Infrastructure Development - The Times Of Central Asia

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International transport

Prospects for the Development of Kazakhstan’s Maritime Trade Gateways

A container hub will be built in the Aktau seaport. The maritime harbor is expected to become a center for cargo consolidation and distribution, facilitating Kazakhstan’s deeper integration into the global trade and transport system. How will this impact port operations, regional development, and the global supply chain through the Caspian Sea? The project in Aktau will primarily allow for the formation of a container park on its territory, serving Kazakhstan, Caspian region countries, and Central Asia. It will provide a full range of services, including container transshipment and warehousing. The hub’s construction marks a new phase in the port’s development, establishing it as a major logistical center. The hub can become not only a component of Kazakhstan’s transportation system, but a key link in the regional and global transport chain. For this project, investment has been secured from Lianyungang Port Group Co. Ltd., which operates one of China’s largest ports, with a corresponding agreement having been signed with the company. Growth Projections and Capacity Expansion According to many industry experts, Kazakhstan needs to actively develop container cargo transport. Currently, the country’s containerization level is quite low, standing at only about 7%. As Abay Turikpenbayev, Chairman of the Board of the Aktau International Sea Commercial Port public company, explained to TCA, oil and containers are ideal cargo for the harbor due to their swift transport, quick unloading, and rapid railcar turnaround. “It’s a different matter when bulk cargo arrives at the port. Bulk materials take longer to unload and congest the port infrastructure, preventing the acceptance and accumulation of a large number of railcars. The use of containers allows for an increased cargo flow,” Turikpenbayev stated. According to Turikpenbayev, unloading bulk cargo takes 2-3 days, and an additional 2-3 days is required for loading. In contrast, container unloading and processing take less than 24 hours. According to World Bank estimates, by 2030, cargo volumes transported via the Trans-Caspian International Transport Route through the Caspian Sea will reach 11 million tons. The new container hub is expected to help handle these volumes and attract additional cargo flows, increasing the port’s container transshipment capacity to 140,000 TEUs per year. Addressing the Caspian Sea Water Level Decline A critical issue that deserves attention is the declining water levels in the Caspian Sea. According to the Caspian Sea Hydrometeorological Research Department of RSE Kazhydromet, since 2006, the level of the Caspian Sea has dropped by approximately two meters. This decline has significantly affected navigation in the region. To address this, dredging work is planned in the Aktau port this year. Turikpenbayev stated that around 1.6 million cubic meters of heavy sediment will be removed from the harbor’s waters. “The dredged material will be used to create new territories and extend the port area southward. This will allow the port’s land area to expand from 60 to 100 hectares in the future,” Turikpenbayev explained. In addition to the construction of the container hub, further port expansion plans include building an additional berth for bulk cargo,...

Transport

Satellite Internet Now Available on Astana-Almaty Train in Kazakhstan

Kazakhstan Temir Zholy (KTZ), the national railway company, has launched a pilot project to provide satellite Internet access on its trains. The new service debuted on January 25 aboard the train connecting the capital, Astana, with the country's largest city, Almaty. Covering a 17-hour journey, the Astana-Almaty train route is one of the most popular in Kazakhstan. Using satellite technology, passengers can now access apps such as WhatsApp, YouTube, and other video-hosting platforms throughout their trip. However, access to torrent sites and platforms enabling streaming downloads will be restricted. The initiative is a collaboration between the Ministry of Digital Development, Innovation and Aerospace Industry, the Ministry of Transport, and Jusan Mobile, the official distributor of Eutelsat-OneWeb in Kazakhstan. Zhaslan Madiyev, Minister of Digital Development, Innovation and Aerospace Industry, described the project as a milestone for digitalizing the country's transportation network. “The launch of this pilot project on the KTZ train using the low-orbit satellite constellation Eutelsat-OneWeb is an important event in the digitalization of transport,” Madiyev stated. “Thanks to cooperation with partners, we have demonstrated that even in challenging conditions, it is possible to provide passengers with high-speed (50-100 Mbps) and stable internet. This achievement paves the way for further digital transformation in Kazakhstan and enhances travel comfort for our citizens.” The pilot project also includes the introduction of several technological upgrades to improve the passenger experience. Mobile terminals for conductors have been deployed to facilitate quick ticket verification, while POS terminals allow for cashless payments in the dining car. Additionally, video surveillance systems have been installed to enhance security in railcars. According to Anuar Akhmetzhanov, Chairman of the Board of JSC Passenger Transportation, the introduction of satellite internet is a key step in modernizing passenger services. He added that in the future, satellite internet access will be expanded to trains operating on other major routes. Currently, internet access on Kazakh trains is available only when trains travel near cities and villages with cellular network coverage. For the vast stretches of railway running across Kazakhstan’s expansive steppes - often far from human habitation - connectivity has traditionally been unavailable. The adoption of satellite internet technology addresses this gap and ensures seamless connectivity even in remote areas. For a country as large as Kazakhstan - it is the ninth largest in the world - railways remain a vital mode of transportation. In 2024, KTZ transported 13.6 million passengers, with the Astana-Almaty, Astana-Shymkent, Almaty-Shymkent, Astana-Semey, and Almaty-Semey routes being the most popular.

