Global Logistics - The Times Of Central Asia

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domestic development

Central Asia and Regional Integration: Logistics, Water, Energy

Central Asia is undergoing a profound transformation, where questions of domestic development and the region’s ability to act in a coordinated way are coming to the forefront. For many years, Central Asian states were viewed as fragmented, each pursuing separate strategies that often put them in competition. Today, however, shared challenges and growing interdependence are making gradual convergence increasingly likely. The region now confronts common pressures such as water scarcity, energy imbalances, environmental degradation, and the fallout of instability in Afghanistan -- issues that no single country can effectively address in isolation. Increasingly, regional platforms such as the Interstate Commission for Water Coordination (ICWC) are being leveraged to mediate water-energy tradeoffs, while joint initiatives in transport, transit, and energy infrastructure foster new integration. Moreover, leading actors like Kazakhstan and Uzbekistan are pushing coordinated strategies -- modernizing rail and aviation links, coordinating transboundary water allocations, and exploring nuclear cooperation -- that point toward a more interconnected regional future. Shared Challenges and Points of Convergence The region faces problems that no country can solve alone. These include water shortages, energy imbalances, environmental risks, and instability in Afghanistan. Such challenges can be seen as both threats and opportunities, since they also represent areas of overlapping interest. Joint action in these fields can deliver more than fragmented national strategies. Water is particularly important, remaining one of the most sensitive issues in interstate relations. Yet it also offers opportunities for coordinated action through existing regional platforms, such as the Interstate Commission for Water Coordination of Central Asia. The “water for energy” model is increasingly seen as a practical tool, already under discussion and applied in bilateral and multilateral projects. Environmental issues are similarly shared. The disappearance of the Aral Sea, land degradation, air pollution, and glacier melt create threats that transcend national borders. Joint monitoring, data exchange, and coordinated adaptation measures, particularly within the United Nations Regional Centre for the Sustainable Development Goals for Central Asia and Afghanistan, opened in August 2025 in Almaty, could become a new direction for regional cooperation. Afghanistan remains another risk factor that affects the security of the entire region. At the same time, transportation and energy projects linking Central Asia with South Asia through Afghan territory can turn a challenge into an opportunity. Reducing instability and integrating Afghanistan into regional trade and transit networks serves the interests of all Central Asian states. Kazakhstan and Uzbekistan as leading forces To understand how closer integration might work in practice, it is useful to examine the strategies of the region’s two key players: Astana and Tashkent. The major agreements concluded by Kazakhstan and Uzbekistan with the United States in transport and aviation should be viewed not as isolated deals, but as evidence of the complementary strengths of the two largest economies in Central Asia. Kazakhstan signed its largest locomotive contract to date with U.S. company Wabtec, a $4.2 billion agreement for 300 TE33A freight locomotives to be assembled at the Wabtec Kazakhstan plant in Astana, along with servicing support. This will modernize...

Transport

Trans-Afghan Corridor Becomes Central Asia’s New Trade Gateway Amid Competition

Kazakhstan plans to join in the Trans-Afghan Corridor project by constructing a 120-kilometer railway from Turgundi to Herat and establishing a transport and logistics center on Afghan territory. The new route is expected to expand the volume and improve the efficiency of Kazakhstan’s export and import shipments, while also providing access to the Indian Ocean, the Middle East, and the Persian Gulf. In August, Kazakhstan’s Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin, announced that the country plans to invest $500 million in the construction of the Turgundi-Herat railway in Afghanistan. The 120-kilometer line will provide the shortest route to the Indian Ocean, linking Kazakhstan and Central Asia with Pakistan’s seaports of Karachi and Gwadar. Kazakhstan’s Deputy Minister of Transport, Zhanibek Taizhanov, told The Times of Central Asia that the project is expected to take about three years from the approval of the design and cost documentation. “More precise timelines will be determined after the completion of all design stages, approvals, and the signing of contracts with contractors and investors,” said the ministry representative. The railway will give Kazakhstan access to new transport routes and markets. Amid intensifying global competition for transit flows, it offers a cheaper alternative shipping option and represents an important new logistics solution for the republic. This promising route, however, also carries risks, as Afghanistan remains one of the world’s most unstable countries. Even so, trade potential between Kazakhstan and Afghanistan is considerable. In 2024, bilateral trade turnover reached $545.2 million, with $527.7 million accounted for by Kazakh exports. Kazakhstan remains one of Afghanistan’s largest trading partners and a leading supplier of grain and flour. Looking ahead to exports and imports moving toward Pakistan, India, and beyond, the potential is considerable. Yet market participants have repeatedly noted that logistics remains the main barrier to trade in this direction. “Projected freight volumes along the route are estimated at 35–40 million tons per year. A comprehensive study of the region’s economic potential, logistics flows, and expansion prospects is underway,” Taizhanov told TCA, adding that once operational, the line is expected to become a crucial link in the international transport system, boosting trade between Central Asia and South Asia. In Afghanistan, the Taliban resumed nearly all regional and interregional transport projects initiated under the previous government. Active negotiations are underway on the construction of the Termez–Naibabad–Maidan Shahr–Logar–Kharlachi line, commonly referred to as the “Kabul Corridor,” the Mazar-i-Sharif–Herat railway, and the completion of the Khaf–Herat line, among others. Regional countries have also joined this large-scale effort. The Trans-Afghan project involves the interests of Russia, China, Uzbekistan, Turkmenistan, and Iran, all of which are seeking to benefit from its implementation. Geopolitics and transport interests In pursuit of greater export, import, and transit opportunities, Kazakhstan, Russia, Uzbekistan, and Turkmenistan are actively participating in these initiatives, offering their own rail routes through Afghanistan to Pakistan’s borders. For Iran and Tajikistan, the transnational corridor through Afghanistan is also attractive, providing a potential route to China via Kyrgyzstan. Turkmenistan and Kazakhstan plan to...

