In order to optimize management structure of transportation process and elimination of excessive links, financial and economic improvement of railway branch enterprises on the basis of three railroads the republican state enterprise “Kazakhstan Temir Zholy” was created.
Besides, for improvement of a production and financial condition of branch, the decision on the need of restructuring of railway transport of the Republic of Kazakhstan and transfer all objects of the social sphere (schools, hospitals, houses of culture, sports centers, etc.) to the local executive bodies was made by the Government of the Republic of Kazakhstan, thereby releasing the funds previously used for their maintenance. The railroad at that time contained about 6,000 objects of the social sphere, including trade and household, housing and municipal services, educational institutions, health care, culture and sport systems.
The next step was adoption of the Law of the Republic of Kazakhstan “On railway transport” by the Parliament of the Republic of Kazakhstan in 2001 and the Restructuring program of railway transport of the Republic of Kazakhstan for 2001-2005 by the Government of the Republic of Kazakhstan. The program aimed at formation of conditions for development of the competitive market services in the sphere of repair of traction rolling-stock and creation of production cooperatives and private enterprises on the basis of repair branches of RSE Kazakhstan Temir Zholy.
On the basis of RSE Kazakhstan Temir Zholy National company Kazakhstan Temir Zholy closed joint-stock company with 100% of government's stake was created in 2002. The backbone railway network was transferred to possession and use of NC KTZ CJSC.
At the same time, there was corporatization of the affiliated state enterprises with transfer of 100% of government's stake to authorized capital of NC KTZ CJSC.
From 2002 to 2004 the enterprises supporting activities have been created: Military Railway Security Service, Zholzhondeushy, Remput, Kaztransservice, Kedentransservice, Transtelecom, Transport Service Center joint-stock companies, etc.
At the third step in 2004 NC KTZ CJSC was converted to National company Kazakhstan Temir Zholy joint-stock company and the Restructuring program of railway transport of the Republic of Kazakhstan for 2001-2005 aimed at the development of the competition in branches and attraction of private investments was adopted.
Within implementation of the specified program on the basis of locomotive economy Lokomotiv JSC was created and all inventory rolling stock of cars is allocated in the independent enterprise Kaztemirtrans JSC.
Besides, conditions for private investments in branch have been created. So, the tariff had been divided into 4 components: infrastructure, locomotive, carriage, cargo and commercial work.
That has helped to create a market of car operators and to attract private investors in development of the private carriage rolling stock.
Since 2005 subsidies for covering of losses of passenger carriers began to be provided from the State budget.
During the same period the economy of Kazakhstan started to recover, volumes of freight and passengers by railway transport began to increase.
To provide optimal and effective transportations (distance, terms, price) increasing freight and passenger traffics and satisfaction of perspective requirements of the Kazakhstan industry and the population in competitive and high-quality transport and logistics services of NC KTZ JSC with assistance of the Head of state and the Government of the Republic of Kazakhstan launched the large-scale program of construction of the new railway lines.
Creation of national optimum network of Kazakhstan railroads has become particularly urgent after becoming independent as some regions and areas were cut off from each other, transport connection between them was carried out on districts of the neighboring state.
For example, railway communication of Pavlodar and East Kazakhstan regions, Central Kazakhstan with Western was carried out through the lines passing across the territory of Russia. Such problems resulted in the need for cross borders of other states for 2-3 times. It increased the freight transportation, it took extra time of passengers. Therefore, the need for construction of the new railroads became apparent since the first day of Independence.
The movement on new Aksu-Degelen 187 km long railway line was launched in 2001. The new road has opened the shortest way from the Semey region to Pavlodar.
The construction of Khromtau-Altynsarino 404 km long railway line which has connected Kostanay and Aktyubinsk region has been complete in 2004.
With commissioning in 2008 of Shar - Ust-Kamenogorsk 150 km long railway line, connection of a national railway network within the borders of Kazakhstan has come to the end.
Also new railway lines were required for development of export and transit potential of the country.
Due to the state support of NC KTZ JSC 1700 km of the new railway lines were paved which have provided the shortest ways of freight transport on TransKazakhstan routes in the West-East and North-South directions.
Commissioning in 2012 of Zhetygen-Altynkol (Khorgos) railway line has provided the second railway transition on the border with China. The new line for 550 km shortened the distance from the People's Republic of China to the southern regions of Kazakhstan and the countries of Central Asia.
Heads of Kazakhstan, Turkmenistan and Iran have opened the movement on the international transport passage Uzen — Bereket — Gorgan in 2014, which Kazakhstan district was put into operation in 2012. This passage have greatly reduced the way from China and Asia-Pacific region countries to Iran and the Gulf region countries. As the President of Kazakhstan Nazarbayev N.A. said: “the new Silk way was actually created”.
The same year in the center of the country two new Zhezkazgan — Beyneu and Arkalyk – Shubarkol railway districts were put into operation.
Introduction of new lines has provided internal communications between regions, growth of the transit and export capacity of Kazakhstan and also gave a powerful impetus to development of regions.
There were new stations, necessary social infrastructure, new houses and social objects along new railway lines.
During rise of economy from 2000 to 2008 the Company has successfully managed the seven-percentage annual gain of transport volumes, despite the completion of life cycle of the production assets created till 1991.
Therefore in 2008 NC KTZ JSC started implementation of the Program for upgrading of assets.
More than 1,000 locomotives, 37.5 thousand freight cars, nearly 1,500 cars were updated, upgrading and overall repair of track of 4,700 km was carried out during this time.
Considering government policy of industrialization and import substitution, the Company has taken the path of modernization of assets at the expense of domestic production organization in partnership with world leaders of Alstom" "eneral Electric, Talgo, Siemens, etc.
Today the most modern freight and passenger wagons, locomotives, electric locomotives, rails and materials of track structure are produced in the country.
Production of the Kazakhstan plants has a high export capacity and since 2012 is delivered to the markets of the countries of the Eurasian continent.
Development of domestic production of modern Talgo passenger wagons has allowed NC KTZ JSC to realize the Program of the organization of high-speed passenger transport.
Today all major cities of Kazakhstan are connected by high-speed passenger routes network used by the trains made of modern, comfortable wagons of domestic production.
In 2010 the Government of the Republic of Kazakhstan adopted the new program for development of transport infrastructure till 2014 under which the following events were realized:
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