China-Kyrgyzstan-Uzbekistan Railway - The Times Of Central Asia

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Rail Logistics

Kyrgyzstan to Build Railway Logistics Center with EBRD and EU Support

Kyrgyzstan’s national railway company, Kyrgyz Temir Jolu, the European Bank for Reconstruction and Development (EBRD), and the European Union have launched a project to build a modern railway logistics center at Ivanovka station, around 45 kilometers east of Bishkek. The parties agreed on the project during a July 1 meeting, with the EBRD committing grant support for the preparation of a feasibility study. According to Kyrgyz Temir Jolu, the planned logistics hub is expected to make freight transport more efficient and expand Kyrgyzstan’s transit capacity. The company said it would also improve conditions for international transport links. Ivanovka station is located on the railway line connecting Bishkek with Balykchy, a city on the western edge of Lake Issyk-Kul. Kyrgyzstan’s railway network remains relatively limited and largely based on Soviet-era infrastructure. Its main northern rail corridor currently runs from the Kazakh border through Bishkek to Balykchy. In June, Kyrgyzstan began construction of a new railway designed to extend rail access along the northern shore of Lake Issyk-Kul and strengthen Balykchy’s role as a transport hub. The new Balykchy-Tamchy-Cholpon-Ata railway will stretch 86 kilometers and pass through the village of Tamchy, home to Issyk-Kul International Airport. The line is expected to become part of a multimodal transport and logistics hub on the shore of Lake Issyk-Kul. The project adds to a wider series of railway and logistics initiatives centered on Balykchy. The city sits on a strategic corridor linking Bishkek with Naryn and the Torugart Pass. In May, Balykchy opened the new international trade and logistics center Altyn Logistic, aimed at improving transport links between China, Central Asia, and wider post-Soviet markets. Balykchy is also the starting point for the Balykchy-Kochkor-Kara-Keche railway, a 186-kilometer line under construction since 2022. That line is expected to connect the northern rail network with Kochkor and the Kara-Keche coal deposit in Naryn Region, one of the main coal supply sources for Bishkek’s thermal power plant. Officials in Kyrgyzstan have also linked the Balykchy-Kochkor-Kara-Keche line to plans to integrate it with the China-Kyrgyzstan-Uzbekistan railway, which is under construction. If completed, those projects would significantly raise Balykchy’s strategic importance as a railway junction connecting northern Kyrgyzstan with routes through Naryn, Jalal-Abad, and onward to Uzbekistan. Kyrgyzstan’s railway sector has shown steady growth in recent years. Official data show rail freight volumes reached 10 million tons in 2025, up 36% from around 7 million tons in 2021. Passenger traffic over the same period rose from 255,000 to 432,000, an increase of about 70%.

CKU Railway

Kyrgyzstan Approves Chinese Loan for CKU Railway

Kyrgyzstan’s parliament has approved in the first reading a bill ratifying a preferential loan agreement with the Export-Import Bank of China to help finance the country’s share in the construction of the China-Kyrgyzstan-Uzbekistan (CKU) railway, one of Central Asia’s largest transport infrastructure projects. The CKU railway is a flagship regional connectivity initiative designed to improve trade routes between China, Central Asia, and beyond. Construction officially began on December 27, 2024, in Kyrgyzstan’s Jalal-Abad region. Once completed, the 523-kilometer railway will connect Kashgar in China with Torugart, Makmal, and Jalal-Abad in Kyrgyzstan before continuing to Andijan in Uzbekistan. The route is expected to carry up to 15 million tons of cargo annually. The project is particularly significant because neither Kyrgyzstan nor Uzbekistan currently has a direct rail connection with China. At present, Kazakhstan is the only Central Asian country with such a link. Construction is being managed by China-Kyrgyzstan-Uzbekistan Railway Company LLC, a joint venture established by the three participating countries. The railway is expected to cost $4.7 billion. About half will be financed through a 35-year Chinese loan to the joint project company, which will be responsible for repayment. The remaining $2.3 billion will be contributed as equity, with China holding 51%, while Kyrgyzstan and Uzbekistan will each contribute 24.5%. According to Kyrgyzstan’s Deputy Minister of Transport and Communications Almaz Turgunbaev, Kyrgyzstan will use a $304.5 million preferential loan from the Export-Import Bank of China to finance half of its contribution to the joint company, which will oversee the railway project. Kyrgyzstan’s total share in the project amounts to roughly $609 million, with half funded directly by the state budget and the rest through borrowed funds. The loan has a term of 25 years, including a five-year grace period, with an annual interest rate of 1.5%. According to Kyrgyzstan's Finance Ministry, the grant element of the loan stands at 35.46%. Officials said the funds will be used exclusively to finance Kyrgyzstan’s equity contribution to the joint railway company and cover construction costs. As of January 31, 2026, Kyrgyzstan’s debt to Eximbank stood at about $1.5 billion, making China the country’s largest external creditor. The Kyrgyzstan section of the railway will stretch more than 304 kilometers and is considered the most technically challenging part of the project. It will include 50 bridges and 29 tunnels with a combined length of about 120 kilometers, meaning around 40% of the route inside Kyrgyzstan will consist of tunnels and bridges. The railway is expected to improve regional logistics by creating a shorter trade route between China and Europe via Central Asia, bypassing existing northern corridors.

