Two Chinese companies on Monday [15 May 2017] signed a contract with Kazakhstan’s national railway company to buy 49 percent of an inland port near the China-Kazakhstan border. China COSCO Shipping Corporation and Jiangsu Lianyungang Port Co will each hold 24.5 percent of the dry port located in the Khorgos-East Gate special economic zone, according to a statement from China COSCO Shipping…Full Article: China Daily May 2017

Key Point

  • The Khorgos-East Gate Special Economic Zone is located 15 km from China’s Xinjiang Region. Rail freight can reach Europe in roughly 10 days and Jiangsu Province’s Lianyungang Port in 5 days.

ChinaAg Comments

  • In mid-March 2017, Horgos (Khorgas) border center launched 12 self-service customs clearance checkpoints.
  • In February 2017, Kazakhstan exported 720 tons of wheat to Lianyungang Port, Jiangsu Province, eastern China.
  • In January 2017, COSCO Shipping Ports stake in in Qingdao Port International (QPI) increased from 1.59% to 18.41%. Both companies also agreed to invest in the Khalifa Port Container Terminal II project in Abu Dhabi.
  • In August 2016, China’s first refrigerated-container train (transporting pear, pomelos, garlic, etc.) left Dalian, Liaoning Province, for Moscow. The new refrigerated-container train route will cut shipping times by 60% versus traditional shipping routes (ship and rail). Once crossing the border into Russia, the Chinese goods will be transferred onto a Russian freight train near Lake Baikal.
  • In May 2016, COSCO Pacific, a subsidiary of China COSCO Shipping Corp, signed an agreement to purchase 35% of the terminal from ECT Participations BV, a subsidiary of CK Hutchison Holdings. Euromax Terminal Rotterdam is an automatic container terminal that has an annual capacity of 3.2 million twenty-foot equivalent units (TEUS). In 2015, the terminal processed 2.28 million TEUs.
  • In March 2016, China imported 1,000 MTs of sunflower seed oil and 1,000 MTs of rapeseed oil from Kazakhstan by rail. Launched in late 2013, the Xi’an-Almaty cargo train route (~6 days) generally only carried goods from China to Kazakhstan, but has now begun shipping goods into China.
  • In October 2015, China Shipping (Shanghai) began a grain shipping service with China’s COFCO Group. China Shipping Group and COFCO would reportedly import 3.5 million MTs of grain per year.
  • In July 2014, Kazakhstan’s President announced it would launch the Khorgos-East Gate Special Economic Zone project.
  • In April 2012, the Horgos (Khorgas) International Border Cooperation Center opened on that Chinese-Kazakh border.
  • Located in Xinjiang Region’s Ili Kazakh Autonomous Prefecture, Khorgas is a border city located along the ancient Silk Road route. In 2013, a year after the establishment of its free trade zone, Khorgas recorded US$11 million in bilateral trade with Kazakhstan. As of late 2014, the Chinese side of the border city was considerably more developed than its Kazakh side.

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