Kazakhstan Temir Zholy - The Times Of Central Asia

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Railways

AIIB Supports Almaty Railway Bypass with $150 Million Loan

The Asian Infrastructure Investment Bank (AIIB) has signed a landmark $150 million loan agreement to finance the Almaty Railway Bypass Project in Kazakhstan. The funding will be provided to Kazakhstan Temir Zholy (KTZ), the national railway operator, under a non-sovereign loan structure. The AIIB loan forms part of a broader international financing package of up to $300 million, denominated in Swiss francs. The package is jointly arranged by the International Finance Corporation (IFC), AIIB, and the Multilateral Investment Guarantee Agency (MIGA), with IFC and AIIB providing investment and MIGA offering risk guarantees. According to AIIB, the structure reflects robust international confidence in Kazakhstan’s transport modernization efforts and in KTZ’s strategic role in national infrastructure. The project will support the construction of a new single-track, electrified freight railway bypass along the northern perimeter of Almaty, Kazakhstan’s largest city. The bypass will extend approximately 75 kilometers, connecting Zhetygen station in the east with Kazybek Bek station in the west. Its primary objective is to redirect freight traffic away from Almaty’s city center by establishing a dedicated cargo corridor. The scope also includes new stations, bridges, overpasses, and upgrades at both terminal points. According to AIIB, the bypass is expected to alleviate congestion on Almaty’s current rail network, enhance passenger service efficiency, and reduce freight delays. By separating passenger and cargo rail lines, the project aims to lower emissions caused by congestion and improve operational safety. AIIB emphasized the project’s role in strengthening Kazakhstan’s position as a regional transit hub by boosting rail efficiency along key Eurasian corridors, including the Middle Corridor. “Strengthening Kazakhstan’s transport backbone is essential for supporting the country’s long-term growth and its role as a key connectivity hub across Eurasia,” said Konstantin Limitovskiy, AIIB’s Chief Investment Officer. He noted that the Almaty bypass addresses a major bottleneck in the national rail system, enabling “faster, cleaner, and more reliable freight movement.” IFC also underscored the regional significance of the initiative. “By addressing key bottlenecks and improving network reliability, the project is expected to generate positive spillovers for trade facilitation, private sector competitiveness, and the overall logistics ecosystem,” said Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources. Kazakhstan, a founding member of AIIB, is one of the bank’s most active clients in Central Asia. AIIB stated that the project aligns with its strategic focus on connectivity and regional cooperation. Implementation will be led by Kazakhstan Temir Zholy, with construction set to begin following the conclusion of final procurement procedures. In July of last year, Kazakhstan Temir Zholy secured a separate syndicated loan of up to 480 million Swiss francs (approximately $540 million) for a three-year term. Arranged by Abu Dhabi Commercial Bank and Deutsche Bank, the loan supports infrastructure development along the Trans-Kazakhstan Railway Corridor.