Tashkent International Investment Forum

Rail Reform and Regional Corridors Put Uzbekistan at the Center of Central Asia’s Logistics Map

At the Tashkent International Investment Forum, officials and transport executives discussed railway reform and new corridor projects, with private investment as a main point. World Bank Senior Transport Specialist Mansur Bustoni described rail as “essential” for Uzbekistan, which depends on land routes for access to seaports and export markets. The World Bank wants to help turn Uzbekistan Railways from a state monopoly into “a commercial bankable enterprise,” he told the forum. Uzbekistan Railways has about 4,700 route kilometers, according to Bustoni. The system carries around 60 million tons of freight and 15 million passengers a year and contributes about 8% of GDP. Much of that freight is linked to exports. The World Bank is supporting 44 activities across seven reform programs. Bustoni listed legal separation inside Uzbekistan Railways, financial reform, operational efficiency, and investment planning among the main areas. Each activity has been ranked by priority, he added. Tariff reform was one of Bustoni’s main topics. He called the proposed change “not a price hike.” The aim is to replace ad hoc increases with rules-based pricing. Cost-reflective tariffs would give the railway company more predictable revenue and reduce state cross-subsidies. Bustoni also cited capital-market plans. Uzbekistan’s infrastructure company is part of the National Investment Fund of the Republic of Uzbekistan (UzNIF), which he described as a $2.4 billion fund managed by Franklin Templeton, with a planned dual listing in London and Tashkent. The railway sector recorded a roughly $188 million net loss in 2023, reached break-even in 2024, and is expected to post a positive $138 million result in 2025, he added. [caption id="attachment_50833" align="aligncenter" width="2560"] Image: TCA[/caption] Transport Corridor Europe-Caucasus-Asia (TRACECA) Secretary General Jasurbek Choriyev linked corridor development to Uzbekistan’s national priorities. He cited double-digit growth in passenger air traffic over five years and 15 million tourists last year, attributing the figures to national data and analysts at Airports Council International and the World Bank. Uzbekistan’s aircraft fleet has expanded to more than 100 planes from about 40 to 50 in recent years. A target of 188 aircraft by 2030 could be reached earlier, Choriyev noted. Uzbek airlines are also carrying more freight on the China-Europe route, driven in part by e-commerce. Choriyev described rail as the backbone of national connectivity, carrying about 90% of internal and external traffic. He pointed to the China-Kyrgyzstan-Uzbekistan-Iran railway and gave 2030 as the expected completion date, with 2028 or 2029 possible. He also cited the Trans-Afghan corridor as a route to Pakistan. About 52% of Uzbekistan’s rail network is electrified, with a target of 70% by 2030. Innokenty Ivanov, a principal consultant at Freshfields, said Uzbekistan’s railway reform is creating legal routes for private investment through market mechanisms and public-private partnerships. The reform covers the reorganization of Uzbekistan Railways as a holding company and a legal framework for private investment and independent operation. Ivanov compared the process with Germany, where railway reform led to long-term contracts between the government and the infrastructure company. Financing tied to measurable targets gives investors more certainty...

