ASTANA – From June 20 to 21, Astana hosted the first regional aviation and logistics forum in Central Asia – Silk Road in the Sky – Kazakhstan Air Cargo Hub. Over 350 aviation experts from more than 30 countries gathered to discuss Kazakhstan’s challenges in becoming a hub for aviation and its regional potential as an important player in the global air freight industry.
Silk Road in the Sky – Kazakhstan Air Cargo Hub Photo credit: The Astana Times
The forum explored transit potential and multimodal transportation, innovations and digitalization in freight transport, airport
Infrastructure, logistics centers and industry regulatory framework. Sustainable aviation fuel. Cooperation with international carriers. Investment in training and personnel.
Catalin Radu, General Director of the Aviation Administration of Kazakhstan (AAK) during the Silk Road in the Sky—Kazakhstan Air Cargo Hub Forum on June 20. Photo Credit: AAK’s press service
“We gather experts from around the world to enhance and debate our country’s capability to become one of most important air hubs in the region,” Catalin Rădulescu, director general of Kazakhstan Aviation Administration (AAK).
“Air freight is a complex business, affected by international and local factors. But when done right, it can have a significant impact on the economic growth of a country and a region,” said Steven Polmans.
Kazakhstan – a hub for air connectivity
“Kazakhstan does not have a landlocked status.” It is a country with air connections,” said Polmans in his opening speech, quoting Radu.
Polmans emphasized Kazakhstan’s eagerness for its air cargo sector to grow, describing it as a country at a young stage with many opportunities for development because of its location between east and western.
Steven Polmans is the chair of the International Air Cargo Association. Photo credit: The Astana Times
Unbalance between imports and exported is one of the most critical challenges. Polmans stressed the importance of achieving a more balanced ecosystem to attract more business.
“A healthy air cargo business requires a good balance between export and import,” said Polmans.
Glyn Hughes expressed his enthusiasm for the vision of Central Asian states to diversify their economies away from oil, gas and natural resources. He noted Kazakhstan’s ability to develop a manufacturing industry and use its agricultural land for perishables.
Hughes added, “The logistics industry is committed to supporting these government aspirations.”
Wilson Kwong is the CEO of Hong Kong International Air Cargo Terminals Limited. He believes that Kazakhstan should decide on the goods they will focus on, and then build the infrastructure necessary to become a major intermodal transport hub.
“We have already seen developments on the railside, and I am sure that in due course, the air cargo logistic development will also fully materialize here in Kazakhstan,” said Kwong.
Fabio Gamba is the director general of Airport Services Association. He highlighted Kazakhstan’s potential and efforts in developing air cargo. He said that Kazakhstan’s thoughtful planning for establishing a major hub for air cargo shows its commitment to establishing an industry-wide presence.
“The fact that professionals tell you what it takes to succeed is already a first step.” It shows that you are carefully considering the steps to take rather than rushing into things,” said Gamba.
The economic contribution of air cargo to the global economy and its role in the global community
During the COVID-19 Pandemic, air cargo played a crucial role in supporting the global community. This was especially true for transporting vaccines.
“Air cargo is the first responder to humanitarian crises, even beyond the pandemic.” Hughes said that, for example, following the devastating earthquakes in Syria and Turkiye air cargo delivered essential supplies quickly, helping the affected community survive.
From June 20 to 21, Astana hosted the first regional aviation and logistics forum in Central Asia, Silk Road in the Sky – Kazakhstan Air Cargo Hub. Photo credit: AAK Press service
He said that air cargo’s contribution goes beyond emergencies. The industry is not only a lifeline for communities during times of crisis, but also plays an important role in maintaining the global economy.
Hughes cited the UN World Tourism Organization during the forum as stating that tourism will contribute $1.4 trillion to global economy by 2023. Air cargo only accounts for 1% of the international trade, but is worth $8 trillion. This is nearly six times as much as tourism.
Hughes said that to maintain and grow the economic benefit of air cargo, it is important to ensure the right infrastructure, relationships and environment.
According the AAK, Kazakh exports and the interaction of Kazakh companies with the global community, as well as the use advanced technologies, have increased by $560 millions. This will increase the trade turnover with Central Asian nations by 2.4 times, from $6.3 billion up to $15 billion.
E-commerce, another sector that is growing at double-digit rates, is also a global boom.
Hughes gave an example and added a little humor to his remarks. He said, “My daughter is responsible for most of this growth.”
He said that fast fashion used to mean browsing street shops. Hughes said that air cargo allows us to deliver ultra-fast fashion directly to consumers without having to go through retail stores.
Strategic Vision and Prospects
The Silk Road in the Sky-Kazakhstan Cargo Hub Forum is designed to help develop Kazakhstan’s transport and logistical potential, as described in the 2030 plan.
Polmans emphasized the professionalism and enthusiasm within the industry and predicted a growth above average driven by economic and GDP growth. He praised the collaborative efforts with Kazakhstan and recognized the government’s vision for integrating air freight into the broader economic system.
“The 2030 Vision developed by the Government here in Kazakhstan is an excellent example of what should be done. Many countries could learn from this in the period leading up to this conference.” “We have seen that the vision of Catalin Radu’s team is not just words written on paper, but a reality that happens every day,” said Polmans.
Gamba also noted that the government was supporting the project and the implications for the future.
“I think the government is behind the idea of promoting Kazakhstan to be a central hub in the future. In the next five to ten year, not only will there be significant changes in the air transport sector but also in tourism. When I visited Astana for my first time, it was amazing how much the city has to offer. “I really mean it,” said he.
During the forum, the individual organizations engaged in negotiations that are expected to result in agreements being signed between airports such as those of Astana and Karagandy and Aktobe with MNG Airlines, MSC Air Cargo SA and Coyne Airways Limited in the UK and Alpha Sky in Kazakhstan. Memorandums on cooperation between TIACA, local airports in Aktau, Aktobe and Astana as well as between TIACA, the Joint Authorities for Rulemaking on Unmanned Systems organization (JARUS), and MNG Airlines (Turkiye) are also expected.