Investment Projects - Alakol Port

Products

Within the framework of the project, services will be provided for the transportation and transshipment of bulk and bulk cargoes for exported Kazakh products to China. When reaching the maximum planned capacity in 2030, the average annual export volumes to China for the period 2030-2036. through the Hub will amount to 5.7 million tons, including transshipment of agricultural products (1.7 million tons per year), transshipment of other dry cargo (0.4 million tons per year), transshipment of solid minerals (3.6 million tons per year) .

Project

As part of this investment project, it is planned to build a logistics center Alakol Port with a capacity of 4.3 million tons per year in the Abay region. Alakol Port will provide full control and coordination of all stages of bulk cargo transshipment from the moment of their arrival to shipment to the Alashankou station in China.

There is a need to reduce the queues at the stations of the Republic of Kazakhstan and China, which are formed due to the difference in the width of the railway track of the Republic of Kazakhstan and China.

At the moment, negotiations are underway with Chinese equipment suppliers, work is underway to register the land plot and permit the construction of the facility.

Company

SG Solutions LLP was established on February 13, 2023 to implement the project for the construction of the Alakol Port logistics hub. The main activity is the activity of freight railway transport (OKED 4920).

Market

• Kazakhstani exports to China increased by 35% in 2022 compared to the previous year, reaching $13 billion. In 2022, the export of bulk and bulk cargo from Kazakhstan to China increased by 31% and reached 6.7 million tons. At the same time, the share of iron ore in the export of bulk and bulk cargo to China was 82.7% (5.6 million tons). Kazakhstan is also actively exporting flax, sunflower and other oilseeds, the export of which in 2022 reached 405 thousand tons.
• In 2022, the freight turnover of railway transport in the Republic of Kazakhstan increased by 4%, amounting to 308 billion t-km.

• Favorable location. The Abai region is located in the east of the Republic of Kazakhstan and simultaneously borders on Russia and China, and inside the country it borders on the Karaganda and Pavlodar regions, where the Pavlodar FEZ and the Saryarka FEZ are located. In the Abay region itself and the neighboring East Kazakhstan region, there are also potential consumers of the hub's services - large metallurgical complexes of Kazzinc LLP, Ust-Kamenogorsk Titanium and Magnesium Plant JSC, Ulba Metallurgical Plant JSC. Alashankou border cargo station is only 40 km away.
• Multimodality of transportation. The logistics hub provides the possibility of simultaneous use of various modes of transport, which significantly increases the throughput and volume of traffic. Exporters are given the choice of the optimal mode of transport depending on the characteristics of the cargo, distance and the required delivery time.

• 66.23% (USD 79.2 million) - debt capital;
• 33.7% (USD 40.8 million) - equity.

• 58% (USD 70,654 thousand) - buildings and structures;
• 42% (50,154 thousand US dollars) - machinery and equipment.