The Board of Executive Directors of the World Bank has approved an $846 million guarantee from the International Bank for Reconstruction and Development (IBRD) to mobilize $1.41 billion in long-term private financing for a major railway project along Kazakhstan’s section of the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor.
The project is further backed by a $564 million co-guarantee from the Asian Infrastructure Investment Bank (AIIB).
The initiative is designed to improve the efficiency and resilience of Kazakhstan’s rail network while strengthening the financial sustainability and commercial viability of Kazakhstan Temir Zholy (KTZ), the national railway operator.
A central component of the project is the construction of a new 322.3-kilometer greenfield railway line between Mointy and Kyzylzhar. The link is expected to eliminate a significant detour, shorten the route by 149 kilometers, reduce congestion on heavily used sections, and enable double-stack container operations.
The new line will be equipped with modern signaling and telecommunications systems and designed to allow for future expansion and electrification.
According to project documentation, the upgrade is expected to contribute to tripling freight volumes and halving end-to-end transit times along the Middle Corridor by 2030. By shifting cargo from road to rail, it is also projected to reduce transport-related emissions, supporting Kazakhstan’s climate commitments and broader sustainable development objectives.
Official data indicate that freight volumes transported through Kazakhstan along the TITR increased by 36% in 2025.
In addition to infrastructure investment, the project includes technical assistance and institutional strengthening for KTZ. This includes support for tariff reform, exploration of alternative financing mechanisms, improvements in financial and environmental management, and preparation for a potential future initial public offering (IPO).
“Beyond enabling critical infrastructure investments, this project supports important reforms that will strengthen Kazakhstan Temir Zholy’s financial sustainability and long-term competitiveness,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan and Turkmenistan.
By combining phased infrastructure investments, institutional reforms, and private capital mobilization, the initiative aims to develop a modern rail system capable of delivering long-term economic and environmental benefits for Kazakhstan and the wider Eurasian region.
