Kazakhstan redirects parts of export transits away from Russian trade routes to Middle Corridor

Kazakhstan's exports via the Trans-Caspian International Transport Route (TITR or "Middle Corridor") grew by 6.5 times within the past 10 months, according to the country's ministry of trade and integration.

The Kazakh media published these figures, according to Report.

"Besides metals, mainly oil products were transported along this route" the ministry noted, adding that Kazakhstan began exporting less metal through Russia and more along the Middle Corridor.

According to the information from "Kazakhstan Railways", Kazakhstan’s export through Russia increased by 7% in the first 10 months of 2022, with the share of freight transport being 25%.

At the same time, the country has started transporting less ferrous metals, chemicals and soda, non-ferrous metals, chemical and mineral fertilizers through Russia.

"Ferrous and non-ferrous metals were redirected along the TIRT route, as well as towards China, Uzbekistan and Afghanistan. Transportation of chemicals and soda and chemical and mineral fertilizers in the direction of Ukraine was stopped, with no redirections made. no reorientation was made", the ministry said.

As for imports, the figures for deliveries through Russia remained the same. Nevertheless, construction goods, grains and sugar products were imported in fewer quantities into Kazakhstan.

The ministry of trade explained that construction materials are brought from Uzbekistan, grain from Russia and sugar products from Latvia, Azerbaijan and Uzbekistan.

Imports via the Middle Corridor rose by 91%, with the largest increase recorded in chemicals and soda, ferrous metals, juices and beverages.

Caliber.Az recalls, that the TITR was established in February 2014 with the participation of the relevant agencies of Azerbaijan, Kazakhstan and Georgia. Subsequently, Ukraine, Romania and Poland joined the draft. Currently, the route runs from the China-Kazakhstan border through Kazakhstan, the Caspian Sea, Azerbaijan and Georgia to Europe. The whole route has a universal fee with the principle of "single window" being implemented.

In December 2020, the transport of container trains from Türkiye to China began through the Middle Corridor and in a short time, this route gained a high demand among shippers, as it meets the requirements of speed and cost of delivery of goods in comparison with alternative routes.

Trains arrive at their destination in just 16 days and run regularly twice a month. These agreements were adhered to, even though prices for containerized transport in China had risen since early 2021. The pandemic and related trade difficulties, the sharp increase in exports of Chinese goods to the US, Europe, Russia and other countries as well as the reduced delivery of goods in the opposite direction, and the rise in the price of container ships - all these factors had an impact on the cost of shipping containers, leading to its increase.