Kazakhstan up in WB’s Logistics Performance Index 2016

ASTANA. KAZINFORM Kazakhstan has climbed up in the World Bank's Logistics Performance Index by 11 positions and ranks now the 77th among 166 countries of the world, Kazinform reports citing finprom.kz.

In CIS breakdown, Kazakhstan demonstrates better LPI, compared to Russia (99th), Ukraine (80th), Uzbekistan (118th), Belarus (120th) and Kyrgyzstan (146th).

According to experts, railroad transportations income in 2016 has increased by 29bln tenge.

The sector experiences today serious large-scale transformations now. Competition in railroad transportations will be enhanced.  Income growth in the sector depends on transportation tariffs – the higher costs are the higher growth is, since transportation volumes are falling in physical terms.

 In 9 months of 2016, the volume of goods and cargo transported fell by 4% against the last year (236mln tonnes). Passenger transportations decreased by 22% – 17mln people were transported in January-September 2016.

Large-scale transformation of the Kazakhstan Temir Zholy national company – the main actor in the country’s railroad transportations – ensures growth of income in the sector.

Last year, the company adopted its 2025 Transformation Programme on stage-by-stage establishment of a logistics centre on its ground.

The government forecasts twofold rise in transit transportations through Kazakhstan by year 2020 and tenfold increase by 2050.

The government cuts financing of the projects in the sector in order to bring the railroad transportations to a competitive environment.

In 2016, the National Fund has allocated 36bln tenge for the implementation of the raildroad transportations projects.

Next year, the volume of financing from the National Fund will be cut 18 times (to 2bln tenge).

The LPI measures the effectiveness of the delivery chains in international trade and is compiled every two years (2007, 2010, 2012, 2014 and 2016.)

The logistics performance (LPI) is the weighted average of the country scores on the six key dimensions: 
1) Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs;

2) Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology);

3) Ease of arranging competitively priced shipments;

4) Competence and quality of logistics services (e.g., transport operators, customs brokers);

5) Ability to track and trace consignments;

6) Timeliness of shipments in reaching destination within the scheduled or expected delivery time.