Middle Corridor

Multimodal Transport: What Makes Modern Logistics Flexible and Efficient?

Kazakhstan has set itself the task of developing the country's transport and transit potential. The national railway network operator, as well as the country’s main freight and passenger rail carrier, is now engaged in organizing multimodal transportation that combines rail, maritime, air, and road transport, along with providing logistics services at international cargo hubs. In August, it was announced that KTZ Express JSC, a subsidiary of KTZ JSC, had been established as Kazakhstan's first national air freight carrier, and that modern sea vessels were being built to develop the domestic fleet. We spoke with Damir Kozhakhmetov, CEO of JSC “KTZ Express,” about the prospects for developing aviation and maritime competencies within the framework of a multimodal operator. - Mr. Kozhakhmetov, could you tell us about your company’s plans for creating a national cargo airline under JSC “KTZ Express”? - First, I would note that establishing a national cargo airline means building a modern, competitive freight carrier. The project is coordinated by the Samruk-Kazyna Sovereign Wealth Fund, while our company is designated as the lead implementer. This effort will allow Kazakhstan to strengthen its position as a key transit hub of Eurasia and deepen integration into global transport chains. In terms of goals, the priority is to ensure Kazakhstan has stable access to international markets. The new carrier will not only handle transit cargo but also open new opportunities for businesses, especially where delivery speed is critical. Aviation, in particular, offers capabilities that no other mode of transport can match. As you know, the global air cargo market is growing rapidly. On the one hand, this is driven by the expansion of e-commerce; on the other, by rising transit flows between China and Europe. Kazakhstan’s unique geographic location gives us an advantage, and our task is to turn that into concrete, competitive services. The process of building the airline is structured in stages, and we have already started practical implementation. Research results confirm strong potential on routes between China and Europe, the Middle East and Central Asia, and in transit shipments via Kazakhstan. These routes will form the backbone of a sustainable network and the company’s long-term growth, aligned with current market trends, competition, and projected demand. In parallel, we have begun organizational structuring, regulatory compliance, and the development of manuals and documentation required to obtain an Air Operator Certificate (AOC). These documents are essential for launching any airline, as they confirm that the carrier has the necessary structure, staff, aircraft, and procedures that meet aviation law and safety standards. To ensure the project is built on solid ground and delivers real impact, we are engaging international consultants and leading industry experts. At the first stage, we plan to launch regular flights and establish a reliable route network. Priority will, of course, be given to the China-Europe corridor, which is one of the fastest-growing segments with strong and stable demand. At the next stage, the fleet will expand, and operations will extend to Southeast Asia, North America, the Middle East, and Africa. We...

Global Trade

Transit Ambitions: Kazakhstan Emerges as Key Link Between East and West

Kazakhstan is poised to enhance its role as a pivotal transit hub between China and Europe amid evolving global logistics dynamics, according to a recent analysis by Energyprom.kz. China’s Role in Global Logistics China remains the world’s largest exporter, shipping approximately 4.5 billion tons of goods annually, with 60-70% transported via maritime routes. More than one-third of global container traffic passes through Chinese ports and transit centers. However, rising geopolitical tensions and sanctions have prompted Beijing to diversify its logistics options and reduce reliance on sea routes. The Belt and Road Initiative (BRI), which primarily traverses Kazakhstan, Russia, and Belarus, plays a crucial role in this strategy. Land routes offer shorter delivery times, typically 10-12 days compared to 30 days by sea. Alternatives bypassing Russia, such as the corridor through Kazakhstan, Iran, and Turkey, are also gaining prominence. Kazakhstan’s Transit Potential Kazakhstan’s strategic location enables it to serve as a vital conduit in global transport flows. The modern incarnation of the Silk Road has transformed the country into a linchpin for trade between East and West. Developing transit corridors not only boosts the national economy but also improves socio-economic conditions in border and underdeveloped regions by creating jobs and attracting investment. Over the past 15 years, Kazakhstan has invested more than 10 trillion tenge in transit infrastructure, generating approximately 600,000 jobs. In 2023, transit cargo volumes reached 30 million tons, exceeding the target of 27.7 million tons set in the national development strategy, “Concept for the Development of the Transport and Logistics Potential of the Republic of Kazakhstan until 2030.” The strategy aims to increase total transit volume to 35 million tons by 2030, including 2 million TEU in container traffic. Growth in Transport Service Exports Kazakhstan’s expanding logistics capabilities are translating into increased exports of transport services. In 2024, rail freight exports totaled US$1.3 billion, up 2.1% from the previous year. Road freight exports surged by 19.6% to US$665.7 million, while sea freight rose by 47.2% to US$64.7 million. Pipeline service exports also grew by 7.1%, despite a 1.6% decline compared to 2019 levels. Innovation and Digitalization in Logistics To cement its global position, Kazakhstan is investing in a smart economy by incorporating innovation and digital solutions into its logistics framework. This includes automation, artificial intelligence, blockchain technology, and the creation of integrated digital logistics hubs. One such initiative is the Alatau Special Economic Zone (SEZ), an innovation center designed to enhance the country’s transit ecosystem. According to the Astana International Financial Center (AIFC), the transport and logistics sector’s contribution to GDP could rise from 6.2% in 2022 to 9% by 2025. Link to AIFC report This digital transformation promises not only to reduce operational costs but also to generate thousands of high-skilled jobs, an essential component of Kazakhstan’s path to sustainable economic growth.