With a closed domestic railway network now fully in place, Kazakhstan has shifted focus toward developing new routes aimed at enhancing export and transit cargo delivery. In early 2025, President Kassym-Jomart Tokayev ordered the acceleration of the Trans-Kazakhstan railway corridor, an essential component of the Trans-Caspian International Transport Route. Central to this effort is the construction of the Mointy-Kyzylzhar railway line.

Rail transport remains a vital sector of Kazakhstan’s economy, shaping both domestic commodity markets and the country’s strategic transit potential. In the face of shifting geopolitical dynamics and rising demand for freight transport, Kazakhstan has gained fresh opportunities to expand its international logistics capabilities. However, aging infrastructure, bottlenecks, and missing links continue to restrict this potential and hinder trade growth.

In response, Kazakhstan has launched a series of major infrastructure projects, including the Mointy-Kyzylzhar line, an extension of the existing Dostyk-Mointy branch. According to JSC “NC “KTZ”, the project will expand the nation’s transit capacity, ease congestion on the Mointy-Zharyk segment, remove key bottlenecks, and reduce delivery times through route optimization. It is also expected to stimulate economic activity in the Karaganda and Ulytau regions by strengthening export logistics and creating new jobs.

The direct link between Mointy and Kyzylzhar stations will shorten the Trans-Caspian corridor and reduce traffic on overburdened parts of the network.

In an interview with The Times of Central Asia, Saken Rakhmetov, Managing Director of the Mainline Network Directorate at KTZ, noted that the project will shorten delivery distances and eliminate locomotive changeovers at Mointy and Zharyk. This, he said, could reduce shipping times from the Chinese border to the port of Aktau by more than a day, depending on the route.

The project entails constructing over 390 kilometers of rail infrastructure, including single-track lines, stations, two overpasses, 35 bridges, 21 cattle crossings, 108 culverts, 16 passing loops, and five stations.

Topographic, geodetic, geological, and hydrological surveys have been completed. More than 96% of the planned 12.9 million cubic meters of roadbed has been filled. Installation of culverts is underway, with 11 already completed and 14 in progress. More than half of the rail-sleeper grid, 165 kilometers out of 323, has been assembled, with track laying initiated at both ends.

According to the approved timeline, construction of pipes, bridges, and overpasses, along with power and communication systems and related infrastructure, is scheduled for completion in 2026.

A notable feature of the project is the use of jointless track technology, which employs long continuous welded rails rather than standard 25-meter links. This design reduces dynamic stress on the track, cuts wear and tear on infrastructure and rolling stock, improves energy efficiency, and allows higher train speeds.

At the height of construction during July-August, approximately 550 pieces of machinery and up to 1,150 workers were deployed. Upon completion, the line is expected to create at least 700 permanent jobs. According to KTZ, about 80% of the goods, services, and labor used in the project are sourced locally, with final figures to be confirmed after a state review of the design and estimate documentation.

Rakhmetov acknowledged the project’s complexity due to the geographic remoteness of the construction zone, limited nearby settlements, and insufficient transport and engineering infrastructure. Construction is being conducted on a rotational basis, with makeshift field bases and storage facilities in place. Due to the absence of major power supply nodes, significant investment in external energy infrastructure is also planned.

KTZ emphasizes that environmental protection measures are integrated into the project. The company claims that construction and operation will not disturb ecosystems beyond the designated work sites and pose no threat to valuable natural resources or the surrounding landscape.

Once operational, the Mointy-Kyzylzhar line is expected to significantly improve access to coal and metallurgical facilities in Central and Northern Kazakhstan. It will facilitate increased transport of iron ore, coal, and grain to the country’s southern regions, as well as to Uzbekistan, Kyrgyzstan, and China. Passenger traffic is also expected to benefit, with annual growth projections of 5.1% toward Kyzylzhar and 4.6% toward Mointy, based on 2021-2024 trends.

Looking ahead, the new line is envisioned as part of a broader effort to establish a dedicated container corridor, enabling double-stack freight operations to improve efficiency. The use of next-generation locomotives powered by liquefied natural gas is also planned, which would extend range between refueling stops by 3.5 times.

Over the past 15 years, more than $35 billion has been invested in the rail sector. By 2030, KTZ plans to invest an additional $15 billion in infrastructure upgrades, fleet renewal, and new technologies. Transport volumes rose by 4% in the first 11 months of 2025 compared to the same period in 2024, highlighting the need to expand network capacity and optimize freight flows.

The development of transport and logistics infrastructure remains a national policy priority. Projects such as second tracks on the Dostyk-Mointy line, the Darbaza-Maktaaral and Bakhty-Ayagoz lines, the Mointy-Kyzylzhar extension, and the Almaty bypass are central to resolving bottlenecks and improving the efficiency of Kazakhstan’s railway network, an essential factor in maintaining the country’s competitiveness in global supply chains.

Kazakhstan’s government is not considering the sale of its major oil refineries, despite their inclusion on a national privatization list proposed by the antitrust authority. Energy Minister Yerlan Akkenzhenov announced during a briefing in Astana.

Kazakhstan has three large oil refineries: in Pavlodar, Atyrau, and Shymkent. The Pavlodar and Atyrau plants are fully state-owned through the national oil and gas company KazMunayGas and its subsidiaries. The Shymkent refinery operates as a 50-50 joint venture between KazMunayGas and the China National Petroleum Corporation (CNPC), through the PetroKazakhstan Group.

In March, the Agency for the Protection and Development of Competition (AZRK) proposed examining options for the partial privatization of the Pavlodar and Atyrau refineries, arguing that the Shymkent plant has benefited from greater efficiency through private sector involvement. In November, both state-owned refineries were listed among 473 entities marked for potential privatization, with a target date of 2028.

However, Akkenzhenov clarified that listing an asset on the privatization map does not imply any active plans for its sale.

“This is not true; there are no negotiations at the government level today,” he said. “The Agency for the Protection and Development of Competition is operating within its mandate to foster a competitive environment. But this does not mean the state intends to sell the refineries.”

He emphasized that the refineries are among the country’s most profitable strategic assets, and concerns that they might be sold “for a song” are unfounded. The minister noted that proper valuation methods, such as property value or EBITDA multipliers, would guide any assessment of the assets.

“For example, EBITDA multiplied by a factor of five. So, claims that these assets would be sold cheaply are incorrect. Overall, I want to confirm that we are not going to sell them,” he said.

As previously reported by The Times of Central Asia, Kazakhstan is exploring foreign investment opportunities for a planned fourth major oil refinery, a project aimed at increasing domestic processing capacity amid rising fuel demand.