The Republican State Enterprise “Kazakhstan temir zholy” was established by the decree of the Government of the Republic of Kazakhstan #129 dated January 31, 1997 “On reorganization of railway enterprises of the Republic of Kazakhstan” by merging such republican state enterprises as Almaty railway Administration, Tselinnaya railway Administration and West-Kazakhstan railway Administration. The purpose of the merger was optimization of the management structure of the transportation process and elimination of unnecessary units; financial and economic revival of railway industry.
The Republic of Kazakhstan Government’s decree #310 dated 15 March 2002 “On establishing of a closed joint-stock company “Kazakhstan temir zholy” resulted in establishment of the closed joint-stock company “Kazakhstan temir zholy” by merging the Republican state enterprise “Kazakhstan temir zholy” and its subsidiaries.
On 2nd of April 2004 in accordance with the Act of the Republic of Kazakhstan dated 13 May 2003 “On join-stock companies” closed joint-stock company “NC “KTZ” was re-registered as a joint-stock company “NC “KTZ”.
Today the JSC “NC “KTZ” has a holding structure, which is based on the provision of functional integrity and manageability of the railway industry in transportation process. The sole shareholder of JSC “NC “KTZ” is the joint-stock company “National welfare fund “Samruk-Kazyna”, which solves issues of improving the system of corporate management, increasing the budget transparency, managing the functioning of JSC “NC “KTZ” through the Board of Directors without interfering into its operating work.
In addition, the activity of JSC “NC “KTZ” is being controlled by the Ministry of transport and communications of the Republic of Kazakhstan, which is according to the Act of the Republic of Kazakhstan “On railway transport” #266-II dated 8 December 2001 as an authorized body implements public policies in the railway transport sphere, coordinates, regulates and controls the functioning of the transport sector of the Republic of Kazakhstan.
JSC “NC “KTZ” carries out such activities as performing the function of the operator of the main railway network, passenger and cargo transportation. These activities are regulated according to the Acts of the Republic of Kazakhstan “On railway transport” and “On natural monopolies and regulated markets”.
The railway transport is a crucial part of the production infrastructure of the Republic of Kazakhstan to date. Geographic conditions of Kazakhstan (the lack of direct sea access and navigable waterways), vastness of territory, the structure of production of raw materials and distribution of productive forces and underdeveloped road infrastructure make the role of railway transport extremely important.
Kazakhstan’s railway industry is a developing sphere of its economy, the production and technical potential of which has been steadily increasing recently and provides employment for over 140 thousand people.