According to the decision of the State Commission of June 10, 2020, the date of the IPO of JSC NC KTZh (hereinafter - KTZh) is agreed for 2023. However, it is proposed to consider the possibility of postponing the IPO period to 2025 as no significant improvement in the financial condition of the company is expected in the near future to a level sufficient for the KTZh IPO.

ESG factors are provided by the Development Strategy of KTZh until 2029 within the framework of the strategic goal on ensuring sustainable development, which consists of three initiatives:

• Improvement of social stability and development of human resources. For this purpose, the company will create the most favorable conditions for the life and work of its employees, providing them with a full social package and the opportunity to train and improve professional skills; improve the living conditions of the population of Kazakhstan by creating new jobs, reducing the transport component, increasing the mobility of the population and implementing charitable projects. In 2021 the average monthly salary of employees has been increased by 20% and in 2022 by another 25-35% to improve the material well-being of the Company’s employees;
• Environmental sustainability. The company will continue minimization of the negative impact on the environment through rational consumption of natural resources, consistent reduction of emissions, discharges of pollutants, reduction of waste generation and reuse, as well as the use of energy-saving technologies;
• Improvement of corporate governance. The company will continue improving the effectiveness of the risk management system, internal control, sustainable development and transparency of activities. Based on results of the independent diagnostics, the corporate governance rating of KTZh was assessed at the “BB” level.

The Agenda applies to all KTZh subsidiaries.

Carbon footprint

The carbon footprint of the company includes direct and indirect emissions.

Direct greenhouse gas emissions are carried out during the operation of mobile sources (locomotives, trolleys, cars) and stationary consumers (boilers, boiler houses, furnaces).

From 2013 to 2021, there is 7% decrease in direct CO2 emissions (from 2 079 thousand tons to 1 941 tons).

Dynamics of emissions into the environment in the period from 2019 to 2021, thousand tons.

Share of pollutant emissions, %

Volume of emissions, discharges of pollutants in the period from 2019 to 2021, tons.

The Board of Directors of JSC NC KTZh by decision of September 06, 2019, No.13, approved the Development Strategy of the Company until 2029.

The Strategy provides for five strategic goals:

• 1. Withdrawal of the company from the financial risk zone and ensuring financial stability;
• 2. Improving performance of the company;
• 3. Improving customer satisfaction;
• 4. Guaranteeing the safety of cars traffic;
• 5. Sustainable development of the company.

Key advantages:

• the company’s transportation activities provide economic connectivity with 14 regions of the Republic of Kazakhstan and 3 cities of republican significance, and through 16 junction points - with five neighboring countries: China, Russia, Uzbekistan, Kyrgyzstan and Turkmenistan;
• in terms of freight turnover and income, KTZh is one of the 15 largest railway companies in the world;
• the subsidiary - KTZ-Cargo Transportation JSC has the status of the national freight carrier with a market share of 96%. Until the end of 2018, this segment was a monopoly – 100% of the share was owned by the company. The state plans to develop competition in this segment and at the end of 2018, as part of a pilot project, 2 private carriers were admitted to the infrastructure: DAR Rail LLP, which carries out transportation on 10 routes and TTT Service LLP, which carries out transportation on 15 routes;
• the share of freight turnover of railway transportation in comparison with motor transport and pipeline is 50%;
• the subsidiary – Passenger Transportation JSC carries out passenger transportation on the entire KTZh network with a market share of 74%;
• the market share of the car operator and the subsidiary, Kaztemirtrans JSC, is 43%;
• KTZh is the country’s largest employer. The group of companies employs more than 113 thousand persons.

The group of JSC NC KTZh companies is the largest owner of locomotives, freight and passenger cars in the country, as well as one of the largest employers in Kazakhstan.

In terms of the length of railways, Kazakhstan ranks 3rd among the CIS and Baltic countries with a gauge of 1520 mm.

Production results

Freight transportation

The company’s tariff freight turnover increased from the period 2019 to 2021. Growth is due to increase in freight turnover in import and transit traffic.

Transit in containers increased by 22% to the level of 2020 and amounted to 1 066 thousand TEU (twenty-foot equivalent unit). 

Freight turnover in the period from 2019 to 2021, billion t-km

Transit in containers in the period from 2019 to 2021, thousand TEU

Passenger transportation

The company’s passenger turnover in 2021 increased by 49.9% to the level of 2020 and amounted to 9 524.3 million p-km.

The company shows positive dynamics in key financial indicators.