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On September 2, 2011 in the framework of Expo exhibition “China – Eurasia”, JSC “NC “KTZ” held a round table on “Silk Road”, chaired by Erkhat Iskaliyev, vice-president for logistics of JSC “NC “KTZ”.

The roundtable was attended by representatives of the railways of Russia, Lithuania, Hungary, as well as representatives from China, Kazakhstan and the European transport and forwarding companies.

Opening the event, Mr. Iskaliyev noted that one of the important activities of JSC “NC “KTZ” is to further develop the transit potential and the complex formation of transport and logistics system of Kazakhstan. According to European experts in the field of logistics, the shortest and at the same time most prepared to the growing volume of transportation of goods in transit are the international transport corridors passing through the international border crossing Dostyk (Kazakhstan) - Alashankou (China). In this regard, special attention Kazakhstan railway administration pays to the development of Dostyk station and the Aktogai - Dostyk site.

In addition, in order to accelerate the rate of Kazakhstan's economy development and increase trade, free economic zone “Khorgos - East Gate” will be established; in December 2011 docking of the rail border crossing Altynkol - Khorgos is being planned.

It was noted that the existing and under construction transit sites across the territory of Kazakhstan, have a number of competitive advantages. In the first place - is a significant reduction in the distance and time of delivery of goods in transit.

In the roundtable framework, discussion was held, during which the issues of organization of cargo transportation in the direction Asia - Europe using the transit potential of Kazakhstan railway and the development of transport and logistics system in Kazakhstan.

Press-service of JSC “NC “Kazakstan Temir Joly”


The International Exhibition “Expo China – Eurasia” has been opened today in Urumqi, China. The event is attended by delegation of “NC “KTZ”, whose mission is to present the Kazakh Railways possibilities for transit and to hold logistics round table “Silk Road”.

Organized in the period from 1 to 5 September in Urumqi, exhibition brought together about 100 companies from Europe and Asia. In the venue built especially for this occasion, topical sections are presented. They provide detailed information about the largest companies in Asia and Europe for participants and visitors, about the economic life of the provinces, districts and municipalities of China and Xinjiang, the work of the branches of industry in different countries, developments in the field of high technology.

During the entire period of the exhibition business forums will be held, in particular the topics of “Business of Shanghai Cooperation Organization”, “Forum for regional cooperation, building checkpoints and simplification of customs procedures”, “Development of the agricultural and financial cooperation” will be discussed.

During the “Silk Road” round table, planned under the aegis of “NC “KTZ” on 2 September, Erkhat Iskaliyev, the Vice-President of JSC “NC “KTZ” for logistics, branch manager of the “National Centre for Development of Transport Logistics” Oralkhan Kulakov, representatives of Kazakh Ministry of Transport and Communications and Chinese Ministry of Railways, JSC “NC “KTZ” branch – Dostyk station director Nurum Zhaniyazov, delegates from the Russian, Belorussian, Ukrainian railways and others will report. The main purpose of the event is to present for the wide range of exhibition participants the advantages of Kazakhstan in the sphere of cargo transportation by international corridors, as well as logistics which is experiencing a stage of active development.

As requested by the Head of the state Nursultan Nazarbayev, railway administration implements the principles of logistics and technology in the transportation process, expands cooperation with other sectors of the transport industry to create a multi-modal supply chains.

Forum “Silk Road” is the first event in which KTZ on a global scale presents logistical capabilities of the railway and the whole transport industry in Kazakhstan.

Press-service of JSC “NC “Kazakstan temir zholy”


The delegation of JSC “NC “Kazakhstan temir zholy” led by the company’s President Askar Mamin participates in the VI International Railway Business Forum “1520 Strategic Partnership” in Sochi. The main theme of this year event is the strengthening of co-operation of railways with the space of gauge width 1520 and 1435 mm.

The topic of the forum is undoubtedly interesting to Kazakhstan railways which border with the narrow gauge routes of China; this fact affects the processing, maintenance, and trains pass through the trans-boundary junctions.

