New road will reduce costs by 15% and speed up logistics by up to 30% – experts

Recently in Washington, an agreement was signed to finance the construction of the Karaganda – Zhezkazgan highway. The length of the future road will be 457 km, and the loan amount is 650 billion tenge, reports Todayinfo.kz news agency. Experts from Qazaq Expert Club explain how this project will affect the development of logistics processes and investment attractiveness in Kazakhstan. According to transport logistics expert Ainur Diyeva, this route will eliminate one of the key "gaps" in Central Kazakhstan, where transport links between industrial regions remain weak. First of all, it will affect the mining and metallurgy sector: improved road infrastructure will accelerate the transportation of raw materials and finished products, reducing dependence on a limited number of routes. According to the expert, modernization of road infrastructure in such projects reduces delivery time by 20–30% and transport costs for businesses by 10–15%. This lowers infrastructure barriers and makes the region attractive, especially for industry and processing sectors. In addition, Diyeva noted that railways will retain their main role in transporting bulk cargo, while highways will increase logistics flexibility. This will allow faster redistribution of internal flows and reduce the load on certain sections of the railway network. Financier Venera Zhanalina notes that from an investment attractiveness perspective, this project has a signaling value: the participation of institutions such as the International Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank indicates that the project meets international financing standards in terms of structure, preparation, and risk management mechanisms. "According to the Asian Infrastructure Investment Bank's assessment," Zhanalina adds, "modernization of the Zhezkazgan – Karaganda section will reduce travel time by 1.1 hours – from 6.64 hours to 5.53 hours. This will reduce transport and time costs." According to World Bank data, export-import traffic on this route could grow from 67 thousand tons in 2022 to 358 thousand tons by 2030, provided that related infrastructure develops. If these projects are delayed, the figure is likely to be around 212 thousand tons. In addition, the region's current transport isolation directly affects commodity prices. "In the Ulytau region, logistics costs exceed 20% of product value, which limits access to markets and services," says Zhanalina. The potential number of project beneficiaries is estimated at 1.36 million people. According to experts, the key factor of efficiency is not the road itself, but its integration into existing logistics chains. This implies the need for parallel development of warehouse infrastructure, service hubs, and digital solutions.

"Overall, this is an infrastructure-sound project. It will increase the resilience of domestic logistics and reduce barriers for businesses. However, its impact on the country's transit potential will be limited and depends on the comprehensive development of the entire transport system," concluded Ainur Diyeva.