Each grain season has its own characteristics, which are determined by the volumes, quality of products arriving at elevators, logistics, the nature of demand for grain and many other factors. The production of grain and oilseed crops in Kazakhstan has long been an entire industry, the participants of which are closely interconnected. Players in the market can be clearly divided into groups: grain producers, traders, grain buyers, wagon fleet operators, forwarders and the railway. The actions and business conditions of each group affect the actions and conditions for other groups.
The 2022-2023 harvest was a season of new records, creating challenges for the logistics system, along with this, revealing the problem of insufficient warehouses for storing grain, irregular operation of elevators and all participants in the loading process, a shortage of shunting traction, all this provoked a rush demand for wagons, which at one point three times exceeded the technical capabilities of the existing fleet. Also, the organization of the transportation process was significantly influenced by the regulated schedule of elevators, customs authorities and phytosanitary inspections, as a result of which there was no possibility of organizing round-the-clock loading, as well as on weekends and holidays. Gradually, the situation leveled out due to the increase in the wagon fleet attracted to Kazakhstan.
The weather conditions in which the harvesting campaign of the previous 2023-2024 was carried out had a significant impact on both the volume of harvested grain and, most importantly, its quality. As a result, not only farmers but also traders and carriers were hit. Low yields, fluctuations in domestic prices and limited supply of suitable grain significantly reduced exports, and transportation volumes fell sharply.
The desire of market participants to diversify sales directions had a positive impact on the grain market, at least in that some of the sprouted grain was sold to neighboring China. At the same time, the once working tool for re-exporting Russian grain was not fully implemented by traders due to administrative regulation of imports.
The volumes of transportation in 2023-2024 did not reach the level of the previous marketing season. This means that a certain number of grain carriers were idle even during the active transportation season. The fleet of grain carrier wagons is a specialized fleet that is used to transport grain and is practically unsuitable for transporting other goods. After the active season of 2022-2023, the wagon operators faced fleet downtime throughout the season. Thus, since the spring of this year, from 60% to 70% of the Company’s fleet has been in paid storage.
According to the results of the 2023-2024 marketing season, all participants in the grain market suffered significant losses. Farmers did not receive the planned profit, their costs for collecting and storing grain increased, traders found themselves in a situation of a deficit in export demand for products, the number of grain transactions sharply decreased, all this led to the fact that the specialized wagon fleet, which should transport grain and generate income, was idle in paid storage.
Despite the difficulties of the ending marketing season, wagon operators expect a good next transportation season of 2024-2025 due to favorable and encouraging forecasts of experts for the 2024 harvest, which would allow to level out the losses of the last season and create a basis for the development of the fleet necessary for uninterrupted transportation of grain throughout the year. In general, the fleet in the Republic of Kazakhstan is growing from year to year. Today, the Company’s share in the market is decreasing due to the replenishment of new wagons by other owners.
Astyk Trans JSC is ready for the new season, the wagon fleet owned by the Company is fully operational, all types of scheduled repairs have been carried out. In the new marketing season, the Company will manage about 6,500 grain hoppers, taking into account the attracted CIS fleet. The fleet of the Company and other operators will ensure transportation without creating a stir and transporting the planned volume of grain cargo evenly throughout the year.
Wagon operators, along with grain producers and traders, are interested in the success of the new marketing season, in increasing the volume of grain cargo transportation and in the effective organization of cargo flows in general.
