Caspian Sea - The Times Of Central Asia

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Energy Infrastructure

Why Workers Are Leaving the Çalık Enerji Power Plant Construction Site in Turkmenistan

One of Turkmenistan’s largest combined-cycle power plants is currently under construction on the Caspian coast. Despite offering record-high wages by local standards, the site is experiencing persistent staff turnover. The project is being led by the Turkish company Çalık Enerji, which is building a 1,574 MW combined-cycle gas turbine (CCGT) power plant in the village of Kiyanly in Turkmenistan’s Balkan region. While the workforce is largely made up of local residents, retaining staff has proven difficult. According to former workers, even unskilled laborers can earn up to $2,856 per month, an exceptionally high salary for the region. This has attracted a steady stream of job seekers. However, many employees say the pay does not adequately compensate for the harsh realities of working on-site. The primary reason cited for resignations is the extreme natural environment. The construction site lies between the Caspian Sea and an open expanse of steppe, where strong winds are a near-constant presence. Conditions worsen in winter, when workers endure eight-hour shifts outdoors in cold and windy weather, conditions that many find intolerable beyond a few months. In addition to environmental challenges, workers point to strained relations with site management and internal conflicts among staff. They describe a lack of mutual trust between workers and middle managers, as well as growing tensions within crews. Some have also reported interethnic clashes, particularly between Turkmen and Azerbaijani workers, despite both groups being Turkmenistani citizens residing in the same region. These disputes have occasionally escalated into physical altercations, further contributing to resignations. Çalık Enerji signed a contract with the state-owned utility Turkmenenergo to carry out the Kiyanly project. The power plant will feature two units equipped with 9F.04 gas turbines, each with a capacity of 288 MW, and a D12 steam turbine produced by GE Vernova.

Multimodal Transport Corrdior

Can the New Multimodal Route Become a Sustainable Corridor for Central Asia?

The launch of the China-Kyrgyzstan-Uzbekistan-Turkmenistan-Caspian multimodal corridor has generated significant interest as another attempt to expand Eurasian transport connectivity. A pilot shipment in the fall of 2025 demonstrated the technical feasibility of the new route: cargo transported from Kashgar, China, passed through Kyrgyzstan and Uzbekistan, reached Turkmenistan, and was then delivered to Azerbaijan via the Caspian Sea, continuing along the Baku-Tbilisi-Kars railway toward Europe. Despite its evident geopolitical appeal, questions remain over the route’s long-term sustainability and commercial viability. The central question is whether this demonstration project can evolve into a regularly functioning transport corridor. A Third Alternative Between the Northern and Middle Corridors This multimodal route can be seen as a potential alternative to the two existing pathways: the northern route, China-Kazakhstan-Russia-Europe; and the Trans-Caspian International Transport Route (TITR), or Middle Corridor, which passes through Kazakhstan, the Caspian Sea, the South Caucasus, and Turkey. The growing geopolitical risks along the northern route since 2022, combined with capacity limitations on the Caspian segment of the TITR, have spurred interest in a third option, a so-called “southern belt” traversing Kyrgyzstan, Uzbekistan, and Turkmenistan. Each country along this route has its own strategic calculus. Uzbekistan is seeking to overcome its “double continental isolation” and elevate its role as Central Asia’s transit hub. Kyrgyzstan is aiming to monetize its geographic position between China and the Ferghana Valley. Turkmenistan is developing the port of Turkmenbashi as an alternative to the increasingly congested hubs of Aktau and Alat. China, meanwhile, continues to diversify its westward overland trade routes. The Uzbek Factor: Geoeconomics vs. Logistics From Tashkent's perspective, this corridor aligns with its long-term transport strategy. Analysts frequently cite Uzbekistan’s ambition to transition from a landlocked to a “land-linked” state with direct access to China, the Caspian Sea, and southern routes to the Indian Ocean. The new route offers Uzbekistan three strategic advantages: alternative access to China via Kyrgyzstan, enhanced status as a regional transit hub, and deeper transport cooperation with Turkmenistan, including potential joint development of the Turkmenbashi port. However, when shifting from geopolitical ambition to logistical execution, serious limitations emerge, many outside Uzbekistan’s control. Kyrgyzstan: A Bottleneck in the Chain Documents from the Central Asia Regional Economic Cooperation (CAREC) program highlight the continued challenges facing multimodal transport in the region, namely slow transit, poor modal integration, border delays, and outdated logistics technologies. Within this corridor, Kyrgyzstan remains the primary bottleneck. Approximately 82% of its foreign trade by weight is transported by road, making the route through this mountainous country highly seasonal, expensive, and unpredictable. According to the International Road Transport Union, Kyrgyzstan’s transport system faces severe constraints from alpine terrain, avalanches, and impassable mountain passes that render winter transport nearly impossible in many areas. It is therefore unsurprising that, following the pilot shipment, no major logistics operators committed to shifting regular cargo to this route. The Caspian Sea: Structural Constraints The Caspian Sea leg, anchored by Turkmenbashi port, presents another critical challenge. The limitations here are systemic rather than national. Key issues include insufficient...

