When shipping Chinese products overland to Europe, there is almost no getting around Kazakhstan in Central Asia. Since transit freight can be a lucrative business, the country certainly does not mind that. It hopes to facilitate freight flows on its territory by investing in railways and (dry) ports, but also looks to “soft” infrastructure to lend a helping hand, explains Vice Minister of Trade and Integration Asset Nussupov.
The key word here is digitalisation. Moving away from paper and manual processes is high on the priority list, illustrated by a presidential address to the nation on the topic in September.
Kazakhstan sees digital transformation as a key driver of economic growth, technology and global integration in the coming years, explains Vice Minister Nussupov. “Digitalisation is considered the cornerstone for modernising trade procedures and enhancing global competitiveness. For a landlocked country like ours, efficiency, transparency and predictability are crucial for successful trade and transit”, says Nussupov.
Officials from various ministries are working together to improve trade, including transport and logistics operations, through digital initiatives. Kazakhstan is looking to build “a national digital ecosystem for trade, allowing exporters, importers, and logistics companies to interact through a unified digital environment.”
Smart Cargo Platform
A case in point is the new “Smart Cargo Platform”, a system to integrate all rail customs, logistics, transport services, and companies into one digital ecosystem that was launched in September. “This single portal allows exporters, importers, and carriers worldwide to submit documents electronically, benefit from automated risk management, and track cargo in real time”, says Nussupov.
The Smart Cargo project connects customs, ports, and railways in one digital system to track goods in real time, cut paperwork, and make logistics faster and more predictable, the Vice Minister explains. By 2026, it should facilitate a complete transition to paperless technology, integrate with the systems of neighbouring countries and offer a host of business services.
That could be a big improvement for rail operations in Kazakhstan. It is too early to draw conclusions, since the platform has been online for just a couple of weeks. However, it is no secret that paperwork and regulatory complexity are big obstacles for companies operating on the China-Europe route. The platform could ease the administrative burden and help comply with regulations.
Cooperation with the EU
Beyond the Smart Cargo Platform, Kazakhstan participates in various international digitalisation initiatives. For example, the EU-funded Ready4Trade Central Asia programme helps Kazakhstan and neighbouring countries to simplify trade documentation, harmonise customs procedures, and train officials and SMEs in a digital trade environment, says Nussupov. “This initiative facilitates the adoption of electronic certificates of origin and digital customs forms, significantly reducing time and cost for businesses.”
Kazakhstan is also involved with the UN Centre for Trade Facilitation and Electronic Business and the Central Asia Regional Trade Information System (CARTIS). The latter is an inter-agency initiative to harmonise trade data flows across institutions. It is still under development, but it is very promising and will further support Kazakhstan’s digitalisation roadmap, adds Nussupov.
The country’s transformation policies are a serious effort. The country now ranks 8th in the world on the digitalisation of government services. When it comes to trade and logistics, there is still some way to go. “I think that major changes don’t happen overnight”, says Nussupov, “so we started this process and we hope our efforts will make us stronger and better prepared to face challenges together with our partners.”