Kazakhstan Temir Zholy - The Times Of Central Asia

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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...

rail tourism

Kazakhstan and Uzbekistan Continue to Popularize Rail Tourism

Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), and Oʻzbekiston temir yoʻllari, also known as Uzbekistan Railways, organized this year’s second Keruen Express train tour from May 1 to 6. More than 130 passengers traveled along the Almaty-Turkestan-Samarkand-Tashkent-Almaty route. Over five days, participants visited major architectural and historical sites in both countries, including the Khoja Ahmed Yasawi Mausoleum in Turkestan, the Gur-e-Amir mausoleum and the Registan in Samarkand, and the Hazrati Imam Complex in Tashkent. The Keruen Express promotes rail tourism and the region’s historical heritage while strengthening cultural ties between Kazakhstan and Uzbekistan. Rail tourism is gaining traction in Central Asia. As previously reported by The Times of Central Asia, KTZ expanded its popular Jibek Joly (Silk Road) tourist train route to include Tajikistan. The updated route now reaches the Tajik capital, Dushanbe, extending the tour beyond Kazakhstan and Uzbekistan. The train-tour projects are part of a regional push to promote Central Asia as a unified tourist destination. Regional leaders have advocated for a shared visa-free regime for foreign visitors, similar to Europe’s Schengen Area, to encourage cross-border travel and boost international tourism. Speaking at the 59th Annual Meeting of the Board of Governors of the Asian Development Bank in Samarkand on May 4, Uzbekistan President Shavkat Mirziyoyev proposed creating a Central Asia Tourism Ring as a unified tourism space connecting the countries of the region. Mirziyoyev called on neighboring countries, the ADB, and other partners to form a portfolio of tourism development projects and jointly finance them. Mirziyoyev also highlighted Central Asia’s tourism potential, noting that amid global instability, millions of tourists are seeking safe destinations, and the region has significant opportunities in pilgrimage, cultural, gastronomic, ethnographic, extreme, and medical tourism.

Trans-Caspian Route

Kazakhstan to Develop Maritime Component of Trans-Caspian Transport Route

Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ), is moving to build its own maritime fleet to expand the Trans-Caspian International Transport Route (TITR). Also known as the Middle Corridor, the TITR 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. KTZ Express Shipping, a subsidiary of KTZ, has signed contracts for the construction of six general-purpose dry cargo container ships. Agreements have been concluded with China’s Jiangsu Haizhongzhou Shipping Industry Co., Ltd. for the construction of four vessels and with Azerbaijan’s Baku Shipyard for the construction of two. The vessels will be river-sea ships with a deadweight of up to 9,900 tons and a capacity of up to 537 TEUs, adapted for operations on both the Caspian and Black Sea routes. This is expected to support the integration of the maritime segment into the TITR’s multimodal logistics chain. The ships will be equipped with modern navigation systems in line with international requirements and environmental standards. Their safety, reliability, and environmental performance are expected to enhance their suitability for international routes and increase confidence among global shippers. The project is intended to give Kazakhstan a larger role in the TITR by establishing a sustainable maritime component of the route. Kazakhstan’s maritime transport sector has recorded steady growth in recent years. In 2025, maritime cargo volumes reached 8 million tons, a 7% increase compared to 2024. Container traffic through Kazakh seaports rose by 29% to 90,637 TEUs, while cargo volumes transported along the TITR increased by 36%. Under the country’s comprehensive maritime infrastructure development plan for 2024-2028, Kazakhstan intends to establish a major transport and logistics cluster based on the ports of Aktau and Kuryk. The plan includes expanding container handling capacity, developing cargo terminals and international shipping logistics, and reducing administrative barriers. By 2028, total cargo throughput at the ports is expected to increase by 50%, while container handling volumes are projected to triple. Plans are also in place to increase container traffic along the TITR, including the transit of 600 container trains from China through Kazakhstan this year. As previously reported by The Times of Central Asia, freight volumes transported along the Middle Corridor through Kazakhstan have grown more than five times over the past seven years, increasing from 0.8 million tonnes to 4.5 million tonnes annually.

EBRD

EBRD Invests $125 Million in Kazakhstan Railway Operator Eurobond

The European Bank for Reconstruction and Development is investing up to $125 million in a Eurobond issue by Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ). The bond, with a total value of up to $1 billion, was listed on the London Stock Exchange, Kazakhstan Stock Exchange, and Astana International Exchange. The EBRD’s investment will help modernize passenger stations across Kazakhstan, supporting improvements in safety and operational performance. The upgraded stations are expected to offer higher throughput capacity, modern lighting, and significant enhancements for passengers with disabilities. According to the Kazakh Ministry of Transport, a large-scale reconstruction and modernization program covering 124 railway stations nationwide began in 2025. The initiative aims to improve convenience and accessibility for all passengers, including those with disabilities, and to bring Kazakhstan’s railway infrastructure in line with international quality and safety standards. Additional infrastructure upgrades financed by the bond will take place along the Trans-Caspian Corridor and are expected to support more sustainable rail transportation between Europe and Asia. The EBRD will also mobilize technical cooperation funds to help KTZ adopt international standards in passenger rail services, including measures to strengthen cybersecurity. KTZ owns and operates a 16,400-kilometer railway network and manages more than 1,700 locomotives, 46,800 freight cars, and 2,300 passenger cars. In the first quarter of 2026, KTZ transported approximately 3.2 million passengers. KTZ also transported 64.5 million tons of cargo in the first quarter of 2026, an increase of 360,000 tons compared to the same period last year. Domestic shipments accounted for 40.8 million tons, while exports totaled 23.7 million tons, up 2.2%.

Transportation

Kazakhstan Boosts Container Train Traffic Along Middle Corridor

In the first quarter of 2026 Kazakhstan recorded a significant increase in container train traffic along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, underscoring the country’s growing role in Eurasian logistics. One hundred and twenty-five container trains transited through Kazakhstan via the TITR, marking a 34.4% increase compared to the same period in 2025. The growth was largely driven by a new logistics approach introduced by national railway operator Kazakhstan Temir Zholy (KTZ) aimed at accelerating container transportation. Since January 2026, KTZ has implemented a synchronized model for forming container trains that aligns rail and maritime transport schedules. This system enables container trains to be assembled directly for shiploads, eliminating the need for additional cargo accumulation and significantly reducing handling times. The new model has already been applied to 28 container trains bound for key logistics hubs, including: Absheron, Azerbaijan; Poti and Tbilisi, Georgia; and Mersin and Izmit, Turkey. The TITR is a multimodal corridor linking China and Europe through Central Asia and the South Caucasus, providing an alternative to routes that pass through Russia. The geography of cargo origins has also broadened. While the Chinese city of Xi’an accounted for roughly 50% of all shipments in 2025, additional industrial centers have now joined the route, including Zhengzhou, Yiwu, Hefei, Wuhan, Tianjin, Shenzhen, and Guangzhou. This diversification is expected to further strengthen the corridor’s resilience and capacity. KTZ plans to scale up the synchronized transportation model throughout 2026, enhancing the efficiency and competitiveness of the TITR. As previously reported by The Times of Central Asia, freight volumes transported along the Middle Corridor through Kazakhstan have grown more than fivefold over the past seven years, increasing from 0.8 million tons to 4.5 million tons annually. Container transportation has emerged as one of the fastest-growing segments of the route. In 2025, approximately 77,000 TEUs were transported along the TITR, and Kazakhstan aims to increase this figure to 300,000 TEUs by 2029, reflecting its ambition to position the corridor as a key artery for Eurasian trade.