Trans-Kazakhstan Railway Corridor

Kazakhstan Accelerates Development of Trans-Kazakhstan Railway Corridor

With a closed domestic railway network now fully in place, Kazakhstan has shifted focus toward developing new routes aimed at enhancing export and transit cargo delivery. In early 2025, President Kassym-Jomart Tokayev ordered the acceleration of the Trans-Kazakhstan railway corridor, an essential component of the Trans-Caspian International Transport Route. Central to this effort is the construction of the Mointy-Kyzylzhar railway line. Rail transport remains a vital sector of Kazakhstan’s economy, shaping both domestic commodity markets and the country’s strategic transit potential. In the face of shifting geopolitical dynamics and rising demand for freight transport, Kazakhstan has gained fresh opportunities to expand its international logistics capabilities. However, aging infrastructure, bottlenecks, and missing links continue to restrict this potential and hinder trade growth. In response, Kazakhstan has launched a series of major infrastructure projects, including the Mointy-Kyzylzhar line, an extension of the existing Dostyk-Mointy branch. According to JSC “NC “KTZ”, the project will expand the nation’s transit capacity, ease congestion on the Mointy-Zharyk segment, remove key bottlenecks, and reduce delivery times through route optimization. It is also expected to stimulate economic activity in the Karaganda and Ulytau regions by strengthening export logistics and creating new jobs. The direct link between Mointy and Kyzylzhar stations will shorten the Trans-Caspian corridor and reduce traffic on overburdened parts of the network. In an interview with The Times of Central Asia, Saken Rakhmetov, Managing Director of the Mainline Network Directorate at KTZ, noted that the project will shorten delivery distances and eliminate locomotive changeovers at Mointy and Zharyk. This, he said, could reduce shipping times from the Chinese border to the port of Aktau by more than a day, depending on the route. The project entails constructing over 390 kilometers of rail infrastructure, including single-track lines, stations, two overpasses, 35 bridges, 21 cattle crossings, 108 culverts, 16 passing loops, and five stations. Topographic, geodetic, geological, and hydrological surveys have been completed. More than 96% of the planned 12.9 million cubic meters of roadbed has been filled. Installation of culverts is underway, with 11 already completed and 14 in progress. More than half of the rail-sleeper grid, 165 kilometers out of 323, has been assembled, with track laying initiated at both ends. According to the approved timeline, construction of pipes, bridges, and overpasses, along with power and communication systems and related infrastructure, is scheduled for completion in 2026. A notable feature of the project is the use of jointless track technology, which employs long continuous welded rails rather than standard 25-meter links. This design reduces dynamic stress on the track, cuts wear and tear on infrastructure and rolling stock, improves energy efficiency, and allows higher train speeds. At the height of construction during July-August, approximately 550 pieces of machinery and up to 1,150 workers were deployed. Upon completion, the line is expected to create at least 700 permanent jobs. According to KTZ, about 80% of the goods, services, and labor used in the project are sourced locally, with final figures to be confirmed after a state review...

Middle Corridor

Kazakhstan, Azerbaijan, Georgia, and China Deepen Cooperation on Trans-Caspian Transport Corridor

Railway companies from Kazakhstan, Azerbaijan, and Georgia have signed a cooperation agreement with China Railway Container Transport Corp., Ltd. (CRCT) to jointly develop the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor – a strategic link connecting China and Europe via Central Asia and the South Caucasus. The agreement was signed during the Second China Railway Express Cooperation Forum, held on 18 November in Xi’an, under the theme “Connecting Asia and Europe for a Shared Future.” According to Kazakhstan Temir Zholy (KTZ), the country’s national railway operator, the agreement establishes formal cooperation between Chinese railways, through CRCT, and MIDDLE CORRIDOR MULTIMODAL Ltd., a joint venture created in 2023 by the railway companies of Kazakhstan, Azerbaijan, and Georgia. The initiative aims to enhance the efficiency, safety, digitalization, and sustainability of China-Europe rail container transport services along the trans-Caspian route. Kazakhstan, Azerbaijan, and Georgia play key roles along the TITR, which offers a vital alternative trade corridor between China and Europe that bypasses Russia. In recent years, Kazakhstan has strengthened its position as a regional transit hub. KTZ reports that freight transportation between Kazakhstan and China has increased more than 4.5-fold over the past decade. For 2025, total freight volume is projected to reach 35 million tons, with over 29 million tons transported in the first ten months, an 11% year-on-year increase. Joint infrastructure projects in China and Kazakhstan, including hubs in Lianyungang, Khorgos, and Xi’an, continue to demonstrate strong growth. Container shipments have more than quintupled in the past ten years, exceeding 1.4 million twenty-foot equivalent units (TEUs). Momentum along the Trans-Caspian route also remains strong: the number of container trains increased by 12% in the first ten months of this year. To capitalise on this growth, Kazakhstan is investing in railway infrastructure. Modernization and construction of 5,000 kilometers of railway track is underway, which will raise the country’s annual cross-border freight capacity with China to 100 million tons in the coming years.

