For efficient multimodal freight shipping to and from the U.S., Atlantic Project Cargo handles heavy machinery, yachts, perishables, healthcare equipment, and high-tech machinery.
While shipping heavy and oversized equipment from the U.S. to Kazakhstan offers lucrative opportunities, courtesy of Kazakhstan’s agricultural and other industrial sectors, it isn’t without challenges for both importers and exporters. The discourse extends to the available ports in Kazakhstan facilitating this trade. For those looking to export items from the U.S. to Kazakhstan, it’s important to understand the demographic and economic outline, the international frameworks aiding shipping, the hurdles encountered in the process, and the industries and ports that facilitate trade.
FACTS ABOUT KAZAKHSTAN
Kazakhstan, nearing a population of 20 million in 2023, predominantly speaks Kazakh. Operating in the UTC+6 time zone, it’s 11 hours ahead of Washington, D.C. The official currency is the Kazakhstani Tenge (KZT), with exchange rates in 2023 fluctuating between 435.87 to 479.96 KZT per U.S. Dollar. These facts impact the shipping of Agricultural, Heavy, and Oversized Equipment from the U.S.: language differences may require translation of shipping documents; the population size indicates a large market; the time difference could affect coordination; and exchange rates might influence the cost-effectiveness of such shipping ventures.
Kazakhstan’s Trade Overview
Kazakhstan’s aging agricultural machinery necessitates substantial imports, forming a viable market for U.S.-based heavy equipment suppliers. In 2020, the agricultural machinery sector in Kazakhstan was valued at USD 500 million, with imports contributing USD 300 million. The trade engagement between the U.S. and Kazakhstan is significant, with the U.S. exporting goods worth $73.2M to Kazakhstan as of July 2023. Kazakhstan’s growing logistics market, anticipated to reach USD 10.77 billion in 2023, underpins a conducive environment for shipping agricultural, heavy, and oversized equipment from the U.S. This trade scenario aligns with Kazakhstan’s modernization efforts, particularly in its agrarian economy.
Heavy and Oversized Cargo Shipping from The U.S. to Kazakhstan
The shipment of Heavy and Oversized cargo from the U.S. to Kazakhstan chiefly bolsters the following industries:
- Oil and Gas Industry: Kazakhstan, being one of the top oil producers globally, heavily relies on imported equipment for exploration, drilling, and refining processes.
- Mining Industry: With vast mineral resources, the country imports machinery for extraction and processing of minerals like uranium, coal, and gold.
- Infrastructure and Construction: As Kazakhstan focuses on infrastructural development, there’s a demand for heavy machinery for road, bridge, and building construction.
- Agriculture: To boost its agricultural output, Kazakhstan imports advanced farming machinery and equipment.
- Energy Sector: The country’s push towards renewable energy sources necessitates the import of turbines, solar panels, and related heavy equipment.
- Railway Transport: With an extensive railway network, Kazakhstan requires specialized equipment for track laying, maintenance, and locomotive manufacturing.
- Logistics and Warehousing: To handle the vast export and import operations, heavy lifting and storage equipment are essential for Kazakhstan’s logistics hubs.
Challenges Exporting from the U.S. to Kazakhstan
Exporting Agricultural, Heavy, and Oversized Equipment to Kazakhstan presents the following challenges.
- A government-imposed recycling fee increases costs for imported heavy agricultural equipment. High transport costs arise from Kazakhstan’s landlocked position, impacting the price of exported products.
- Competition from neighboring countries, offering inexpensive products, intensifies.
- A special program favors leasing of locally produced equipment over imports.
- Kazakhstan’s Eurasian Economic Union membership introduces customs and documentation hurdles, further complicated by geopolitical dynamics.
These challenges necessitate strategic approaches by U.S. exporters to navigate regulatory, competitive, and geographic hurdles while capitalizing on Kazakhstan’s market opportunities.
Opportunities Exporting from the U.S. to Kazakhstan
Market Opportunity in Kazakhstan:
- Sizable market for exporting Agricultural, Heavy, and Oversized Equipment from the U.S. to Kazakhstan.
- Driven by Kazakhstan’s machinery modernization needs.
State of Machinery in Kazakhstan:
- Nearly 90% of existing machinery needs replacement.
- Significant portion of Kazakhstan’s population works in the agricultural sector.
Demand for Advanced Equipment:
- Palpable demand due to outdated machinery and large agricultural workforce.
- Kazakhstan offers subsidies on agricultural equipment imports.
- Covers 25% of the import cost.
- Global downturn in equipment exports.
- Importance of diversifying into emerging markets like Kazakhstan for U.S. exporters.
Benefits for U.S. Exporters:
- Addresses Kazakhstan’s agricultural modernization needs.
- Opens new market avenues amidst global trade shifts.
Main Ocean Ports in Kazakhstan
- Port of Aktau:
- Situated on Kazakhstan’s eastern coastline facing the Caspian Sea.
- Holds a strategic position at the nexus of numerous international transportation routes.
- Functions as a primary port, handling varied cargo types including bulk and breakbulk.
- Bautino Cargo Port:
- A division of Aktau International Commercial Sea Port.
- Located in Bautino village.
- Provides a gateway to the west through the Caspian Sea and Caucasus to Europe.
- Port Kuryk:
- A newer facility on the Caspian Sea.
- Aims to expand Kazakhstan’s logistics capacity along the Trans-Caspian International Transport Route.
- Port of Atyrau
- Port of Oskemen
- Port of Pavlodar
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ATLANTIC PROJECT CARGO CAN HELP YOU ESTABLISH AN INTERNATIONAL PARTNERSHIP WITH KAZAKHSTAN
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