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TCA Interviews

Interview: How Kazakhstan Plans to Finance Its Next Railway Expansion

Kazakhstan is preparing for the next phase of its railway expansion. Alongside the major lines already under construction, the authorities are considering new routes and upgrades to existing sections intended to increase network capacity, serve industrial producers, and accommodate growing transit volumes. Implementing those plans will require substantial investment. Some projects may be financed by the state, while others are expected to rely on private capital, international financial institutions, and public-private partnerships. Kazakhstan’s Vice Minister of Transport, Zhanibek Taizhanov, spoke to The Times of Central Asia about construction deadlines, proposed new routes, and whether the country’s railway priorities are beginning to shift. TCA: Kazakhstan is building several major railway projects at the same time. When are the main lines expected to be completed? Zhanibek Taizhanov: The Moyynty-Kyzylzhar and Darbaza-Maktaaral railway lines are scheduled to enter operation by the end of this year. Construction of the Bakhty-Ayagoz line is expected to be completed by the end of 2027. In addition, trial train operations began on the Almaty bypass line in December last year. The authorities previously instructed the Transport Ministry and Kazakhstan Temir Zholy to launch the Moyynty-Kyzylzhar and Darbaza-Maktaaral lines by the end of 2026 and commission Bakhty-Ayagoz by the end of 2027. TCA: The government has called for preparations for the next stage of railway development. Which projects is the ministry considering, and what needs are they intended to address? Zhanibek Taizhanov: The Ministry of Transport, together with Kazakhstan Temir Zholy and the relevant government agencies, has been tasked with examining the next phase of railway infrastructure development, taking into account projected growth in freight flows, transit traffic, and the economy’s long-term needs. The projects under consideration include the construction of second tracks on the Arys-Kazaly section. The project is intended to increase the capacity and carrying capability of one of the key sections of the railway network, support sustained freight growth, and improve transport services for the country’s southern and western regions; construction of the Inderbor-Uralsk railway to improve regional connectivity, make freight transportation more efficient, and create additional opportunities for the industrial and logistics development of western Kazakhstan; modernization of the Kyzylzhar-Shubarkol-Yesil section, which would increase the capacity of a route used to transport coal and mining products and improve logistics for industrial enterprises; modernization of the Inderbor-Makat railway section to improve the transportation of oil, gas, and industrial cargo and develop transport infrastructure in the western regions; and development of railway infrastructure in the Karagaily industrial zone in the Karaganda Region to serve existing and planned production facilities, attract investment, and support the region’s industrial development. These projects are being examined because the railway network needs to develop in step with growing domestic, export, and transit freight volumes. Their implementation would increase infrastructure capacity, meet the needs of industry and logistics, and create additional conditions for the socioeconomic development of the regions. TCA: Existing projects largely expand transit and export routes, while many of the proposed lines are linked to industrial enterprises. Does this signal a...

International transport

Kazakhstan Seeks to Strengthen Industrial Base Through Local Locomotive Manufacturing