Exports

Kazakhstan Boosts Animal Feed Exports to China

Kazakhstan has significantly increased its exports of compound animal feed to China, even as shipments of unprocessed grain have declined, according to Kazakhstan Temir Zholy (KTZ), the national railway operator. The shift in export dynamics is attributed to China’s record 700-million-ton grain harvest in 2025. In response to domestic supply, the Chinese authorities have tightened grain import regulations and introduced customs restrictions. As a result, Kazakhstan’s grain export structure has shifted toward processed goods with higher added value, most notably, compound animal feed. Animal feed is in high demand within China’s livestock sector and receives priority clearance at border checkpoints. This preferential treatment has contributed to a notable surge in Kazakh feed exports. During the first two months of the current marketing year (September-October 2025), KTZ transported 873,000 tons of grain for export, including 672,000 tons of animal feed, a 3.5-fold increase compared to the same period last year. Overall grain exports to China, however, rose 35% year-on-year to 3.5 million tons between January and October 2025, reflecting a shift toward higher-value processed goods rather than bulk grain. According to the Ministry of Agriculture, Kazakhstan continues to export most of its grain to countries across Central Asia and the Caucasus, including Uzbekistan, Tajikistan, Kyrgyzstan, Afghanistan, Turkmenistan, and Azerbaijan.

Railways

Central Asia’s Rail Corridors: U.S. and Chinese Partnerships in Perspective

Kazakhstan’s railways are modernizing with a U.S. supplier, while Kyrgyzstan and Uzbekistan are advancing a new trans‑mountain link with China. On September 22, 2025, Wabtec and KTZ announced a multi‑year locomotive and services package worth about $4.2 billion, described by the company as its “largest” agreement. In parallel, China, Kyrgyzstan, and Uzbekistan formalized a joint company to build the long-planned CKU railway, with China holding a 51% stake. Central Asia’s rail networks are thus being reshaped by two major partnerships - one with the United States and one with China. Rather than a zero-sum rivalry, these projects show how regional governments are pursuing different infrastructure strategies to expand connectivity. Kazakhstan and Wabtec: Modernizing an Existing Network In September 2025, Kazakhstan’s railway operator KTZ signed a $4.2 billion agreement with U.S.-based Wabtec for 300 Evolution Series ES44ACi locomotives. The diesel-electric engines are tailored for Kazakhstan’s 1,520 mm gauge network and harsh climate, replacing aging Soviet-era stock. Wabtec finalized full ownership of the Astana locomotive plant in late 2023; production and services for 1,520-mm stock are now fully under Wabtec’s Kazakhstan subsidiary. Local manufacturing and long-term service contracts are expected to expand domestic engineering capacity. The locomotives’ digital diagnostic systems should improve fuel efficiency and maintenance intervals. According to the official Wabtec press release, the agreement “strengthens KTZ’s role as a critical and reliable hub for the Middle Corridor,” while KTZ CEO Talgat Aldybergenov said it “confirms our commitment to advanced technologies in the transport sector”. Rail accounts for about 64% of Kazakhstan’s freight turnover (2024), so locomotive performance directly affects Middle Corridor throughput. Financing details have not been disclosed, but the purchase appears to be domestically funded through KTZ and state support. For Astana, the order fits its multi-vector foreign-policy approach: Kazakhstan continues its partnerships with France’s Alstom, China’s CRRC, and Russia, maintaining balance across suppliers. While the locomotives are diesel, Kazakhstan is also electrifying key lines with European partners. Diesels provide an immediate boost without new catenary investment, and Wabtec claims lower emissions than previous models. Over time, expanded electrification could complement this upgrade. Overall, the Wabtec partnership represents incremental modernization. This is an interoperability-based approach that strengthens existing routes rather than building new corridors from scratch. [caption id="attachment_37655" align="aligncenter" width="950"] Image: trains.com - One of Kazakhstan’s modern Evolution Series diesel locomotives (model TE33A) produced through a partnership with U.S. firm Wabtec. Kazakhstan’s railways carry about 64% of the country’s freight, making such upgrades crucial for trade connectivity.[/caption] The China–Kyrgyzstan–Uzbekistan (CKU) Railway: Building a New Corridor After nearly three decades of discussion, China, Kyrgyzstan, and Uzbekistan launched construction of the CKU railway in late 2024. The 523 km line will run from Kashgar (Xinjiang) through the Kyrgyz mountain ranges to Andijan, Uzbekistan. It will provide a second direct China–Central Asia connection, bypassing reliance on Kazakhstan’s network. The CKU is designed with dual gauges: standard (1,435 mm) in China and broad (1,520 mm) in Kyrgyzstan and Uzbekistan, with a dry-port transshipment hub in Makmal, Kyrgyzstan. This compromise allows integration with existing Central...