Bilateral Trade

Kazakhstan and Iran Discuss Trade on Pezeshkian’s Visit to Astana

Kazakhstan and Iran have announced plans to significantly deepen economic cooperation, aiming to triple bilateral trade turnover to $1 billion in the coming years. The announcement was made by Kazakh President Kassym-Jomart Tokayev during the Kazakh-Iranian business forum, held as part of the official visit of Iranian President Masoud Pezeshkian to Astana. According to Tokayev, mutual trade exceeded $340 million last year and is expected to “increase many times over” in 2024. The two countries have set an initial target of reaching $1 billion in trade, with an eventual goal of $2 billion, relying on expanded logistics and the establishment of sustainable supply chains. A key mechanism will be the opening of the Kazakhstan Trade House in Tehran, intended to facilitate systematic exports of Kazakhstani products. Over the past two decades, Iran has invested more than $226 million in Kazakhstan’s economy, and more than 350 Iranian companies currently operate in the country. Tokayev emphasized Kazakhstan’s readiness to initiate new joint projects across sectors ranging from industry to agribusiness. Strengthening corridors and access to the Persian Gulf Tokayev highlighted the development of transport and logistics infrastructure as a primary enabler of increased trade. Kazakhstan, he noted, is a vital transit hub in Eurasia, with 85% of cargo between China and Europe passing through its territory. Astana plans to construct a transport and logistics terminal at the port of Shahid Rajai, linking Kazakhstan’s ports of Aktau and Kuryk with the Iranian ports of Amirabad and Anzali. The Kazakh side also expressed readiness to integrate the ports of Bandar Abbas and Chabahar into the regional supply chain. The Kazakhstan-Turkmenistan-Iran railway plays a central role in these plans. Traffic volumes along this corridor are expected to double by 2030, delivering a substantial boost to regional trade and industrial development. Key market for Kazakh grain Iran remains a key buyer of Kazakh grain. In the first 10 months of 2024 alone, exports reached $280 million. Total agricultural trade between the two countries stood at $220 million in 2023, underscoring the sector’s growth potential. Iran’s Solico Group plans to build a dairy plant with an annual capacity of 200,000 tons and launch baby food production. Meanwhile, Kourosh Food Industry is exploring opportunities to establish vegetable oil plants and poultry farms. Kazakhstan, in turn, is inviting Iranian investors to participate in modern manufacturing projects and develop export-oriented supply chains. A shared challenge: the declining Caspian Sea The environmental situation in the Caspian region was another key topic of discussion. Falling sea levels are already affecting port operations, logistics, and fish stocks. Tokayev called for the creation of an intergovernmental program to preserve the Caspian Sea and urged greater involvement from international organizations. Kazakhstan intends to take part in the upcoming VII Caspian Summit in Tehran and has proposed hosting the IV Caspian Economic Forum within the next two years. Pezeshkian noted that the private sector has already identified promising areas for collaboration from the creation of a joint shipping consortium on the Caspian to the development of...

Trade and Logistics

China’s Zhongyun to Partner on $300M Seaport Project in Aktau

A new $300 million seaport is set to be built in Aktau, with China’s Zhongyun International confirmed as the strategic partner. The announcement was made by Nurdaulet Kilybay, Akim (Governor) of the Mangistau region, during a government meeting on November 25. Located on the Caspian Sea in western Kazakhstan, the port of Aktau connects to Azerbaijani ports Baku and Alyat to the west, and to the Iranian port of Bandar-e Anzali to the south. The Aktau-Alyat ferry crossing plays a key role in the Trans-Caspian International Transport Route, part of the larger Belt and Road Initiative linking China to Europe via Kazakhstan, Azerbaijan, Georgia, and Turkey. The route significantly shortens delivery times to the European Union. Aktau’s current cargo port has a capacity of 3.2 million tons of dry goods and 12.5 million tons of crude oil annually. In June 2025, the first phase of a $38 million container hub was launched in Aktau, expanding the port’s capacity from 140,000 to 240,000 twenty-foot equivalent units (TEU). Over the summer, Mangistau authorities held talks with several Chinese firms about building a modern seaport and logistics center in Aktau. Zhongyun International has since registered a local subsidiary and is preparing documentation for an investment agreement. “This project will contribute to the formation of a new international transport corridor: China-Kazakhstan-Aktau-Baku-Poti-Europe. Its implementation will cut delivery times by 7-15 days, reduce transport costs by 18-25%, and create new jobs,” Kilybay said. Additional Infrastructure at Kuryk Port At the same meeting, Minister of Trade and Integration Arman Shakkaliev reported on progress at the Sarzha multifunctional marine terminal in the port of Kuryk, located on the eastern Caspian coast near Aktau. The $189 million project is being developed with private investment. “The general cargo terminal and temporary storage facility are now operational, and cargo transshipment has already begun,” Shakkaliev said. Terminals for grain, bulk, chemical, and universal cargo, as well as a transport and logistics center, are currently under construction. The port of Kuryk now handles up to 6 million tons of cargo per year, 4.1 million tons via the railway terminal and 1.9 million tons via the road terminal. In 2024, dredging works in the port’s waters were completed ahead of schedule, enabling deeper drafts and the full loading of vessels.