Kazakhstan is expanding its railway engineering sector as a key pillar of its industrial policy aimed at reducing import dependence and strengthening technological sovereignty. The machinery industry remains one of the main indicators of an economy’s technological maturity. For Kazakhstan, its development represents not only domestic industrialization but also the strengthening of the country’s position as an exporter of high-value-added products. Railway engineering plays a particularly important role in this system. One of the anchor investors in the sector is Wabtec Corporation. Recently, Kazakhstan signed contracts with the company worth $4.2 billion. These agreements include the supply of 300 locomotives through 2036, as well as service maintenance, the implementation of digital systems, and equipment repair. On the sidelines of the 13th Forum of Machine Builders of Kazakhstan, Shyngys Altayuly, Product Director at Wabtec Corporation LLP, told The Times of Central Asia about the expansion of production localization and plans to manufacture a new generation of locomotives. Since 2009, the “Locomotive Kurastyru Zauyty” plant in Astana has been producing freight TE33A(S) Evolution locomotives, passenger TEP33A models, and shunting TEM11 units. Over this period, more than 700 locomotives have been manufactured for the state railway company Kazakhstan Temir Zholy, including over 40 units exported to CIS countries and neighboring markets. “With the introduction of our Evolution series TE33A locomotives in Kazakhstan, lifecycle costs have been reduced while ensuring high operational readiness across the country’s locomotive fleet,” Altayuly noted. He also emphasized that over the past 25 years, 75% of all mainline AC diesel locomotives purchased globally have been produced by Wabtec. From Imports to Sovereignty The plant has localized the production of all major components, including the main frame, diesel compartment, driver’s cab, generator, equipment and air compartments, bogie frame, and other elements. This reduces dependence on external suppliers amid unstable global logistics. At the same time, the facility is expanding cooperation with local suppliers. Kazakh enterprises produce elements of the running gear, safety systems, electronics, and a range of other components, including metal structures, driver’s cabins, wheels, and safety system components. “In this way, we are building a domestic value-added engineering chain. This includes not only locomotive production itself but also the entire component base used in assembly,” Altayuly explained. According to him, the localization level has already reached 40%, and further expansion is underway. Components planned for future localization include casting, lighting systems, heated windshields, driver’s seats, piping products, and cable systems. “Once a company becomes a supplier to JSC ‘LKZ,’ it gains access to international markets. Wabtec operates in 50 countries, and our products are used in more than 100 countries worldwide. Therefore, any enterprise that completes this process and becomes a reliable supplier will gain access to global markets,” Altayuly added. Debut of a New Locomotive The next stage of development will be the launch of the new T33AT locomotive, scheduled for production in 2027. The project is being implemented as part of the Wabtec-KTZ partnership and reflects a strategy of integrating global technologies into the national industry....

Middle Corridor

Analysis: How Kazakhstan’s New Road and Rail Projects Are Boosting the Economy

Kazakhstan is the largest landlocked country in the world, located at the strategic crossroads of Eurasian trade routes. This year, the country launched two major infrastructure projects: the Trans-Kazakhstan Railway Corridor and the construction of a new Center-West Highway, which will connect the capital, Astana, with Kazakhstan’s western regions. How the Center-West Highway will reshape Kazakhstan’s economy and logistics The Center-West Highway will link Astana to the country’s western territories, providing direct access to the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR). Passing through the towns of Arkalyk, Turgay, and Irgiz, the route will cut the distance to western Kazakhstan by more than 560 kilometers (about 350 miles). It is expected to improve interregional connectivity, stimulate socio-economic growth, increase the capacity of the transport network, and strengthen Kazakhstan’s role as a transit hub. Deputy Minister of Transport Maksat Kaliakparov told The Times of Central Asia that construction is still in its early stages. Repairs on the Astana-Korgalzhyn-Karazhar section are currently funded by the Development Bank of Kazakhstan, with completion planned for 2026. “The remaining sections are still in the design phase, and financing is being secured,” Kaliakparov said. “This year we plan to complete feasibility studies for unpaved sections, approve project documentation for the Arkalyk-Egindikol and Irgiz-Torgay stretches, and explore public-private partnerships to attract investment.” Beyond improving domestic transport links, the Center-West Highway is set to become a crucial part of the TITR, providing a shorter and more reliable route to Kazakhstan’s Caspian ports of Aktau and Kuryk. This will speed up transit, increase freight volumes, and reduce logistics costs for both domestic and international shippers. According to Kaliakparov, the project also includes modern roadside infrastructure: logistics hubs in Arkalyk and Irgiz, service stations, cafés, hotels, and an intelligent traffic monitoring and control system. “It is also important to introduce a number of innovative and environmentally friendly solutions, such as stormwater treatment facilities, energy-saving LED lighting, and the use of recycled materials. Environmental requirements will also be taken into account, including the preservation of animal migration routes using environmentally friendly solutions such as underground passages and eco-bridges,” emphasized Kaliakparov. However, despite its significant advantages, the project faces a number of challenges. The key ones among them are financing, complex terrain and geological conditions, seasonal limitations, and low population density along parts of the route, which affect its commercial viability. Kaliakparov added: “The road requires significant investment, especially for the construction of new sections, some of which pass through hard-to-reach areas. It is also necessary to take into account the short construction season in the northern and central regions of the country”. According to him, the highway is being designed with the local climate in mind. Kazakhstan’s continental weather patterns, sharp temperature fluctuations, steppe and semi-desert landscapes, hydrological studies, erosion prevention measures, and strict environmental compliance are taken into account. Once completed, the Center-West Highway is expected to increase freight traffic to 5–6 million tons per year, cut delivery times between central and western Kazakhstan by 30–40%,...

