Kazakhstan has become a hub for Central Asia in the World Logistics Passport program
On December 20 of this year, the Minister of Trade and Integration of the Republic of Kazakhstan Bakhyt Sultanov and the Chief Executive Officer of Dubai Ports World, Chairman of the Corporation of Seaports, Customs and Free Zone of Dubai Sultan Ahmed bin Suleim signed a memorandum of understanding.
The Republic of Kazakhstan has joined the world logistics passport (WLP), a major initiative created to expand trade opportunities between emerging markets. The initiative aims to overcome trade barriers, such as logistics inefficiencies, which currently limit the growth of trade between emerging markets. it not only improves existing trade routes, but also develops new ones through a loyalty program for logistics and trading companies. And thus, contributes to the diversification of trade in existing products of the world's regions and increases the market share of key products among other developing countries.
The project, which has been operating since July 2019, has already increased the trade carried out by participants by 10 percent.
In addition to Kazakhstan, the world logistics passport program also includes wlps as regional hubs and partners: Colombia, Senegal, Brazil, South Africa, Thailand and Uruguay. Another 8 countries are preparing for integration with the WLP.
Joining the wlp opens up an opportunity for Kazakhstan to diversify its mutual trade with the countries of Europe, china and the growing markets of Latin America and Africa.
According to the minister of trade and integration Bakhyt Sultanov, membership in world logistics passport will harmoniously complement Kazakhstan's bilateral relations and trade with the UAE and wlp trade hubs.
"Kazakhstan can become a link between the" One Belt, One Road " initiative and World Logistics Passport. This will open up new opportunities in the field of transport and logistics, revealing the entire transit potential of the country" Bakhyt Sultanov commented.
Almaty will become the key logistics hub of Kazakhstan. The strategic location of the city allows to increase the share of Kazakhstan's trade between China and Europe.
"Almaty also provides access to markets in the region, such as the Eurasian Economic Union, the Shanghai Cooperation Organization and the Economic Cooperation Organization, and can be a gateway between these markets and World Logistics Passport partners. Almaty Airport will become an air hub offering a wide range of world-class services" -the Minister of Trade and Integration of Kazakhstan said.
"Trade is a vital part of economic development, and with Kazakhstan joining the Global Logistics Passport System, the country is accelerating its future economic growth. The WLP, which is based on Dubai's logistics expertise, helps to rethink how goods and services move around the world, increase the resilience of global supply chains, and remove barriers that prevent countries like Kazakhstan from trading as successfully as possible"- said Sultan Ahmed Bin Sulaym, Chairman of the Dubai Seaports, Customs and Free Zone Corporation.
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World Logistics Passport is a unique loyalty program to overcome non-tariff trade barriers by quickly tracking cargo movements, reducing administrative costs, disseminating cargo information, and facilitating transportation between ports and airports.
Trading and transport companies gain more advantages by trading through the transport hubs of the global system participants. Benefits include cost and time savings, as well as fast customs clearance. the member countries are part of a club of trading countries that share experiences to ensure smooth trade flows around the world.
Taking advantage of these advantages allows countries and regions to gain access to new markets, diversify trade in existing products, and increase market share of key exports in developing countries.
The WLP is developed in partnership with major Dubai logistics organizations such as DP World, Emirates Skycargo and Ports, Customs and Free Zone Corporation (PCFC).