«Development of transit cargo in the Republic of Kazakhstan» General Director of KAZLOGISTICS, The Union of Transport Workers of Kazakhstan Almagambetov Kanat Geneva, October 30 , 2016.

1 THE ROLE AND PLACE OF KAZAKHSTAN AS A TRANSIT BRIDGE BETWEEN EUROPE AND ASIA Санкт-Петербург Томск Тюмень Клайпеда Екатеринбург Омск Новосибирск Москва Челябинск Барнаул Гамбург Самара Саратов Дуйсбург Изов АСТАНА Аркалык Актобе Нюрнберг Атырау Шабарколь Жезказган Усть-Каменогорск Шалкар Достык Шихэцзи Мадрид Констанца Бейнеу Ильичевск Актау СЭЗ Хоргос ВВ Батуми Курык Узень Алматы Ахалкалаки Алтынколь Урумчи Шымкент Стамбул Карс Корла Алят Душанбе Амирабад Ляньюньган Сиань Чженчжоу Тегеран ТМТМ China – Europe – China Ланьчжоу North  - South Ченду Хэфей Чунцин Ухань Бандар-Аббас Нинбо Куньмин Иву Путянь Гуанжоу Шенжень 1

2 KAZAKHSTAN RAILWAY NETWORK recently commissioned railroad І ІІ ІІІ ІV V VII VI Aksu – Degelen; Nikeltau - Altynsarino; Shar – Ust’kamenogorsk Ozen – Bolashak; Zhetygen-Altynkol; Zheskazgan – Beineu; Arkalyk - Shobarkol. 184 кm 402,5 кm 153 кm 146 кm 298,4 кm 1045,8 кm 211,8 кm 2001 2003 2008 2012 2015 recently commissioned railroad 2 existing network of railroad

CONSTRUCTION OF FERRY COMPLEX DEVELOPMENT OF KAZAKHSTAN SEA INFRASTRUCTURE IN THE CASPIAN SEA CONSTRUCTION OF NORTH TERMINAL IN PORT AKTAU CONSTRUCTION OF FERRY COMPLEX IN PORT KURYK Project cost: $ 208 mln. Area – 22 ha Completion term – 1 quarter of 2016 Capacity 3 mln. tons, including: grain– 1,5 mln. t. general, other cargos– 0,5 mln. t . containers – 1 mln. t. Project cost: $116,3 mln. Area: 20,6 ha Completion term : Starting –2015 Completion of construction - 2016 Annual capacity 4.1 mln. tons CAPACITY OF KAZAKHSTAN SEA INFRASTRUCTURE IN CASPIAN WILL BE UP TO 25 MLN. TONS PER YEAR BY 2020 PLAN OF KAZAKHSTAN DRY CARGO FLEET DEVELOPMENT DEVELOPMENT PLAN OF DRY CARGO FLEET OF KAZAKHSTAN up do 20 16 12 6 2 4 2013 2016 2017 2019 2020 2022 3

4 FORMATION OF NETWORK OF TRANSPORT AND LOGISTICS CENTERS ON THE EURASIAN TRANSCONTINENTAL CORRIDOR INTERNAL TERMINAL NETWORK: 1) Astana city (second step) 2) Shymkent city 3) Aktobe city 4) Atyrau city 5) Oral city 6) Aktau city 7) Kostanay city 8) Pavlodar city 9) Semey city Pavlodar Oral Iletsk Kostanay ASTANA Semey Atyrau Aktobe Aucaraiskaya Uzen Bolashak Baku Teheran Saint Petersburg Ekaterinburg Moscow Poti Batumi Klaipeda Duisburg Gorgan Uhan Rotterdam Hamburg Herne Hunxe AntwerpPardubice Brest Lodz SEZ Khorgos Almaty Shymkent Dostyk Aktau Kury k Urumqi Khorgos Nahodka Istanbul Zhengzhou Chend Chongq Lianyungang New Delhi u ing Bandar Abbas Guangzh ou Shenzhen Abu Dhabi Mundra Yanitie n Hong- Kong Mumb EXTERNAL TERMINAL NETWORK: 1) TLC in Bandar Abbas (Iran) 2) TLC in Klaipeda (Lithuania) 3) TLC in Mundra village (India) 4) TLC in Moscow city (Russia) 5) TLC in Ekaterinburg (Russia) 6) TLC in Novosibirsk (Russia) 7) TLC in Xian (P. R. China) 8) TLC in Zhengzhou (P. R. China) ai 4