Middle Corridor

Will the Port of Aktau Become the Logistical “Heart” of the Trans-Caspian Route?

In June of this year, the first phase of a new container hub at the seaport of Aktau on the Caspian Sea was launched. This hub is one of Kazakhstan’s largest transportation projects in recent years. But will it truly become a strategic anchor point for the transport corridors passing through the port, or will it instead become a “bottleneck,” reducing overall throughput? And will the port’s own capacity decline during the hub’s construction? Let’s explore these questions. A step towards transit growth A container hub is a specialized complex offering a full range of services for container handling, railcars, storage, and more. The project involves constructing a container terminal, establishing a container yard at the seaport, expanding container transport, and acquiring modern transshipment equipment. Scheduled for completion in 2025, it carries an estimated cost of 20.7 billion tenge (about $38 million). Once completed, the hub will increase the port’s container handling capacity from 140,000 twenty-foot equivalent units (TEU) to 240,000 TEU. The project is expected to become a key link in the supply chain along the Trans-Caspian International Transport Route, as well as other transport corridors passing through the port. [caption id="attachment_34581" align="alignnone" width="300"] @"KTZ Express"[/caption] From terminal to logistics hub Asem Mukhamedieva, Managing Director for New Projects and Marketing at KTZ Express JSC, told TСA that the container hub project based at the port of Aktau is part of Kazakhstan's strategy to develop its transport and logistics sector and is being implemented as part of China's Belt and Road Initiative. “Given that the project falls within the scope of this initiative, we attracted a Chinese investor in the form of the port of Lianyungang, which is one of the largest players in the Chinese market, not only in terminal operations but also in maritime infrastructure and seaport management,” said Mukhamedieva. According to her, the Port of Lianyungang has been a longtime partner of Kazakhstan. The national railway company, Kazakhstan Temir Zholy (KTZ), has been cooperating with Lianyungang for 10 years. Their first joint project was the Kazakhstan-China terminal at the Port of Lianyungang, launched in 2014. In 2017, they opened the largest dry port in Central Asia, KTZE-Khorgos Gateway, at Kazakhstan’s border with China. The third joint venture, constructing the Caspian’s largest container hub at Aktau Port, began in late 2024. Construction is being carried out by a consortium consisting of Integra Construction KZ LLP and China Harbor Engineering Company, a subsidiary of China Communications Construction Company, which ranks 63rd on the Fortune Global 500 list. The container hub is also part of a larger project to develop alternative routes to traditional maritime trade lanes. According to Mukhamedieva, the Port of Lianyungang, with its vast experience in shipping and port operations, not only shares its expertise with Kazakh partners but also ensures cargo flow toward Kazakhstan and further westward. This integrated model will connect the three joint terminals into a “hub-to-hub” transport system, unified by a shared digital platform for data exchange and improved cargo management efficiency. [caption id="attachment_34583" align="alignnone"...

