SEZ Khorgos – Eastern Gate

SEZ Khorgos – Eastern Gate serves as a crucial logistics hub strategically connecting China, Central Asia, and the Middle East. Established by the Kazakhstan government in 2011, the zone responds to the increasing transit of goods from China through Kazakhstan to Europe, aligning with the Belt and Road Initiative. Located just 15 kilometers from the Chinese city of Khorgas, the zone enjoys unique geographic advantages, playing a vital role in bilateral trade between Kazakhstan and China.

Covering a planning area of 45.92 square km, SEZ Khorgos – Eastern Gate is poised for further development, including a waterless port (1.29 sq km), a logistics park (2.25 sq km), an industrial area (2.24 sq km), and the Atenkeri railway changing station. Situated in the Panfilov district of Almaty region, the zone is strategically positioned 1 km from the state border, 90 km from the major city of Yining, and 670 km from Urumqi, the administrative capital of Xinjiang-Uyghur Autonomous Region.

Incentives at SEZ Khorgos – Eastern Gate

SEZ participants in Khorgos enjoy various tax incentives, including exemption from corporate income tax (CIT), land tax, property tax, and value-added tax (VAT) for goods consumed in the production process on the SEZ territory. Conditions for these benefits include registration as a taxpayer within the zone, registration as a participant in EPZs, absence of structural units outside the SEZ, and ensuring that income from priority activities constitutes at least 90 percent of the gross annual income.

Key Industries at SEZ Khorgos – Eastern Gate

The zone focuses on diverse industries, including warehousing, food production, textile manufacturing, chemical production, and machinery manufacturing. SEZ Khorgos also offers customs privileges, creating a free customs zone within the SEZ. Additionally, simplified procedures for foreign labor permits and a 10-year land lease exemption further enhance the economic environment, positioning Khorgos as a key player in the growing trade between Asia and Europe.

The railway gauge is different between China and Kazakhstan which means the need for transshipment on the border. Khorgos has become the hub for this activity with the aim to be a fully-fledged transshipment base as well as manufacturing location. Trade between Asia and Europe along this route is expected to grow further. The development of Khorgos will be a key transport network for the international distribution centre of goods for export. Such markets include Russia, Europe, Central Asia, Turkey and the Gulf countries

The zone includes three main areas: logistics and industrial zones, as well as transport with dry port. The zone covers a planning area of 45.92 square km with 5.78 sq km expected to be developed soon.