Strategically located between Russia and Central Asia, Kazakhstan has for centuries been a crossroads of the Old Silk Route and is now, once again, emerging as a center for trade. With its wide open spaces and low population density, Kazakhstan's economy is one of the most freight-intensive in the world, using more transport services per capita than the geographically comparable, but much wealthier, economies of Canada and Australia.However, despite the growing reliance on road transportation, the country’s roads are in poor condition and are deteriorating rapidly. The nation’s major artery, the 1,222 km road linking Almaty, the old capital and commercial center, with the new capital of Astana, is rutted and broken. Frequent breakdowns and accidents make the long and grueling journey hazardous, which increases the cost of transportation.
In efforts to boost trade, the World Bank is helping the government of Kazakhstan improve roads. As the first step, the national highway between Astana and Almaty is being rehabilitated through the Road Transport Restructuring Project, which funds civil works to repair the road and reconstruct or relocate bridges. Construction is proceeding well, and the new all-weather road is expected to be completed by mid 2003.
These improvements will reduce travel time between the two cities by third, and thereby decrease the cost of transporting goods.
The World Bank’s partners on the project include the Asian Development Bank, the Islamic Development Bank and the Saudi Fund for Development, each funding about 450 km of the highway.
During the Soviet era, a network of railways straddled the region and trains transported the bulk of the goods. With the shift to a market economy however, road transport has proven better suited for handling the growing needs of customers. Trains are expensive for short and medium distances and goods are often not secure. Moreover, frequent delays and uncertainty of schedules lead to loss of perishable produce, adding to traders’ costs. Road transport, on the other hand, offers customers greater flexibility and a wider range of services.
As Kazakhstan’s nascent market economy seeks to grow, agricultural produce from the country’s warm southern region is sent north into Russia and Siberia, while manufactured goods are imported into cities and towns scattered across the country. In addition, grapes and cotton, textiles and tobacco products from Uzbekistan and the Kyrgyz Republic traverse its vast natural corridor during the scorching summer heat and the biting winter winds on their way to the large markets in the north.