KTZ delegation participates in the plenary session “The Future of the Euro-Asian transport system: a strategy for cooperation”; in the number of panel discussions, in particular, such as “The Future of the Euro-Asian transport system: the tactics of interaction”; and round table discussions on critical issues of convergence of different gauges of railways in freight, traffic safety, scientific cooperation, etc.

In the framework of the Forum was held the visiting session of the Board of Directors of JSC "Kedentransservice" and signing of the following documents: the Framework Agreement between JSC “NC “KTZ” and JSC “TransContainer”; the Agreement on the creation of a joint venture for grain cargoes between JSC “Kaztemirtrans” and JSC “Rusagrotrans”. According to the document, the total rolling stock of the joint venture will contain about 10 000 grain cars. The capitalization of the project will exceed U.S. $ 90 million.

A key prerequisite for the establishment of a joint venture is an organization of Customs union, which greatly simplifies the process of moving consignments, including grain cargoes. The possibility of consolidating rolling stock of the CU participating countries will create conditions for the greater efficiency of transport logistics. Thus, the project will be one of the initial largest projects in the field of logistics and transport, implemented within the framework of the Customs Union.

Kazakhstan is a major grain producer and one of the top ten world exporters of wheat. However, Kazakhstan's export potential is limited because of deficiency of rolling stock. Thus, when the current demand for cars during the traffic peak period is at the level of 8700 units, the company is able to provide 5200 units, which stand idle during the traffic recession. During this period, grain wagons can be used to transport interchangeable cargo of Russia and Kazakhstan.

According to the parties, the joint venture is a necessary and important step in the formation of single economic space within the Customs Union. Implementation of the project will provide additional impetus to the development of railway transport of Russia and Kazakhstan.

Press-service of JSC “NC “Kazakhstan temir zholy”


JSC “NC “KTZ” and EBRD signed Memorandum of Understanding in energy efficiency sphere.

Today the President of JSC “National company “Kazakhstan temir zholy” Askar Mamin and the President of European Bank for Reconstruction and Development Thomas Mirow signed Memorandum of Understanding in Astana.

The document commits both parties to a long-term cooperation in order to make national railways more energy efficient, as well as to increase environmental sustainability by decreasing carbon emissions as a result of reduced energy consumption.

According to the memorandum the parties will work on a targeted investment program in order to make the functioning of KTZ more energy efficient, which will be based on projects focused on modernization of existing assets (rolling stock upgrade, renovation of traction substations, energy efficiency in non-traction operations) and implementation of best practice energy efficiency technologies in the energy infrastructures of KTZ.

The JSC “NC “Kazakhstan Temir Zholy” Group redeemed 5-year Eurobonds worth 450 million US dollars.

On May 11, 2011 the JSC “NC “Kazakhstan Temir Zholy” Group redeemed 5-year Eurobonds worth 450 million US dollars issued on May 11, 2006.

The funds used for repayment were accumulated in accordance with the program of funds’ accumulation in order to redeem the 5-year Eurobonds.

Timely debt repayment demonstrates the Company’s financial stability as well as the effectiveness of borrowing policy and debt servicing.

At the moment the loan portfolio mainly consists of 10-year Eurobonds worth 350 million US dollars maturing in 2016 and 700 million US dollars maturing in 2020.

The latest issue of Eurobonds has demonstrated a tremendous interest from institutional investors in the Company.

The JSC “NC “Kazakhstan Temir Zholy” hopes to continue this cooperation, which is very important for the Company, and is grateful to all investors for the given credence.

Press service of JSC “National Company “Kazakhstan Temir Zholy”

New arrangements in the sphere of innovations

Today the president of JSC “NC “Kazakhstan temir zholy” and the Vice-president of Alstom Holdings Bernard Gonnet signed Memorandum on cooperation in producing sagittary electric drives for railway industry as a part of IV Astana Economic Forum.

