goods are imported/exported to/from the US and Africa using theseaport of Bandar Abbas. Used cars are imported from US.
33

Approximately 600km of railway construction has been started that will run between
Turkmenbashi and Beineu (near the Kazakhstan /Uzbekistan border) by the Kazakh Railway
Company. The Kazakh government is funding this project. In addition, railway construction
between Beineu and Simkent is also planned. For transport between Simkent and Turkmenbashi,
the cargo has to be relayed through Uzbekistan; however, after the completion of these railways,
haulage without relaying Uzbekistan will be possible by using the route via Beineu.
There is a plan to construct a new railway at the Khorgos border to China. Khorgos is currently
exclusively used by trucks and passengers. The Chinese side (between Yining and Urumqi) has
already been connected by railway (see Figure 19). However, the Kazakh side is not connected
yet. The current route between Dostyk and Almaty is 1,000km long and takes three days. When
this route becomes fully connected by railway, Khorgos and Almaty will be connected by only
300km, and the journey will only take one day. For haulage to/from Japan, the China route isused; the Russia route that uses Vladivostok is very time-consuming.

DAMU’s Gantry Crane for Lifting Containers

Left: Railway, Right: Warehouse

DAMU’s Logistics Terminal Model

Survey in DAMU

Picture 7: Survey in DAMU

34

According to JICA (2007), the logistics terminal in Dostyk started operations in 1992. In 2005,
approximately 1,100 tons/year was handled. In this terminal, importation from China to
Kazakhstan accounts for 82%, whereas exportation to China accounts for only 18%. Seventeen
percent of all cargo is transit cargo. In recent years, an increase in the importation from China
and a lack of wagons can be observed.
In DAMU, 150–200 trains/day (1,200 containers/day) are handled. Eighty percent of trucks from
China use DAMU. There is enough space to stand four gantry cranes, which can operate
simultaneously.

(4) Kazakhstan/China Border (Khorgos)
A site visit to Khorgos that had been planned; however, it was cancelled because a blockade of
all Chinese borders had been implemented due to the Anniversary of the Founding of China on
October 1. This was only found out after entering Almaty. Thus, we finally cancelled the plan tovisit Khorgos, since high traffic volume and security problems would have probably made thevisit untenable. This is an example of risks faced by LLCs that we experienced unexpectedly.
Once a transit country that owns a seaport closes its border, the LLCs’ operators must change
their route if they are to arrive successfully to the seaport.

5. Questions
From the interview survey above, the following questions arose; it is hoped that they will beanswered by a later survey:(1) Should trucks that are heavier than 40 tons be required to pay tariffs in the CIS? According to
the State Customs Committee, they are required to pay. However, it seems clear that theyshould not be required to pay in cases where their freights are bonded by a treaty (e.g., TIR).
(2) Should entrance, departure, and transit fees be levied in any country of the CIS? According toState Customs Committee, these payments are required. However, according to the Uzbek
Agency of Road and River Transportation, some are exempt from these fees, according to anagreement or treaty.

35

Acknowledgements
This work was supported by the Global Environment Research Fund (S-6-5) of the Ministry of
the Environment, Japan. This survey made possible with the tremendous help offered by the
Uzbekistan Ministry for Foreign Economic Relations, Investments and Trade; Mr. Rustam T.
Azimboev and Mr. Khamidulla F. Rakhmatullaev, and the United Nations Economic and Social
Commission for Asia and the Pacific; Mr. Madan B. Regmi. Our deep gratitude also goes to Mr.
Akitoshi Iio and Mr. Naoki Nihei (JICA Uzbekistan Office) and Mr. Hideaki Maruyama and Mr.
Seiju Imai (JICA Kyrgyzstan Office) for arranging the appointments with their related
counterparts. Last, but not least, our special thanks goes to the Research Institute for Transportand Communications; Ms. Gulnara Bekmagambetova, who kindly arranged the survey in Almaty,
Kazakhstan.

References
Central Intelligence Agency (CIA) (2009): The World Factbook 2009. Available Online:
https://www.cia.gov/library/publications/the-world-factbook/ [Accessed Dec. 2009]
Collier, P (2007): The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be
Done About It, Oxford University Press.
Freeport of Riga Authority (2009): Statistics on Cargo Handled in Freeport of Riga. Available
Online: http://www.freeportofriga.lv/eng/statistika.asp [Accessed Dec. 2009]
International Monetary Fund (IMF) (2009): World Economic Outlook 2009. Available Online:
http://www.imf.org/external/pubs/ft/weo/2009/02/weodata/weoselgr.aspx [Accessed Dec. 2009]
Japan International Cooperation Agency (JICA) (2007): Study for the Project of the Integrated
Logistics System and Marketing Action Plan for Container Transportation, Final Report (inJapanese).
National Bank of the Kyrgyz Republic (2006): National Bank of the Kyrgyz Republic Bulletin.
New Eurasian Land Transport Initiative (NELTI) (2009): Analysis of Monitoring Data Collected
on NELTI Project Routes in 2008–2009, Final Report.
Sachs, J. D. et al. (2004): The Challenges Facing Landlocked Developing Countries, Journal of
Human Development, Vol. 5, No. 1, pp31-68.
36

United Nations Economic Commission for Europe (UNECE) (2009): TIR Website. Available
Online: http://www.unece.org/tir/welcome.html [Accessed Dec. 2009]
United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) (2003):
Transit Transport Issues in Landlocked and Transit Developing Countries, Landlocked
Developing Countries Series, No. 1, United Nations, New York.
United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) (2009):
Operationalization of International Intermodal Transport Corridors in North-East and Central
Asia, Background paper for the policy-level expert group meeting, 4–5 March, Tashkent.
United Nations Office of the High Representative for the Least Developed Countries, landlocked
Developing Countries and Small Island Developing States (UN-OHRLLS) (2009): List of
Landlocked Developing Countries. Available Online:
http://www.un.org/special-rep/ohrlls/lldc/list.htm [Accessed Dec. 2009]
World Bank (2010): Logistics Performance Index. Available Online:
http://info.worldbank.org/etools/tradesurvey/mode1b.asp [Accessed Feb. 2010]37