Russian railway network refrigerated container transport volume continues to grow; "China is the largest market for Kazakhstan's agricultural products"

Russian Railway Network Refrigerated Container Traffic Continues to Grow

Last year, slightly more than 40,000 refrigerated containers were transported through the Russian railway network, of which about 30% were shipped by the Russian company PolarStar. Anton Vostrikov, the company's business development director, said that the volume of refrigerated container transportation through the Russian railway network is still growing. 

The main reasons for the growth of railway refrigerated container transportation are the reduction in the number of refrigerated transport fleets, the high quality requirements of shippers for delivered products, and the difficulties of road transportation caused by extreme weather and other reasons. 

In the past two years, Russian refrigerated container operators have gradually shifted from focusing on the domestic market to internationalization. The departure of Western operators has given them room for development - operating services have also developed from Vladivostok in the Far East to China and Vietnam, and gradually expanded to Japan, India and the entire Southeast Asia region. 

At present, they rely on the ports of Novorossiysk and St. Petersburg to establish connections with the Arab region and transportation exchanges with Latin America. In the future, they also plan to connect the African continent. 

Imports of fruits, vegetables, daily chemicals and cosmetics continue to grow. These refrigerated goods, which previously relied almost entirely on Western industry giants for transportation, are now turning to Russian operators and railway transportation. 

The main driving force for the growth of the Russian refrigerated container market is still the international market. In addition to the gap left by the departure of Western operators, the most important thing is that China opened up imports of Russian meat products - first chicken, then beef, and then resumed pork imports. The Murmansk region in northwestern Russia has also begun to export to China and Southeast Asian countries. 

Russia continues to import fish, vegetables and fruits, cosmetics, chemicals, and electronic products (including batteries and LCDs). Before the outbreak of the Russian-Ukrainian war, this market had no opportunity for Russian companies to participate. Now these import transportation orders have shifted to Russian operators, and on the other hand, Russian producers have begun to export products to third countries.

In addition to sea refrigerated containers, Russian railway refrigerated container transportation is also growing. Refrigerated container transportation departs from China and is transported to Russia via Zabaikalsk by rail trains - this solution ensures the shortest delivery time - 20-25 days from Qingdao to Moscow. Railway trains are 30% faster than short-sea transport through the Far Eastern port of Vladivostok (Vladivostok) and 2-3 times faster than deep-sea transport.

China-Kazakhstan agricultural products trade and economic cooperation has broad prospects

Kazakhstan's Minister of Agriculture Aidarbek Saparov recently said that China is the largest market for Kazakhstan's agricultural products.

Kazakhstan mainly exports grain and oilseeds to China and imports Chinese vegetables and nuts.

In 2023, Kazakhstan's agricultural exports to China doubled to $1 billion. In the first five months of this year, bilateral agricultural trade increased by 14% to $540 million, of which Kazakhstan's exports were $380 million.

According to reports, Kazakhstan has signed a protocol with China on the export of 27 categories of agricultural products to the Chinese market, including 18 categories of crop products and 9 categories of livestock products. Currently, there are 9 companies in Kazakhstan exporting livestock products and 728 companies exporting crop products. They are waiting to be included in China's importer list.

The Kazakhstan Ministry of Agriculture also signed an agreement with the Chinese Customs to coordinate veterinary requirements for the export of various types of animals and livestock products, including cowhide, dried mare's milk, frozen poultry products, horse meat, slaughtered animal offal, high-temperature treated meat products, and frozen beef and mutton.

Minister of Agriculture Aidarbek Saparov noted that Kazakhstan is one of the top 25 food exporters in the world, exporting Kazakh agricultural products to 80 countries. Its agricultural exports have doubled over the past five years to $5.4 billion.

“We plan to continue this development trend. Against the backdrop of growing global food shortages, Kazakhstan aims to double its agricultural exports by 2029.” He added that Kazakhstan is changing the structure of agricultural exports, for example giving priority to deeply processed products, a category that has doubled over the past five years to $2.3 billion.