Belgian firm plans $56 million logistics hub near China border as Kazakhstan boosts transit role

Belgian heavy-lift and transport company Sarens is set to invest up to $56 million in a major commercial and logistics hub near Kazakhstan's border with China, a move expected to significantly enhance the region's transit capabilities.

Hannes Van Nedervelde, construction director at Sarens, explained in an interview that the 82-hectare project near the Khorgos area will feature extensive facilities, including warehouses, office spaces, retail outlets, accommodation, and truck services. This development is designed to streamline the movement of goods between China and Central Asia, addressing current cargo bottlenecks.

The project will be developed in phases, with the first stage, costing approximately $10 million, slated to begin operations by the end of this year. Sarens anticipates the majority of the hub's facilities will be fully operational by the end of 2027. Additionally, Sarens is collaborating with Kazakh authorities to plan a new border crossing between China and Kazakhstan, which would increase freight handling capacity and alleviate congestion at the existing Nur Zholy checkpoint.

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It is an enormous queue on the Kazakh side, but if you go into the Chinese side, it is exactly the same problem.

Van Nedervelde highlighted the strategic importance of Kazakhstan's location as one of the shortest overland routes connecting China and Europe. He noted the high demand for transporting equipment and materials from China to Europe, making the hub's position economically advantageous. The facility is also expected to support the growing renewable energy sector in Central Asia by accommodating large components like wind turbine blades.

"It is an enormous queue on the Kazakh side, but if you go into the Chinese side, it is exactly the same problem," Van Nedervelde said, underscoring the need for improved infrastructure. The project's commercial viability is further bolstered by the expansion of logistics activities around the Khorgos dry port and the overall growth in trade flows between China and Europe.

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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.