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Kazakhstan, Central Asia’s largest grain producer, is in talks with major logistics company Abu Dhabi Ports (ADP) to establish a joint venture to enable Kazakh agricultural exports to be transported through Iranian and Gulf ports.
On Monday, Kazakh Trade and Integration Minister Serik Zhumangarin and Simatech Shipping and Forwarding Head Davud Tafti held a meeting to explore the possibility of establishing the shortest direct route for Kazakhstan’s exports, connecting markets along the East African coast, India, the Middle East, Pakistan and the Persian Gulf.
Through the joint venture, Kazakh exporters will benefit from a new efficient route that reduces delivery times to just three days as they have access to Amirabad, Bandar Abbas Port, Imam Khomeini port and Chabahar and other Iranian ports. This route will further connect the ports of Khalifa and Fujairah in the United Arab Emirates as well as ports in India, Pakistan, the Far East, and the east coast of Africa, creating broader market opportunities for its agricultural products.
During the discussions, the two sides explored the possibility of various cargo transportation routes across the Caspian Sea to Iran, with further transshipment to the Persian Gulf countries.
Simatech Shipping and Forwarding is part of the AD Ports Group and holds a prominent position as a leading ship management company in the Persian Gulf. The company has a large fleet and specializes in transporting goods from Iran to Arab countries, India, Africa and China. In addition, Simatech operates multiple commercial ports and terminals in several Arab countries.
Tufty reportedly confirmed that Simatech Shipping and Forwarding has purchased four vessels, each with a deadweight of 7,500 tons and a displacement of 6 meters. The vessels are capable of transporting bulk, containerized and bulk cargo and are currently anchored at Amirabad Port.
Additionally, as part of its expansion efforts, the company purchased 45 trucks and two barges, each capable of carrying 350 trucks. Tafti said it plans to increase the number of trucks to 200 over the next four months and eventually to 1,000. Simatech Shipping and Forwarding has also set a target to purchase 10 more ships over the next two years.
With the Port of Kulik in Kazakhstan and the Port of Jebel Ali in the UAE as its main hubs, the joint venture will ensure that the necessary infrastructure is in place for seamless operations. Considering that the company has two dry ports for the assembly and repacking of goods, this will provide Kazakh exporters with unprecedented opportunities to cross Iran in two to three days.
Kazakhstan has vast agricultural land, covering an area of approximately 274 million hectares, accounting for 74% of the country’s land area. It is one of the countries with the largest land area in the world. The country’s strategic location and diverse climatic conditions create a favorable environment for food cultivation. The main grain-producing areas include Kostanai, Akmola, North Kazakhstan and other northern regions. Large-scale production is also found in East Kazakhstan, Abai, Pavlodar and other regions.
Kazakhstan is Central Asia’s largest grain producer, with the ability to export about half of its annual grain production. Wheat is the most cultivated crop in the country, accounting for 80% of grain production, but barley, cotton, sunflower seeds and rice are also produced. As a major player in the region, Kazakhstan leads the way in flour exports, mainly to other Central Asian countries and Afghanistan.
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