The document consolidated the desire to establish a joint venture, which will be producing sagittary electric drives using products and technical solutions of Alstom in the Republic of Kazakhstan.

According to the Memorandum the factory for producing sagittary electric drives will be located in Kazakhstan, the joint venture will focus primarily on supplying switch machines for the needs of rail transport in our country.

The agreement with the Systra S.A. company signed by the president of KTZ Askar Mamin and senior executive Vice-president of Systra S.A. André Ohnheiser provides the provision of consulting services by the French company in preparing technical specifications for feasibility study of the construction of high-speed main line Astana-Almaty.

The Systra S.A. company has a great experience in developing high-speed rail communication in various countries: France, Iran, Morocco, China, Spain, Saudi Arabia and others.

The agreements reached in Astana are all part of industrial and innovative development of the economy implemented by the Head of the State, who actively supports the JSC “NC “KTZ” with the assistance of major international partners.

The Prime Minister of the Republic of Kazakhstan Karim Masimov took part in the signing ceremony.

Press service of JSC “National company “Kazakhstan temir zholy”.

By an economical version

Today the JSC “NC “Kazakhstan temir zholy” held a meeting of representatives of the national company, AlstomHoldings and closed joint-stock company “Transmashholding” on the project of producing electric locomotives in the Republic of Kazakhstan.

The agenda included issue of building a plant for the production of electric locomotives in the city of Astana.

The Kazakhstan side was represented by the president of JSC “NC “KTZ” A.Mamin, Vice-president for economics and finance K.Alpysbayev, president of JSC “Remlokomotiv” C.Dyusenov and others; the “Alstom” company – president of Alstom Transport Philippe Mellier, Vice-president Bernard Gonnet, director for working with clients in countries of CIS K. Lube; on the part of closed joint-stock company “Transmashholding” the negotiations were carried on by the deputy General director S. Fomin.

At the meeting the parties discussed the results of experts’ joint examination of the territory of working factory “Lokomotiv kurastyru zauyty” for diesel locomotives in the city of Astana, who gave a positive conclusion about the possibility to use the territory and infrastructure of the working plant to organize the production of electric locomotives. This significantly optimizes costs for laying utility lines and transport networks; working equipment, human resources, etc can also be used.

According to preliminary calculations the suggested construction option of the new production complex near JSC “LKZ” will reduce the time spent on construction by 5-6 months and will allow to save money by approximately 42% compared to the original sum.

Given these circumstances the parties agreed to approve the construction plan of the plant to produce electric locomotives on the territory of the existing plant “Lokomotiv kurastyru zauyty” and make all required adjustments in the organization of the construction.

The agreements were endorsed by the relevant protocol.

Press service of JSC “National company “Kazakhstan temir zholy”.

Social policy finds its support

Issues of business’ social responsibility were discussed on 11th of March at the meeting of deputies of the Committee for social and cultural development of the Senate of the Parliament of the Republic of Kazakhstan with the leaders of national companies, holdings and business-structures. Report by the Vice-president of JSC “NC “Kazakhstan temir zholy” for human resources and social affairs Askhat Akchurin received approval and support of elected representatives of the people.

The chairman of the Committee Akhan Bizhanov started discussion with underlying the importance of issues of protection of workers’ rights, personnel development, social protection on employers’ part for stability in the society and the state.

In his opinion, the real sector companies, working in such an important and vulnerable sphere as social one, must use world’s experience, adhering to the principles of transparency, environmental safety and comply with standards of employment relationship.

The Vice-president of KTZ in his report gave a detailed account of the personnel policy of the national company, which is built on the principles of personnel management, considered coordination of processes within this sphere. The deputies were informed in detail about the content of “social package”, provided for railroaders, measures to support young people and pensioners of rail transport and other components of social responsibility of transport holding “KTZ”.

Members of the Senate’s committee for social and cultural development fully supported the work of the national company in the field of personnel management and social protection, thanked the company’s management for a thoughtful policy in this area, made a number of constructive suggestions for improving the social support for railroaders.

