LOGISTICS
OF EXPORTING TO EURASIA SERIES
Transportation,
Distribution and Warehousing Services in the Kyrgyz Republic
November 2006
Author: Artyom Zozulinsky, Bisnis Representative in the Kyrgyz
Republic
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN
COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2006. ALL RIGHTS RESERVED FOR
USE OUTSIDE OF THE UNITED STATES.
1. GENERAL MARKET OVERVIEW
1.1 U.S.-Kyrgyzstan market Trade and statistics
The primary commodities
exported from the U.S. to Kyrgyzstan include pharmaceutical products followed
by mechanical equipment, food products (primarily frozen chicken legs), cars,
electronic devices, and furniture.
Some of the trade
statistics is depicted below:
Source: http://tse.export.gov
Table 1. Trade statistics between USA, CIS and Kyrgyzstan.
1.2
Transport
Infrastructure
The transport
infrastructure of the Kyrgyz Republic is not well-developed, though much effort
is made to improve the situation. The primary mean of transportation remains
road transport. Road transport represents about 94% of all the cargo turnover
in the country. Main road transport corridors comprise 2,231 km. However, 68%
of these roads are in need of repair.
The next popular transportation
mode is railway due to low costs.
However, it needs to be mentioned that railway infrastructure is poorly
developed and Kyrgyzstan’s rugged terrain makes it difficult to build
additional railway capacity. Railways are primarily used for passenger
transportation to Kazakhstan and Russia and for fuel cargo from Russia and
Kazakhstan.
Air cargo, being the most
expensive way of transportation, is fairly well-developed. International
Airport Manas has recently been modernized and now includes one terminal and
provides a complete range of logistics services.
1.3 Market peculiarities
The Kyrgyz Republic is a small country located in
the heart of Central Asia. It has a
favorable location to become an air transportation hub between Europe and East
Asia. An Italian airfreight company Ocean Airlines already uses Manas
International Airport as a ‘pit stop’ on its way to China. Manas International
Airport meets all the requirements for processing international air cargo.
Currently, the Kyrgyz government is working on modernizing the Airport in
Tamchi in accordance with international standards. This airport will serve as a
reserve hub.
1.4 Major
Infrastructure Development Projects
Most
of the infrastructure development projects are focusing on road improvement and
renovation. The Kyrgyz government works with different international donors to
implement these projects. Among them are Islamic Development Bank, Asian
Development Bank, World Bank and others. Up to date, $246.5 million have been
invested in road infrastructure improvement. Since 1994, 573 km of roads have
been rehabilitated. Of the total amount, 82% of them are roads of national and
international importance.
Another
large-scale project in the works and will be financed by the Chinese Government
is the construction of a railway connecting China and Kyrgyzstan. The planned
investment into this project is estimated at $1.2 billion. China has already
allocated funds for this project.
2. PRIMARY TRANSPORTATION MODES
2.1 Waterways and Ports
Kyrgyzstan is a
land-locked country and does not have access to waterways and ports. The only
waterway that exists in the country is at the Issyk-kul Lake. Transportation
there only includes commuting between local ports and is primarily focused on
tourist passengers.
2.2
Rail
Railway is not a very
popular transport in the Kyrgyz Republic, since it is not very well developed.
The primary cargo flows via the railways are exports from Russia, such as:
various construction materials, including wood and metal; and fuel.
According to the Kyrgyz
Ministry of Transport and Communications, the total
length of the railroad system in the Kyrgyz Republic is 424 km. The Kyrgyz railway system consists of two unconnected lines;
the Southern line - 323 km and the Northern line - 101 km, both of which are
branches of the Trans-Asian railroad corridor. The route Osh – Jalal-Abad -
Kok-Yangak and the route Balykchy - Bishkek - Lugovoe (Kazakhstan) connect with
Russia through Uzbekistan and Kazakhstan, respectively. It is expected that they will be connected
to the proposed Eurasian rail corridor joining Europe, Central Asia and China.
