Infrastructure - The Times Of Central Asia

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Central Asia + Japan

Patient Capital, Fast Deals: Japan and South Korea Take Different Paths into Central Asia

Japan and South Korea have reached the same strategic conclusion: Central Asia matters to their economic security. Yet they are pursuing that goal through markedly different playbooks. In December 2025, Tokyo hosted the first leaders' summit of the "Central Asia plus Japan" Dialogue, 21 years after the format was launched. All five Central Asian presidents attended. Japan set a target of three trillion yen in business projects across the region over five years - roughly $19 billion at the time - while placing critical-mineral supply chains among the summit's priority areas. The bilateral announcements were equally significant. Uzbekistan presented a proposed project portfolio worth more than $12 billion and called for a joint investment platform to advance it. Kazakhstan and Japan announced a package of public- and private-sector agreements worth $3.7 billion. These included a long-term uranium contract and an offtake agreement under which Kazakhstan's Eurasian Resources Group would supply gallium to Mitsubishi Corporation RTM Japan. The timing was no accident. By May 2026, Chinese shipments to Japan of dysprosium and terbium remained close to zero, while exports of finished rare earth magnets to Japan fell 35% from the previous month. These materials are essential to high-performance magnets. For Tokyo, diversifying critical mineral supply is no longer a distant policy objective; it is an immediate industrial requirement. South Korea has been moving toward the same destination by a different route. During then-President Yoon Suk Yeol's state visit to Kazakhstan in 2024, the two countries signed a critical minerals memorandum allowing Korean companies to participate in the exploration and development of lithium, chromium, uranium, and rare earths. Seoul is now preparing to host the first Korea-Central Asia summit on September 16-17, 2026, elevating years of bilateral and multilateral engagement to the leaders' level. [caption id="attachment_52351" align="aligncenter" width="1280"] Image: Japan Cabinet Public Affairs Office[/caption] Why Central Asia Counts Both Japan and South Korea are resource-poor manufacturing powers whose leading industries depend on secure supplies of imported minerals. South Korea imports more than 95% of the critical minerals it consumes. Japan received its own warning in 2010, when Chinese rare earth shipments were disrupted during a territorial dispute, and the pressure has returned in a sharper form in 2026. Central Asia cannot replace China in the short term, but it offers Tokyo and Seoul a credible route toward diversification. Kazakhstan and Uzbekistan combine substantial mineral potential with governments eager to attract investment, technology, and new export markets. Kazakhstan is already a major producer of uranium and chromium, and has significant copper, titanium, and rare earth prospects. In April 2025, Kazakhstan announced the possible discovery of a rare earth deposit containing more than 20 million metric tons of resources. If further exploration confirms that estimate, the country could possess one of the world's largest rare earth resource bases. However, the distinction between a resource estimate and a usable supply chain is crucial. A discovery is not a producing mine, and a mine is not a processing industry. Exploration, environmental approvals, infrastructure, separation, refining, and...

TCA Interviews

Kazakhstan Seeking to Turn Transit Routes Into Investment Growth, Vice Minister Says

The development of transport and logistics has become one of the main priorities of Kazakhstan's economic policy as the country seeks to turn its position between China, Russia, the Caspian Sea, and Europe into long-term growth. Government transport data show the broader transport and warehousing sector grew in January-May 2026, although rail freight and cargo turnover remained under pressure. Large-scale rail, road, port, warehouse, and digital projects now sit at the center of that effort. The sector requires tens of billions of dollars in investment, while the reshaping of Eurasian supply chains since 2022 has raised the importance of the Middle Corridor and Caspian-linked routes. Can Kazakhstan attract the capital needed to implement large-scale infrastructure projects? How will changing investment priorities affect regional development? And how could new investment reshape the country's transport market? The Times of Central Asia discussed these questions with Maksat Kaliakparov, vice minister of transport of the Republic of Kazakhstan. TCA: How would you assess the current investment attractiveness of Kazakhstan's transport sector? How much foreign investment has the industry attracted recently? Maksat Kaliakparov: The investment attractiveness of the sector is high and continues to strengthen. In 2025 alone, gross foreign direct investment into Kazakhstan's economy reached $20.5 billion, an increase of 14.4% compared with the previous year. Investment is increasingly flowing into transport and logistics alongside manufacturing, digital infrastructure, and the financial sector. The transportation and warehousing sector was among the country's fastest-growing industries in January-May 2026, expanding by 8.4%. Investor interest is also reflected in the fact that, in 2025, Kazakhstan signed 88 commercial agreements worth more than $69.5 billion with partners from China, the UAE, the United States, and European countries. A significant share of these funds will be directed toward transport and logistics projects. More broadly, Kazakhstan's investment policy framework includes a target of increasing annual foreign direct investment inflows to $25.5 billion while raising investment in fixed capital to 25.1% of GDP. TCA: Which segments of the industry are currently attracting the greatest investor interest: railways, highways, aviation, ports, warehousing, or digital logistics? Which areas will require the largest investments in the coming years? Maksat Kaliakparov: Investor interest is spread across several major segments. Railways remain a key priority. Kazakhstan is implementing modernization and new construction projects, including the recently commissioned Dostyk-Moyynty railway section, as well as the Darbaza-Maktaaral and Moyynty-Kyzylzhar lines. By 2030, the country plans to build or modernize approximately 5,000 kilometers of railway infrastructure. Maritime and port logistics are also attracting substantial investment. Expansion is underway at the ports of Aktau and Kuryk, while a new container hub in Aktau is being built with the participation of China's Lianyungang Port Group. The project is expected to increase capacity to 240,000 TEU by the end of 2026. Road infrastructure has secured a landmark private investment through the Car Park Transformer roadside service network. Warehouse and multimodal logistics continue to develop, including through Kazakhstan's terminal at Georgia's Port of Poti. Digitalization is another important area. In particular, the pilot Smart...

