Recently, the FBRK editorial team wrote about how foreign companies are mastering the Kazakh freight transport market.
We reported that the influx of road transport companies from Russia and Belarus into Kazakhstan, provoked by anti-Russian sanctions, has significantly impacted the country's transport and logistics sector.
Our editorial team sent an official request to the Ministry of Transport to find out whether there is a process of domestic carriers being pushed out of the international transport market in Kazakhstan.
As a result, we received a detailed response from the department.
Regarding the shortage of foreign permit forms (FPF), we were told that "every year, permit forms are exchanged with 42 countries for the purpose of carrying out international road freight transport".
Let us recall that not long ago, the FBRK editorial team wrote about popular schemes involving permit forms, for which entire groups of shell companies are created with the aim of obtaining as many FPFs as possible for subsequent resale to carriers.
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For reference: A Foreign Permit Form (FPF) grants the carrier the right to travel through the territory of a foreign state in accordance with international treaties ratified by the Republic of Kazakhstan.
This year, approximately 280 thousand permits were exchanged, and since the demand for FPFs is growing, the department is working on obtaining additional forms.
"Considering the needs of domestic carriers, the issue of an additional exchange of permit forms with Azerbaijan, Belgium, China, Hungary, Kyrgyzstan, Latvia, Russia, Belarus, Slovakia, Turkmenistan, and Georgia has been worked out. At the same time, there have been no instances from foreign states regarding a reduction in the quota for exchanging permit forms.", the ministry reported.
Furthermore, the Ministry of Transport stated that "based on the results of 2023, the volume of road freight transport in export-import traffic amounted to 7.6 million tonnes".
Last year, domestic companies transported 3.8 million tonnes of cargo, which constitutes 50% of the total transport volume. At the same time, foreign companies transported 1.8 million tonnes, and carriers from "third countries" transported 2 million tonnes of cargo.
Regarding joint ventures (JVs), the ministry reported that a total of 54 companies are registered in Kazakhstan.
"They are virtually Kazakhstani carriers who have invested in the country's economy, pay taxes and fees, and create additional jobs," the department notes.
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For reference: Joint ventures (JVs) are legal entities created on the basis of a partnership between two or more parties, typically including local and foreign investors.
Additionally, the ministry revealed that "out of 20 thousand vehicles operating in international transport, 7 thousand meet Euro-4 standards and above, which freely carry out transport to EU countries".
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For reference: Euro-4 is an environmental standard regulating the volume of harmful emissions in the automotive sector.
Earlier, the FBRK editorial team wrote that the lifting of the ban on international transport via trailer swapping or transshipment of goods caused noticeable indignation among domestic carriers.
Let us remind you that the method of "trailer swapping" or "transshipment" implies that a tractor unit from one country can deliver cargo to the border, where swapping occurs — another tractor unit takes the trailer and continues transportation to another country.
Since 2017, Kazakhstan had a ban on importing goods into the country via trailer swapping or transshipment. In May 2023, this ban was lifted.
However, in October 2023, the ban was reinstated and soon suspended: first until January 1, 2024, and later – until January 1, 2025.
The department reported that as a result of the ban's introduction, the share of Kazakhstani carriers in international transport in 2017-2021 decreased from 51% to 31%.
At the same time, according to the ministry, during the period of the ban's suspension in 2022-2023, "the share of Kazakhstani carriers increased from 31% to 50%".
The department insists that permitting the transport of goods via "trailer swapping" or "transshipment" enhances the competitiveness of domestic companies, allowing, among others, small and medium-sized road transport companies to participate in transportation.
"The aforementioned ban provides an opportunity for large companies to monopolise the market, increasing the cost of transport from the EU to the Republic of Kazakhstan and back by an average of €7 to €10 thousand, which ultimately raises the final cost of goods on the domestic market and generally limits trade turnover," the ministry notes.
It is worth noting that our colleagues do not always manage to obtain constructive responses from state bodies to journalistic inquiries. In this regard, one cannot fail to note the openness of the Ministry of Transport to civilised dialogue.