1. www. railways.kz
2012 year

2. MAIN INDICATORS OF REPUBLIC OF KAZAKHSTAN
Turnover in 2011г.
(bln. $ USA)
The area of Kazakhstan – 2 724,9 ths. km²
Population – 16 674 ths. people
Population density – 6,12 man./km²
GDP per capita – $ 11,3 ths.
Transport share in GNP – 7%
Investments in ТAC – $3,3 bln.
Distance:
roads – 96 ths. km;
railways – 14 623 km; Transportated cargos Transit
airways– 78 000 km. (bln. tn) (mln.tn)
2,7 25
Dynamics of cargo turnover, 2,2
Bln. Tons-km 1,9 16,3
15
223,5
213
197
2009 y 2010 y 2011 y
2009 y. 2010 y. 2011 y. 2010 y. 2011 y. 2015 y.
www. railways.kz
2

3. MARKET OF CARGO TRANSPORTATION
Объем перевозок с разбивкой по сегментам
126
49
tranzit
import 15
18 192
export 98 25
20
internal
90
149 151
88
Volume of a cargo transportation Volume of a cargo transportation Volume of incomes on
on segments, mln.tons on segments, bln.tons km segments,bln.tenge
Dynamics of cargo transportation,
mln.tons
Dynamics of cargo turnover, tons
1 612 1 544 Volume,
Kind of cargo 2011/2010
mln.tons
1 172 1 233
1 111 1 083
923 890 Coal 105 106%
558
Oil and oil products 37 105%
Building materials 21 108%
2009 2010 2011 Ferrous metals 10 107%
Export Imort Transit Chemical and mineral fertilizers 3 131%
3
www. railways.kz

4. STATE STRUCTURE OF NATIONAL COMPANIES
TOP 7 affiliated companies of JSC “Samruk-
Kazyna” on the size of own capital
DEVELOPMENT
KAZAKHSTAN
KAZMUNAYGAZ KAZATOMPROM BANK OF KAZAKHTELECOM KEGOC SAMRYK-ENERGY
TEMIR ZHOLY
KAZAKHSTAN
100% 100%
100% 0,8 bln $ 0,76 bln $
100% 5,1 bln $
18,5 bln $ 46%
100%
100% 1,6 bln $
1,8 bln $
1,9 bln $
Totally more than 500 affiliated
organizations are part of
the NWF Samruk-Kazyna
• Vertically integrated national transportation company
• Owns and operates the main rail network across the
63% •
country
Dominant position in freight and passenger transport
of the total • Assets for 2010 amounted to 8,8 bln $ (third place
fleet wagons among the subsidiaries of NWF Samruk-Kazyna )
www. railways.kz
4

5. JSC “NC “КТZ” - LOCOMOTIVE OF RAILWAY BRANCH OF RK
RAILWAY TRANSPORTATION SHARE IN COMPANY TECHNICAL CHARACTERISTICS
THE REPUBLIC KAZAKHSTAN
TURNOVER OF GOODS The operational length of routes, km 14 623
including
single-track, km 9 808
double-track, km 4 785
The total length of main roads, km 19 499
Share of electrified sites
4 054 km
Throughput of the tariff, mln. t-km 223 583
Freight carried, ths. t 279 594
Passengers carried, ths. pass. 16 556
Passenger turnover, mln. pass.km 14 649
Fleet of locomotives, units 1 751,5
Railway transportation Park of freight cars, units > 50 ths
Pipeline transport
Park of carriages, units 2 270
Automobile transport
Other
5
www. railways.kz

6. JSC “NC “KTZ ” RATINGS
Rating Agency Long-term rating Forecast
Standard & Poor’s BBB- Stable
Fitch ratings BBB- Positive
Moody’s Investors service Baa3 Stable
Compliance
CORPORATE GOVERNANCE RATING with law
Responsibility
Sustainable
to
2011 development shareholders
2010
KPMG
(plan) (fact)
Diagnostics
59 60 63,3 Corporate
governance
principles Corporate
Safety of
culture
transportations
Management system of JSC “NC “KTZ” development
certified for compliance with ISO
9001, 14000, OHSAS 18000
Environment Social
al protection Responsibility
6