Transport

Kazakhstan Modernizes Civil Aviation Infrastructure to Boost Tourism and Investment

In 2024, Kazakhstan made significant strides in modernizing its air transport infrastructure, opening three new passenger terminals at the airports of Almaty, Shymkent, and Kyzylorda. The upgrades are expected to expand the capacity of these airports, increase the number of air routes, and stimulate growth in passenger traffic. According to the Ministry of Transport, these developments will enhance domestic and international tourism while boosting the investment appeal of Kazakhstan’s regions. The Role of Air Transport As the world’s 9th-largest country, Kazakhstan relies heavily on air transport to complement its extensive railway network. Fast and efficient air travel is crucial for connecting the nation’s vast territories and integrating its economy into global markets. New Terminals and Capacity Expansion: Almaty International Airport The new terminal at Almaty International Airport, which opened on June 1, has increased the airport’s capacity from 2.5 million to 14 million passengers annually. Almaty Airport serves as a hub for domestic airlines such as Air Astana, SCAT, Qazaq Air, and Fly Arystan. It operates regular flights to 19 cities across Kazakhstan and offers international connections on 50 routes to 26 countries through 30 foreign airlines. Shymkent Airport In southern Kazakhstan, the new terminal at Shymkent Airport expanded the facility’s capacity from 800,000 to 6 million passengers per year. The airport now offers international flights to 10 destinations, including Jeddah and Medina (Saudi Arabia), Doha (Qatar), Phu Quoc (Vietnam), and Phuket (Thailand). The frequency of flights has also increased to 24 per week. Kyzylorda International Airport The new terminal at Kyzylorda International Airport in south-central Kazakhstan has raised its capacity from 300,000 to 2 million passengers per year. The airport now operates 25 domestic flights, significantly enhancing connectivity for the region. Strategic Projects: Khorgos-Eastern Gate Beyond passenger terminals, a $500 million project to construct a cargo-passenger airport at the Khorgos-Eastern Gate Special Economic Zone (SEZ) is underway. The project, led by the Kazakh-German consortium SKYHANSA, will position Kazakhstan as a critical link on the Western Europe–Western China highway and the Trans-Caspian International Transport Route (TITR), which connects China and Europe. The new airport will include: A passenger terminal capable of handling up to 500 passengers per hour. A cargo terminal with an annual capacity of 250,000 tons. A fuel storage facility with a capacity of 550,000 tons. A technical center for aircraft servicing. Tourism, shopping, and entertainment facilities. This project underscores Kazakhstan’s commitment to expanding its role as a logistics and trade hub in Central Asia. Growth in Air Transportation The air transport sector in Kazakhstan continues to grow at a rate of 10-15% annually. In 2024, Kazakh airlines transported approximately 15 million passengers, while the nation’s airports served 30 million passengers. Cargo transportation also saw significant growth, with 28,000 tons transported in the same period. Kazakhstan’s domestic airlines add 10-15 aircraft to their fleets each year, bringing the total fleet to 102 aircraft as of 2024. Expanding International Connectivity Kazakhstan operates 582 flights per week to 31 countries, including Russia, Kyrgyzstan, Uzbekistan, Tajikistan, Georgia, Belarus, Azerbaijan, the UAE,...

