The Caspian region will become a large international transport and logistics center

The Caspian region will become a large international transport and logistics center with single tariffs for transporters. The government officials of the five Caspian countries signed a framework cooperation agreement. The agreement provides equal terms for all the countries and the new tariffs will be lower than the current rates. Visa simplification and customs procedures and reduction of the freights delivery time were being discussed for many years. Previously, every port imposed their own tariffs for foreign companies, which substantially differed from domestic fares.

GULSHAT DAUYESHOVA, SENIOR STAFF, KAZAKH MINISTRY OF INVESTMENTS AND DEVELOPMENT:

-Tariffs imposed for transit of goods will be further reduced. It will make a difference because fees paid in ports make up about 40 per cent of all tariffs. Transporters of all five countries will benefit from this agreement. The agreement will affect the development of transit traffic as well.

Last year, Kazakhstan’s cargo turnover with the Caspian states totaled more than 100 million tonnes. Meanwhile, 60 million tonnes of cargo were recorded in the first six months of 2018. Experts believe that security should be ensured with the volume of traffic. Security aspects are covered by the convention on the Caspian Sea’s legal status.

SANAT KUSHKUMBAYEV, DEPUTY DIRECTOR, KAZAKHSTAN INSTITUTE FOR STRATEGIC STUDIES:

- Based on the convention on the Caspian Sea’s legal status, only Caspian countries have a right to conduct military activities. Activities of non-Caspian countries are not allowed in the region. The Caspian Five have identified their interests. Division of the seabed based on the sectoral principle is a very important aspect. As part of the division, every littoral country will conduct its exclusive economic and business activities within its sector.

Kazakhstan plans to earn up to five billion Tenge per year from the China – Europe transit through the Trans-Caspian International Route.