5 DEVELOPMENT OF CENTER OF CONSOLIDATION CARGO FLOWS IN THE PORT LIANYUNGANG 1-st project phase 2-nd project phase Operating Kazakhstan-China terminal Extension of terminal capacities with participation in the SCO logistic zone project Participants Companies Group Port Lianyungang LLC (51%) KTZ Express JSC (49%) Operator Chinese-Kazakhstan Logistic Company in Lianyungang city LLC, established in 24.06.2014. Financing 18,4 bln. tenge ($99,3mln.) Port Lianyungang LLC 6,5 bln. tenge ($35,1 mln.) KTZ Express JSC 6,3 bln. tenge ($33,7 mln.), 5,6 bln. tenge ($ 30,5 mln.) – Chinese banks 449ha Segmentation of the SCO territory in port Lianyungang Q Transport-logistic zone Q International trade zone Q Production zone, bulk dry cargo handling, non-ferrous metals Potential participants Trade-production, transport-logistic companies of the SCO members – countries Volume of container handling (thous. TEU) Regular container trains to/from Kazakhstan (pcs.) Implementation plan Q Approval of FS - 1 quarter of 2016. Q Financial structuring by participants - 2 quarter of 2016. Q Starting of implementation - 3-4 quarterof 2016. 550 400 193 140 Potential volume by 2020 will be 65 3 2,2 mln. TEU 2014 2015 2020 2014 2015 2020 Creation of the logistic and trade center in port Lianyungang of the SCO members – countries will contribute in development of transportations to Kazakhstan, Central Asia , Persian Gulf countries, Turkey and Europe 5

Handling and delivery of containers DEVELOPMENT OF SPESICAL ECONOMIC ZONE «KHORGOS – EASTERN GATEWAY» AND INTERNATIONAL CENTER OF BOUNDARY COOPERATION «KHORGOS» Project parameters Total area : 579,1 ha dry port–129,8 ha; logistic zone– 224,9 ha; industrial zone– 224,4 ha Implementation period : 2014-2016 Project cost: 77,2 bln.tenge Cargo flow forecast: 4,4 mln. tons per year. Production indices of dry port Name of index unit 2015. plan for 2016 Handling and delivery of containers pcs 15002 160480 Total incomes mln.tg 88 6844 Number of SEZ registered participants Project parameters Total project cost: $ 2,5 bln. including RB–$ 492mln. private investments– $ 2,1 bln. Transport-loadingzone – 21 investment objects / 7 companies built– 7715,5m2. It is planned to build in 2016 – 65776 m2. Total number of investment objects – 35. Completion of construction – 2017. Attendance2015 – 500 thous. persons; 2018 – 1,8 mln. persons; 2020 – more than 3 mln. persons. Project unique character: 30-day visa-free stay in the territory of ICBC; free movements of persons, vehicles and commodities (cargos) between Chinese part and Kazakhstan part of ICBC; exemption from customs payments for commodities, amounts and weight of which do not exceed 1500 Euroand 50 kg. Logistic zone Project commercialization: 18 agreements for 15 investment objects are concluded; total amount of investments: $ 875,8 mln.; total area of building-up: 339 000 m2 Industrial zone 39 Dry port Projects are aimed at creation of modern infrastructure for commodity manufacturing and export promotion, attraction of additional transit cargo traffic from/to Kazakhstan, China and Southeast Asia countries 6