The Kyrgyz Republic’s railway
system has the following main lines:
-- Balykchy – Bishkek –
Lugovoe (further to Kazakhstan and Russia)
-- Osh –
Jalal-Abad
--
Kok-Yangak – Kara-Suu
-- Kyzyl-Kiya – Tash-Kumyr
(to Uzbekistan, Turkmenistan and Persian Gulf countries)
2.3 Roads
Over 90% of all consumer
goods are transported via roads making it the main mode of international
transportation infrastructure for the Kyrgyz Republic. Largest trade partners –
China, Turkey, Iran, Russia and Europe – all use road transportation for
bringing all kinds of consumer goods. The total length of roads in the Kyrgyz
Republic is 34,000 km.
Roads in the Kyrgyz
Republic can be divided into 2 groups – strategically important state and
international roads, and in-country local commuting roads.
The total length of the
first group of roads is 6,161 km. The first group includes 8 major highways
that connect large cities of Kyrgyzstan and the neighboring states. The total
length of these highways is estimated at 2,231 km. These highways are:
- Bishkek(KG) – Osh(KG) 672
km
- Bishkek(KG) – Almaty(KZ) 16 km
- Bishkek(KG) – Chaldovar(KG) 31 km
- Bishkek(KG) – Naryn(KG) – Torugart(China) 533 km
- Taraz(KZ) –
Talas(KG) – Suusamyr(KG) 199
km
- Osh(KG) –
Sarytash(KG) – Irkeshtam(KG) 253
km
- Osh(KG) – Isfana(KG) 385
km
- Sarytash(KG) – Karamyk(KG) 142 km
-
According to Ministry of
transportation and communication, 22.5% of these highways are in good
condition, 6% are satisfactory, 11% are in unsatisfactory condition and 60% are
in substandard condition.
The second group of roads
is domestic local commuting roads comprising 16,659 km in total length.
Asphalted and well-paved roads amount to 30%, graveled roads – 60% and without
any pavement – 10%. The road transportation sector of the Kyrgyz Republic
receives most of the international donors’ financing as most of the roads are
still not modernized. The ADB (Asian Development Bank) alone has provided
financing for the road sector in the amount of around $200 million. Annually,
the Kyrgyz government spends $5-6 million on road rehabilitation, which
comprises only 20% of required amount necessary for complete road
rehabilitation and maintenance.
2.4 Airways
and Airports
There are 12 airports in
the Kyrgyz Republic. Three of them have international flight processing
capacity. Manas International Airport in Bishkek is the largest and best
equipped airport in the country and is equipped for heavy aircrafts landing.
Manas Management Company handles all airfreight. It also manages modern warehouse space with temperature control
and other features. Manas Management Company is also a catering company for
airlines serviced at the airport.
Another airport in the
South of Kyrgyzstan – Osh, has air routes to United Arab Emirates, Turkey and
China. Though not as equipped as Manas International Airport, it is the second
largest airport in the Kyrgyz Republic.
The third airport, which
is currently in the phase of reconstruction and modernization, is the airport
in Tamchi resort area of the Kyrgyz Republic. It is located on the northern
side of lake Issyk-kul. Kyrgyz Government plans to make this airport a direct
tourist receiving point and a reserve hub for emergency situations when Manas
International airport is overloaded or unable to handle planes for whatever
circumstances. This airport would become the second largest once it is
finished.
3.
TRANSPORTATION AND
LOGISTICS SERVICES
3.1
Shipping
and Freight forwarding
There is a number of
companies that offer various transportation services, including road, railway
and airway transportation. There are representative offices of large
international companies such as DHL, UPS, FedEx as well as others. Many
companies provide customs clearance services for an additional fee. Very few
offer warehousing services.
A short list of most
reliable international and local companies is listed below:
AIR CARGO
1.
DHL
107, Kievskaya st., Bishkek
Tel. +996 312 61 11 11, +996 312 66 11 12
Fax. +996 312 61 11 13
Email. office@dhl.kg
Web. http://www.dhl.kg
2.
