JV to enhance connectivity and industrialisation in Central Asia

(Posted on 03/12/23)

In the presence of Kassym-Jomart Tokayev, President of the Republic of Kazakhstan, AD Ports Group, a global leader in trade, logistics and industry, has signed an agreement with Kazakhstan Temir Zholy JSC (Kazakhstan Railways), a national railway company and a leader in transportation and logistics in Central Asia, to form a joint venture to enhance rail connectivity, maritime shipping services, development of operations in Kazakhstan’s ports, accelerate digital transformation and connectivity in Central Asia.

Under the terms of the agreement, a joint venture, owned 51% by AD Ports Group and 49% by KTZ, will aim to establish a dynamic regional logistics hub, leveraging AD Ports Group's expertise in management, operations, and development of logistics operations and digital transformation , in addition to leveraging Kazakhstan Railways' regional knowledge and practices for advanced vessel operations, logistics enhancement, including hopper wagons, port developments, and railway infrastructure expansion. The ambitious initiative aligns with AD Ports Group’s and KTZ’s objective of transforming the regional logistics landscape.

Abdulaziz Zayed Al-Shamsi, Regional CEO of AD Ports Group, said: "Our joint venture with Kazakhstan Railways has the potential to not only strengthen maritime connectivity between the Middle East and Central Asia, but also opens up new trade routes, making it easier and more efficient to move goods across these two regions. We see this enhanced connectivity leading to increased trade volumes for the benefit of the global maritime industry. Additionally, by leveraging our combined strengths, we are set to create a thriving regional economy, which will have a positive impact on the global maritime industry through increased demand for shipping and logistics services."

Yerlan Koishibayev Deputy CEO for Logistics of Kazakhstan Temir Zholy JSC (Kazakhstan Railways), said: “The new joint venture will focus on expanding port infrastructure on the Caspian Sea, creating trade hubs and bringing advance digital technologies. Cooperation between Kazakhstan Railways and AD Ports Group will contribute to the development of transport and transit potential of Kazakhstan, increase export directions and create a market for Kazakhstani goods in the Arabian Gulf countries.”

The joint venture will be implemented in phases, with both entities collaborating to develop maritime electronic systems, vessel operations, port and trade development, in addition to railway infrastructure expansion. These ambitious plans promise to transform the global logistics landscape, enhancing trade flows and maritime efficiency, and to propel the Central Asia region into a new era of economic growth and logistical excellence.