Kazakhstan last year sent 260 percent more grain to China than it did in 2022, but the authorities still feel more can be achieved.

Speaking to the lower house of parliament on February 15, Transport Minister Marat Karabayev said that 2.1 million tons of grain were delivered to China, an increase of 1.3 million tons.

The bulk was carried by train — an important detail as Kazakhstan is eager to increase capacity on its railways. The hold-up appears to be on the Chinese side.

“A special terminal for receiving grain is being built on the Chinese side, but its construction has been going on for many years and has not been completed. If construction is completed this year, that will allow us to move our [train] carriages more quickly,” Karabayev told lawmakers.

The minister said negotiations are underway with Chinese officials to speed up the construction of this terminal.

Karabayev noted in his presentation to parliament that goods being exported from China to Kazakhstan arrive in containers, and that those same containers are loaded with grain on the way back. As a result, 630,000 tons more grain was transported in containers in 2023 as compared to the previous year, said the minister, underlining the efficiency gains of using this method.

There is another bottleneck to consider. Kazakhstan is faced with a shortage of locomotives. National railway operator Kazakhstan Temir Zholy, KTZh, is on something of a shopping frenzy to fix that.

Last year, it purchased 119 locomotives, and another 194 will be purchased this year. In 2025, KTZh will purchase yet another 245 locomotives, which should fully meet the country’s needs, Karabayev said.

China is a particularly desirable market for Kazakhstan’s agricultural producers. Among its habitual grain importers, only China has the technology to process spoiled grain, which is to say grain that has sprouted early due to abundant moisture. This has been a lifesaver for farmers whose harvest suffered last year due to a protracted bout of heavy rain.

What is more, the Chinese market is attractive for its sheer volume. Agricultural producers are convinced that current exports could potentially be doubled.