Globalink Logistics Group
53, Aitmatova st. room 47, Bishkek
Tel. +996 312 68 06 02, +996 312 90 84 55
Fax. +996 312 68 00 74
Email.
Bishkek@globalink.bz
3.
FedEx (represented by RBS ltd.)
Country
Director: Sergei Slesarev
217
Moskovskaya st., Bishkek
720010
Kyrgyzstan
Tel.
+996 312 65 00 12, +996 312 24 42 90
Fax.
+996 312 65 01 28
Email.
fedex@elcat.kg
4.
ARI Cargo – Bishkek,
Kyrgyzstan
35
Erkindik Avenue
Bishkek,
Kyrgyzstan, 720 000
Phone:
+996 312 66 00 77
Fax: +996
312 66 13 11
E-Mail:
bishkek@aricargo.com
5.
ICS (Representative of UPS and Schenker)
390,
Frunze st., room 207
720033,
Bishkek, Kyrgyzstan
Tel./Fax.
+996 312 21 92 62,
Fax.
+996 312 61 17 04,
Web.
http://www.ups.com
RAIL CARGO
1.
ARI Cargo – Bishkek,
Kyrgyzstan
35
Erkindik Avenue
Bishkek,
Kyrgyzstan, 720 000
Phone:
+996 312 66 00 77
Fax: +996
312 66 13 11
E-Mail:
bishkek@aricargo.com
2.
Globalink Logistics Group
53, Aitmatova st. room 47, Bishkek
Tel. +996 312 68 06 02, +996 312 90 84 55
Fax. +996 312 68 00 74
Email.
Bishkek@globalink.bz
3.
Transatlantic Inc.
166, Sovetskaya st., room 59
Bishkek, 720040, Kyrgyzstan
Tel. +996 312 66 38 17
Fax. +996 312 9014 09
Email.
info@transatlantic.kg
Web. http://www.trans-atlantic.ca
ROAD CARGO
1.
ARI Cargo – Bishkek,
Kyrgyzstan
35
Erkindik Avenue
Bishkek,
Kyrgyzstan, 720 000
Phone:
+996 312 66 00 77
Fax: +996
312 66 13 11
E-Mail:
bishkek@aricargo.com
2.
Globalink Logistics Group
53, Aitmatova st. room 47, Bishkek
Tel. +996 312 68 06 02, +996 312 90 84 55
Fax. +996 312 68 00 74
Email.
Bishkek@globalink.bz
3.
Transatlantic Inc.
166, Sovetskaya st., room 59
Bishkek, 720040, Kyrgyzstan
Tel. +996 312 66 38 17
Fax. +996 312 9014 09
Email.
info@transatlantic.kg
Web. http://www.trans-atlantic.ca
4.
MGATP 7
76,
Mesarosha st.,
Bishkek,
Kyrgyzstan, 720046
Tel./Fax.
+996 312 65 20 75
Tel./Fax.
+996 312 65 76 57
Email.
Mgatp7@infotel.kg
Web.
http://www.mgatp7.kg
3.2 Distribution
(wholesale/retail supply networks)
The wholesale
distribution network is mainly represented by Dordoi Bazaar (market) in the
North of the Kyrgyz Republic and Karasuu Bazaar (market) in the South of the
Kyrgyz Republic. Dordoi bazaar occupies a territory of 100 hectares (≈246
acres) and is the center where all consumer goods are brought first, and then
are distributed all over the country and even beyond to Tajikistan, Uzbekistan
and Kazakhstan. Most wholesale transactions take place in the latter part of
the day.
Contact details of Dordoi
market administration are:
Director: Japarkunov
Samarbek Toktogulovich
Tel. +996 312 28 19 20
Fax. +996 312 69 00 44
Email. Samarbek69@mail.ru
Web (Rus-lang). http://www.dordoi.kg
Retail supply networks
are mainly represented by the chain of grocery stores “Narodny”(http://www.market.kg Rus-lang), “Stolichny”
and “7 days”. Other retail supply networks are represented by single
supermarkets, bazaars and small shops. Major supermarkets are Beta Stores,
Ramstore and BishkekCity. Main bazaars (not including Dordoi) in Bishkek are
Alamedin bazaar, Ortosay bazaar and Osh bazaar.
