Kazakhstan Temir Zholy (KTZ), the country’s national railway company, and Russian Railways have signed a landmark agreement aimed at modernizing railway infrastructure at nine border stations, increasing capacity, and developing a unified digital system for transportation and cross-border operations.
The agreement was signed on November 27 during Russian President Vladimir Putin’s state visit to Kazakhstan.
Enhancing Key Trade Corridors
This cooperation seeks to boost the efficiency of trans-Eurasian transport corridors, with a particular focus on increasing cargo volumes along the East-West and North-South routes. The North-South corridor, connecting Kazakhstan, Russia, Turkmenistan, and Iran, has an annual capacity of 10 million tons of cargo. So far, 1.8 million tons have been transported along this route in 2024, and plans are underway to double its capacity to 20 million tons annually.
On November 26, Kazakhstan’s Minister of Transport, Marat Karabayev, emphasized the strategic importance of the North-South corridor. In July, Kazakhstan agreed on a roadmap with Iran, Turkmenistan, and Russia for the synchronized development of this corridor. To attract cargo flow, Kazakhstan has introduced special transit tariff discounts of 50%.
New Agreements and Digital Connectivity
During Putin’s visit, another significant agreement was signed between KTZ, Xi’an Free Trade Port Construction and Operation Co., Ltd. (China), and JSC Slavtrans-Service (Russia). The deal focuses on constructing the CRK Terminal, a transport and logistics hub at the Selyatino railway station in the Moscow region. Additionally, the three parties agreed to jointly use the Unified Digital Platform along the Xi’an (China) – Dostyk/Altynkol (Kazakhstan) – Selyatino (Russia) route.
The CRK Terminal and Digital Platform are expected to enhance cargo transportation efficiency and e-commerce between China, Kazakhstan, and Russia.
Boosting Regional Logistics
Kazakhstan Temir Zholy also signed a memorandum with the Russian transport and logistics group FinInvest LLC to construct a multimodal transport and logistics center in Astana. This center aims to increase the transit of Russian goods through Kazakhstan, further solidifying the country’s position as a regional logistics hub.