Middle Corridor

Kyrgyzstan and Georgia Seek Black Sea Link for CKU Railway

Kyrgyzstan and Georgia placed Black Sea access at the center of their transport agenda during Georgian Prime Minister Irakli Kobakhidze's official visit to Bishkek on June 11-13. In talks with President Sadyr Japarov at Yntymak Ordo, the new presidential palace complex, on June 12, the two sides linked their cooperation to the China-Kyrgyzstan-Uzbekistan railway, known as CKU, and to Georgia's role in the Trans-Caspian route between Central Asia and Europe. The visit was the first official trip to Kyrgyzstan by a Georgian head of government since the two states established diplomatic relations 34 years ago. "Special attention was paid to linking the China-Kyrgyzstan-Uzbekistan railway with Georgia's port infrastructure," Japarov said after the talks. He called cooperation in this sector "one of the priority areas" in relations between the countries. That focus gave the visit a wider regional dimension, as landlocked Kyrgyzstan still lacks a direct rail link with China. Georgia offers access to Black Sea ports and sits on the South Caucasus section of the Middle Corridor. If the CKU line becomes operational, Bishkek wants cargo moving from China through Kyrgyzstan and Uzbekistan to connect with routes across the Caspian Sea, Azerbaijan, and Georgia. Kobakhidze linked the same issue to Tbilisi's transit goals. "We emphasized the importance of developing the Middle Corridor," he said, adding that the route needs more cargo flows. He said Georgia was closely following the CKU and was pleased that the project was "progressing rapidly," because it would strengthen links between Central Asia and the South Caucasus. The two sides signed a joint statement and a package of bilateral documents after the talks. The agreements covered aviation authorities, state property management, veterinary cooperation, education, justice, sport, radiation safety, foreign ministry cooperation for 2027-2028, and customs cooperation. The customs document provides for advance exchanges of information about goods and vehicles moving between the two countries. That aspect may prove the most practical for freight, since cargo routes depend on data exchange, border processing, and predictable clearance times. The CKU railway has moved from a decades-long plan to active construction. The financing agreement signed in Bishkek set the project cost at $4.7 billion. About half will be financed through a 35-year Chinese loan to the joint project company. China holds a 51% stake in the company, while Kyrgyzstan and Uzbekistan each hold 24.5%. The planned line runs from Kashgar in China through Kyrgyzstan to Andijan in Uzbekistan. The Kyrgyz section represents the most difficult part of the route. It is about 305 kilometers long, with 50 bridges and 29 tunnels planned. More than 5,000 people and about 5,600 pieces of specialized equipment were involved by late March, with tunnel excavation, earthworks, and bridge construction already under way. Transport Minister Talantbek Soltobaev said on June 10 that work was in progress on sections totaling up to ten kilometers. Japarov has outlined 2030 as a target for the launch. The project would give Bishkek a rail role it has never had. Kyrgyzstan has no through rail route linking China with...

Cargo Transport

Kyrgyzstan Logistics Center Aims to Link China and Central Asia

Kyrgyzstan has opened a new international trade and logistics center designed to strengthen transport links between China, Central Asia and wider post-Soviet markets, as Bishkek seeks to expand its role as a regional transit hub. The new facility, Altyn Logistic, officially opened on May 28 in the city of Balykchy, at the western end of Lake Issyk-Kul. The 5.5 hectare logistics center includes warehouses, a railway line with loading and unloading infrastructure, and a large open parking area. According to officials, the complex is capable of handling up to 200 trucks per day and is expected to create around 80 jobs. Speaking at the opening ceremony, Kyrgyzstan’s Chairman of the Cabinet of Ministers Adylbek Kasymaliev said the country is seeking to grow its transit and logistics potential due to its strategic position along international transport corridors. “The center is located on one of the key routes of the Silk Road, and I am confident that it will effectively function as a major logistics hub linking China, Central Asian countries and CIS states,” Kasymaliev said. The choice of Balykchy is strategically important as the city already serves as a transport junction in northern Kyrgyzstan. Located at the western end of Lake Issyk-Kul, it is the final stop on the railway line from Bishkek and sits on the road corridor running from the capital toward Naryn and the Torugart Pass on the Chinese border. Balykchy is also the starting point for the Balykchy-Kochkor-Kara-Keche railway, a 186-kilometer line under construction since 2022. The route is intended to connect the existing northern rail network with Kochkor and the Kara-Keche coal deposit in Naryn Region, one of the main sources of coal for Bishkek’s thermal power plant. Authorities plan eventually to integrate this line with the China-Kyrgyzstan-Uzbekistan railway, which is currently under construction inside Kyrgyzstan. If that happens, Balykchy would become a central node in a wider rail system linking the country’s north with new east-west freight routes through Naryn, Jalal-Abad and onward to Uzbekistan. The city’s road position is also becoming more important. TCA has previously reported that Kyrgyzstan’s alternative North-South highway is designed to link Balykchy with Jalal-Abad, cutting the journey between the two cities from around 13 hours to six once fully operational. That would give Balykchy a stronger role in domestic freight movement, not only in trade with China and Kazakhstan. The new logistics center also fits into Kyrgyzstan’s wider effort to turn its limited rail network into a transit asset. Kyrgyzstan’s railway system still spans only 425 kilometers and remains split between northern and southern sections, but that freight turnover has begun recovering after years of stagnation. For Bishkek, the value of Altyn Logistic will depend on whether those larger rail and road projects are completed. For now, the center strengthens Balykchy’s role as a northern cargo hub; in the longer term, it could become a link between Kyrgyzstan’s existing rail connection to Kazakhstan and the new routes being built toward China and Uzbekistan.

