Kazakhstani enterprise-railway carrier of grain and other agricultural cargo JSC Astyk Trans summed up the season. The company noted that supply exceeds demand, the APK News agency reports.
“Based on the results of the 2024-2025 international marketing season in Kazakhstan, we can sum up the first results of the transportation period. In the period from July 1, 2024 to June 30, 2025, 40% more grain was transported in wagons than in the previous season, while export transportation in wagons increased by 50%,” the JSC said in its information.
As for pricing policy, against the background of rising railway tariffs and increasing demand for transportation, there was a decrease in rates for the use of wagons, which became possible for several reasons:
1. Growth of the wagon fleet.
At the beginning of 2025, the total wagon fleet in the CIS countries increased by 16 thousand units (by 14%). The Russian Federation saw particularly significant growth, up 33%, while Kazakhstan saw 7%. This increase in supply on the transportation market, especially from two key grain exporting countries in the Eurasian region, has contributed to increased competition between wagon operators.
2. Dependence on crop yields.
A decrease in the harvest in Russia in 2024, the world's largest wheat exporter, and a 25-30% reduction in its exports with a significant increase in the wagon fleet have caused an excess of rolling stock. As a result, the market has seen a sharp drop in wagon rental rates due to a large number of unused units.
3. Low world grain prices.
Despite global inflation, wheat prices on the world market have remained stable for the past five years. Along with intense competition between exporters, this has led to the need to reduce transportation rates in order to maintain the attractiveness of Kazakh grain in the international arena.
4. Presence of Russian fleet in the Kazakhstan market.
Despite the existing restrictions in Kazakhstan on the entry of empty fleet from other countries, Russian railcars actively entered the Kazakhstan market. This also increased price competition and put additional pressure on rates.
5. Reduction in wagon turnover.
JSC NC KTZ implemented a number of measures to speed up the movement of wagons across the network, as well as to reduce loading and unloading times. Increased turnover allowed using fewer wagons in transportation, which in turn led to excess fleet and an additional reduction in rates.
“Today, the grain transportation market in hopper cars is at the saturation stage. The volume of available fleet exceeds the average annual demand, while competition from alternative modes of transport, such as container and covered wagons, is intensifying. Nevertheless, JSC Astyk Trans demonstrates stability in the new conditions,” the company also noted.
In the upcoming season, JSC Astyk Trans is ready to provide industry participants with the necessary volume of rolling stock and continue its mission to support the grain market of Kazakhstan.