Kazakhstan
Kazakhstan is undergoing a transformative journey in developing its cargo aviation sector, driven by strategic initiatives, infrastructure improvements, international collaborations, and regulatory reforms aimed at enhancing the country’s position as a pivotal hub for air cargo in Central Asia.
Growth and Expansion
Cargo Volume and Fleet Expansion
In December 2023, Marat Karabayev, Kazakhstan’s Minister of Transport, outlined ambitious plans for the country’s cargo aviation sector. He projected that the volume of processed cargo would increase eightfold by 2030. This growth is supported by the expansion of the air fleet, which will add 25 more aircraft by the end of 2025, bringing the total to 124 and increasing capacity by 32%.
During the first quarter of 2024, aircraft delivered 5,800 tons of cargo and baggage, reflecting a slight decrease year-on-year. However, revenue ton-kilometers (RTK) grew by 5.7% to 13.3 million. March 2024 saw a positive trend with 2,200 tons of cargo transported, an increase of 4.1% year-on-year, and RTK increasing by 11.2% to 4.9 million. From January to April 2024, the National Bureau of Statistics reported a 1.2% increase in cargo volume to 7,900 tons and an 8.5% rise in cargo turnover to 18.3 million ton-kilometers.
Changes in Transit Routes Over Kazakhstan
The structure of Kazakh airspace utilization has changed dramatically due to the geopolitical situation and alterations in global flight paths.
Before April 2022, transit routes over Kazakhstan were heavily utilized by flights between Europe, Asia, and North America. The routes included:
- Cross-polar routes to the USA and Canada.
- Direct routes between Europe and China.
- Connections from Southeast Asia to Europe.
- Extensive use of Russian airspace for flights to and from Europe.
After April 2022, the transit routes shifted significantly:
- The usage of Russian airspace decreased due to geopolitical tensions and airspace restrictions.
- Increased utilization of Kazakh airspace by flights avoiding Russian territory.
- Enhanced connections between China, Southeast Asia, and Europe over Kazakhstan.
- New routes from the Middle East and Central Asia avoiding the previously dominant paths through Russia.
These shifts underscore Kazakhstan’s growing importance as a transit hub in the region, highlighting its strategic advantage and the necessity for continued infrastructure and regulatory enhancements to accommodate the evolving air traffic patterns.
Liberalization and International Agreements
Open Skies and Fifth Freedom Rights
In June 2023, Kazakhstan signed a significant memorandum with Luxembourg, allowing Cargolux to increase its flights via Astana from 7 to 21 times per week. Cargolux Airlines International S.A., founded in 1970 in Luxembourg, operates 30 Boeing 747 airplanes and flies to more than 50 destinations globally. This agreement positions Kazakhstan as a key transit hub between Europe and Southeast Asia. Furthermore, in December 2023, Kazakhstan’s Ministry of Transport lifted restrictions for foreign airlines, granting unlimited flights to major cities under the Open Skies regime, including fifth freedom traffic rights aimed at boosting competition and reducing airfares.
Partnerships with China and South Korea
The introduction of a visa-free regime with China in November 2023 led to increased flight frequencies and new routes. Kazakh airlines obtained rights for unlimited flights to Hainan Island, leveraging fifth freedom rights for the first time. An agreement was reached to expand the number of flights between the two countries to 124 per week, with cargo flights operated without restrictions on destinations and frequencies. These agreements were made during the China-Central Asia (C5+1) Civil Aviation Cooperation Working Group Conference in Xi’an. Agreements with South Korea in February and March 2024 are set to quadruple flight frequencies between the two countries to 42 per week, including 40 cargo flights weekly with fifth freedom rights. This collaboration also introduced new routes and enhanced bilateral air services.
French and Chinese Carrier Collaborations
In April 2024, Shymkent airport handled a technical stop for a French cargo carrier, FTL Airlines, en route from Paris to Haikou on Hainan Island. Sichuan Airlines launched scheduled cargo flights between China and Europe via Kazakhstan, with the Chengdu-Almaty-Budapest route operated five times a week. These flights are expected to boost Kazakhstan’s transit potential and further develop its air cargo infrastructure.
Expansion of Alpha Sky’s Fleet and Operations, collaboration with QazPost and New Routes
Kazakhstan’s cargo airline Alpha Sky is set to significantly expand its fleet and operations in 2024. The carrier plans to add two Boeing 757-200F aircraft to its existing fleet, with the first aircraft expected to arrive in April. This development was announced at the IATA World Cargo Symposium 2024 in Singapore, highlighting Alpha Sky’s strategic growth plans. The addition of the Boeing 757-200F aircraft, which is already being promoted on the airline’s social media platforms, marks a significant enhancement in their cargo capacity .
In addition to expanding its fleet, Alpha Sky has entered into a collaboration with Avsoft International, a provider of online training solutions for the aviation industry. This partnership includes specialized training courses for Alpha Sky pilots, focusing on the B737-400 and B757-200 aircraft models. This initiative ensures that Alpha Sky’s pilots are well-prepared to operate the new additions to their fleet, maintaining high standards of safety and efficiency.
Alpha Sky, based at Turkestan Airport (HSA) with an office in Shymkent, currently operates a single Boeing 737-400F, which it acquired in the summer of 2023. This aircraft, registered as P4-JAG, primarily flies routes between the UAE and destinations in East Africa. Despite an incident in January 2024 where Somali aviation authorities temporarily restricted its entry due to undisclosed cargo information, the aircraft has continued its operations successfully.
