Kazakhstan Temir Zholy - The Times Of Central Asia

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Logistics Infrastructure

Landlocked Kazakhstan Builds a Logistics Network from China to the Black Sea

Although Kazakhstan is landlocked, companies based in the country already hold stakes in logistics terminals at Lianyungang on China’s Yellow Sea coast and in Poti on the Black Sea. Projects farther west are at various stages of development. The strategy allows Kazakhstan-based operators to remain involved as freight travels between Asian ports and European markets, including beyond Kazakhstan’s borders. One of the main facilities is at the Chinese port of Lianyungang. The China-Kazakhstan Logistics Cooperation Base began operating in May 2014. It was jointly developed by Lianyungang Port and Kazakhstan Temir Zholy (KTZ), Kazakhstan’s national railway operator. Cargo arriving by sea can be transferred to rail for shipment through Kazakhstan toward Central Asia and Europe. In a written response to The Times of Central Asia, Kazakhstan’s Ministry of Transport said the Lianyungang terminal handled 2.39 million twenty-foot equivalent units (TEU) from 2015 through 2025. Annual throughput rose from 167,000 TEU in 2015 to 271,700 TEU in 2025. A further 140,100 TEU passed through the terminal during the first half of 2026, down 3.2% year on year. According to Samruk-Kazyna, the network extends inland to a terminal in Xi’an and includes Khorgos Gateway at the Kazakhstan-China border. The fund said a dry port in Chengdu would be added in 2027. At the western end, Kazakhstan-based PTC Holding and Georgian partners developed a multimodal terminal that opened in Poti in June 2025 after investment of more than $30 million. The operator currently lists annual throughput capacity at up to 100,000 TEU. Between the terminals in China and Georgia lies Kazakhstan’s rail network, which carries cargo to the Caspian ports of Aktau and Kuryk. These links form Kazakhstan’s section of the Trans-Caspian International Transport Route, known as the Middle Corridor. The route connects China with Europe across the Caspian Sea and the South Caucasus. Kazakhstan is pursuing further terminal projects along the route. In July 2026, Kazakhstan and Azerbaijan were preparing to begin construction of a joint intermodal terminal at Alat. Work was awaiting completion of the Port of Baku’s updated master plan. In June 2026, Kazakhstan’s government said work would begin on terminals in Budapest and Constanța. Later that month, KTZ Express signed an agreement with Midia Marine Terminal for a joint project at Romania’s Port of Midia. The European projects have yet to reach the operating stage. The value of this terminal network becomes clearer from the way the Middle Corridor operates. Containers must move between rail and ships for the Caspian crossing, so faster transit across Kazakhstan cannot determine the total journey time. The World Bank has identified the Caspian and Black Sea crossings as bottlenecks requiring greater vessel availability and higher port productivity. Transit times vary by destination. Turkish officials reported in August 2025 that a freight train from China had reached Turkey in 15 days, while earlier journeys often took more than 20 days because of customs procedures and weather on the Caspian Sea. A 15-day journey should therefore be treated as a benchmark rather than a guaranteed...