Caspian Sea

Kazakhstan Leads Regional Efforts to Save the Caspian Sea

Today, Central Asia and the Caspian littoral states face growing challenges that extend well beyond national borders. Climate change, water scarcity, land degradation, and the shrinking of the Caspian Sea are no longer only environmental concerns but matters of regional security and sustainable development. The Caspian Sea, the world’s largest inland body of water, has become a symbol of crisis. Its rapid decline threatens ecosystems, navigation, fisheries, and food security from the Caucasus to Central Asia. Dushanbe: ecology as a new agenda for regional security A week ago, Dushanbe hosted two major international events: the “Central Asia–Russia” Summit and the meeting of the CIS Heads of State Council. At both forums, President Kassym-Jomart Tokayev called for moving from declarations to concrete action, proposing to Establish a Council of Ministers for Ecology among the Central Asian countries and Russia Develop an Interstate Program for the preservation of the Caspian Sea’s water resources Expand the use of space technologies to monitor transboundary water bodies These initiatives are part of a broader effort to build a new environmental framework for Eurasia, positioning Central Asia as a laboratory for sustainable solutions rather than a zone of ecological risk. The environmental disaster of the Caspian Sea The Caspian Sea is shrinking rapidly. According to data from Kazakhstan’s Ministry of Ecology, since 2006 its surface area has decreased by more than 31,000 square kilometers, and water levels have fallen by about 1.5 to 2 meters. Projections indicate severe consequences for spawning grounds, the Caspian seal population, port infrastructure, and the regional economy. The crisis mirrors the Aral Sea disaster, where environmental degradation caused widespread illness and social disruption. Experts warn that toxic dust from the exposed seabed could lead to respiratory diseases among millions of people. According to estimates by Save the Caspian Sea, the shoreline could retreat by as much as 89 kilometers, pushing fishing communities to the edge of survival. Falling sea levels already threaten unique wildlife, navigation, water supply, and agriculture, creating risks of migration and conflict. Because the Caspian is landlocked and not connected to the world’s oceans, its water losses cannot be naturally replenished. A coordinated response is needed, including sustainable water management, pollution control, and climate adaptation. The Caspian Sea as a crossroads of interests and contradictions The Caspian region today is more than an ecosystem; it is a geopolitical nexus where the interests of coastal states and global powers converge. Key transport routes such as the North–South Corridor and the Middle Corridor meet here, linking the economic, energy, and political interests of Russia, Iran, Turkey, China, and the European Union. The United States has also shown growing interest, particularly through its support for infrastructure projects in the South Caucasus and initiatives related to the Zangezur Corridor. Yet logistics, energy, and trade risk losing their purpose if the region’s natural foundation disappears. An ecological collapse could undermine multibillion-dollar investments, threaten food security, and turn the Caspian from a zone of cooperation into a battleground over resources. That is why saving...

Caspian Sea

Kazakhstan Initiates International Program to Save the Caspian Sea

The ongoing shallowing of the Caspian Sea is no longer a national issue, it is emerging as a significant international challenge. Kazakh President Kassym-Jomart Tokayev emphasized that the crisis requires collective action and the adoption of an intergovernmental program. Since the early 2000s, the Caspian Sea’s water level has been steadily declining. As previously reported by The Times of Central Asia, by the summer of 2025, the sea had fallen below 29 meters relative to global sea level, marking a historic low. The northern basin, which borders Russia and Kazakhstan, is drying up particularly rapidly, due in large part to decreased flow from the Volga River. This is not the first time Kazakhstan has raised concerns about the Caspian Sea on the international stage. According to Tokayev, “the need to develop an intergovernmental program to preserve the Caspian Sea has matured.” The president believes that participation should extend beyond the five littoral states, Russia, Iran, Azerbaijan, Turkmenistan, and Kazakhstan, to include other nations invested in the region’s environmental health. He recalled that during his visit to China in early September, he proposed the creation of a specialized international organization. “This is not only a problem for one country, but for a number of states,” Tokayev stressed in his annual address to the nation. At the same time, the president acknowledged that Kazakhstan faces its own internal water management challenges. Losses in some irrigation and water channels reach 50-60%, and resource accounting is still being carried out using outdated technologies. “As for the culture of conserving natural resources, especially water, we must admit that we have big problems here: as they say, the horse didn’t lie down,” Tokayev remarked. To address these issues, he proposed creating a unified digital platform for water resources, powered by artificial intelligence. This platform would enable accurate hydrogeological monitoring and the development of a national water balance. Tokayev said this system would provide the foundation for a long-term water policy and help attract investment into the sector. Tokayev also stressed that environmental safety should become part of Kazakhstan’s national ideology. He highlighted the ongoing Taza Kazakhstan (“Clean Kazakhstan”) initiative, which began in 2024. Under this project, approximately 860,000 hectares of land have been cleaned and over 4 million trees planted. “If such active work continues, Kazakhstan will become a truly green country, an inspiring example and a valuable legacy for future generations,” Tokayev said. He also called for the introduction of a unified standard for environmental education, from schools to universities.