Interview with Andrey Stepaniuk, General Manager at SYNEX Logistics in Kazakhstan

Over the past few years, Kazakhstan has been actively developing its economy and international relations, attracting more and more foreign investors and companies. Considering the potential of the region, SYNEX Logistics launched its office in Kazakhstan a year ago. We talked to Andrey Stepaniuk, General Manager at SYNEX Logistics in Kazakhstan about logistics and the situation in the country in general.

— How would you describe the current state of logistics in Kazakhstan?

The geographical location of Kazakhstan is unique. The country is located between Europe and Asia, which creates a massive transit potential. Thousands of European and Chinese companies use the territory of our country on a daily basis to transport cargoes.

In addition, Kazakhstan itself is a major importer of goods from Europe and China, as well as a major exporter of various raw materials. Logistics in the country is actively developing and remains one of the most popular industries. We expect this trend only to grow in the future, especially considering the sanctions policy against the Northern Transport Corridor.

— What are the major challenges for businesses in Kazakhstan, including the logistics companies?

One of the key issues is the capacity of border crossing points. The government is actively working to improve it, but the amount of transport crossing the border often exceeds the capacity of checkpoints in Kazakhstan.

There is also a problem of high interest rates on bank loans and leasing, which makes it difficult for transport companies to expand and improve their rolling stock.

— Kazakhstan’s economy is based on oil, gas, and mineral resources production and their further export. How does this affect the logistics in the country? What new trends exist?

Kazakhstan is trying to diversify its economy by developing non-resource-based sectors such as manufacturing and technology. With a growing population, which could reach 27.7 million people by 2050, the demand for food, textile, medical, automotive, and construction products will only be growing.

We are witnessing a significant demand for imported goods and technologies from these industries. In addition, the raw materials industry is largely dependent on foreign components, which creates a high demand for imports.

— Kazakhstan is seeking to become a transit hub between Europe and Asia. What is the current state of the Trans-Caspian International Transport Route (TITR)? Is SYNEX Logistics involved in transportations along this route?

The TITR is actively developing, although it has its issues. The checkpoints are far from perfect, especially on the Caspian Sea coast. This increases the cost of transportation and transit times compared to the Northern route.

We understand that the TITR will become a key link in the transport chain between Europe and Asia in the coming years. For that matter, we have developed and implemented a number of transportation solutions using road and rail transport across the Caspian region. Our route from Kazakhstan to Europe has been operating for more than six months using trucks, giving us valuable practical experience.

— What makes Kazakhstan attractive to foreign companies?

Kazakhstan is a large country, but in general, population and production are concentrated in large cities such as Almaty, Astana, Shymkent, Aktobe, Karaganda. This simplifies logistics and product distribution.

The country offers a comprehensive system of electronic services, which facilitates business activities significantly. International cash transfers are fast and relatively inexpensive due to the developed banking system. All these factors make Kazakhstan attractive for international business.

— What goods and spheres are in demand in terms of imports to Kazakhstan?

The market of Kazakhstan has a need for industrial and medical equipment, relevant spare parts, as well as high-quality medical products and electronics. When it comes to these categories, the most convenient delivery option is air transport ensuring fast and safe movement of cargoes.

— Please tell us about the activities of SYNEX Logistics in Kazakhstan and your plans for the future.

We have opened an office in Kazakhstan just recently, but our team consists of experts with many years of experience in logistics and customs procedures. The team is multilingual and fluent in English, Kazakh and Russian languages.

Our products include:

• Air transportation, including temperature-sensitive and dangerous goods from Europe, USA, India, UAE;
• FTL transportation along the TITR, including direct freight delivery without the need for reloading;
• Transportation from China by all types of transport.

With an extensive network of local contacts, SYNEX Logistics can offer solutions for customs clearance and delivery of cargoes from the airport to warehouses in any region of Kazakhstan.

Our priority is to create a logistics company with European quality standards in Central Asia that can offer comprehensive solutions for international and local businesses.