New Old Faces? Who Is Tending to Khorgos Visitors Now?

On April 24 of this year, the international center for Cross-border Cooperation "Khorgos" resumed operating. The authorities promised that during the pandemic they had put things in order at the border and made repairs. But the abandoning of the winner of Zhetisu Logistics LLP just before its opening brought about a lot of questions left unanswered

RMB: Korgas – Commerce LLP signed a contract with Zhetisu Logistics LLP for the transportation of luggage and passengers on the territory of the international center.

A Tasty Morsel

The transportation of passengers and cargo between the borders of two states – China and Kazakhstan, i.e. "inter-customs", has always been of interest to both dishonest officials and criminal groups. The seven-kilometer area is essentially a "gold mine".

Goods exported and imported from one state to another are not taxed here. Anyone could transport up to 50 kilograms of goods across the border without duties. Passenger carriers first utilized these privileges. They began to fill their buses with Chinese goods instead of transporting tourists.

Crowding at bus stops gave rise to so-called "runners". They would aid in overcoming obstacles for the right price. It would later turn out that they had been creating the pandemonium artificially. Their goal was to transfer up to two or three tons of goods by breaking them up into 50 kilograms.

Good Intentions…

The special economic zone created in 2005 with good intentions on the border adjacent territories of two states – China and Kazakhstan – managed to gain notoriety. Smuggling and exaction became commonplace here.

Those on duty also managed to distinguish themselves. They began to accept bribes, organized a "green" corridor for certain people, and released cargo without certificates. The leadership of the International Center for Cross-Border Cooperation "Khorgos" was also replaced regularly. They tried to alter the situation, but all attempts were reduced to changing the passenger and luggage carriers. The results were null. The "runners" and "helpers" multiplied and multiplied.

Kazakhstan Technology Solutions Ltd LLP had yet to enter the market. A mysterious person ran the company at the time, but it was he who changed the situation dramatically. He delivered brand-new buses, low-tonnage commercial cargo transport, and built baggage collection points on the Kazakh and Chinese parts of the ICBC "Khorgos", a production and technical base for storage, maintenance and repair of transport. He introduced an electronic accounting system and kept tabs on everyone.

Tourists, foreign traders and even ordinary residents of nearby villages and districts began to send all imported and exported goods through them. They even started buying tickets from them. The settlement between JSC ICBC "Khorgos" and LLP Kazakhstan Technology Solutions Ltd remains a mystery behind seven seals. But the country's budget began to reap the benefits.

Everyone knew that this company belongs to Nursultan Nazarbayev's brother, Bolat Nazarbayev, but it was not customary to talk about it at the time.

Qantar's Adjustments

The January (Qantar - Ed.) events have made their own adjustments to "Khorgos". Suspended for the duration of the pandemic, the Center decided to take advantage of this situation and rid itself of Bolat Nazarbayev's company.

As soon as the head of the SEZ (Special Economic Zone - Ed.) "Khorgos" of the People's Republic of China Xu Xin Min announced the lifting of quarantine measures in China and the opening of borders for tourists, the management of "Korgas – Commerce" LLP hastily published on its website an invitation for investors to participate in a competition for the transportation of luggage and passengers on the territory of the ICBC "Khorgos". And on February 15, 2023, it signed a contract with the winner – the hitherto unknown Zhetisu Logistics LLP.

Journalists subsequently questioned the legality of this competition. The project administrators assured that they had terminated all contracts with Kazakhstan Technology Solutions Ltd LLP, and the company recognized as the winner of the competition, Zhetisu Logistics LLP, had passed all procedures: it has experience in this field and material and labor resources. And most importantly, There are buses manufactured no earlier than 2021 to transport passengers for 25-35 seats and a production and technical base for storage, maintenance and repair. The company is also prepared to transport luggage. Zhetisu Logistics LLP has also guaranteed a fee for low-tonnage commercial cargo transport with a gross weight of no more than five tons.

Why Hello There!

