The portal Economist.kg provides a digest of logistics news in Kyrgyzstan for June 2024, with expert commentary. The full material is provided below without changes.
New Railway Will Become Kyrgyzstan's Property
The construction of the China-Kyrgyzstan-Uzbekistan railway, costing $4.7 billion, is a commercial project that will not affect the size of Kyrgyzstan's external debt. This was stated by the President of Kyrgyzstan, Sadyr Japarov.
For the implementation of the project, the three countries created a joint company. Its office is located in Bishkek, with the general director from the Kyrgyz side, and two deputies from the other partners. China invests 51% of the funds, while the Kyrgyz and Uzbek sides contribute 24.5% each.
After the invested funds are recouped, China and Uzbekistan will exit the project, leaving 100% of the company to Kyrgyzstan. Work is planned to begin this fall and be completed by 2030. The projected capacity of the new railway is about 15 million tons of cargo and 300 thousand passengers per year.
"The length of the new railway is 454 km, of which 280 km will pass through Kyrgyzstan. Therefore, our country is primarily interested in it, and this is well reflected in international agreements," said Emirlan Beyilbaev, Director of the Kyrgyz office of the international cargo exchange ATI.SU. "The project opens up great opportunities for the development of Kyrgyzstan's transit potential. This railway route will become part of a new transport corridor from China to Europe bypassing Russia. The main route from China to the EU currently runs through the Suez Canal - there are questions about the safety of this route, it is quite long and therefore costly. The alternative corridor promises to be faster, more convenient, and safer."
E-permit System Will Soon Operate Among All SCO Countries
Kyrgyzstan is implementing an electronic permit system for international freight transport, E-permit. Since November 2021, it has been operational in Uzbekistan and Turkey, and since April 2024, it has been launched in Kazakhstan. Active work is now underway to implement this system in Kyrgyzstan, Tajikistan, and Azerbaijan. This was discussed at the eleventh meeting of the transport ministers of the SCO member states, which took place via video conference on June 20.
"The E-permit electronic permit system significantly simplifies and speeds up international transport. The speed and safety of delivery allow for increased cargo turnover. This system is a good example of digitalization that is beneficial for all participants in the process, including government agencies," said Emirlan Beyilbaev.
Second Wildberries Warehouse
A logistics center for the Wildberries marketplace is planned to be built in the Chui region. Its area will be 300,000 m², with investments reaching $100 million. The agreement to create the logistics center was signed at the international economic forum "Russia - Islamic World: Kazan Forum 2024," which took place in Tatarstan. Wildberries opened its first logistics center in Kyrgyzstan in Bishkek in 2022, leading to a sharp increase in e-commerce in the country.
"Then, in the first two weeks, about two thousand sellers from Kyrgyzstan registered on Wildberries, and now there are over 17 thousand on the platform. Another major Russian marketplace, Ozon, is also present in the Kyrgyz market. Kyrgyz entrepreneurs can trade on these platforms, gaining access to millions of buyers from CIS countries. According to experts, by 2027, there will be about 3 million marketplace users in Kyrgyzstan, and the e-commerce market will be about $797 million. I would add that the development of e-commerce is the most powerful stimulus for the growth of domestic freight transport," commented Beyilbaev.
New Border Crossing Point with China
Details have emerged about plans to open a new international border crossing "Bedel" on the Kyrgyz-Chinese border. The facility will cost Kyrgyzstan 78 million soms, according to the explanatory note to the draft law on the ratification of the agreement between the governments of Kyrgyzstan and China on the opening of the Bedel border crossing. The project aims to enhance Kyrgyzstan's export potential, increase trade turnover, and develop trade relations, including within the framework of the "One Belt, One Road" initiative.
"The most important thing is that the additional border crossing point will reduce the delivery time of goods from the Xinjiang Uygur Autonomous Region of China to Kyrgyzstan. China is Kyrgyzstan's main trading partner, with trade turnover at the end of 2023 amounting to €19.8 billion, an increase of 30%," noted Emirlan Beyilbaev.
Border Crossing Points Up to EAEU Standards
The Ministry of Economy of Kyrgyzstan has published information confirming that all 14 border crossing points on the EAEU external border comply with the union's unified rules. The last one to undergo modernization was the "Kyzyl-Bel" crossing point on the border between Kyrgyzstan and Tajikistan. Previously, there had been information from certain market participants suggesting that some external border points did not meet EAEU standards. The Ministry of Economy of Kyrgyzstan refuted this opinion by providing official information.
"Unified standards for the operation of border crossing points allow carriers and logisticians from all countries to 'speak the same language,' meaning they can operate with unified concepts and categories. This is very important in the context of growing international trade and changing global routes," summarized Beyilbaev.
CentralasianLIGHT.org
June 27, 2024