Belgian Company Plans $56 Million Border Logistics Hub Near China as Kazakhstan Expands Transit Role

The Astana Times provides news and information from Kazakhstan and around the world. ASTANA – Belgian heavy-lift and transport company Sarens plans to invest up to $56 million in a logistics and commercial hub near Kazakhstan’s border with China, a project that could help ease cargo bottlenecks and strengthen the country’s role as a key transit corridor between Asia and Europe, said Hannes Van Nedervelde, construction director at Sarens, in an interview with The Astana Times. Photo credit: Sarens The project, located near the Khorgos area on the Kazakhstan-China border, includes the development of an 82-hectare commercial and logistics hub featuring warehouses, office space, retail facilities, accommodation, truck services and supporting infrastructure for freight operators moving goods between China and Central Asia. Van Nedervelde said the company, which specializes in heavy lifting and oversized cargo transportation, adopted a phased approach to development after determining that building all planned facilities simultaneously would require substantial capital and resources. Hannes Van Nedervelde, director for construction at Sarens. Photo credit: personal archive According to Van Nedervelde, the first phase, estimated at approximately $10 million, is expected to begin operations by the end of this year, with most facilities slated to become fully operational by the end of 2027. “Besides the commercial hub, we are also planning together with the Kazakh authorities to have a new border crossing between China and Kazakhstan. That is still in the planning stage,” said Van Nedervelde. A new border crossing is expected to increase freight handling capacity near the existing Nur Zholy checkpoint, one of the main gateways for trade between Kazakhstan and China. According to Van Nedervelde, truck queues on both sides of the border can stretch for days during peak periods. The proposed crossing would add additional processing capacity and help reduce congestion that currently slows the movement of goods along the China-Europe land corridor. “It is an enormous queue on the Kazakh side, but if you go into the Chinese side, it is exactly the same problem,” he said. Van Nedervelde said the project’s commercial viability is driven by growing trade flows between China and Europe, the continued expansion of logistics activities around the Khorgos dry port and Kazakhstan’s strategic position on one of the shortest overland routes linking the two markets. “Seeing the location is also the real economics. (…) There is a high demand for equipment materials coming from China to go to Europe. The position of Kazakhstan is the shortest overland route between China and Europe at the end of the day,” he said. Sarens also expects the hub to support growing demand from renewable energy projects across Central Asia. The facility is designed to accommodate large cargoes such as wind turbine blades and turbine components, which are increasingly transported from Chinese manufacturers to projects throughout the region. Last year, Sarens transported 165 wind turbine sets through the Khorgos border crossing for three major wind farm projects in Kazakhstan. The shipments included blades, nacelles and tower sections for the Samara, ACWA and Universal projects. Of the total, 142 turbine sets were fully delivered, with the remaining units being supplied to complete the Universal project. Van Nedervelde said restrictions and infrastructure limitations currently constrain the movement of oversized cargo through existing border crossings. Sarens has operated in Kazakhstan since 2003 and has participated in major industrial developments, including the Future Growth Project at the Tengiz oil field. Over the past two decades, the company has witnessed significant improvements in Kazakhstan’s transport infrastructure, including investments in roads, railways, ports and logistics facilities that have strengthened the country’s position as a transit bridge between Asia and Europe. “When Sarens was established in 2003, the country was still in an early stage of developing large scale infrastructure and industrial projects,” he said. “Over 20 years, we indeed witnessed quite a bit of transformation.” The company also highlighted the growth of local expertise in the sector. According to Van Nedervelde, approximately 20-30 people are working on the Khorgos project through direct employment and subcontracting arrangements, with plans to increase this number as construction of offices, accommodation facilities and other infrastructure accelerates in the coming months. “You can see that there is a lot of growth potential within Kazakhstan now versus 20 years ago. I think there is a lot more confidence also to invest into Kazakhstan,” he said. The post Belgian Company Plans $56 Million Border Logistics Hub Near China as Kazakhstan Expands Transit Role appeared first on The Astana Times.