Kazakhstan and Pakistan have signed a memorandum on the development of multimodal transportation between the two countries. The former, which in the rail world is primarily known for its transit role between China and Europe, intends to secure more avenues for international trade.
Kazakh Railways’ freight subsidiary KTZ Express signed the agreement with Pakistan’s state logistics company National Logistics Corporation. The signing reflects a “practical step in the development of transport-logistical interaction between Kazakhstan and Pakistan”, writes KTZ.
Potential freight exchanges relate to grain, coal, fertilisers, metals, chemicals and lumber. “The cooperation involves the comprehensive use of the infrastructure and transit capabilities of both countries, as well as the development of multimodal logistics solutions involving various modes of transport with return loads, which will reduce empty runs, optimise routes and minimise overall logistics costs”, adds KTZ.
Landlocked
Kazakhstan plays a major role in the Middle Corridor and China-Europe rail traffic more broadly. However, the country aims to diversify away from a single overland trade route. Due to their landlocked nature, the Central Asian countries take a keen interest in, for instance, enabling transport across Afghanistan. That would allow for access to the Indian Ocean through Pakistan’s Karachi port or the port at Gwadar.