7. FINANCIAL AND ECONOMIC INDICATORS
Name Unit of measure 2010 2011
EBITDA margin % 28,0 29,3
ROACE % 8,29 9,03
Revenue mln. US$ 4 058 4 955
Expenses mln. US$ 3 615 4 201
Net income mln. US$ 442 754
7
www. railways.kz

8. ROLLING STOCK
The distribution of average daily loading of cargo by owners The acquisition of freight wagons, units
in 2011 y
16 000
9 030
1 231
2010 г. 2011 г. 2012 г.
Updating the locomotive fleet, units Purchase of passenger cars, units
142 184
110
52 58
36
2010 2011 2012 2010 2011 2012
8
www. railways.kz

9. JSC “NC “КТZ” IS IN TOP 10 THE LARGEST RAILWAY COMPANIES OF THE
WORLD
Traffic volumes, bln. ton-km + pass.-km
3.311
2.424
2.106
1.055
905
398
315 296 244
227 208
189 140 130 100
1.China 3. Indian 5. Union 7. Norfolk 8. Canadian 11. Canadian
2. RZD 4. BNSF 6 CSX 10. KTZ 12. DB AG 13. SNCF 14. JR E 15. Transnet
Railway Railway Pacific Southern National 9. Ukrzaliznica Pacific
9
www. railways.kz

10. COOPERATION WITH FOREIGN PARTNERS
LOCOMOTIVE SYSTEM OF INTERVAL
PRODUCTION REGULATION
ELECTRIC
TURNOUT ELECTRIC
LOCOMOTIVES
DRIVES
PRODUCTION
ELECTRIC
LOCOMOTIVES LED traffic light
PRODUCTION
CARGO GONDOLA OLIVER WYMAN PLANNING SYSTEM
CARS PRODUCTION «MULTIRAIL»
POWER
AMS DKR
INFRASTRUCTURE
JSC “NC “KTZ” PARTICIPATION IN INTERNATIONAL ORGANIZATIONS AND INTEGRATION
ASSOCIATIONS
• Organisation for Co-Operation between Railways (OSJD)
• The Council for Rail Transport of CIS States (CRT)
• International Union of Railways (UIC )
• ТRACECA, UN ESCAP, ECO
www. railways.kz 10

11. MAIN BUSINESS DIRECTIONS of JSC “NC “KTZ”
Target business
The existing business portfolio
portfolio
FREIGHT TRANSPORT and
LOGISTIC SERVICES
FREIGHT TRAFFIC AND
MAIN RAILWAY SYSTEM
INTERMODAL PASSENGER
TRAFFIC
PASSENGER TRAFFIC MAIN RAILWAY SYSTEM
MANUFACTURE AND REPAIR
Profile and auxiliary and
not profile actives
PROFILE AND AUXILIARY
ACTIVES
11
www. railways.kz

12. TARGET MODEL OF BRANCH WITH NEW STRUCTURE AND REGULATORY
ENVIRONMENT WILL ALLOW KTZ TO BE TRANSFORMED TO EFFECTIVE
TRANSPORT CORPORATION
Market structure Functions Assets State role
Monopoly sector
• Access equal to railway
infrastructure
• Stations
• Flexible regulation of tariffs
• Consolidation of train • Switchyards
for access, proceeding from a
schedules
• Ways
Infrastructure covering of expenses on
• Natural monopoly • Traffic control • The power supply network
(JSC “KTZ-Infrastrucure”) operation
• Management and the • The alarm system and
• Financing of investment
communication
maintenance of projects
infrastructure
• Shunting locomotives
Competitive sector
• Transportation of goods
• Competition on routes – a • Planning of a cargo • Cargo locomotives
Cargo transportation competition based on offers • Market rebalansirovanie of
transportation • Freight cars
tariffs without state
(JSC ”КТТ” and other. of the prices and services
• Shunting works • Containers
carriers) • Free establishment of the • Management of servicing of • Terminals
intervention
prices
locomotives and cars
• Flexible regulation of tariffs
• Competition for routes on a
• Transportation of passengers for transportations in cars of
Passenger concession tenders basis
• Planning of passenger a low class within state-
transportations • Free establishment of the • Locomotives
transportations private partnership contracts
(JSC “Passenger prices within the limits of
• Management of servicing of • Carriages • Financing by competitive
transportations”) contracts state-private
locomotives and cars system on the state-private
partnership
partnership contracts
12 12