EBRD

EBRD Invests Record €2.26 Billion in Central Asia in 2024

The European Bank for Reconstruction and Development (EBRD) reached a record level of investment in Central Asia in 2024, contributing €2.26 billion to 121 projects across six countries in the region. This was nearly double the amount invested in 2023. Additionally, the EBRD attracted €784 million from co-financiers, bringing the total investment in the region’s economy to over €3 billion. Uzbekistan and Kazakhstan Lead in Funding Uzbekistan and Kazakhstan were the largest recipients of EBRD funding, securing €938 million and €913 million, respectively. These two nations ranked as the fifth and sixth largest destinations for EBRD investments globally in 2024. Other countries in the immediate region also benefited from significant funding, with Mongolia receiving €264 million, Tajikistan €88 million, and the Kyrgyz Republic €52 million. Focus on Sustainable Infrastructure and Green Economy The majority of EBRD investments in Central Asia supported sustainable infrastructure projects, accounting for 61% of the total. Another 24% was channeled to local banks to assist small businesses, women entrepreneurs, and youth-focused initiatives, as well as projects promoting climate resilience and resource efficiency. The remaining 15% was allocated to private-sector companies. In alignment with the Paris Agreement, 58% of EBRD investments in the region went to projects promoting a green economy. Milestones in 2024 The EBRD achieved several notable milestones in 2024: Total investments in Kazakhstan surpassed €10 billion. Uzbekistan reached €5 billion in cumulative EBRD funding. Both Tajikistan and the Kyrgyz Republic exceeded €1 billion in total investments since the EBRD began operations in the region 30 years ago. Landmark Projects The EBRD financed several groundbreaking projects in Central Asia during 2024, including: Uzbekistan: €59 million for a renewable hydrogen facility aimed at decarbonizing the fertilizer sector. Kazakhstan: €96.4 million for a new wastewater treatment plant in Aktobe, the largest municipal project supported by the EBRD in the region. Mongolia: €11.3 million to support the first green bond issued by a local bank. Investments in Energy Infrastructure Significant funding was also allocated to improving electricity grids across the region: In Kazakhstan, €252 million was used to construct 600 km of transmission lines. In Uzbekistan, €60.3 million supported the development of a 230 km transmission line in the Navoi region. In the Kyrgyz Republic, €14 million upgraded power infrastructure in Osh and Issyk-Kul. In Tajikistan, €31 million was allocated to improve a transformer in the Sugd region. Investments in Health and Transportation The EBRD also provided substantial funding for healthcare and infrastructure projects: Kazakhstan: €365 million for a hospital project. Uzbekistan: €216 million for a road and bridge project in the Khorezm region. Mongolia: €39.2 million for a hospital in Darkhan. Support for Small Businesses The EBRD continued its efforts to empower small businesses in Central Asia, providing advisory services to more than 450 small and medium-sized enterprises (SMEs). Over 8,000 SMEs benefited from training and mentoring programs. In Tajikistan, the EBRD launched its Star Venture initiative, allocating €28 million to 25 high-growth companies through agreements with local banks. The EBRD’s Legacy in Central Asia As the...

Eurasian Transport Network

Building Bridges Across Eurasia: Kazakhstan’s Strategic Push for Transport Integration