International transport

Containerization: A Game-Changer in Global Logistics

The current trajectory of freight transport highlights the growing scale of global containerization and its significant potential for expansion. Containerization could offer a more efficient solution for transporting bulk cargo for Kazakhstan, a major exporter of raw materials. However, to realize this potential, the country must address a range of internal and external challenges. Container shipping enables door-to-door delivery with minimal risk of damage and faster handling, making it a reliable mode of transport both domestically and internationally. Its advantages include increased transport efficiency, safety, and cost savings. As such, containerized cargo transport, or “containerization”, is becoming increasingly relevant both in Kazakhstan and around the world. Despite its global prominence, containerization in Kazakhstan remains underdeveloped. Satjan Ablaliyev, Deputy Minister of Transport of the Republic of Kazakhstan, said in an interview with The Times of Central Asia, containerized freight made up only 6.73% of the country’s total cargo turnover in 2024. Domestic container traffic was just 0.16%. Yet, container shipping significantly reduces the time and costs associated with loading and unloading across various transport modes, such as sea, rail, and road, while also protecting cargo from damage and theft, simplifying paperwork, and minimizing transport costs. This also helps avoid delays caused by shortages of freight wagons, which is particularly relevant in Kazakhstan during peak seasons such as meeting winter heating needs or harvest time. Global experience has shown that container transport is suitable even for bulk, liquid, and perishable goods. Several factors are currently hindering the development of containerization in Kazakhstan: Insufficient number of railway stations equipped to receive and handle container cargo; Higher tariffs for container transportation compared to traditional wagon-based freight; Limited and uneven access to infrastructure and resources for market participants. To address these issues, Kazakhstan needs to expand its transport infrastructure and reform its tariff and regulatory policies. Corridors of the future The bulk of Kazakhstan’s container traffic comes from transit. According to national rail operator Kazakhstan Temir Zholy (KTZ), the volume of transit cargo in 2024 reached 27.5 million tons, with container transit alone growing by 59%, hitting 1.4 million TEUs. Kazakhstan is betting on the development of overland multimodal transit across its territory. Recent global events such as the COVID-19 pandemic, disruptions in global supply chains due to geopolitical tensions, and increased attacks on shipping in the Red Sea have exposed the vulnerability of maritime trade routes (e.g., the Suez Canal, which handles about 30% of global container traffic). These challenges have prompted major container operators to rapidly reroute maritime shipping and explore alternative land-based transit corridors. As land routes gain importance, competition among transit countries is intensifying. Many are now investing in infrastructure along international transport corridors to facilitate multimodal logistics. Ablaliyev pointed out that these factors have made Kazakhstan an increasingly attractive route for containerized cargo. Between 2020 and 2024, Kazakhstan’s container traffic rose from 876,000 TEUs to 1.395 million TEUs. In the first five months of 2025 alone, the figure reached 565,400 TEUs. To further grow transit container flows, Kazakhstan is investing...

Eurasian Transport Network

Kazakhstan: The Key Link Connecting China and Europe

China is one of Kazakhstan’s key partners, particularly in the development of its transit potential, with Kazakhstan serving as a strategic gateway for goods moving from China to the Eurasian Economic Union, Central Asia, and the European Union. Today, more than 80% of freight transported by rail between China and Europe transits through Kazakhstan. Railway Connections This year marks the 35th anniversary of the connection between the railways of Kazakhstan and China when the Dostyk-Alashankou crossing became the first international transportation route established in the era of Kazakh independence. For many years, it remained the sole railway connection, until in 2012, a second international border crossing, Altynkol-Khorgos, was opened. Today, freight traffic through these two crossings continues to show consistent and significant growth. Last year, rail freight between the two countries exceeded 32 million tons, which is a historic high. In the first four months of 2025 alone, rail freight volume reached 11.4 million tons, a 13.3% increase compared to the same period in the previous year. According to Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), the projected volume between the two countries for 2025 has been preliminarily agreed on at more than 33 million tons. To further increase capacity, Kazakhstan is building a second track on the Dostyk-Moyynty railway segment and constructing a bypass line around Almaty station. Both projects are scheduled for completion this year, which will boost throughput and significantly reduce delivery times for goods moving between Asia and Europe. Additionally, Kazakhstan is currently building the Bakhty-Ayagoz line, which will include the opening of a third border crossing, Bakhty-Chuguchak, which is expected to expand rail capacity with China by an additional 25 million tons. Maritime Development Kazakhstan’s maritime infrastructure on the Caspian Sea is a major focus of development and foreign investment. A key initiative currently underway is the creation of a container hub at the port of Aktau, being developed as a joint venture with the Chinese port of Lianyungang. Construction and installation work is actively in progress. According to the project plan, by the end of this year, the hub will feature a specialized cargo loading complex, a container terminal, and new cargo handling equipment. Once completed, the project is expected to increase container processing capacity from 140,000 TEU to 240,000 TEU, significantly enhancing Kazakhstan’s maritime logistics capabilities. Road Transport In addition to rail and sea, road transport is also a key pillar of Kazakhstan-China transportation cooperation. According to Kazakhstan’s Ministry of Transport, 2.8 million tons of cargo were moved by road for export/import purposes in 2024, a 41% increase from the previous year, whilst transit cargo volumes reached 3.6 million tons, marking a 68% year-on-year rise. In the first quarter of 2025 alone, road cargo volumes jumped by 83%, reaching 822,000 tons. A major driver of this growth is the continued development and operation of the Western Europe–Western China highway corridor. Kazakhstan is also considering the opening of two new border checkpoints to strengthen connectivity between the regions of East Kazakhstan and Almaty...