Middle Corridor

Uzbekistan Seeks More Freight Capacity Through Kazakhstan’s Caspian Ports

Kazakhstan and Uzbekistan have instructed their national railway companies to draw up a plan to increase Uzbek freight shipments through the ports of Aktau and Kuryk, expanding Tashkent’s access to markets across the Caspian Sea. Kazakh Prime Minister Olzhas Bektenov and his Uzbek counterpart, Abdulla Aripov, discussed the plan during a July 23 visit to the Aktau International Sea Trade Port. The volume of Uzbek freight handled through Aktau and Kuryk increased by more than 60% in 2025, according to the Kazakh government. “Our task is to provide cargo from Central Asian countries with fast and reliable access to the markets of the Caucasus, Turkey, and Europe,” Bektenov said. Aktau and Kuryk are the main Kazakh ports on the Trans-Caspian International Transport Route, commonly known as the Middle Corridor. The rail-and-sea route links China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey. For Uzbekistan, one of the world’s two double-landlocked countries, the Kazakh ports provide access to the western section of the corridor. Freight is carried by rail to the Caspian coast before being transferred to ships bound for Azerbaijan. The two governments did not say how much additional freight they expect to carry or when the railway companies must complete their plan. Further growth will depend on tariffs, the availability of railcars and vessels, border procedures, and the capacity of railway lines serving the ports. The combined infrastructure capacity of Aktau and Kuryk is about 22 million metric tons a year, according to Yelzhas Otynshiyev, chairman of Kazakhstan Temir Zholy, the state railway company. Aktau alone can handle as much as 12 million tons annually and operates throughout the year. Container transit through the Kazakh ports on the Middle Corridor increased 3.8-fold between 2022 and 2025, the government said. The first phase of a container hub with annual capacity of 140,000 twenty-foot equivalent units has opened at Aktau. A second phase, due in 2027-2028, is expected to lift capacity to 240,000 TEUs. Kazakhstan has also ordered six container vessels. Four are due for delivery in 2027 and two more in 2028. The additional ships are intended to reduce dependence on the limited pool of vessels operating on the Caspian Sea. Capacity constraints remain at the ports and on the rail network. Falling Caspian Sea levels have made it harder for fully loaded vessels to enter some harbors and increased the need for dredging. Kazakhstan completed dredging at Kuryk in 2025 and plans to finish similar work at Aktau by the end of 2026. The World Bank lists port capacity, rail access, and delays at the Kazakhstan-Uzbekistan border among the main bottlenecks affecting the Middle Corridor. Some freight operators use longer routes because existing border crossings and rail links cannot handle demand efficiently. The bank has also called for additional berths and modern cargo-handling equipment at Aktau as the Caspian becomes shallower. Kazakhstan is upgrading the Shalkar-Beineu and Beineu-Mangystau railway sections that carry traffic to Aktau and Kuryk. In February 2026, the World Bank approved an $846...

Middle Corridor

Kazakhstan and European Partners Announce $462 Million Middle Corridor Agreements in Brussels

Kazakhstan and its European partners unveiled four transport deals worth a combined $462 million on June 22, giving President Kassym-Jomart Tokayev’s visit to Belgium a concrete outcome on Eurasian connectivity. The package was presented at the business conference “Strengthening EU-Kazakhstan Connectivity: Perspectives and Strategic Potential of the Middle Corridor.” The Trans-Caspian International Transport Route, also known as the Middle Corridor, is a multimodal transport corridor linking China and Europe through Central Asia and the South Caucasus, offering an alternative to routes that pass through Russia. The conference was organized by Kazakhstan Temir Zholy, Kazakhstan’s national railway operator, and brought together representatives of the European Commission, the European Parliament, international financial institutions, and major European transport and logistics companies, including DHL Global Forwarding, Alstom, DB Cargo, HHLA International, Rhenus Logistics, Hellmann Worldwide Logistics, Ahlers Logistics, and A.P. Moller-Maersk. The conference focused on strategic development priorities for the Middle Corridor, including increasing the capacity of the Trans-Caspian International Transport Route, modernizing railway, port, and terminal infrastructure, digitalizing logistics processes, and developing sustainable supply chains across Eurasia. The four documents, presented as a $462 million package, aim to strengthen transport connectivity between Europe and Asia and further develop the Trans-Caspian route. Kazakhstan’s Ministry of Transport and SITA, a global provider of information and telecommunications solutions for the aviation industry, signed a memorandum of cooperation on the digitalization of state airports, including biometric identification. National road operator QazAvtoZhol and the European Bank for Reconstruction and Development signed a loan agreement for the Aktobe-Ulgaisyn road project. The Aktobe-Ulgaisyn project covers a 234-kilometer section of the Western Europe-Western China corridor and is intended to improve regional and transit connectivity. KTZ Express, a subsidiary of Kazakhstan Temir Zholy, signed an agreement with Midia Marine Terminal for a joint project in Romania’s Port of Midia. The project aims to expand Black Sea route infrastructure and improve cargo handling efficiency. In addition, KTZ Express and A.P. Moller-Maersk agreed to cooperate on container shipping along the Trans-Caspian International Transport Route and to attract additional cargo volumes to the route. Speaking at the conference, Kazakhstan’s Deputy Foreign Minister Arman Issetov stressed that the route has evolved far beyond a traditional transit corridor and is increasingly becoming a major geo-economic project serving the interests of both Central Asia and Europe. He said that amid shifting global supply chains and growing demand for reliable and diversified transport routes, Kazakhstan continues to advocate for open, resilient, and mutually beneficial connectivity between East and West. Particular attention was given to the complementarity between the Trans-Caspian International Transport Route and the European Union’s Global Gateway initiative. Under this strategy, the Trans-Caspian corridor has become a priority for strengthening sustainable connectivity between Europe and Central Asia, with Kazakhstan playing a central role as a major Eurasian transport hub. At the Third National Workshop of the Trans-Caspian Transport Corridor Coordination Platform in Astana on June 3, EU Ambassador to Kazakhstan Aleška Simkić said: “Through our €30 million Trans-Caspian Transport support program and other projects, the European Union supports...