Tashkent International Investment Forum

Washington and Tashkent Deepen Economic Ties at TIIF

Uzbekistan and the United States launched a joint investment platform in Tashkent on June 16 as senior U.S. officials and corporate executives gathered for the fifth Tashkent International Investment Forum, advancing cooperation in energy, infrastructure, critical minerals, and advanced manufacturing. On the eve of the forum, Mirziyoyev hosted a delegation of leading U.S. companies and government financing institutions, a gathering he described as continuing a "good tradition" that reflects the growing appetite of U.S. businesses for a larger footprint in Uzbekistan. Among those present were John Jovanovic, president and chairman of the Export-Import Bank of the United States (EXIM), and Ben Black, chief executive officer of the U.S. International Development Finance Corporation (DFC), two officials whose institutions are emerging as principal channels for U.S. financing and investment support in the country. They were joined by Carolyn Lamm, chair of the American-Uzbekistan Chamber of Commerce, alongside executives representing Air Products, Cove Capital, Templeton Global Investments, Boeing, 77 Construction, BlackRock, Visa, JPMorgan, and Meta, among others, a roster spanning aerospace, finance, technology, and industrial sectors that underscores the breadth of U.S. commercial interest in the country. [caption id="attachment_50624" align="aligncenter" width="1943"] Black (DFC), Jovanovic (EXIM), Minister Laziz (MIIT), and Shukhrat Vafayev, Executive Director (UFRD); image: president.uz[/caption] President Mirziyoyev told the delegation that the economic agenda remains one of the key pillars of the strategic partnership between Uzbekistan and the United States, and laid out priority areas for deepening trade and economic cooperation. Particular emphasis was placed on projects in the development and processing of critical minerals, along with opportunities in energy, metallurgy, finance, artificial intelligence, and digital technologies. In response, the visiting executives thanked the president for the investment climate Uzbekistan has cultivated and outlined their proposals in a roundtable that culminated in a ceremony to exchange bilateral documents with participating U.S. companies. This broader engagement builds on a relationship Washington and Tashkent have been steadily formalizing over the past several years, as Uzbekistan has positioned itself as a more open and stable partner for foreign capital amid wider efforts to reform its economy and integrate more closely with global markets. The country's reserves of critical minerals, resources considered essential to U.S. technology, defense, and energy industries, have become a strategic priority for Washington, while Tashkent has sought to leverage U.S. expertise and financing to modernize sectors from energy to healthcare. That convergence of interests has increasingly framed Uzbekistan not merely as a bilateral partner but as a node in a larger U.S. strategy toward Central Asia. At the U.S.-Uzbekistan Business Forum in Tashkent on June 16, 2026, a curtain-raiser to the broader Tashkent International Investment Forum, panelists Ben Black, John Jovanovic, and Laziz Kudratov, Uzbekistan's minister of investment, industry, and trade, discussed Tashkent's proposal for a special economic zone tailored to U.S. companies. Minerals, fertilizer production, pharmaceuticals, and textiles were identified as the four priority sectors for deeper bilateral cooperation, alongside a new U.S.-Uzbekistan Joint Investment Platform building on earlier preliminary agreements. The forum drew the largest U.S. business delegation in the...