7 DEVELOPMENT OF TRANSIT CONTAINER TRANSPORTATION IN THE REPUBLIC OF KAZAKHSTAN Container transportations China-Europe-China (thous. TEU) Transit container trains (number of trains) 821 12104 47,4 21,2 1014 1269 3,7 6,6 384 390 2012 2013 2014 2015 2020 2012 2013 2014 2015 2020 Saint Petersburg Moscow Sweden Germany ASTANA Lodz Pardubice Dostyk Batumi Aktau Urumchi Nakhodka Bolashak Shymkent Khorgos Istambul Baku Zhengzhou Gorgan Tokyo Pusan Osaka Uhan Chendu Chongqing Bandar Abbas Abu-Dabi Singapore Trans-Caspian international transport route (TMTM) 7

Organization of regular container trains Hong Kong Baku/Alyat Chengdu Wuhan ASTANA Dostyk Batumi Yiwu Hamburg Nurnberg Duisburg Ningbo Putian Chongqing Kunming Aktau Poti Constanta Varna Burgas Istanbul Ilichevsk Altynkol Guangzhou Izov Mostiska Uzhgorod Chop MULTIMODAL CONTAINER LINE «NOMAD EXPRESS» Organization of regular container trains from China to Turkey and Europe in 14-15 days Lianyungang Shenzhen Westbound Cost ($)* TEU FEU Shenzhen – Alashankou/Dostyk – Aktau – Alyat – Batumi/Poti 5 634 9 122 Shenzhen – Alashankou/Dostyk – Aktau – Alyat – Batumi – Istanbul 6 386 10 228 Shenzhen – Alashankou/Dostyk – Aktau – Alyat – Batumi – Ilichevsk – Mostiska 6 731 10 783 Shenzhen – Alashankou/Dostyk – Aktau – Alyat – Batumi – Ilichevsk – Chop 6 781 10 803 Shenzhen – Alashankou/Dostyk – Aktau – Alyat – Batumi – Ilichevsk – Izov 6 696 10 688 Shenzhen – Alashankou/Dostyk – Aktau – Alyat – Batumi – Ilichevsk – Uzhgorod 10 753 Eastbound Cost ($)* TEU FEU Batumi/Poti – Alyat – Aktau – Alashankou/Dostyk – Shenzhen 5 359 8 643 Istanbul – Batumi – Alyat – Aktau – Alashankou/Dostyk – Shenzhen 6 105 9 746 Mostiska – Ilichevsk – Batumi – Alyat – Aktau – Alashankou/Dostyk – Shenzhen 5 905 9 126 Chop – Ilichevsk – Batumi – Alyat – Aktau – Alashankou/Dostyk – Shenzhen 5 950 9 236 Izov – Ilichevsk – Batumi – Alyat – Aktau – Alashankou/Dostyk – Shenzhen 5 805 9 001 Uzhgorod – Ilichevsk – Batumi – Alyat – Aktau – Alashankou/Dostyk – Shenzhen 5 900 9 186 * The rate includes: - Rail tariff on the territories of Kazakhstan, Azerbaijan, Georgia and Ukraine - Aktau-Alyat and Batumi/Poti-Ilichevsk ferry rates (Caspian and Black Seas), in case of shipping to Istanbul – payment of sea rates from Batumi/Poti to Istanbul (Ambarli) - Provision of the rolling stock throughout the whole route - Obligatory and additional port charges in Aktau, Alyat, Batumi/Poti, Ilichevsk - Transloading costs in Dostyk/Altynkol - Kaskor-Transservice charges (Kazakhstan) - Forwarders service

INTERNATIONAL ROAD CORRIDORS (length - 8041 km) Network of public roads includes more than 96,000 km, through the Kazakhstan goes 5 international road routes with a total length of 23 thousand Km. Russia VІ V ІІ ІІІ ІV China Tashkent-Shymkent-Taraz-Almaty-Khorgos Samara - Shymkent; Almaty-Karaganda-Astana-Petropavlovsk -Russia Russia (on Astarahan) - Atyrau - Aktau - c. Turkmenistan Omsk-Pavlodar-Maikapshagai Astana-Kostanay-Chelyabinsk 1062 км 2013 км 1631 км 1405 км 1094 км 836 км Kyrgyzstan І 8 - Western Europe - Western China International Transit Corridor 

Thank you for attention! General Director of KAZLOGISTICS, The Union of Transport Workers of Kazakhstan Almagambetov Kanat Geneva, October 30 , 2016.