Rail Freight

Kazakhstan and Russia Digitalize Rail Freight Transportation

Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ), and Russian Railways have signed a joint action plan to develop the digitalization of bilateral rail freight transportation. The document was signed on May 28 during Russian President Vladimir Putin’s state visit to Kazakhstan. According to KTZ, the plan aims to create a unified digital space between the railways of Kazakhstan and Russia. The company said the move would improve the efficiency of transportation processes, speed up cargo handling, and introduce modern digital solutions on international routes. Implementation of the plan is expected to support seamless transit, remove digital barriers, expand electronic document exchange, and develop paperless technologies in freight transportation. The parties also agreed to gradually increase the number of trains passing through nine interstate railway crossings on the Kazakhstan-Russia border. KTZ described the signing as an important step in developing transport and logistics cooperation between Kazakhstan and Russia, saying it would also strengthen Kazakhstan’s role as a key economic bridge between Russia and the countries of Central Asia. According to KTZ, rail freight between Kazakhstan and Russia totaled 92.1 million tons in 2025, up 3.5% from 2024. The growth was driven primarily by transit operations. Russian cargo exports through Kazakhstan increased by 16.1% to 17.3 million tons, while cargo exports from Kazakhstan transiting through Russia rose by 20.4% to 21.5 million tons. The growth trend has continued this year. In the first four months of 2026, exports from Kazakhstan, including coal, ferrous metals, and fertilizers, transiting by rail through Russia increased by 70,000 tons to 7 million tons. Russian cargo transported to and through Kazakhstan, including oil products, ferrous metals, grain and food products, exceeded 12 million tons, an increase of about 20%.

IPO

Kazakhstan’s National Railway Operator KTZ Plans IPO in 2026

Kazakhstan Temir Zholy, Kazakhstan’s national railway operator, plans to launch an initial public offering in 2026 with a proposed triple listing in London, Hong Kong, and Kazakhstan. Kazakhstan Temir Zholy, or KTZ, is wholly owned by Kazakhstan’s sovereign wealth fund, Samruk-Kazyna. On May 23, Samruk-Kazyna and KTZ announced plans to proceed with the IPO. The offering also comes as KTZ faces rising debt and major capital needs linked to railway modernization and corridor expansion. The sovereign wealth fund said Kazakhstan government resolution No. 894, adopted on October 24, 2025, provides for KTZ’s IPO to take place in 2026. “Samruk-Kazyna and KTZ are currently carrying out active preparations for an international IPO, which is expected to involve a triple listing on the London Stock Exchange, the Hong Kong Stock Exchange, and a local stock exchange in Kazakhstan,” the statement said. The IPO is expected to be conducted exclusively through the issuance of new shares by KTZ itself, rather than through the sale of existing shares held by the sovereign wealth fund on the secondary market. “As a result, the funds raised through the IPO will remain at KTZ’s disposal for its own operational and investment needs,” the fund stated. The proceeds are expected to be used to repay part of the company’s debt obligations and finance a large-scale investment program aimed at modernizing Kazakhstan’s railway infrastructure, expanding the capacity of transport corridors, renewing rolling stock, and strengthening the country’s overall transit potential. The IPO comes as KTZ faces a heavier debt burden linked to rolling stock purchases, infrastructure upgrades, and Kazakhstan’s efforts to expand its transit capacity. The Times of Central Asia previously reported that KTZ’s nominal debt rose from about $5.7 billion in early 2024 to roughly $8 billion in 2025, before reaching 4.7 trillion tenge, or about $10.4 billion, by April 2026. Official estimates put borrowing for rolling stock renewal at about $4.9 billion and railway infrastructure modernization at about $2.3 billion. Samruk-Kazyna said preparing KTZ for an IPO requires extensive preliminary work, including efforts to improve the company’s attractiveness to international investors. “Such preparatory activities are currently being carried out jointly by the fund and KTZ in coordination with the government. At this stage, it is not yet possible to disclose further details,” the statement said. The fund added that a detailed assessment of market conditions will be conducted closer to the IPO date by investment banks engaged by KTZ. The final timing and parameters of the IPO will depend on market conditions, KTZ’s readiness, and the level of investor interest. KTZ’s main investment case is likely to center on Kazakhstan’s role in the Trans-Caspian International Transport Route, also known as the Middle Corridor. The route links China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and onward routes through Turkey or the Black Sea. But the corridor also requires heavy spending on infrastructure, equipment, coordination, and the removal of bottlenecks. That means the IPO may be viewed both as a transit-growth story and as a way...

