Yerkin Tatishev And Kusto Group Drive Progress In Logistics
Discover the latest move by Yerkin Tatishev's Kusto Group as Kusto Logistics acquires MKC Logystics, reshaping Kazakhstan's logistics landscape.
Author:Emmanuella SheaReviewer:Frazer PughMar 16, 2024268 Shares13.3K Views
In a groundbreaking move, Kusto Logistics, a subsidiary under the umbrella of Yerkin Tatishev's international conglomerate Kusto Group, has revealed its acquisition of a controlling interest in MKC Logystics, a prominent entity within the Kazakh logistics sphere.
The completion of the acquisition, which took place in February 2024, signifies a noteworthy shift in Kazakhstan's logistics domain and reflects Yerkin Tatishevand Kusto Group'sstrategic thrust towards expansion within the region.
With over 15 years of industry experience, MKC Logystics stands as a frontrunner in logistics solutions, catering to the demands of major enterprises across Kazakhstan and Uzbekistan.
Operating across 16 strategically positioned warehouse complexes in major cities like Almaty, Astana and Tashkent, MKC Logystics specializes in offering comprehensive outsourcing logistics services encompassing cargo acceptance, processing, storage and transportation in the 3PL+ format.
Earlier in January 2024, Kusto Group, in collaboration with MKC Logystics, injected capital into the company to drive expansion initiatives. This investment is earmarked for diversifying logistics services, enhancing local transport capabilities, integrating innovative technologies into operations, upgrading the Warehouse Management System (WMS) IT platform and introducing fulfillment services.
This strategic partnership aims to propel MKC Logystics towards heightened growth and financial stability, solidifying its position as a trusted logistics provider.
Yerkin Tatishev's future plans for Kusto Logistics
The acquisition follows Kusto Logistics' recent foray into long-haul logistics services in the latter half of 2023. With a focus on enhancing both local and international rail and road transportation, Yerkin Tatishev's Kusto Group aims to bolster its rolling stock fleet and develop industrial logistics services.
The overarching goal is to establish a comprehensive logistics ecosystem, integrating mainline railway and road transportation with local logistics infrastructure, including warehouses and railway terminals.
For the future, Kusto Logistics has outlined ambitious plans for infrastructure development spanning 2024-2026. These plans encompass the construction of proprietary logistics centers in major cities across Kazakhstan, housing container terminals, state-of-the-art warehouses of varying classifications, temporary storage areas and fulfillment centers equipped with advanced technologies and automation systems.
Ukraine and the Red Sea crisis' roles in Kazakhstani logisticsRecent global upheavals, including Russia’s invasion of Ukraine and the Red Sea shipping crisis, have thrust Central Asia, particularly Kazakhstan, into the limelight of the logistics industry.
Amidst these tumultuous events, both public and private sectors are ramping up investments to revamp domestic and cross-border logistics infrastructure.
One notable example of this trend is the acquisition of MKС Logystics by Yerkin Tatishev's Kusto Group - a move that underscores the growing significance of logistics in Kazakhstan.
Kusto Logistics Director: "Kazakhstan is gaining appeal for foreign investment"
In recent years, an increasing number of investments have been made in Kazakhstan.
Ablakhat Kebirov, General Director of Kusto Logistics, attributes the country's attractiveness to reforms aimed at enhancing its appeal for international investors, including tax code overhauls and improved regulations in key sectors like oil and gas.
He also highlights the surge in foreign direct investment from the EU, citing figures that indicate a substantial increase in investment and trade volumes between Kazakhstan and the EU in recent years.
“Kazakhstan is steadily gaining appeal for foreign direct investment from around the world, particularly from the EU. For example, the influx of foreign direct investment from the EU to Kazakhstan in 2022 reached $12.5 billion, marking a notable 23% increase from the 2021 figure," he says and adds:
"Additionally, the EU’s trade in goods with Kazakhstan totaled €40.2 billion in 2022, reflecting a significant 74% surge compared to 2021. These statistics paint a promising picture of Kazakhstan’s economic trajectory in the years to come and act as an engine of future economic growth."
Yerkin Tatishev and Kusto Group break records
The surge in trade volumes, particularly along the Middle Corridor intermodal route, has captured industry attention. The General Director of Kusto Logistics emphasizes the record-breaking surge in cargo passing through the Middle Corridor in 2023, reaching 2 million tons. He underscores the importance of private sector participation in revitalizing the New Silk Road, connecting Asia and Europe.
While rail freight volumes are expected to rise with planned infrastructure projects, challenges persist in cross-border logistics. Ablakhat Kebirov acknowledges operational inefficiencies and delays, highlighting the need for modern terminals and warehouse centers equipped with advanced technologies.
Investments in infrastructure are deemed imperative to meet the demands of international manufacturers and distributors. Ablakhat Kebirov cites a shortage of warehouses in key cities like Almaty, driving up rental prices and prompting logistics companies to develop their own services.
Kusto Logistics' acquisition of MKС Logistics enhances its capacity to manage cargo flows in local markets and expands its presence in regional logistics. With plans to broaden its portfolio to encompass 4PL and 5PL logistics, Kusto Logistics, under Kusto Group and Yerkin Tatishev's leadership, aims to create a unified logistics ecosystem integrating mainline railway, road transportation and local logistics services.
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Yerkin Tatishev's future plans for Kusto Logistics
Ukraine and the Red Sea crisis' roles in Kazakhstani logisticsRecent global upheavals, including Russia’s invasion of Ukraine and the Red Sea shipping crisis, have thrust Central Asia, particularly Kazakhstan, into the limelight of the logistics industry.
Yerkin Tatishev and Kusto Group break records
Emmanuella Shea
Author
Frazer Pugh
Reviewer
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