Where East

Meets West

KHORGOS IS A GATEWAY TO THE EURASIAN CONTINENT

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International transport and logistics hub is being constructed at present in the south-eastern part of Kazakhstan – in Panfilov district of Almaty region. Altynkol-Khorgos Kazakhstan - Chinese railway border crossing, International Center of Boundary Cooperation (ICBC) and SEZ “Khorgos – Eastern Gates” are the parts of the hub. The President of the Republic of Kazakhstan Nursultan Nazarbayev emphasized the significance of this hub by comparing it to the Suez Canal for the countries of Central Asia. 
Extensive transit traffic to Russia, countries of Europe, the Caucasus, Central Asia, the Persian Gulf will pass through Khorgos. Subsequently it will pass to the Indian market where a Kazakhstani terminal is planned to be built in one of the ports. 
- This complex can be really compared with the Suez Canal by its functions and world strategic significance. Khorgos becomes a gateway to the Eurasian continent. Extensive traffic will pass exactly through Khorgos. There is no other corridor. We are creating all necessary conditions for this, - Askar Mamin, the President of NC KTZH JSC specified.

The dry port of SEZ Khorgos will be the central part of this hub. The first start-up complex was put into operation in last December. At present moment the final stage of start-up complex construction is being accelerated.

- It is planned to start operations in the dry port on July 1, - the Head of KTZ said. – Many investors are waiting for start of this facility.

Industrial zone is the major part of the dry port and infrastructure base for its development is formed here. The world’s largest brands are ready to expand their production here under the regime of the special economic zone. Khorgos is the key point, distribution to the markets of the Eurasian continent will start from here. Such investors as Toyota, Hewlett-Packard, DHL, one of the largest Chinese companies in the sphere telecommunications, and many other companies understand it. Everybody shows the interest in the situation in Khorgos.

Aliy Karabalin, Head of technical supervision department of KTZ Express JSC informed about infrastructure construction of SEZ “Khorgos”. As of today 700 hectares of 4.5 thousand hectares allocated by the Decree of the President of the Republic of Kazakhstan have been put in use.

The dry port is a container yard where containers are loaded and discharged. The area of the container yard is 200 thous. sq.m and it allows storing up to 20 thous. containers. Construction of two temporary storage warehouses for 1435 mm narrow gauge and 1520 mm broad gauge is being completed. Construction of grain terminal is planned in future.

10 thousand square meters of soil of the dry port yard, logistic zone and industrial zone have been dumped. 9 km of rail tracks on narrow and broad gauges from Altynkol station to the dry port have been laid. Overhead crossing and tunnel interchange at the place of crossing of “Western Europe – Western China” highway and local motor road have been built. Construction of utility lines is accomplished by 85%, laying of motor road is being completed. Building of the dry port operator with 4 thous. sq.m area has been commissioned, works on the SEZ Management Company building and customs clearance center will be completed by June 20.
- Completion of these works will allow starting full operation of the dry port. Its capacity is 4.4 mln tons per year, - the Vice President of NC KTZ JSC Roman Sklyar said.

2800 people worked at the construction site during the peak period, 1.5 thousand of various equipment items were attracted. 
Inauguration of the office of the SEZ “Khorgos – Eastern Gates” Management Company - KTZE – Khorgos Gateway LLP on May 17 - KTZE – was an outstanding event. Karl Gheysen, the CEO of KTZE – Khorgos Gateway LLP, representative of Dubai Port World (DP World) global operator was officially presented a key from the new three-floor building constructed by SK Basis LLP.

- We have completed the formation of KTZE – Khorgos Gateway Company. This Company will carry out operations in the dry port and manage logistic and industrial zones of the SEZ following DP World principles and technologies, the company which manages the largest SEZ of Dubai Jebel Ali (Jebel Ali Free Zone, JAFZA) and extensive network worldwide. – Today we are starting work in the office. We will start container operations in July. Visit of Chinese investors is planned on August 15. Many companies have expressed their interest to work and invest in the logistic zone. 
Not only foreign companies but local companies as well are interested in making first steps in investment in SEZ. As of today the company of Panfilov district of Almaty region has submitted an application for carrying out corn processing and exporting to neighbouring countries in the territory of SEZ. The Company plans to build its facilities in the industrial zone in October. It will be a corn products exporting company.

- Social aspect of our project is very important as 80% of our staff will be locals. We are planning to sign a special memorandum with the Akimat of Almaty region in the near future, - Karl Gheysen said. 
Taking into account the prospects of development of the region, the Akimat of Almaty region is already working on a master plan of the town for 100 thousand people.

The President of Kazakhstan Association of city planners, Director of Urbostil LLP, Lyubov Nysanbayeva said that employees of the SEZ and their families would live in this town.

- We understand that SEZ is a key project which will be the start of the New Silk way. This territory will be the entrance to Kazakhstan, it will create impression about the Republic. Thus, we are working on the future town project with special care. All infrastructure facilities are planned to be there – entertainment and social, trade and park areas. We are working on architecture, layout very seriously, because it will the “face” of Kazakhstan. Everything is done so that it will be the number one project. The peculiarity of the project is that we should manage to do everything in time.

Year 2035 is the estimated period of construction of the town, year 2050 is projected. The first phase shall be completed by 2020, it is designed for 50 thousand people.

Construction of an international level hotel with 150 rooms will start in the nearest future. Basis Construction Company plans to build it at its own expense.

- We attract an Italian company IBIS which is one of the leaders in the field of hotel business and services, they own global hotel network, - the CEO of SK Basis LLP Alexandr Belovich said. - It will be our own investment. The hotel is evaluated by KZT 2 billion and the house with 100 apartments – by KZT 2 billion. We have received an assignment and we will start to prepare the site in a week. We will also develop design and estimate documentation.

According to Askar Mamin the dry port of the SEZ “Khorgos – Eastern Gates” has a strong infrastructure which will work efficiently and give opportunity for development of transport and logistic potential of Kazakhstan.