The Business Year

Kuanysh Abdikarimov

Managing Director, DPD Kazakhstan

Our direct competitors send a truck from Almaty to Astana, for example, and tell their customers that they will deliver their packages, but are unable to say what day it will arrive as they first wait until the truck is full. It may take a day or even three days to leave. We do not use this model, and instead tell our customers the exact transit time. It doesn’t matter whether this truck is full or not, it will still leave Almaty. This is the most important consideration because more than 60% of our costs as a company are transport related. If you are a private transport company, you never send a half-full truck, as it constitutes lost revenue. Once we committed to invest, the first six years registered a loss. At the same time, we were trying to establish a solid network and good service. And today, customers know that our transit time is the best in comparison to that of our competitors’. In this manner, for the past two years we have been generating profits and creating dividends for our stakeholders.

Eduard Kaplan

General Director, ERG Logistics

We are developing an advanced logistics system known as 4PL, providing combined and comprehensive services and high-level integration with clients and logistics partners. Our major client is Eurasian National Resource Corporation (ENRC), the main strategic partner is Kazakh Railways, and now we are working to integrate our IT-systems. This allows us to provide increased efficiency for the client. Our main goal is to provide our clients with the best services at the best price, and to reduce transportation costs. In order to manage this, we implement the 4PL model. Another useful practice is that we employ Supply Chain Management (SCM). Supply chain execution means managing and coordinating the movement of materials, information, and funds across the supply chain. We own 10,028 railcars, 1,845 containers, and 696 platforms, all managed through our 24-hour dispatcher center. Today, we have an ambitious project known as the Logistics Management System (LMS). It is a long-term project, and the main objective for us in 2014 is an integration of IT-modules into one consistent system.

Adil Auzbekov

Managing Director, Adil Auzbekov

Kazakhstan is a strategic location for Agility, a global company with global contracts and clients. We work with these companies worldwide, and they need logistics branches in many locations. Whenever there is a shipment coming to Kazakhstan, we are here to support, deliver, and meet our customer’s expectations. This is the major benefit of having a large number of offices worldwide. All the terms and conditions worldwide are the same, and it is convenient to work with a known global company because we guarantee service quality. Our headquarters are located in Almaty, and we have a representative office in West Kazakhstan in Aktau; however, the plans are to develop western Kazakhstan and open a branch. The market is there in terms of projects. Another one is Astana, which is the growing capital, and all major projects and decisions are made there. We are actually looking at projects and working closely with members of KazEnergy and other oil and gas service companies. With their support, we get the right information for upcoming projects in oil and gas sector. This gives us more chance to be prepared on time and create a strategy for these projects.

Rıfat Çiçek

General Director, Kuehne + Nagel Ibrakom

Kuehne + Nagel has a special role here; we offer the logistics solutions Kazakhstan will need. We are the first and only company to offer hotel logistics services. We had already been offering that worldwide, allowing us to bring that experience here to Kazakhstan, where we are expecting huge demand. We are growing sustainably here, and currently have 30 people working with us. By the end of 2015, we expect to have about 100 people. Our team in Aktau is expanding rapidly, and we need more space here in Almaty as well. We have some contract logistics projects in Astana and Almaty that will require an extra 50 people. I see the most demand in integrated contract logistics. By that, I mean big international firms such as Proctor & Gamble or HP, which want to work with a single logistics provider along the entire supply chain. We have conducted studies with Bosch in Kazakhstan, and we are working on developing this side of our business. Other companies are also looking at Kazakhstan as a regional hub to branch out into the rest of Central Asia, and we are looking at working with various clients in this context.

Amangeldy Yelgonov

Director, Wirtgen Kazakhstan (regional branch of Wirtgen Gro

The construction of concrete roads has increased, and this is what we are engaged in the most. At the moment, we have 15 concrete pavers working in Kazakhstan, which is probably more than in any other country. We call them slipform pavers. On the China-Russia road, there are 16 slipform paver machines: 15 from Wirtgen, and one from Gomaco, an American company. We are expecting five more machines in 2015. The China-Western Europe project is progressing well. And we also have other projects, such as Astana-Karaganda and Astana-Pavlodar, both of which will also be concrete roads. The industry is growing rapidly. We use the best machinery available in the world. We plan to invest more money in our business in Kazakhstan and will build new offices, warehouses, and workshops. This means that Germany considers Kazakhstan to be a good place to invest and a promising market. We have offices and warehouses and everything we need, but up to this point we have been renting. By obtaining our own premises, we are making a commitment to the country. With my 15-years of experience here, I can say that this is a good decision.

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