Why Container Production in Kazakhstan is Currently Impractical: Problems and Prospects

The Ministry of Industry of Kazakhstan is considering the possibility of establishing container production for grain transportation based on local wagon factories such as ZIKSTO, Kazakhstan Wagon Building Company, Semipalatinsk Machine Engineering Plant, and Atyrau Wagon Building Company, this is reported by the railway transport news portal Railway Supply.

However, the Association of Kazakhstan Freight Rail Carriers views this initiative as premature.

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The main argument is the small scale of the container transport market in the country.

By the end of 2023, the share of containerized cargo was only 6.1% of the total cargo turnover. This indicates that container transportation has not gained widespread adoption in Kazakhstan.

An additional factor is the high cost of transporting goods in containers. It exceeds the cost of wagon transport by 30-40% for most goods. Therefore, a significant portion of cargo suitable for container transport is still moved in wagons.

Launching container production in Kazakhstan could further increase their cost. This would reduce the competitiveness of container transport, making it less attractive to shippers.

Another issue is the underdeveloped infrastructure for container transport. Currently, only 10.6% of railway stations in Kazakhstan are capable of handling container operations.

This leads to increased empty mileage and reduces the profitability of container transport.

Moreover, Kazakhstan lacks clear regulations and a balanced tariff policy for container cargo transport.

This creates additional difficulties and obstacles for the development of the container sector in the country.

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