Kazakh govt could put Aktau and Kuryk seaports under trust management on ship-or-pay terms

ASTANA. Jan 30 (Interfax) - Kazakhstan is mulling over putting the Aktau and Kuryk seaports under trust management on ship-or-pay terms, the Transport Ministry said in a Tuesday press release.

Kazakh Transport Minister Marat Karabayev met with European Commissioner for Transport Adina Valyan to discuss issues relating to development of the transport potential of Kazakhstan and Europe and the Trans-Caspian International Transport Route (TITR), which runs through China, Kazakhstan, the Caspian Sea, Azerbaijan and Georgia to Turkey and European countries, according to the press release.

"During the talks, the sides discussed putting the Aktau and Kuryk seaports under trust management on a ship-or-pay basis in order to strengthen the maritime fleet and create a container hub in the Caspian Sea," the press release says.

Europe and Kazakhstan could sign an agreement to ensure full utilization of the TITR system, to support further development of the associated infrastructure and to introduce of a permit-free regime for Kazakhstan, according to the ministry.

Ship-or-pay is a contractual provision obligating the carrier to transport the client's cargo and the client to pay the carrier anyway, even if the cargo is not delivered.

The Kuryk seaport, located 100 kilometers from the Aktau international seaport, is part of the Trans-Caspian International Transport Route that starts in China and goes to Turkey and European countries through Kazakhstan, the Caspian Sea, Azerbaijan and Georgia. The handling capacity of the Kuryk seaport is 6 million tonnes of cargo a year. Projects are currently being carried out to expand the seaport infrastructure and increase its handling capacity.

The Aktau seaport is situated on the Mangyshlak peninsula of the Caspian Sea. The handling capacity of the port is 2.5 million tonnes of dry cargo a year, 4,000 tonnes of grain, 12 million tonnes of oil and 2 million tonnes of ferry cargo.