13. CONTRIBUTION OF JSC “NC “KTZ” TO DEVELOPMENT OF
INTERNATIONAL TRANSPORT CORRIDORS
New Silk Way
ASTANA
Arkalyk
North - South
Shybarkyl
Shalkar
Jezkazgan Dostyk
Saksaylskaya
Aktau port Beyney
Khorgos
TRACECA
Uzen Jetygen
State border with
Turkmenistan
ALMATY
realized projects
planned projects
ТRACECA
North - South Jetygen – Khorgos raiway building Arqalyq - Shybarkyl railway building
Uzen – state border with Turkmenistan length – 293 км length – 214,4км
length – 146 км
Construction of the bypass line to bypass r/w Saksaylskaya-Jezkazgan railway building
node station Almaty-Zhetigen-Kurkuduk length – 517 km
length – 61 km
Beiney-Shalkar railway building
length - 471 km
www.railways.kz
13

14. JSC “NC “KTZ” – MULTIMODAL LOGISTICS OPERATOR
Transport and logistics Transport and logistics
Manufacturer Customer
center center
Formation of consigments
Storage, marks, etc.
Sorting, packing,
Storage, marks, etc.
Sorting, packing,
Distribution
Door – to door
Cargo tracking
Working with key customers & the promotion of key routes
Solving problems at the interfaces between different types of transport
www. railways.kz 14

15. CREATION OF OWN AGENCY NETWORK
Ust-Luga
Tallin
Riga
Klaipeda
Батуми. Одесса, Новороссийск, Самсун
ТЛЦ, экспедиторские, логистические услуги.
Контейнерные перевозки
Реализация экспортного потенциала грузов
Duisburg
Дуйсбург
Экспедиторские
на рынки стран западной Европы и мировые
рынки:
услуги, контейнерные
зерна, металлов, нефтепродуктов, угля.
перевозки.
Ориентация: морской, авто, ж/д транспорт.
Консолидация, распыление
экспортных и транзитных
грузов в Западной Европе. Odessa Горган, Мазари-Шариф
Ориентация: ТЛЦ, зерновой Urumqi
ж/д, авто, авиа, морской
транспорт
Novorossiysk терминал, экспедиторски
е, логистические услуги.
Batumi Ориентация: ж/д, авто
транспорт СУАР
Логистические, экспедит
Baku орские
услуги, контейнерные
перевозки.
Saraghs кКонсолидация грузов
Баку, Анзали, Амирабад
Китая и стран ЮВА
Lyanungang
ТЛЦ, экспедиторские, логистические Gorgan
услуги.
Консолидация экспортных и транзитных
Ляньюньган –
грузов в направлениях Север-Юг и
Консолидация грузов в
Трасека: зерна, муки, черных
Казахстан из стран ЮВА
металлов, минеральных
удобрений, контейнерных грузов.
Ориентация: ж/д, авто, авиа, морской Chongqing
транспорт
Bandar-abbas
Dubai
Distribution of the 7 basic perspective agency points of “KTZH-Logistics” in 2012
Expansion of agency points at the further stage - 9 agency points
15
www.railways.kz

16. CREATION OF INTERNAL AND EXTERNAL TRANSPORTATION LOGISTICS CENTERS
Riga
Petropavlovsk
Pavlodar
Semey
Duisburg Аstana
Aktobe
Dostyk
Odessa
Urumqi
Аktau
Khorgos
Аnzali Gorgan
Lyanungang
Chongqing
Banndar-Abbas Гуанчжоу
16
www. railways.kz

17. COMMON INDUSTRIAL-LOGISTICAL HUB
“KHORGOS – EAST GATE”
Economic growth
Customs union:
1.Russia
2.Belorussia
3.Kazakhstan
SEZ«Khorgos – East Gate» of “Khorgos” ICBC of SEZ«Khorgos» of China –
Kazakhstan – 5 740 ha Kazakhstan and China
18 100 ha
М
Europe Transport Corridor Asia
Single
Transport Logistics
Framework
17
www. railways.kz

