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Silk Route still has obstacles in Kazakhstan's red tape

Landlocked nation's bid to become alternative to sea route between China and Europe is hobbled by costly and time-wasting red tape

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The Khorgos border crossing in Kazakhstan. Photo: Reuters
Reuters

Kazakhstan wants to establish itself as a major trading hub between China and Europe and get a share of a US$600 billion market, but it will have to drop tough, often time-wasting regulations that hurt its reputation as a cross-border trading partner.

The landlocked Central Asian country has its eye on one day claiming a tenth of China-Europe traffic from maritime shippers, using its strategic location and help from major cargo handler Dubai Ports World.

Its geographical position - it has a 1,780km border with China - suggests it is well placed to offer an alternative land route to maritime shipping for cargo from China, Japan and Southeast Asia.

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One train service, linking the southwestern Chinese city of Chongqing with Germany's Duisburg, already runs regularly, reducing delivery time by up to two-thirds compared with maritime shipping.

But using the railway route costs about twice as much as the sea route, making it practical only for time-critical shipments or high-value-added goods.

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The train running between Chongqing and Duisburg, for example, has delivered Acer and Asus computers to Europe and Mercedes and BMW cars to China.

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