Middle Corridor

Opinion: A New Southern Gate – How the EU-Armenia Summit Unlocks a Critical Branch for the Middle Corridor

For the first time in its history, the European Union held a full summit with Armenia. The meeting, which took place in Yerevan on 4–5 May 2026, was not merely a diplomatic milestone for Armenia. It also sent a signal to governments thousands of kilometers away in Central Asia that the trade route linking Asia to Europe through the South Caucasus is becoming more real, and more politically backed, than ever before. The centerpiece of the summit saw the signing of a “Connectivity Partnership” between Brussels and Yerevan. The European Commission President, Ursula von der Leyen, described Armenia as "uniquely positioned" to connect Europe with the South Caucasus and Central Asia. Under the EU's Global Gateway program, investments in Armenia are expected to reach €2.5 billion. A further €3 billion is earmarked specifically for the Middle Corridor – the trade route that runs from China across Central Asia, over the Caspian Sea, through the South Caucasus, and into Europe. “We will support your integration into key transport networks like the Trans-Caspian Corridor. It is a route that is also of strategic importance for Europe, given the growing flows of trade between our two regions,” von der Leyen stated. A Route That Is Already Moving Fast The Middle Corridor, formally known as the Trans-Caspian International Transport Route (TITR), has grown at a pace that few predicted. Cargo volumes rose 70 percent in the first nine months of 2024 alone, reaching 3.4 million tons. By the end of that year, the total had climbed to 4.1 million tons – up from just 350,000 tons in 2021. The World Bank projects that the route could handle up to 11 million tonnes a year by 2030. It's important to maintain some perspective. These numbers are small fry when compared to the billions of tons of trade that moves between Europe and Asia by sea. However, the Middle Corridor does offer important diversification, particularly given the spillover effects of wars in the Middle East and piracy in the Red Sea. [caption id="attachment_48602" align="aligncenter" width="1274"] Image: Trans Caspian International Transport Route and it’s southern part, China-Kyrgyzstan-Uzbekistan Railway project. Source: middlecorridor.com[/caption] Where Uzbekistan Stands For Uzbekistan, the Middle Corridor is both an opportunity and a work in progress. In January 2025, President Mirziyoyev signed a decree to upgrade road and rail connectivity, and in September 2024, Tashkent co-founded the Eurasian Transport Route Association alongside Austria, Azerbaijan, China, Kyrgyzstan, Tajikistan, and Turkey. In December 2024, Uzbekistan sent its first block train all the way to Brazil – through Turkmenistan, Azerbaijan, and the Georgian port of Poti – proving the route is operationally viable. But costs remain a challenge. Shipping a 40-foot container via the Middle Corridor currently costs between $3,500 and $4,500, compared to $2,800–$3,200 on the Northern Corridor through Russia. Europe, meanwhile, accounts for only around 3 percent of Uzbekistan's exports and 13 percent of its imports — a share that Tashkent wants to grow significantly. The China–Kyrgyzstan–Uzbekistan (CKU) railway — a $8 billion, 573-kilometre project whose...