IPO

IPO as a Lifeline: Who Will Pay for Kazakhstan Railways’ Growing Debt?

The planned IPO of Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ), once presented by the authorities as one of the largest public offerings in Central Asia, is increasingly being viewed as an attempt to stabilize the company’s balance sheet amid rapidly rising debt. The share sale, expected in late 2026, may turn out to be less a growth story than a mechanism for refinancing the obligations of the state-owned carrier. During parliamentary hearings on April 24, company executives acknowledged that one of the key objectives of the IPO is to raise funds to service KTZ’s growing debt burden. According to official company and government data, KTZ’s nominal debt has risen sharply. It stood at about $5.7 billion in early 2024, and roughly $8 billion by 2025. By April 2026, it had reached 4.7 trillion tenge, or about $10.4 billion. The increase reflects heavy borrowing for rolling stock, infrastructure modernization, and the expansion of Kazakhstan’s transit capacity, including projects linked to the Middle Corridor. It also reflects the cost of maintaining below-market tariffs for socially important domestic freight. Kazakhstan’s Supreme Audit Chamber warned as early as 2024 about risks related to the company’s financial sustainability. However, the authorities and KTZ management argue that large-scale borrowing was necessary to prevent an infrastructure crisis. According to official estimates, borrowed funds include about $4.9 billion for renewing rolling stock, including locomotives and railcars, and about $2.3 billion for modernizing railway infrastructure. The currency structure of the debt represents an additional vulnerability. More than half of the company’s obligations are denominated in foreign currencies, making KTZ highly sensitive to fluctuations in the tenge. Any weakening of the national currency automatically increases debt servicing costs and reduces the operator’s profitability. Potential investors face another challenge: historically, KTZ has served not only as a commercial company but also as an instrument of state social policy. A substantial share of revenues from China-Europe transit freight is used to subsidize unprofitable domestic passenger transport and the transportation of socially important goods within Kazakhstan. This cross-subsidization mechanism limits the company’s ability to generate free cash flow. Grain transportation under regulated tariffs alone generated losses of approximately $95 million (44 billion tenge) for KTZ in 2024. In an effort to improve the company’s attractiveness ahead of the IPO, KTZ has initiated large-scale tariff increases for mainline railway services. Beginning in April 2026, transportation tariffs for coal, grain, and iron ore were doubled. However, the move risks adding to costs in Kazakhstan, where railway tariffs directly affect the cost of food, electricity, and industrial goods. Annual inflation stood at 12.2% in January 2026, adding to concerns that higher railway tariffs could feed into wider price pressures. Additional inflationary pressure may come from the expiration of the government’s moratorium on utility tariff increases, after which household utility bills in some regions could rise by 10-20%. Against this backdrop, analysts do not rule out a return to tighter state regulation of tariffs, a development that could once again limit the ability of natural...