Alpha Sky’s strategic initiatives extend beyond fleet expansion. In May 2024, the airline signed a memorandum of cooperation with Kazakhstan’s national postal operator, QazPost. This partnership aims to enhance Alpha Sky’s cargo capabilities by launching regular flights from Turkestan to Hong Kong. To support this new route, a joint distribution center for processing international postal shipments has been established in Turkestan. This center will facilitate the handling of e-commerce goods from Hong Kong, with return flights expected to be loaded with export goods from Kazakhstan.
The collaboration with QazPost is projected to provide additional transit shipments of up to 60 tons per week. Specifically for this project, Alpha Sky will receive its first Boeing 757 freighter aircraft by the end of May. Currently, Alpha Sky’s fleet includes two Boeing 737-400Fs, which primarily operate outside of Kazakhstan. The addition of the new aircraft and the strategic partnership with QazPost underscores Alpha Sky’s commitment to expanding its operational footprint and enhancing its service offerings .
These developments highlight Alpha Sky’s strategic growth in the cargo aviation sector, focusing on fleet expansion, pilot training, and strategic partnerships to enhance its operational capabilities and service reach.
New Terminals and Hubs
Kazakhstan’s 2030 development strategy includes transforming four airports—Astana, Almaty, Aktobe, and Shymkent—into regional hubs. These hubs will feature advanced infrastructure for passenger and cargo services, along with special customs zones. In June 2024, a Turkish logistics company announced the construction of a multimodal cargo terminal at Aktobe Airport, set for completion by 2025. This terminal will bolster the airport’s strategic role in connecting Russia with other Central Asian countries.
Astana Airport Modernization
Astana International Airport (NQZ) continues to demonstrate significant operational growth, serving 1.84 million passengers in the first quarter of 2024, a 25% increase year-on-year. The airport is set for a runway overhaul from May to December 2024, led by UAE-based Terminals Holding.
Karaganda Airport Transformation
Karaganda’s Sary-Arka Airport is being transformed into a multimodal hub with significant private investment. This project aims to increase cargo traffic from 15,000 tons to 200,000 tons by 2030, creating 2,000 jobs and establishing a free economic zone on the airport’s territory. Currently, the airport serves cargo flights from Belgium, Hong Kong, the Netherlands, and Ecuador. The development includes new infrastructure and the attraction of third-party carriers. Private investors plan to inject about $270 million into the renovation of the runway and terminal, and the expansion of the cargo hub. Additionally, Karaganda airport will have its own cargo airline, Altair Airlines, with China designated as a first potential destination.
German and Turkish Investments in Aktobe
The Hansa Consortia, a German company, expressed interest in participating in two new airport projects in Kazakhstan. They plan to invest $500 million in the construction and management of a new airport in Aktobe, which will include a regional multimodal hub and an aircraft technical center. In a separate development, a Turkish logistics company, SSistem, announced plans to build a multimodal cargo terminal at Aktobe Airport. The terminal will have an effective area of 30,000 square meters and will include sections for hazardous, radioactive, and temperature-dependent cargo.
Safety and Compliance
ISAGO Certification
In March 2024, Astana International Airport (NQZ) became Kazakhstan’s only airport to achieve IATA Safety Audit for Ground Operations (ISAGO) certification. This certification confirms the airport’s compliance with international safety standards and best practices in ground handling.
Dangerous Goods Transport
In April 2024, Kazakhstan addressed the safe transport of dangerous goods by air during the first meeting of a newly-formed working group. This group includes representatives from airports, airlines, cargo warehouses, aviation training centers, and shippers. The goal is to develop regulations and create a safety culture embedded in every aspect of transportation activities.
International Collaboration and Agreements
Memorandums of Understanding with TIACA
In June 2024, Almaty, Astana, and Karaganda airports signed Memorandums of Understanding with the International Air Cargo Association (TIACA). These agreements aim to enhance cooperation and support Kazakhstan’s airports in becoming significant players in the global air cargo network.
Kazakhstan-Qatar Agreement
In July 2023, Kazakhstan and Qatar signed a memorandum of understanding to increase the number of flights between the two countries, doubling passenger flights and expanding cargo flights from 7 to 10 weekly, with Qatar Airways increasing its Almaty-Doha route frequency.
National Welfare Fund Initiative
In June 2024, it was announced that Freedom Holding’s Timur Turlov had acquired a 60% stake in Karaganda’s Sary-Arka Airport, with plans to transform it into a multimodal hub, increasing cargo traffic significantly and creating numerous jobs. The national welfare fund, Samruk Kazyna, seeks an international airline partner to develop a transit cargo air service in Kazakhstan and create a local feeder air carrier.
Future Prospects and Strategic Goals
Long-Term Vision
Kazakhstan’s vision for its cargo aviation sector includes developing multimodal hubs, expanding flight routes, and establishing strategic international partnerships. These efforts are designed to transform Kazakhstan into a leading transit hub for air cargo between Europe and Asia.
Economic Impact
The development of cargo aviation in Kazakhstan is expected to create thousands of jobs, attract significant foreign investment, and enhance the country’s logistical capabilities. This growth supports broader economic development goals, positioning Kazakhstan as a crucial player in global air cargo networks.
By leveraging its strategic location and investing in infrastructure, technology, and international partnerships, Kazakhstan is well on its way to becoming a major hub for cargo aviation in Central Asia and beyond. /// nCa, 15 August 2024 (cross post from aircargo.atocomm.eu) [to be continued]