18. “AKTAY SEA PORT” SPECIAL ECONOMIC ZONE
Existing capacity of Aktay sea port– till 16 mln.tons in
the year, including:
1. Bulk-oil cargoes– 12 mln.tons
2. General cargoes – 2,5 mln.tons
1. grain – 600 ths.tons
2. Ferry complex– 1,3 mln.tons
Infrastructure of operating port :
- 4 bulk-oil decks
- 3 Universal dry-cargo decks
- 1 Railway ferry complex
- 1 grain terminal
The warehouse areas contain:
 about 75000 sq.m. of opened areas;
 Covered transit warehouse– 6000 sq.m.
JSC «National maritime shipping company «Kazmortransflot» (JSC NC KMTF) the national sea
operator of Kazakhstan, is 100 % affiliated organization of JSC NC KazMunayGaz.
The agreement between JSC NC KMTF and JSC NC KTZ about cooperation on creation of the
integrated transport and logistical product "sea-land" is signed.
18
www. railways.kz

19. PROJECT FOR CONSTRUCTION OF
ARKALYK-SHUBARKOL RAILWAY LINE
The project objective is to develop the transport
infrastructure of central and northern Kazakhstan and
reduction of the transportation distance from Shubarkol
coal deposit and adjoining ore deposits in the North and
export direction for 700 km compared to the existing
route.
Project Profile
Length – 214,4 km.
Payback period – 8,3 years
The ground for the development of a feasibility study for
construction of Arkalyk Shubarkol railway line is the
instruction of the Prime Minister of Kazakhstan, K. Construction period – 33 months
Massimov
The project announced in the Message of President of RK Expected costs – 911 564 625 usd
Nursultan Nazarbayev in 2012 year.
Note – Feasibility study was prepared in
2010. Adjustment – 2011г
19
www. railways.kz

20. PROJECT FOR CONSTRUCTION OF
ZHEZKAZGAN-BEINEU RAILWAY LINE
The ground for the development of the
project is the protocol instructions
given by the Prime Minister of
Kazakhstan at the board meeting of
the Ministry of Transport and
Communications, January 10th, 2011
№ 17-36/007-920 ,07-107
Project Profile
The project will provide a new route "east-west" through
the central part of Kazakhstan, giving an improved rail
access between the border of Kazakhstan and China in the Length – 988 km.
East (Dostyk and Alashankou stations) and in the West
(Aktau port on the Caspian Sea, and Aksaraiskaya and Payback period – 19,5 years
Ozinki stations on the border with Russia)
The project announced in the Message of President of RK
Nursultan Nazarbayev in 2012 year. Construction period – 36 months
Expected costs – 3 816 326 530 usd
Note – Feasibility study was prepared in 2008
(adjustments - 2011)
www. railways.kz
20

21. PROJECT FOR CONSTRUCTION OF THE RAILWAY LINE IN
CIRCUMVENTION OF THE ALMATY RAILWAY STATION
Feasibility study project for
construction of the railway line in
circumvention of the Almaty railway
station is developed due to the
approval of JSC "National Company
"Kazakhstan Temir Zholy“ leadership
team on March 5th, 2008.
Project Profile
Length – 61 km.
Completion of construction of Korgas – Zhetigen railway
line will lead to the increase of freight traffic. But Almaty 1 Payback period – not defined
and 2 stations are not able to deal with increasing freight
traffic. Construction of the Zhetigen - Kurkuduk railway line Construction period – 36 months.
will unload Almaty railway station site.
Expected costs – 169 680 272 usd
Note – Feasibility study was prepared in
2009
(adjustments required) 21
www. railways.kz

22. INVESTMENT ATTRACTIVENESS OF KAZAKHSTAN
 Favorable taxation:
• Corporate income tax – from 10% to 20%
• VAT – 12%
• Land lease term – 49 years
 Kazakhstan took 59th place among 183 countries on an index of business (15 positions compared to 2009)
in 2011
 Over 80% of foreign investments to Central Asia are investing in Kazakhstan
INVESTMENT COOPERATION
 Cooperation within the framework of the SEZ "Khorgos-East Gate”
• Investing in infrastructure Khorgos (hotels, commercial real estate, etc.)
• Creation of enterprises on the territory of SEZ "Khorgos - East Gate”
 Cooperation within the Special Economic Zone "Seaport Aktau”
 Creation of joint ventures
 Participation in the construction of transport and logistics centers
www. railways.kz

23. CONTACTS
KAZAKHSTAN TEMIR ZHOLY
Yerkhat Iskaliev
Vise-president of JSC «National Company
“Kazakhstan Temir Zholy”
Phone: +7 (7172) 930 - 113
E-mail: temirzhol@railways.kz
Web-site: www.railways.kz
23
www. railways.kz