3.3 Warehousing
Warehousing services in
Kyrgyzstan are at the infancy stage. Warehouses that exist are from the Soviet
era and, in many cases, are not sufficiently equipped and are lacking moisture
and/or temperature control, etc. Most of them are located in the Eastern
Industrial part of Bishkek, others along Kulatova street, and some left in the
Western industrial zone. Larger companies that have a vital need to have a
warehouse usually build their own.
Still there is one very
well equipped warehouse in Manas International Airport with temperature control
and other services. But this warehouse is only available for short term use and
is offered only for storage of cargo that have been brought to Kyrgyzstan by
air.
Some companies that offer
warehousing services in Bishkek:
1.
Globalink Logistics Group
53, Aitmatova st. room 47, Bishkek
Tel. +996 312 68 06 02, +996 312 90 84 55
Fax. +996 312 68 00 74
Email.
Bishkek@globalink.bz
2.
Manas Management Company
President: Akmatov Erik Bekbolotovich
Manas International Airport
Tel. +996 312 69 35 99
Fax. +996 312 69 30 31
Email. akmatov@mmc.kg
Web. http://www.mmc.kg
3.4 Other Services (Security, Insurance,
Equipment and Vehicle Leasing)
Insurance services are offered by the following
companies:
1.
Globalink Logistics Group
53, Aitmatova st. room 47, Bishkek
Tel. +996 312 68 06 02, +996 312 90 84 55
Fax. +996 312 68 00 74
Email.
Bishkek@globalink.bz
2.
ARI Cargo – Bishkek,
Kyrgyzstan
35
Erkindik Avenue
Bishkek,
Kyrgyzstan, 720 000
Phone:
+996 312 66 00 77
Fax: +996
312 66 13 11
E-Mail:
bishkek@aricargo.com
3.
Transatlantic Inc.
166, Sovetskaya st., room 59
Bishkek, 720040, Kyrgyzstan
Tel. +996 312 66 38 17
Fax. +996 312 9014 09
Email.
info@transatlantic.kg
Web. http://www.trans-atlantic.ca
Vehicle Leasing services are provided by the
following companies:
- EVI Autocenter
19 Lev Tolsoty st., Bishkek
Tel. +996 312 640 184
Mob 1. +996 502 32 13 91
Mob 2. +996 502 57 59 59
Fax. +996 312 65 03 70
Email. office@evi.kg
- Hertz
93, Toktogula st., Bishkek
720040, Kyrgyz Republic
Tel. +996 312 66 61 02, +996 312 66 60 52
Fax. +996 312 66 38 50
4. MARKET OPPORTUNITIES FOR U.S. COMPANIES
Most of the market
opportunities for US companies arise in conjunction with the major transport
infrastructure development projects, which are usually announced by the
Government of Kyrgyzstan or concerned multilateral organizations.
Procurement of equipment
or services is usually announced through open tenders, which can be found on
correspondent sites of international donors, the government official website (http://www.gov.kg) or through BISNIS tender leads
posted on http://bisnis.doc.gov/bisnis/tradeleads1.cfm.
5. USEFUL RESOURCES
5.1 Government Organizations (i.e., Mintrans, RosAvtodor, etc.)
1.
Ministry of Transport and Communications
42, Isanova st.,
Bishkek,
720017, Kyrgyz Republic
Tel.
+996 312 6104 72, +996 61 10 57
Fax.
+996 312 66 47 81
Email. mtk@mtk.gov.kg
Web (Rus-lang). http://mtk.gov.kg
2.
State Customs Inspectorate
4a, Baytik Baatyra st.,
Bishkek, Kyrgyzstan
Tel. +996 312 51 06 51
Fax. +996 312 51 24 63
Email. papers@customs.gov.kg
Web. http://customs.gov.kg/content/start/Eng
5.2
Trade
associations and information portals
1.
