The Potential of Kazakh Rail Transport Mode as a Competitive Transit Route Between Europe and China

The purpose of this research paper is to explore the potential of the railway network of the Republic of Kazakhstan as an effective and competitive transit transport route between China and Europe, as well as ensuring the accrued economic benefit to the Kazakh economy from the transit flows potentially generated. Kazakh territory was a major part of the old Silk Road, especially the southern regions of the current Republic. This was disrupted during the Soviet period, with borders closed and any transit forbidden. From her independence, Kazakhstan has intended to be an open and transparent state in terms of world trade and business. This desire has led the country to make use of her transit potential between China and Europe. To explore this, the research work applied multiple research methods: Multiple Regression analysis, Correlation analysis, PEST and SWOT analysis. The findings of the research allow us to suggest that Republic of Kazakhstan is on the way to reaping the economic benefits of being a transit state. To achieve the full potential of transit services, the research recommends a number of actions including strengthening the scientific support for the industry; formation of intersectoral coordination with focus on marketing of transport services and logistics; construction and organization of an international transit corridor “Western Europe—Western China”; formation of a flexible tariff policy; the elimination of physical barriers to the organization and operations of domestic transit traffic; and the streamlining of customs procedures; all to facilitate smooth border crossings.