Container Delivery Cost through Kazakhstan by UTLC ERA
United Transport and Logistics Company — Eurasian Rail Alliance JSC (UTLC ERA JSC) encompasses the railways of Russia, Belarus, and Kazakhstan, with the latter sharing a border with China. Kazakhstan's strategic geographical location and robust transport infrastructure are effectively utilized by UTLC ERA to provide logistics services for rail transport of goods between China and Europe.
Kazakhstan boasts 20 railway lines, avoiding the logistical bottleneck found in eastern Russia where several lines converge into one. This network of diverse routes in Kazakhstan facilitates the smooth flow of regular trains from China, avoiding congestion at customs terminals.
Freight delivery by rail through Kazakhstan, particularly via the Alashankou checkpoint, is more cost effective than the Ussuriysk and Zabaikalsk routes in Russia. UTLC ERA ensures that customers benefit from these economical routes, which not only reduce the delivery price, but also cut down the transit time for cargo between China and Europe.
Delivery by Rail through Kazakhstan
UTLC ERA is constantly innovating to develop new technologies for transporting goods from China to European countries. This development aims to minimize both transit time and transportation costs for senders and recipients.
The rail delivery through Kazakhstan to China is one such innovative path, serving as an alternative to the traditional Manchuria — Transsib route. This promising logistics scheme reduces transit time on the China — Kazakhstan — Russia — Belarus — Europe railway route. It offers a shorter journey compared to the Trans-Siberian route, with lower shipping rates attributed to reduced regular train downtime and lower tariffs in Kazakhstan and China.
Although not as established as the Trans-Siberian Railway, this route is gaining traction at UTLC ERA. Efforts are ongoing to minimize the costs associated with this logistics scheme. A notable development in this regard is the opening of the new Altynkol — Khorgos crossing in 2013, which eased the burden on the Dostyk customs checkpoint.
Historically, the predominance of single-track roads in Kazakhstan led to freight cars being bottlenecked at the Alashankou — Dostyk crossing, causing delays. The introduction of the Altynkol Khorgos crossing significantly increased the cargo volume from China to Europe.
Under the unified administration of Russian, Belarusian, and Kazakh railways, UTLC ERA has effectively addressed the safety of goods during transit through Kazakhstan, as well as reduced the cost of rail delivery. These efforts have significantly shortened the transit time of goods from China, taking now to reach Moscow and Belarus in 5–7 days. This efficient transit reduces the total delivery time to European countries to 14–21 days, thanks to the utilization of Kazakh railways.
The strategic placement of “land ports”, which are entry points at the Chinese-Kazakh border, enhances the efficiency of containers delivery through Kazakhstan to China. These entry points streamline foreign economic activities for European and Chinese companies.
Additionally, Kazakhstan's membership in the Eurasian Economic Community facilitates quicker customs clearance when goods cross the Russian and Belarusian borders. This streamlined process positively impacts the speed, timing, and cost of delivering Chinese cargo to European countries and vice versa, bolstering the flow of goods in both directions.