Chamber of Commerce and Industry of the Kyrgyz Republic
107, Kievskaya st.,
Bishkek, Kyrgyzstan, 720001
Tel. +996 312 21 05 77
Fax. +996 312 21 05 75
Email. Cci-kr@totel.kg
2.
AmCham
191
Sovetskaya, Office #123
Bishkek, Kyrgyz Republic, 720011
Phone +996 (312) 68 09 07
Fax +996 (312)
68 11 72
Email. director@amcham.kg
Web. http://www.amcham.kg
3.
IBC (International Business Council)
191, Sovetskaya st., room 112
Hyatt Regency Bishkek, Kyrgyz Republic
Tel. +996 312 68 02 62
Fax. +996 312 68 09 20
Email. ibc@ibc.kg
Web. http://www.ibc.kg
5.3 Trade consultants, lawyers, etc. (as
relevant)
CUSTOMS BROKERAGE COMPANIES:
- “SVTS – Broker” LLC
4a, Baytik Baatyra st. (Customs
Building), room 207
Tel./Fax. +996 312 51 19 61
Mob. +996 517 71 42 97
Email. svtsbroker@list.ru
Web. (Rus-lang) http://www.atb.kg/svts_broker.htm
- “Nuris Tranzit
Service” LLC
10, Bokonbaeva st., room 2
Bishkek, Kyrgyzstan,
720000
Tel. +996 312 29 84 59
Mob. +996 312 97 77 10
Web. (Rus-lang) http://www.atb.kg/nuris.htm
- “Customs Cargo
Service” LLC
77, Toktogula st., room
104
Bishkek, Kyrgyzstan,
720021
Tel. +996 312 28 06 36,
+996 312 66 58 72
Email. kdinna@yandex.ru
Web. (Rus –lang) http://www.atb.kg/cutom_cargo.htm
- “B.D.A. Logistics”
LLC
Director: Koylubaev Mars
Kubanychbekovich
282a, Frunze,
room 110
Tel. +996 312
69 68 68
Mob 1. +996 543 94 9999
Mob 2. +996 312 97 37 50
- Globalink Logistics Group
53, Aitmatova st. room 47, Bishkek
Tel. +996 312 68 06 02, +996 312 90 84 55
Fax. +996 312 68 00 74
Email.
Bishkek@globalink.bz
- “Muza” (DHL) LLC
107,
Kievskaya st.,
Bishkek,
Kyrgyzstan
Tel.
+996 312 61 11 16
Fax.
+996 312 21 07 44
Email.
lh@muza.com.kg
Web.
http://muza.com.kg/eng/news/
For a full list of Customs Brokerage Companies,
please visit:
http://customs.gov.kg/content/broker/eng
LAW FIRMS
1.
Kalikova & Associates
66,
Kalyk Akiev st.,
Bishkek,
Kyrgyz Republic
Tel.
+996 (312) 650-129
+996
(312) 650-256
+996
(312) 650-536
Fax:
+996 (312) 650 980
E-mail:
lawyer@k-a.kg
Web.
http://www.k-a.kg
2.
Partner
57, Kalyk Akiev st., room 21
Bishkek, Kyrgyzstan, 720010
Tel. +996 312 65 00 19
Fax. +996 312 65 03 80
Email. bakyt@elcat.kg
3.
Legal Trust
170a, Sovetskaya st., room 22
Bishkek, Kyrgyzstan, 720040
Tel. + 996 517 71 93 58, +996 312 66 70 96
Fax. +996 66 71 36
Email. Legal_trust@mail.ru
Web. http://www.lt.info-bishkek.biz
5.4 USG Resources
Not applicable
For more information on
Kyrgyz Republic, visit BISNIS online at http://bisnis.doc.gov/bisnis/country/kyrgyzstan.cfm
BISNIS (www.bisnis.doc.gov)
is part of the U.S. Commercial Service (www.export.gov).