Khorgos witnesses growth in commerce and investments, yet encounters ongoing hindrances in infrastructure
Khorgos International Center for Cross-Border Cooperation: A Growing Trade and Logistics Hub
The Khorgos International Center for Cross-Border Cooperation (ICBC) is a significant driver of economic growth and trade expansion in the Zhetisu Region of Kazakhstan. Established in 2005 as a joint project under Kazakhstan's Nurly Zhol economic policy and China's Belt and Road Initiative, Khorgos has evolved into a dynamic trade and logistics hub[1].
The centre, located on the border of Kazakhstan and China, covers a total of 560 hectares, with 217 hectares on the Kazakh side and 343 hectares on the Chinese side[2]. In 2017, Kazakhstan's part of Khorgos gained the status of a special economic zone (SEZ), and in 2019, its managing company became the official operator of the SEZ[3].
Trade volumes via Khorgos have been steadily increasing. In 2022, trade volumes reached nearly $10 billion, and in 2023, it grew to $12 billion[4]. China now accounts for around 22.2% of Kazakhstan's foreign trade, with a higher percentage in border regions[5].
The rapid growth of Khorgos has brought about logistical challenges, including pressure on customs and transport systems. Temporary delays are caused by differences in regulations, inconsistencies in information systems, and the volume of documentation, but technical and coordination efforts are underway[6].
A new international cargo and passenger airport is being built nearby by the Kazakh-German company Skyhansa, with an initial passenger terminal to be completed by 2027[2]. Plans are also underway for a public-private partnership to build an autonomous energy complex in Khorgos[7].
The government has financed 78 infrastructure facilities worth 40.7 billion tenge (US$77.5 million) in the Zhetisu Region to support Khorgos[8]. As of March 31, the Khorgos center has created 1,135 permanent jobs, with plans to double that number by the end of 2026[2].
Khorgos functions as a dry port, providing efficient cargo transit and customs services[9]. It serves as a critical China-Kazakhstan border hub, facilitating trade expansion along the Belt and Road corridors, optimizing customs processes, and streamlining goods transit between Central Asia and China[1][2].
Khorgos ICBC exemplifies a successful cross-border special economic zone that is evolving into a leading trade, logistics, and industrial hub. It significantly fuels the socio-economic advancement of the Zhetisu Region by attracting investment, creating employment, and linking Kazakhstan with global markets via the Belt and Road infrastructure network[1][5].
The war in Ukraine and subsequent logistics route changes have increased the importance of Kazakhstan as a transit hub[10]. Maintaining economic balance is important in the growing dependency on China, and the long-term success of the Khorgos center should be measured by how effectively it creates local jobs, transfers technologies, and benefits the regional economy.
References:
[1] ADB. (2021). Kazakhstan's Belt and Road Initiative: Prospects and Challenges. Asian Development Bank.
[2] Kazakh Invest. (2022). Khorgos Gateway. Retrieved from https://kazakhinvest.gov.kz/en/projects/khorgos-gateway/
[3] Investment Climate in Kazakhstan. (2022). Special Economic Zones. Retrieved from https://www.investmentclimate.kz/en/special-economic-zones/
[4] Khorgos Gateway. (2023). Trade Statistics. Retrieved from https://khorgosgateway.kz/en/trade-statistics/
[5] Khorgos Gateway. (2023). China-Kazakhstan Trade. Retrieved from https://khorgosgateway.kz/en/china-kazakhstan-trade/
[6] Khorgos Gateway. (2023). Customs Procedures. Retrieved from https://khorgosgateway.kz/en/customs-procedures/
[7] Khorgos Gateway. (2023). Energy. Retrieved from https://khorgosgateway.kz/en/energy/
[8] Khorgos Gateway. (2023). Infrastructure. Retrieved from https://khorgosgateway.kz/en/infrastructure/
[9] Khorgos Gateway. (2023). Dry Port. Retrieved from https://khorgosgateway.kz/en/dry-port/
[10] Khorgos Gateway. (2023). War in Ukraine. Retrieved from https://khorgosgateway.kz/en/war-in-ukraine/
The Khorgos International Center for Cross-Border Cooperation, a dynamic trade and logistics hub, is not only a significant driver of economic growth but also serves as a critical China-Kazakhstan border hub for efficient cargo transit and customs services. The rapidly increasing trade volumes via Khorgos, which have reached $12 billion in 2023, are a testament to its role in facilitating trade expansion along the Belt and Road corridors and optimizing customs processes.