Transport and Logistics

Kazakhstan Bets on U.S. Technology to Modernize Railways

Kazakhstan’s railways are not just about moving freight - they are about positioning the country at the heart of Eurasia’s transport map. In a region where China’s Belt and Road, Russia’s transit corridors, and Europe’s markets converge, rail infrastructure has become a strategic asset. Against this backdrop, Kazakhstan Temir Zholy (KTZ) has signed a landmark $4.2 billion agreement with U.S.-based Wabtec for the supply of 300 TE33A locomotives and the maintenance of both existing and newly acquired rolling stock. The deal, which includes the construction of social infrastructure in regions where service centers are located, is one of the largest in the history of Kazakhstan’s rail sector, underscoring Astana’s ambition to cement its role as a key Eurasian logistics hub. To explore the agreement’s significance and the implications for Kazakhstan’s rail sector, The Times of Central Asia spoke with Asan Umbetov, Deputy General Director for Locomotive Operations at KTZ-Freight Transportation. TCA: What does this agreement mean for Kazakhstan’s railway sector? Umbetov: Kazakhstan is increasingly positioning itself as a key transport and logistics hub in Eurasia, with freight volumes having multiplied in recent years. To remain competitive, we need a modern and reliable locomotive fleet. Many of our diesel locomotives from the 1970s and 1980s are nearing the end of their service life. The TE33A series offers clear advantages: reduced fuel consumption, lower maintenance costs, operational readiness of up to 95%, enhanced traction, and resilience in extreme weather. They also improve working conditions for crews, featuring air conditioning, refrigerators, and onboard sanitation. This investment supports not only transport efficiency but also job creation, increased tax revenue, and the growth of adjacent industries, such as maintenance, warehousing, and logistics. In essence, modernizing our locomotive fleet is an investment in Kazakhstan’s broader economic and strategic positioning in Eurasian freight transport. TCA: How would you assess KTZ’s cooperation with Wabtec to date? Umbetov: Wabtec brings over a century of global experience and has operated in Kazakhstan for more than 27 years. Initially focused on modernizing 2Т10МК locomotives, the company launched the Locomotive Assembly Plant (LAP) in Astana in 2009. Today, the plant is staffed entirely by Kazakh citizens, including its management, and manufactures freight, passenger, and shunting locomotives certified under Eurasian Customs Union standards. In 2024, Wabtec opened an engineering center at LAP to provide technical expertise across the CIS. Its specialists will also participate in the development of the new TE33A series. Wabtec’s Astana Diesel Service plant handles major overhauls of Evolution-series diesel engines and other components, while seven service centers across Kazakhstan ensure ongoing maintenance. The company also supports the Bolashak program, offering paid internships for Kazakh students at its U.S. facilities. Since LAP’s launch, 572 locomotives have been produced for KTZ, and 40 units have been exported to Kyrgyzstan, Moldova, Tajikistan, Azerbaijan, Ukraine, Turkmenistan, and Mongolia. The plant has achieved a localization level of 40%. TCA: When will the new locomotives be delivered? Umbetov: Deliveries under the current contract will continue until 2026. The new agreement, covering 300 locomotives, spans the...