Industry Trend Analysis - Chinese Investment Underpins Transport Outperformance - 08 JAN 2018

BMI View: A series of high-value investment pledges solidifies our positive outlook for Kazakhstan ' s transport sector, with further upside offered by China ' s ' Belt & Road ' initiative.

Recent project activity in Kazakhstan's transport sector cements our view that the segment will outperform the country's broader construction industry in the coming years. Most notably, plans have been unveiled for the construction of a light rail network in Astana. The USD1.9bn project is being funded by a loan from China Development Bank that will run for 20 years with an annual interest rate of 2.5%. LRT Construction, a subsidiary of Astana Municipality, will carry out the project implementation. The first phase of the project includes construction of a 22.6km rail link connecting Astana Airport with the new train station. Commercial operation of the first phase is scheduled to begin in December 2018.

Transport Sector To Continue Growth Run

Transport Infrastructure To Outperform
Kazakhstan: Transport Infrastructure Industry Value, KZTbn & REal Growth, % y-o-y
f = BMI forecast. Source: BMI, Republic of Kazakhtan Statistics

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