Astana, 4 September 2024 (TDI): Kazakhstan’s wheat harvest for the 2024/2025 season is projected to reach 16 million tons, according to the International Grains Council.
However, the country’s limited elevator capacity and mainline railroad congestion pose significant challenges.
The rail system’s current infrastructure can only handle up to 1 million tons of grain per month, leading to bottlenecks and price drops in the domestic market due to delays at border crossings.
To address these issues, Kazakhstan is expanding its elevator and storage capacity. The Ministry of Agriculture reports that 191 licensed grain-receiving enterprises have a combined storage capacity of over 13.2 million tons, with additional facilities planned for 2024-2026.
This expansion aims to alleviate pressure on the rail infrastructure.
Kazakhstan Temir Zholy (KTZ), the national railway company, has established a grain headquarters to manage transportation for the harvest season.
The current rail fleet includes approximately 16,000 boxcars and 12,000 grain cars, deemed sufficient by KTZ for planned transportation.
The International Grains Council forecasts Kazakh wheat exports to reach 10 million tons for the season.
In the first half of the year, 2.4 million tons have already been exported, with major buyers including Uzbekistan, China, Tajikistan, Italy, and Afghanistan.
Exports to China
Notably, exports to China have surged 5.7 times over the past three years, making it a key market.
China, which imports around 10 million tons of wheat annually, is prepared to accept significant volumes from Kazakhstan. However, transportation logistics remain a constraint.
KTZ has imposed restrictions and bans on shipments to China this year, though plans are in place to export over 2 million tons to the country.
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In response, China has invested in infrastructure projects in the border cities of Alashankou and Khorgos to enhance grain cargo transportation.
These projects include modern terminals capable of handling 6,000 tons per day and automated unloading systems, aimed at improving efficiency and accommodating larger volumes of grain.
