Strategic Role of Logistics in Kazakhstan

Table of Contents 1. Theoretical background 4 1.1. Introduction 4 1.2. Definition of Key Terms 5 1.3. Effective Research 10 1.3.1. Logistics and time as a trade barrier 10 1.3.2. The Logistics Performance Index 14 1.4. Summary 21 2. Data Analysis of Logistics industry and Trade in Kazakhstan 24 2.1. Introduction 24 2.2.1 External Trade 24 2.2.2. Assessment of the Transport and Logistics Sectors 29 2.2.2.2 Logistics Sector 41 2.2.3 Constraints in Physical Infrastructure and Transport Facilities 43 2.2.3.1 Constraints in the Rail Transport System 43 2.2.3.2 Constraints in the Road Transport System 45 2.2.3.3 Constraints in the Air Transport System 45 2.2.3.4 LPI & Ease of Doing Business: Trading Across Borders 46 2.3. Summary 55 3. Findings and Suggestions 56 3.1. Introduction 56 3.2. Findings 56 3.3. Recommendations 60 3.4. Summary 61 Conclusion 62 References 63 Appendices 64

Introduction

Background. “Kazakhstan strives to be an active player of the global economy. The Government has been tasked with transforming Kazakhstan into a global logistics and business hub” – Nursultan Nazarbayev at the 24th plenary session of the Foreign Investors’ Council.
Kazakhstan is located at the heart of Eurasian continent. The main transcontinental routes which link the Asia-Pacific Region with the Near and Middle East, and Europe, pass through Kazakhstan. The Silk Road extended throughout the whole Kazakhstan. Three of the four BRIC countries are close neighbors of Kazakhstan: Russia, China, and India. The question is are we really using the whole potential of such beneficial location?
Potential of transportation service of Kazakhstan is estimated for 2 billion USD, but in fact the republic only receives 800 million USD. The largest volume of freight turnover of regional turnover which pass through Kazakhstan is between Russian Federation and Central Asia and between China and Central Asia. The

References: 5) Oliver, R.K., Webber, M.D., 1982, “Supply-chain management: logistics catches up with strategy”, Outlook, Booz, Allen and Hamilton Inc. Reprinted 1992, in Logistics: The Strategic Issues, ed. M Christopher, Chapman Hall, London, pp. 63-75. 6) David Jacoby (2009), Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance (The Economist Books), Bloomberg Press; 1st edition, ISBN: 978-1576603451 7) cf 8) Baziotopoulos (2008). An Investigation of Logistics Outsourcing Practices In the Greek Manufacturing Sector. 23 p., PhD thesis 9) http://www.econ.ku.dk/okoje/grhands/kremer.pdf [ 6 ]. David Jacoby (2009), Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance (The Economist Books), Bloomberg Press; 1st edition, ISBN: 978-1576603451 [ 7 ] [ 8 ]. Baziotopoulos (2008). An Investigation of Logistics Outsourcing Practices In the Greek Manufacturing Sector. 23 p., PhD thesis [ 9 ]