22.07.2025, 19:20

"Astyk Trans": Grain transportation grew by 40% in the 2024/25 season, while rates declined

Kazakhstan boosts grain transportation as rental rates fall


JSC “Astyk Trans” has summarized the results of the 2024/2025 grain marketing season, which ended on June 30. According to the company, the volume of grain transported by railcars during this period increased by 40% compared to the previous season. Export shipments grew by 50%.
At the same time, despite high demand and increased railway tariffs, the market experienced a decline in railcar rental rates. The company’s analysts highlight several key reasons behind this trend.

1. Growth of the railcar fleet in the CIS
By early 2025, the total railcar fleet in CIS countries had grown by 14% (16,000 units). The most significant growth was recorded in Russia — up by 33%. In Kazakhstan, the increase was 7%. The expanded supply of railcars amid growing demand intensified competition among operators, which naturally led to lower rental rates.

2. Decline in harvest in Russia
Russia, the world’s largest wheat exporter, faced a decline in crop yields in 2024, resulting in a 25–30% drop in wheat exports. At the same time, the country continued to expand its railcar fleet, creating a surplus of rolling stock. As many railcars remained idle, rental rates dropped sharply.

3. Stable global wheat prices
Over the past five years, global wheat prices have remained stable. Amid fierce competition among exporters, this forced market participants to reduce logistics costs to maintain their presence in international markets. This added pressure on transportation rates.

4. Presence of Russian rolling stock in Kazakhstan
Despite existing restrictions on the entry of empty foreign railcars into Kazakhstan, Russian railcars remained active in the domestic market. This further intensified pricing competition and pushed rates downward.

5. Faster railcar turnover
JSC “Kazakhstan Temir Zholy” (KTZ) introduced measures to improve railcar turnover by reducing loading, unloading, and transit times. Increased efficiency allowed the same freight volumes to be transported with fewer cars, reducing demand and further lowering rental rates.
According to Astyk Trans, the grain transportation market using hopper railcars is currently in a phase of saturation. The available fleet exceeds the average annual demand, while competition from container and covered wagons continues to grow.

Despite these challenges, JSC “Astyk Trans” maintains a strong market position. The company ensures stable freight volumes, keeps its fleet in good technical condition, and adheres to scheduled maintenance. Its priority remains the reliability of logistics processes and on-time delivery.

In the upcoming season, “Astyk Trans” confirms its readiness to provide customers with the required number of railcars and continue fulfilling its key mission — supporting Kazakhstan’s grain market and contributing to national food security.

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