Business is booming.

Kazakhstan Expands Maritime Fleet to Strengthen Caspian Trade

By Abbas Nazil

Kazakhstan, a landlocked country, has accelerated strategic efforts to develop its maritime fleet to enhance its role in trade and transport across the Caspian Sea.

The country’s government is pushing to improve its commercial fleet, modernize coastal infrastructure, and attract international investors to transform its ports—Aktau and Kuryk—into a regional transit hub.

These efforts are crucial for increasing national revenue, reducing reliance on foreign carriers, and securing Kazakhstan’s foreign trade interests.

Despite these ambitions, Kazakhstan faces significant challenges.

While 263 maritime vessels are registered in the country, over 70 percent are more than 25 years old, limiting competitiveness in the region’s maritime transport sector.

Currently, most cargo transport between Kazakhstan and Azerbaijan is dominated by the Azerbaijan Caspian Shipping Company, which operates over 160 vessels and is undergoing a major modernization program.

Kazakhstan’s outdated fleet and weak market presence mean a significant portion of profits from freight transport goes to foreign operators.

To address these issues, Kazakhstan has set a goal to increase its share in the Trans-Caspian International Transport Route, a corridor expected to handle 11 million tons of cargo by 2030.

Containerized transit cargo from China alone is projected to grow by at least 40,000 TEU in the next five years.

However, progress on expanding Kazakhstan’s maritime fleet has been slow, with many development plans yet to materialize.

Kazakhstan’s reliance on pipeline transport for crude oil has also raised concerns.

A recent drone attack on a key Caspian Pipeline Consortium facility threatened to cut the country’s oil exports by 30 percent, highlighting the urgent need for an alternative maritime transport route to ensure stable oil production and exports.

Expanding the domestic tanker fleet would provide a critical safeguard against geopolitical disruptions in energy markets.

One major initiative aimed at strengthening Kazakhstan’s fleet is the “Caspian Integrated Maritime Solutions” joint venture between KazMunayGas and Abu Dhabi Ports Group.

The partnership focuses on maritime services for oil and gas transport, as well as general cargo shipping.

The government has plans to establish a domestic shipbuilding and repair industry, enabling the construction of vessels suited to the Caspian Sea’s unique conditions, including its declining water levels.

By the end of 2024, Kazakhstan’s maritime transport sector moved 2.8 million tons of cargo, more than doubling the previous year’s figures. Freight turnover also surged by 1.8 times.

While these numbers indicate progress, Kazakhstan must accelerate fleet modernization and infrastructure development to fully integrate into regional and global supply chains.

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