KAZAKHSTAN
A giant at the heart of the Central Asia


V.I.P. INTERVIEWS
  Interview with
Mr. Abylgazin
Director
Aktau Commercial Sea Port
September 5, 2002

Before we get to Aktau Commercial Sea Port, could you give us a brief overview of the maritime sector of Kazakhstan?

Till 2000, marine service of Kazakhstan was represented only by Aktau Sea Trade Port which was rebuild and renovated with a loan of European Bank of Reconstruction and Development. The amount of the loan was 54 million Dollars and 20 million Dollars came as a cofinancing from Kazakhstan Government. Total amount of a rehabilitation project was 74 million Dollars, which was fulfilled in 1999. The President of the Republic, Mr. Nazarbaev, personally opened this Sea port and gave the beginning to it.
Today the Port has facilities for simultaneous service of three tanker two ferry boats three dry cargo vessels. It also has total 90000 sq km in storage space as well as 6000 sq km of Cabot area. It has also facilities for 8 million tons of cargos every year and 1.5 million for dry cargos.

Could you elaborate a brief historical background of Aktau Commercial Sea Port?

This Port was built in 1963 for construction of this city Aktau, which in turn was constructed for uranium industry in the former USSR. So, the city has its origins from this Sea Port. This port was created for transportation of crude oil and maybe of bulk cargos from Kazakhstan to Baku and Astrakhan.
Today we have partnership with Iran, Russian Federation, and Azerbaijan. 50% of our oil goes to Azerbaijan, 45% goes to Russian Federation, and 5% to Iran. 100% of dry cargo goes to Iran.

Could you tell us more about services that you offer to your partners?

The Port is offering the whole range of services that every normal port offers. We transport grain and steel to Iran. We provide ferry and tanker transportation of crude oil to Russian Federation. By ferry we transport Lorries to ports Astrakhan and Makhachkala. We transport crude oil of 30000 tons per month, grain and steel to Baku. We are waiting for a SWAP scheme or substitution of oil that we are working with here. Caspian Sea will take the same amount as Persian Gulf. Kazakhstan is very interested in this project.
The most popular route is an Azerbaijan one due to the fact that many Azerbaijanis are coming here and living in Kazakhstan. There are also some Iran people that come to Kazakhstan.

Could you give us some figures?

During this year, 2 million tons of crude oil was sent to Baku and 2.5 million to Russian Federation. Last year, we transported 6.1 million ton. The level of transportation was reduced lately due to world crises and after Sep 11 events. However, we still have good level of crude oil transportation.
Could you elaborate more on existing and new routes of Aktau Commercial Sea Port?

Aktau is located on the main two routes. One of them is the Great Silk Road which is the ancient route connecting Central Asian countries with Azerbaijan, Georgia and Western European countries. Aktau is located on one point of this road.
Another route is North South from Iran and Persian Gulf and to Saint Petersburg. There is a possibility of redistribution of cargos from Far Eastern countries at Persian Port. This project is very interesting for Kazakhstan.

Could you tell us more about your business partners? What kind of partners do you have?
We work with local companies. Caterpillar received its excavators from Azerbaijan and its equipment from the West. We transport it to North Caspian. We also work with Agip. Our main partnerships are Ispat Karmet, KazTransOil, and KazMorTransport and Kazakh Oil, Lukoil, Kumkol, Hurricane.

Could you give us more financial figures, such as turnover?

Let me prepare these figures and I will give them to you later.

Could you elaborate more on new projects and its vision?

Aktau Sea Port is working in 110 facilities and I am sure that there will more ports in Bautino and Kuryk. We are also planning further rehabilitation of the port. During the next three - five years, we'll build more facilities. We are waiting for oil from Kashagan field. Another one is CPC Pipeline, which is one of the biggest. Therefore, we need more facilities for transportation of oil. Tanker transportation is the best and the cheapest one, which does not produce waste.
Moreover, we have plans about transportation to Baltic countries, Turkey, and Italy.
Kazakhstan has three ports, which are called Druzhba Station, Continental China, and Aktau. So, from Aktau you can reach any destination.

Could you tell us about your professional background?

My first degree is in Metallurgy. Another degree is in Maritime from Odessa Maritime University. I came to Sea Port in 1998.

What was your biggest challenge during these four years?

When I came to Aktau Sea Port, the biggest challenge was the reconstruction of the Port. I had to change the whole system because it was very old. We created a new team of young experts. All these together gave us good results and we were awarded with diploma from the European Market Research Center. The growth in transportation in 2001 was 300%, which is an amazing result.

Could you give a final message to the readers of the Far Eastern Economic Review?

I would like to welcome business leaders from Europe and Asia. Kazakhstan has a strategic location and Aktau is one of the most important points here. We work 24 hours a day, seven days per week and 365 days a year. That is why; I would like to invite investors from all over the world for cooperation.

 Read on