Tashkent International Investment Forum

Mirziyoyev Says Uzbekistan’s Doors Will “Always Remain Open” as Fifth Tashkent Investment Forum Begins

TASHKENT, June 17 — President Shavkat Mirziyoyev opened the Fifth Tashkent International Investment Forum (TIIF) on Wednesday with a message aimed squarely at the nearly 4,000 mostly foreign delegates packed into the hall: Uzbekistan's doors are open, and the country intends to keep them that way. Speaking under this year's theme, "Investment Resilience: New Frontiers, New Partnerships," Mirziyoyev framed the forum as more than a transactional venue for capital, but as a platform to initiate and deepen long-term mutually beneficial partnerships. He described what he called the "Tashkent investment spirit" — a phrase he used to capture the event's evolution into what he called a symbol of shared success between Uzbekistan and the partners willing to back it. The sentiment ran through his closing remarks, where he told the room that “the most important partner in turning ambitious plans into reality is an investor who arrives with good intentions. Therefore, the doors of New Uzbekistan will always remain open to foreign investors who come to our country with trust and ideas.” The guest list underscored the forum's growing diplomatic prowess. Mirziyoyev personally thanked Albanian President Bajram Begaj, Russian Prime Minister Mikhail Mishustin, Belarusian Prime Minister Aleksandr Turchin, Azerbaijani Prime Minister Ali Asadov, Kazakh Prime Minister Olzhas Bektenov, Kyrgyz Cabinet Chairman Adylbek Kasymaliev, and Tajik Prime Minister Kokhir Rasulzoda, alongside senior representatives from the EBRD, the New Development Bank, the World Bank, the IFC, the Asian Development Bank, the Asian Infrastructure Investment Bank, and the European Investment Bank. Mirziyoyev cited a series of economic indicators to support the message. Uzbekistan has secured more than $150 billion in foreign investment since launching reforms, with $123 billion arriving in the last five years. In 2025, GDP expanded by 7.7%, foreign investment climbed to $43 billion, and reserves rose above $70 billion. According to Mirziyoyev, the economy is on track to exceed $180 billion this year, comfortably outpacing the $100 billion goal announced at the first forum four years ago — a sign, he said, of sustained momentum, underscored by a 14-position improvement in the Index of Economic Freedom. The pledges come as Uzbekistan seeks to deepen the economic opening launched under Mirziyoyev, with officials using the forum to market legal guarantees, capital-market reforms and new infrastructure projects to foreign investors. Mirziyoyev structured the rest of his address around six priorities. The first centers on legal guarantees for investors, anchored by the new Tashkent International Financial Center — a zero-tax-rate zone for corporate income, VAT, property, and customs duties, governed by English common law and backed by an independent commercial court staffed with foreign judges. The second targets capital markets, building on $16 billion in international bond placements and the recent National Investment Fund listing, which he called the London Stock Exchange's largest IPO in five years, with sovereign “sukuk issuance” planned next. The third priority is industrial value addition. Here, Mirziyoyev pointed to Uzbekistan's $3 trillion in estimated subsoil wealth and announced that foreign investment will be extensively channeled into the "Metals of...

