The development of transportation and logistics systems in Eurasia is caused to act as a stimulant by natural resources production and international trade of production of raw materials and products (Y.Panova 2016). Freight transportation system is an activity that providing assistance for exchange goods flows. In accordance with growth of international trade, an interest about improvement of communication by transportation and logistics between Asia and Europe have been growing every year. Regards to Fedorenko (2013), transportation distance has come to occupy a large territory around Eurasia and still spreading, so cost of source material from production plant and finished goods to the commercial place is also growing. Thus, approach of logistics regarding to reducing costs and maintaining high quality of service has become very significant. However, Rastogi, C. and Arvis, J.F (2014) confirm that the effectiveness of trade supply chains, or logistics performance relies not only upon framework nevertheless also on the guidelines and procedures of trade in particular quality of services and processes which proceeding goods to customers that itself is being dependent on rules and principles.
Supply chains are the backbone of economic activities and support production, commerce, and international trade. Logistics or supply-chain management administers various activities on the supply chain, which typically include, for example, freight transportation, warehousing, transloading or transhipment, customs clearance, and customs transit. Most experts agree that the performance of a supply chain should be assessed from the perspective of the user. For instance, most global supply chains are organized by and for international companies. The choice of logistics solutions, including routes or mode of transportation, is the responsibility of these supply chain principals, although some aspects may be delegated to their logistics providers. These choices are idiosyncratic and depend on their own expectations of the level of supply performance and their own benchmarks for delivery of goods along the supply chain. The choice among alternatives, including modes of transportation, is therefore driven by demand and results from arbitrage between several parameters.
Nowadays, development priorities of international transport routes of Kazakhstan: in Russian Federation, Europe, China, Japan and the Southeast Asia; through Central Asian countries and Trans-Siberian region to Turkey (Ionova.T 2014). The researcher also considers that under each of these broad areas have already established transport corridors incorporating a set of terrestrial and aquatic pathways together with construction of new routes. For this purpose, the most critical transport hubs in the eastern part of Central Asia are railway pass on Kazakh-Chinese border, while in the west the port of Aktau on the Caspian Sea. Regards to Kaukenov A.S. (2016), it is possible to identify primary objectives that, apparently, China intends to create, implement and develop this large-scale project:
· Establishment of well-managed logistics framework for transportation of various raw materials and finished-product foods.
· Creation of transport corridors for export and import of Chinese and foreigner’s goods, such as Kazakh, so to consolidate position on logistics and supply chain industry.
· Diversification of land-based routes and dry-ports in China and Kazakhstan.
Furthermore, in Eurasian logistics, the multimodal transportation type such as sea, air, and railway transport is considered obviously undoubtedly mode of transportation in terms of freight commodities cost. It is cost-effective modes of transportation which assist to navigate cargo from point of origin to point of destination which can involve changes of type of transportation. Moslemi, S. 2017 state that easiest multimodal transportation is carried out by containers and give an explanation that quantity of container transportation is growing by ongoing growth of economy, reduction of trade barriers and be more trade openness between Eurasian countries and make preferable efficient infrastructure. According to Gabor Debreczeni, 2015, Eurasian landbridge connection are defined as trade route between China and Europe which hold out its way through Central Asia by railway transportation.
Shevcenko and Pak (2015) tell that the most relevant economic issue facing the Central Asia and especially Kazakhstan is development of logistics industry and improving competitiveness. In order to effectively evaluation of logistics, it is necessary a high-quality methodology that would available to evaluate current status of logistics industry around the world. Frequently, ambivalence of valuation item leads to variety international ratings which are differed by sources with various information used. Logistics Performance Index (LPI) is calculated on the basis of polls the international, national or regional logistics operators, freight forwarders companies. As the main criteria for evaluate the effectiveness logistics were selected by:
· Effectiveness of customs and border controls.
· Quality of trade and transport infrastructure.
· Simplicity of international transport organization at a competitive price.
· Quality and competence of logistics service.
· Timeliness of delivery.
· Opportunity to monitor tracking of goods.
The research also considers the analysis of efficiency of logistics system helps to define a number of the primary problems of development of logistics in Central Asia. Among them are the inadequate investment in logistics infrastructure, lack of formation of market in regards with 3PL and 4PL-services, low level of qualifications of specialist in this field, imperfection of customer regulations and other type of control of standard legal regulation and weak integration in the Eurasian logistics system and international transportation. The figure of 2.3 below shows the position LPI results by identification of colors which evaluated from 2,36-4,23 for Central Asian countries, 2016.
Incompliance with trade costs, Rastogi, C. and Arvis, J.F (2014) state that the low-cost of shipments has a tendency to be reduced in the smaller regions of the world. Being on time, as has been expected, is better in countries which cooperate with big countries and possesses a large market that monitoring tracking for making preferable supply chain services and its economy gives a permission of being more productive and has a favorable sector and investment infrastructure, for instance railway transportation framework. Therefore, it can be said that logistics performance is drive by investing to infrastructure and construction of railway industry to indicate itself such as country with better customer’s satisfaction and quality of services.
Moreover, analysis of the cost for shipment containers from China through railway route which located from Khorgos1 to London across Kazakhstan has been developing since 2013, as was mentioned above Chinese president firstly proposed this wide OBOR project.