The development of the economic systems of Europe and Asia is outpacing the level and pace of integration in the transportation systems of the countries located between them. This problem can be solved by creating an overland chain across the entire Eurasian space. As part of the development of its transit potential, Kazakhstan has started to form the backbone of such a terminal network. All work on creating transport networks has been entrusted to the national company, Kazakhstan Temir Zholy (KTZ), which plans to integrate all modes of transport to offer a comprehensive range of client services under a 'one-stop-shop' principle and enhance international operations. Establishing a terminal network outside of the republic will improve freight logistics and help build efficient supply chains. This decision is driven by market demands for cargo delivery, which go beyond mere transportation needs and require the provision of a comprehensive transportation product by a single logistics operator. Where Cargo Flows Begin Developing cooperation with China plays a crucial role in integrating Eurasian transport space. In 2023 alone, transit freight traffic between Kazakhstan and China reached a record 28.3 million tons. This success was partially due to the development of a terminal network in China - the Kazakhstan-China logistics terminal in the Pacific port of Lianyungang has been operating for ten years, and the largest dry port in Central Asia, Khorgos – Eastern Gate, operates on the border. The transport system between these two ports facilitates the delivery of goods from China's eastern coast to Europe via the Caspian Sea, ensuring the shortest delivery times. Adding the new Kazakh terminal in Xi'an to this transport chain has optimized logistics processes and boosted transportation performance. In the first eight months of 2024, container transit from China along the Trans-Caspian International Transport Route (TITR) increased 20-fold thanks to the freight terminal in Xi'an, a project was implemented in partnership with the Chinese company, Xi'an Free Trade Port Construction and Operation. Focusing on EAEU Transport Potential Significant steps have been taken to harness the transport potential of the Eurasian Economic Union (EAEU) countries. In April, construction began on a new terminal at the Selyatino station near Moscow. A trilateral Kazakhstan-Russia-China agreement on creating the CRK Terminal transport and logistics center has been signed by KTZ, SlavtransService, and Xi'an Free Trade Port Construction and Operation. This logistics hub, based in one of the largest dry ports in Selyatino, will develop direct transport links between Xi'an, Russia, and other countries. Its launch is expected this year. Additionally, in the fall of 2024, KTZ signed a Memorandum of Understanding with Chinese and Belarusian partners to build a new logistics terminal in the Belarusian city of Svisloch. Caspian Priority To further integrate Kazakhstan into the key Trans-Caspian International Transport Route (TITR) plans are underway to create an inter-modal freight terminal in Azerbaijan's Alyat port. An agreement for the project's implementation has been signed between SK-AIH Investment Fund Ltd, KTZ, Baku International Sea Trade Port CJSC, and Xi'an Free Trade Port Construction and...

Transport

Astana’s Long-Awaited LRT Project Set to Launch Next Year

Zhenis Kassymbek, the Akim (governor) of Kazakhstan’s capital Astana, has announced that the city’s first light rail transit (LRT) line will launch by the end of next year, marking a significant milestone in a 13-year-long construction project fraught with delays and controversies. The LRT project, envisioned as a high-speed transport system running on elevated tracks to bypass traffic, began construction in 2011. Initially, the line was slated for completion by 2017 to coincide with the EXPO international exhibition. It was intended to connect the Astana-Nurly Zhol railway station with the capital’s airport. While the railway station opened on time, the LRT project was halted in 2013 due to high costs and concerns over its financial viability. The project was revived in 2015 when Astana’s Akimat signed a construction deal with a consortium of Chinese companies, China Railway International Group Limited and Beijing State-Owned Assets Management Co., Ltd. However, further delays occurred when funds — amounting to over 80 billion tenge ($200 million at the time) — were frozen in the accounts of the now-defunct Bank of Astana. Construction began with the installation of support pillars, but the Chinese contractors abandoned the project due to funding issues. In 2019, Kazakhstan’s investigative authorities intervened. Talgat Ardan, the former head of Astana LRT, and Kanat Sultanbekov, an ex-deputy mayor of Astana, were accused of embezzling nearly 30 billion tenge. This included inflating project costs and awarding overpriced contracts. Both were sentenced in absentia to seven years in prison in May 2023. Despite initial skepticism from President Kassym-Jomart Tokayev, who questioned the project’s ridership potential given its 22-kilometer length and route, the decision was made to proceed. Former Akim Altay Kulginov argued that dismantling the incomplete infrastructure would cost more than completing it. Under Kassymbek, construction has progressed. “The first LRT trains will arrive in August or September next year. We expect to have 15 trains operational by fall, with technical testing by the end of 2024 and full service in early 2026,” Kassymbek stated during a briefing. The elevated tracks are nearing completion, with rail-laying in progress. Signal installation is set to begin in spring. The Akimat anticipates the line will serve approximately 20,000 passengers daily. The fare for LRT rides has yet to be finalized. Kassymbek announced that the pricing would remain affordable. However, he stopped short of providing specifics. In 2017, the proposed fare was 300 tenge per ride, three times the cost of a bus ticket at that time. Current bus fares in Astana range from 110 tenge for regular routes to 250 tenge for express routes. Given the LRT’s total project cost of $1.88 billion, fares significantly higher than bus rates may be needed to achieve profitability. Despite this, the LRT could address pressing issues, such as Astana’s daily traffic jams. Currently, buses are the only public transport option in the city. “We aim to expand roads, increase bridges, and enhance public transport to encourage residents to switch from private vehicles,” Kassymbek said. He also suggested that Turkestan and...