The Akimat of Jetysu region unexpectedly spread the news that the International Center for Cross-Border Cooperation "Khorgos" is resuming its activities on April 24. If the news had not been from a reliable source, no one would have believed this information. Indeed, similar announcements have appeared, but the opening was postponed each time.

On the appointed day, Orda journalists ventured to inspect the situation. "ICBC "Khorgos" had indeed started working and receiving tourists. The typical buzz was absent. Maybe because it was Monday?

The Journalists passed through Customs and border control with no issues. According to the Center's management, they did not sit idly by during the pandemic. They carried out repairs to improve the activities and reception of visitors. The terminal for passengers was completely re-equipped and the floor was remodelled. Metal fences were replaced with glass partitions, thermal imagers were installed on each passport control booth.

Turnstiles were installed in front of the entrance to Block-A and bathrooms have also been spruced up. A business terminal has been created for tourists who prefer an unobstructed passage for an additional fee. The cooling and heating system of the hall has also been updated.

The improved business processes were not demonstrated to the journalists. But those who have been here before noticed the absence of terrible tiles on the floor and green metal fences.

On the first day, passage was free, in the following days, it would be 3,000 KZT.

Transport was also surprising. The promised brand-new buses were not at the bus stop. Kazakhstan Technology Solutions Ltd LLP's familiar drivers and their old buses were, however, there. They admitted that although it had won the competition for the transportation of luggage and passengers, Zhetisu Logistics LLP could not do anything. The drivers also said that their management had flown to Astana hundreds of times. They could not implement their baggage collection point, which was supposed to be located on the Kazakh and Chinese parts of the ICBC "Khorgos", and Nazarbayev did not give them the existing baggage point.

"The management company has developed a Development Strategy for 2023-2025. Within the framework of this strategy, the development concept will be aimed at the development of a trade and tourism cluster. And there is also a master plan of the SEZ "ICBC "Khorgos", which provides for investment projects such as trading centers, hotel complexes, entertainment complexes, etc. In order to increase investment attractiveness, we plan to carry out measures to attract investment for the implementation of these investment projects. We adhere to the principle of transparency, and we consider all incoming projects with maximum objectivity,"

Birzhan Zhylkaidarov, Chairman of the Management Board of JSC "UK FEZ "ICPS "Khorgos", said from afar

"Who is currently engaged in the transportation of passengers? Who transports cargo? Where did Zhetisu Logistics LLP go? After all, you signed a contract with them for the provision of these two services?" – journalists asked

"We decided to carry out the transportation of passengers ourselves. Buses were given to us for temporary use,"

Birzhan Zhylkaidarov replied, thinking over every word.

"We recognized the buses, three years ago Bolat Nazarbayev's company, Kazakhstan Technology Solutions Ltd LLP, drove tourists on them, did they give him the baggage terminal too?" – journalists pried

"No, the transportation of luggage on the territory of Khorgos was won by another company – TOO Terminal A. It became the winner only thanks to the presence of her own baggage terminal," Zhylkaidarov stated.

The conversation eventually became meaningless. Orda Journalists decided to look for a company representative. A well-groomed young man with a beard in the center of a huge hall immediately caught our attention.

"Adil Orynbasarov," he introduced himself. – Director of TOO Terminal A. We have nothing to do with either Bolat or Nurbol Nazarbayev. Our company bought this terminal, and someone has commercial confidentiality. The buses are also ours, we have leased them to Khorgos so far.

Here are the answers to all the questions. Feeling a bit down, we took our things, paid 725 tenge to TOO Terminal A, and hurried off the territory. Nothing has changed.

For reference: the norms of carriage of goods for personal use, imported in accompanied or unaccompanied baggage 1 (one) once a month until April 1, 2023 – the cost should not exceed 1,000 euros and (or) the weight should not exceed 31 kilograms.

Original Author: Zhanna Rahat

DISCLAIMER: This is a translated piece. The text has been modified, the content is the same. Please refer to the original article in Russian for accuracy.