ASKAR MAMIN Minister of Transport

nvestment into Kazakhstan’s transportation sector will reach $30 billion over the next decade. Most of the projects, from railway construction to seaport infrastructure, are taking the shape of public private partnerships (PPPs). The country’s transportation strategy runs through 2015 and a new code regulating the sector is intended to satisfy WTO conditions. In the meantime, Kazakhstan is banking on healthy credit ratings and political stability.

“Our location between East and West, between the biggest economies in the world, brings into focus the necessity to build a transcontinental transportation bridge,” says Askar Mamin, Minister of Transport and Communications. The strategy involves not only money, but also an eye for transit potential. Railroad tracks, highways, airports and seaports are being designed to maximize transshipment opportunities, and goods are mostly oil and refined products, but also passengers, consumer goods and mineral resources.

By 2015, Kazakhstan will be exporting 55 million tons of oil per year via the Caspian Sea. Kazakhstan Temir Zholy, the national railroad company, has spun off suppliers to the private sector. After its restructuring program, procurement costs have dropped. The company can thus take on new engineering projects with partners such as General Electric. “Kazakhstan Temir Zholy is one of our best companies,” says Mr. Mamin.

Air travel is also expanding. Air Astana, a new national carrier, is increasing the number of aircraft from 11 to 35. The company is considering both Airbus models as well as Boeing. “The passenger market is growing 18 percent per year and our objective is to be ready for demand,” says Mr. Mamin. Meanwhile, in the space and telecommunications industry, companies see Kazakhstan as a launching pad. The Baikonur Cosmodrome is a likely future source of revenue. Last December, Kazakhstan launched its own $65 million satellite.