Investing in the transport sector

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The large area of the country and the remoteness of settlements from each other make transport one of the most important economic sectors in Kazakhstan.

According to the Union of Mechanical Engineers, despite the introduction of a state of emergency in the country due to the spread of coronavirus infection, the engineering industry is showing growth.

So, goods in the engineering industry were produced:

for January-June 2019 - by 553 billion
for January-June 2020 - in the amount of 765 billion tenge.

Investments in fixed assets in 2019 in the transport sector amounted to 3.6 billion tenge.

Transport is one of the top 3 import sectors in Nur-Sultan:

industrial equipment,
construction,
transport.

The most imported products in this category are:

freight cars;
parts of locomotives;
tractors;
aircraft (airplanes, helicopters).

The share of freight turnover on trains in comparison with other modes of transport is 41%.

Manufacturers of freight cars, diesel locomotives and electric locomotives in Kazakhstan are:

JSC "ZIKSTO";
a subsidiary of JSC "NC" Kazakhstan Temir Zholy"- Joint Stock Company "Kaztemirtrans";
JSC Lokomotiv Kurastyru Zauyty;
Electric Locomotive Kurastyru Zauyty LLP.

Transport production is a priority industry in Kazakhstan. For the development of such industries, the state created Special Economic Zones.

An investor wishing to invest in this industry and being a member of the FEZ will have such benefits as:

exemption from corporate income tax, land tax, property tax and value added tax;
exemption from customs duties on raw materials and equipment.

The investor can also receive a free land plot on the territory of the FEZ. On this territory, he will have a ready-made engineering infrastructure and a simplified procedure for hiring foreign labor, if necessary.