Coming in from the sidelines
A country with a view for GulfLink. A new joint venture called GulfLink, launched by AD Ports and Kazakhstan Railways, aims to strengthen trade routes in, to and from Central Asia, and to expand Kazakhstan’s role as a link between China, Europe and the Middle East. The partners plan to create “unprecedented 360-degree connectivity” for Kazakhstan.
A newly-established joint venture is set to “change the logistics landscape of Central Asia”, as one founding partner, AD Ports, announced, together with the other associate, Kazakhstan Railways. The two organisations plan to use the entity GulfLink to create cross-border transport corridors and link Kazakhstan up more closely to global supply chains.
East–west trade artery to flourish
51% of the joint venture is owned by AD Ports, with the remaining part in the hands of KTZ Express, the multimodal freight division of Kazakhstan Railways. The companies are penetrating a region where DP World already has a presence, with offices up and running in Kazakhstan, Uzbekistan and Georgia.
“GulfLink will play an important role in providing critical connectivity between Kazakhstan, Central Asia and the rest of the world.” GulfLink CEO Kamal Huseynov
Abdulaziz Zayed AlShamsi, regional CEO of AD Ports, said in a statement that Kazakhstan is one of the fastest-growing economies in Central Asia. This makes the country of great importance when it comes to “developing the Middle Corridor route through Central Asia into an important commercial east–west trade artery,” AlShamsi said.
Connectivity to be increased
With this joint venture, the companies are additionally creating new freight connections in the region and connecting them to Pakistan, Turkey, the Arabian Gulf and the Indian Subcontinent, for example.
“We welcome this opportunity to shape the future of global logistics in Kazakhstan and Central Asia with GulfLink,” said Damir Kozhakhmetov, KTZ Express’s director general and chairman of the board. According to him the JV will create a new level of end-to-end connectivity in Kazakhstan and beyond. The resources of AD Ports and the regional anchoring of KTZ Express will expand trade flows and also improve transport infrastructure.
Around 70% of freight transport in Kazakhstan is carried out by rail. With its network state-owned KTZ offers access to Europe, China, Turkey and the Caucasus region. In total, the company operates railway lines that cover no less than 16,000 km.
Strategically located
According to Huseynov, GulfLink’s “commitment to efficiency, innovation, seamless supply chains and optimised trade” is intended to bring added value to customers. To achieve this, Kazakhstan’s “central position” in the region will play a decisive role. This is expected to create “unprecedented 360-degree connectivity,” according to the companies.
The regional chief executive officer of AD Ports called the move a golden opportunity to further anchor the company’s services in the region. He also wants to “further drive economic growth, through global connectivity that will benefit the people of Kazakhstan as well as of Central Asia.”
“GulfLink will be ideally positioned in Kazakhstan, one of the most important transit hubs for trade in, to and from Central Asia.”
The joint venture wants to focus its transport services on existing routes that are currently already running quite well, as well as on integrating up-and-coming routes into the network.
China-Europe links one of the foci
Amongst the routes which the two new partners will pay special attention to are east–west connections linking China and Europe. The joint venture is particularly keen on reviving said trade channels and on subsequently expanding them into more important supply chain arteries.