Press service of JSC “National company “Kazakhstan temir zholy”.

KTZ: Aspiration to innovation and progress

The JSC “NC “Kazakhstan temir zholy” became a winner of the first National Contest “Senim-2010” for the best employer. The Company received diplomas and silver statuettes in the “Best National Company-Employer” and the “Best HR-project” nominations.

The results of the contest, which began in November 2010, were announced during the VI International conference “Human resource management: innovations in HR” that was held under the auspices of JSC “National welfare fund “Samruk-Kazyna”.

The purpose of “Senim” is to identify and encourage Kazakhstan companies, which enjoy people’s confidence, as the best employers. It was organized by the Association of HR managers in Kazakhstan, “Corporate University “Samruk-Kazyna”, Institute of Social and Political Studies in Kazakhstan.

There were 5 stages in the contest. The first one involved a sociological survey of 3000 Kazakhstanis with “Change in living standards, job satisfaction and social well-being of the population of the Republic of Kazakhstan”. During the second and third stages experts collected and analyzed applications from participating companies with at least 50 employees. In the fourth stage the jury evaluated companies’ projects in the field of human resource management, which applied to participate in the “Best HR-project” nomination.

According to the results of the survey, interview and company’s HR-project presentation, the jury of 11 experts in the field of personnel management awarded the JSC “NC “Kazakhstan temir zholy” with a diploma of first degree in the “Best HR-project” nomination for the “Youth policy” project and diploma of second degree in the “Best national company employer” nomination.

- In our work we focus on the best international practice of corporate governance, work on improving the quality of human resources and improve the system of labor motivation, - said at the ceremony the Vice-president for human resources and social affairs Askhat Akchurin.

According to him the Company has a motivating social support for railroaders: providing them with accommodation, medical insurance, welfare benefits and financial aid. Because of this over the last two years the employee turnover has dropped from 14 to 9.9%, while the level of job satisfaction increased to 65%.

The Company’s youth policy is also very effective. Here, the Council of the Youth Wing “Zhas Otan” and the Council for Youth Affairs of JSC “NC “KTZ” has been established in order to represent interests of the Company’s young employees, develop various social programs to increase workers’ labor motivation. Every year the Company organizes a camp for young workers “Sen bolmasan, Kim?” (If not you, then who?), regional and national Forums of young workers “Zhastar – temirzhol bolashagy” (The youth is the future of railway) as a part of “Project management” and “Future managers” programs.

These and other programs and projects of the Company’s Youth policy not only help to solve social issues of young railroaders but also to identify talented and promising young employees, teach them competent project management, increase level of education within their sphere, increase the number of potential workforce.

For reference: According to the diagnosis ran by S&P, KPMG agencies and National Welfare Fund “Samruk-Kazyna”, the JSC “NC “KTZ” became the best one in the quality of corporate governance in 2010 among all fund’s subsidiaries – 59%, which corresponds to the best world practice.

Press service of JSC “National company “Kazakhstan temir zholy”.

Training in London

Specialists from JSC “NC “Kazakhstan temir zholy” and its subsidiary JSC “Kaztemirtrans” took a training in the British capital in working with financial tools and using them in railways’ functioning.

During the sessions participants were able to acquire knowledge and skills in risk management, funding, access to debt capital markets, working with export credit agencies, hedge currency and interest rates, considering similar operations in IFRS and others.

Such skills are extremely relevant today given the Development Strategy of “Kazakhstan temir zholy” till 2020, part of which presumes using a wide range of financial tools in order to ensure long-term financing, reduce financial risks and prompt response to them.

The training in London took place on the initiative of JSC “HSBC Bank Kazakhstan”. According to organizers, investors are interested in working with such companies as KTZ, that show good financial indicators, large cash flows and stable credit ratings. And practical mastery of modern technologies in financial and credit sphere is a timely step to train employees of such companies with activities of this kind.

Press service of JSC “National company “Kazakhstan temir zholy”.

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