Importance of trains in Central Asia
The boring train is heavily undervalued in a world of enormous container ships dominating maritime trade. For many countries that do not have access to the sea, such as Central Asian economies, the train plays a vital role in the complex web of trade logistics. However, trains can also play a significant role in trade between markets with sea access, such as China and Europe.
Trade via train has been making a steady comeback in such regions, bringing in benefits on a macroeconomic scale. For example 2011, Central Asia only had 17 express container trains. The number has skyrocketed to over 15000 in 2021, achieved due to international cooperation between the People’s Republic of China and Central Asian countries. Ambitious reforms were made, such as simplifying the process and deregulating trade; now, trains have to go through fewer border inspections and are serviced by better-quality platform companies. Trade growth is accelerating yearly; in the first eight months of 2022, the Khorgas port, operating on the Kazakhstan border with China, had over 8,000 freight trains pass through it, a 6.5% year-on-year increase. Overall, trade with China in the first half of 2022 grew by an astonishing 18.9 percent, and much of it is driven by trains. The port also allows Kazakhstan’s exports to participate in maritime trade, with some goods leaving China to other countries via Chinese ports. This simple and old form of transportation allows Kazakhstan to income from its rich mineral reserves, with over 40% of exports traveling to China through trains being mineral fuels. It also allows Kazakhstan to import vital technology that allows the country to progress, as most imports from China are machinery, equipment, and electrical equipment, which is then used in the manufacturing sector of Kazakhstan. The end of 2022 has also seen Kazakhstan and China agree to build a third railway connecting the two economies.
Moreover, both Uzbekistan and Kyrgyzstan are expanding their connections with China by building a railway that connects all three countries; this will have a significant impact on the Central Asian economies, allowing it to export goods to China, the European Union, Turkey, and the middle east, as the railway is part of the more extensive belt and road initiative which would facilitate trade between these regions, this is important for global cooperation and regional stability. The region's strategic location at the crossroads of Asia and Europe has made it a focal point in global trade dynamics; central Asia has now become an international logistics hub connecting China, Europe, Turkey, and the Middle East. This is evident by the fact that 90% of China-Europe freight passes through Kazakhstan alone; Kazakhstan’s role in the world of trade will only grow with the advancement in cooperation with China.
One of the less-discussed but critical aspects of the growing role of trains in Central Asia's trade is its potential for environmental and economic sustainability. On average, trains can move one ton of freight over 760 kilometers on just one gallon of fuel. In contrast, trucks can typically only move one ton of freight about 250 kilometers on a gallon of diesel fuel, thus making trains more energy-efficient, also they produce fewer greenhouse gas emissions per unit of cargo transported. Furthermore, the expansion of rail networks in Central Asia has the potential to drive economic development in rural areas along these routes. Resulting in increased job opportunities and overall socio-economic growth. Governments in the region should consider the long-term benefits of investing in rail infrastructure not only for immediate trade gains but also for economic development and reduced environmental impact.
As Central Asia continues to invest in rail networks, it is carving out a vital role in the dynamic world of trade, giving it more influence economically and geopolitically. Central Asia has a bright future connecting continents and fostering cooperation on an unprecedented scale. Trains bring sustainable progress, regional stability, and global cooperation.
Written by Islam Buleshov | Proofread by Yasmin Uzykanova
