Subsidiaries in Shanghai and Istanbul will allow you to work not with intermediaries, but directly with manufacturers of goods.
The results of 2022 were quite complex and ambiguous for the transport and logistics industry of Kazakhstan, primarily due to the geopolitical situation. Nevertheless, the private Kazakhstani logistics operator PTC Holding is actively developing its business, directly entering the territories of both neighboring countries and promising markets. So, recently, the implementation of a joint project has begun in Uzbekistan and subsidiaries have been established in Shanghai (China) and Turkey.
“Our main goal is to take the cargo directly from the first hand, from the one who produces this cargo,” explains Timur Karabaev, Chairman of the Board of PTC Holding. This, according to him, is necessary in order, on the one hand, “to give the best, most profitable transportation rate for the consumer,” and on the other hand, “we aim to work with direct shippers to form the largest pool of customers.”
Creating subsidiaries in Turkey and China, the PTC group of companies was guided by the following logic.
“We have opened a subsidiary in Shanghai because the Chinese cargo base is huge. Today, about 3 percent of all Chinese cargo travels by rail, the rest sails by sea, which is a lot. This is a huge database of senders and contracts, and it is impossible to work with it remotely. In addition, China is not the 1520 track, not the countries of the post—Soviet space, there is a language barrier, there are big mental differences. There should be people who speak Chinese directly on the spot, who understand the mentality, who understand why the cargo should go along such a route, and not on a different route. It will simply not work out to deal with all this while sitting in Astana,” Timur Karabayev believes.
As for Turkey, the head of PTC Holding notes that the fact that Turkey is a maritime power and “has always been a reference point on long–distance routes” is added to the mental reasons.
According to him, unlike the same Black Sea ports of Georgia, which physically cannot accept a vessel with 15 thousand containers, there are deep-water ports in Turkey that allow this. In addition, Turkey itself is a large consumer of resources, including, for example, Kazakh agricultural products, as well as a shipper of a wide range of goods, ranging from consumer goods to machinery and equipment.
“We understand that Turkey, like China, is the place where you need to be directly present. This wholly—owned subsidiary is our sales window in Turkey, as the same company in Shanghai is a sales window in China,” Timur Karabayev is convinced.