KAZAKHSTAN COUNTRY OVERVIEW KAZAKHSTAN COUNTRY OVERVIEW Kazakhstan is

KAZAKHSTAN COUNTRY OVERVIEW

KAZAKHSTAN COUNTRY OVERVIEW Kazakhstan is the second largest country in the Commonwealth of Independent States (CIS) and ninth largest in the world, measuring 2. 7 million square kilometers. It is bordered in the north by the Russian Federation; in the east by the People’s Republic of China(PRC); in the south by the Kyrgyz Republic, Uzbekistan, and Turkmenistan; and in the west by The Caspian Sea. Capital - Astana Currency - Tenge KAZAKHSTAN COUNTRY OVERVIEW

Transport and logistics sectors assessment. Kazakhstan’s transport system comprises about 88, 400 kilometers (km) of roadways; 14, 205 km of railways; 3, 900 km of waterways; and up to 61, 000 km of air routes. Its road and rail systems carry nearly 90% of its total cargo load. Rail system Has 5, 192 locomotives and 59, 954 rail wagons. The volume of freight grows steadily by an annual average of 6. 4% KAZAKHSTAN COUNTRY OVERVIEW

Transport and logistics sectors assessment Road Transport Freight volume transported through the Kazakh roads is 6. 4 times more than that by rail, and has increased by an average of 8. 3% annually. Significant project Western-Europe – Western China road passing through 5 Kazakh regions will be implemented by 2018. Air Transport Kazakhstan’s aviation industry is considered one of the best in the Central Asia Region. It has relatively well-established air hubs at Astana, Almaty, and Atyrau, which together with four other domestic airports now meet the requirements of the International Civil Aviation Organization. KAZAKHSTAN COUNTRY OVERVIEW

SWOT analysis of the KZ logistics market S. W. O. T. Strengths Strategically Positioned to Serve as Link Across Europe and Asia Proximity to Russia, PRC and India – Provide Sources of low cost supplies and huge markets for exports S. W. O. T. Weaknesses Insignificant consumer demand for goods & services in home market (small economy) Large land surface area requires more infrastructure Investments to increase rail and road density Land-locked country - no direct access to sea ports KAZAKHSTAN COUNTRY OVERVIEW

SWOT analysis of the KZ logistics market S. W. O. T. Opportunities Development of new transit route from PRC-Kazakhstan –CIS to Eastern and Western Europe - offers alternative route to the Trans-Siberian railways Proximity to Russia, PRC and India – developing economies providing low cost supplies and huge markets for exports S. W. O. T. Threats Absence of a direct exit to the world trading markets; Absence of the rolling stock corresponding to the International standards; Limiting activity of domestic carriers in the international market of transport services Credit crisis originated from U. S. could reduce available credit and capital – affects capital Intensive industries like construction in Kazakhstan KAZAKHSTAN COUNTRY OVERVIEW

Total cargo turnover in Kazakhstan in 2011 -2012 The total cargo turnover amounted to 475, 278 billion ton-kilometers in Kazakhstan in January-December 2012, which is 7% more than in the same period in 2011. According to the Statistical Office, the increase in turnover in 2012 took place due to an increase in rail traffic (6%), automotive (9. 3%) and pipeline (by 7%) transport. The overall volume of cargo in the reporting period amounted to 3. 222 billion tons, which is 8. 7% more than in the same period of 2011. KAZAKHSTAN COUNTRY OVERVIEW

Our possibilities and services. Types of services Types of cargo Rail deliveries Airfreight Road freight Customs clearance General cargo Dangerous goods Oversized cargo Temperature controlled cargo KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery. China – Kazakhstan Types of transport: Air, Rail freight by any types of trains and containers. POD: Shenzhen, Shanghai, Suzhou, Ningbo, Guangzhou, Urumqi, Hong Kong Qingdao Port, Lianyungang. Transit time: Air – 3 -7 days Rail freight – 25 -40 days KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery India – Kazakhstan Types of transport: Sea - Rail freight by any types of containers, Air. POD: Nhava Sheva, Mumbai. Transit time Air – 5 -7 days Rail freight – 35 -45 days KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery. UAE – Kazakhstan Types of transport: Sea - Rail freight by any types of containers, Air. POD: Dubai, Sharjah, Abu-Dabhi. Transit time: Air – 3 -5 days Sea - Rail freight – 40 -45 days KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery. USA – Kazakhstan Types of transport: Sea - Rail freight by any types of containers, Air. POD: New York, Boston, Houston, Chicago, New Jersey. Transit time: Air – 5 -7 days Sea - Rail freight – 40 -50 days KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery. Turkey – Kazakhstan. Types of transport: air, road and rail freight. POD: Istanbul, Bursa, Ismir. Route: Turkey – port of Poti – Kazakhstan. Transit time: 10 -30 days. Air: 5 -7 days KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery. Russia – Kazakhstan. Types of transport: air, road and rail freight. POD: Moscow, Moscow region, Saint Petersburg, Novosybirsk, Kurgan, Samara, Perm and other Russian cities. Transit time: Air – 5 -7 days Rail freight – 10 -15 days Road FTL – 5 -7 days Road LTL regular line Moscow-Astana-Karaganda-Almaty KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery. Europe – Kazakhstan. Types of transport: air, road (LTL, FTL) and rail freight. POD: Italy, Germany, Poland, Slovakia, Czech Republic, Slovenia Transit time: Air – 5 -7 days Road LTL – 18 -21 days Road FTL – 10 -15 days Rail freight – 30 -40 days KAZAKHSTAN COUNTRY OVERVIEW

Basic routes and types of delivery. Kazakhstan local deliveries. Types of transport: air, road and rail freight. POD: Almaty, Astana, Shymkent, Kyzylorda, Aktau, Atyrau, Aktobe, Ust-Kamenogorsk and other cities. Transit time: Air – 2 -3 days Road LTL – 4 -7 days Road FTL – 2 -5 days KAZAKHSTAN COUNTRY OVERVIEW Rail freight – 7 -10 days

Customs Clearance Special customs clearance services which can be rendered within 2 -24 hour range in Almaty city Special requirements for the customs documentation: - Availability of the full pack of the accompany documentation (invoice, packing list, certificates, permissions). - 100% prepayment for the goods confirmed by the bank swift - 100% prepayment of the customs toll, fee and VAT - Some other special docs upon request of the customs officers KAZAKHSTAN COUNTRY OVERVIEW

Our contacts. ACEX Group (Kazakhstan) Office 304, Furmanova str. , 175 Almaty, Kazakhstan, 050000 Tel. /Fax: +77272509738 E-mail: kz@acex. net www. acex. net CEO Mikhail Strekozov Tel. : +77017140713 E-mail: m. strekozov@acex. net Sales Department Balzhan Abitova Tel. : +77272509738 E-mail: b. abitova 2@acex. net KAZAKHSTAN COUNTRY OVERVIEW