TRIPP

The 43 Kilometers That Could Rewire Eurasia

The Caspian Policy Center’s Trans-Caspian Forum 2026 convened U.S. and regional officials at the National Press Club in Washington on June 10 for a discussion of peace, economic security, and durable partnerships. The forum framed a short Armenia-based link as part of a wider effort to turn the Middle Corridor into a working route for cargo, energy, data, and capital. The strategic dialogue was chaired by Dr. Eric Rudenshiold, CPC research director and senior fellow. Speakers included Aryeh Lightstone, Senior Advisor to the Board of Peace and to Ambassador Steve Witkoff; Hikmet Hajiyev, Assistant to Azerbaijan’s president and foreign-policy department head; Yerzhan Kazykhan, Kazakhstan’s presidential representative for U.S. negotiations; Javlon Vakhabov, deputy adviser to Uzbekistan’s president on foreign policy; and Edil Baisalov, Kyrgyzstan’s ambassador to the United States and presidential special envoy. The meeting came as Washington tries to turn the Armenia-Azerbaijan thaw, the C5+1 critical minerals agenda, and private-sector interest into routes that can move cargo, energy, data, and capital across the Caspian. The discussion cast the Middle Corridor as the main strategic alternative linking Central Asian production to western markets. The Trump Route for International Peace and Prosperity (TRIPP) refers to a planned 43-kilometer link through southern Armenia’s Syunik province, near Meghri and the Arax River, that would connect Azerbaijan with its Nakhchivan exclave. With rail, road, energy, and digital infrastructure, TRIPP is intended to plug into the wider Trans-Caspian route from Central Asia through Azerbaijan and Türkiye to Europe. Aryeh Lightstone opened by placing connectivity inside the Trump administration’s peace and economic-security agenda. His remarks tied Armenia-Azerbaijan diplomacy, the Board of Peace, and the Abraham Accords to the claim that commerce can reinforce peace where standard diplomacy stalled. Lightstone shifted the subject from maps to execution. Customs, regulatory harmonization, digital trade platforms, border procedures, and bankable investment vehicles will decide whether the Middle Corridor becomes a reliable system, he said. His reference to a TRIPP Plus Enterprise Fund pointed to U.S. structures that can move from declarations to projects. Hikmet Hajiyev presented Azerbaijan as the hinge of that system. The Caspian, he argued, does not separate Azerbaijan from Central Asia, but unites them. His line that C5+1 was mathematics while the C6 was chemistry captured Baku’s framing. Azerbaijan is positioning itself as a logistical and strategic extension of Central Asia, connected through Turkic institutions, energy routes, rail, ports, aviation, and digital links. Hajiyev described the Middle Corridor as moving from a supplementary transit route into a strategic geoeconomic system, linking Baku-Tbilisi-Kars rail capacity, Baku port, Nakhchivan, TRIPP, and the planned Trans-Caspian fiber-optic cable with Kazakhstan. Ambassador Kazykhan presented Kazakhstan’s strategic value as something built over time and backed by material capacity, not diplomatic positioning alone. Kazakhstan is by far the region’s largest economy, with the IMF projecting 2026 GDP of about $360 billion. Kazykhan said more than 600 American companies operate in Kazakhstan and cumulative U.S. investment has surpassed $100 billion. Kazakhstan also supplies about 24% of U.S. uranium imports and has reserves or production capacity linked...

Digital Transformation

Interview: Kazakhstan Turns to AI and Digital Platforms to Speed Eurasian Transit

Kazakhstan is moving more of its transit system online as it tries to reduce border delays, track freight earlier, and strengthen its position on routes linking China, Central Asia, the Caspian, and Europe. Officials and industry participants say such tools could shorten processing times and reduce delays across transport corridors. These and other issues were discussed during a thematic session on “Digital Solutions in Transport and Logistics” at the Fifth Eurasian Economic Forum in Astana in late May. Kazakhstan’s practical experience in digitizing transport and logistics was presented by Deputy Minister of Transport Damir Kozhakhmetov, who also spoke with The Times of Central Asia about the country’s key priorities in transforming the sector. Key Areas of Transformation Situated at the crossroads of major international transport corridors, Kazakhstan is prioritizing seamless logistics, electronic document management, and intelligent monitoring systems. According to Kozhakhmetov, the goal is to simplify transit procedures and accelerate cargo processing through the introduction of unified electronic standards and integration with international platforms. “We connect major transit routes and serve as a link providing services along alternative transport corridors,” Kozhakhmetov told The Times of Central Asia. “Our current priority is to ensure that countries across the region continue working together to simplify electronic document exchange and harmonize digital procedures.” Practical Cases and Measurable Results One of Kazakhstan’s most successful initiatives has been the integration of its railway freight systems with major Chinese logistics platforms serving the Middle Corridor. “This allows us to see the composition of cargo shipments three to five days before they arrive at the border and complete transit declarations in advance,” Kozhakhmetov said. “As a result, processing times at key railway stations have been reduced to as little as 30 minutes. Similar integration has already been implemented with the electronic railway platforms of Azerbaijan and Georgia.” He noted that similar projects are being introduced across other transport sectors, including the electronic exchanges of international transport permits, paperless processing of cargo documentation, and the implementation of e-Freight systems for air cargo operations. Kazakhstan is also participating in the development of the Digital Trade Corridor, a global multimodal platform designed to simplify, automate, and accelerate transit and logistics operations. Other initiatives include the introduction of the electronic international consignment note, e-CMR, and the Smart Cargo single-window logistics platform, which integrates customs and logistics services. “We pay close attention to the development of digital infrastructure in every mode of transport,” Kozhakhmetov said. “These efforts cover four main areas: roads, road transport, aviation, and railways.” Digital Roads and AI Monitoring In the road sector, Kazakhstan is developing the e-Joldar system, a unified platform designed to monitor the lifecycle of the country’s road network. The system combines road inventories, technical assessments, laboratory testing, and lifecycle management tools, enabling more effective allocation of infrastructure funding. “We can now see when a road was repaired, when the next maintenance cycle is scheduled, and when future rehabilitation work should be carried out,” Kozhakhmetov explained. According to the Ministry of Transport, Kazakhstan’s public road network...