Kazakhstan Temir Zholy - The Times Of Central Asia

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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...

Trans-Caspian Route

Kazakhstan and Turkey to Jointly Develop Trans-Caspian Transport Route

Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ), and Turkey’s TCDD Taşimacilik A.Ş. have signed a cooperation agreement to enhance railway freight transportation along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. Bypassing Russia, the TITR links China and Europe via Central Asia and the Caspian Sea. Freight volumes along the corridor surged by 60% in 2024, reaching 4.5 million tons. Projections suggest that figure could surpass 10 million tons by 2030. According to KTZ, the agreement outlines several joint initiatives aimed at improving the route’s efficiency and competitiveness. Key measures include: Launching regular rail services between Kazakhstan and Turkey; Increasing freight volumes on the Baku-Tbilisi-Kars railway line; Expanding two-way cargo flows between China and Europe/Africa; Streamlining transit procedures and logistics coordination; Simplifying customs and administrative processes to speed up cross-border cargo movement. The partnership will also focus on implementing digital solutions such as paperless documentation and real-time tracking of containers and rolling stock. These initiatives are expected to enhance Kazakhstan’s transit and logistics capacity and reinforce its strategic role in global supply chains. The agreement was signed during President Kassym-Jomart Tokayev’s official visit to Turkey. During the visit, Tokayev reiterated Kazakhstan’s commitment to developing the Trans-Caspian route and highlighted interest in attracting Turkish investment in key infrastructure sectors, including railways, dry ports, cargo terminals, and shipbuilding. As part of the visit, KTZ also held talks with Mersin International Port, part of the PSA International Group, on expanding cooperation to develop the Middle Corridor and establish more efficient multimodal logistics links between Asia and Europe. KTZ Chairman Talgat Aldybergenov affirmed both sides’ commitment to ensuring stable freight volumes and underscored Mersin’s role as a strategic transshipment hub for the Middle Corridor. To further strengthen the logistics chain, Kazakhstan proposed leveraging the potential of KPMC, a joint venture between KTZ and PSA International, which is already involved in developing multimodal services along the Xi’an-Istanbul route.

Middle Corridor

KTZ Secures $540 Million Loan to Upgrade Trans-Kazakhstan Railway Corridor

Kazakhstan Temir Zholy (KTZ), the national railway operator, has secured a syndicated loan of up to 480 million Swiss francs (approximately $540 million) for a three-year term. Arranged through Abu Dhabi Commercial Bank and Deutsche Bank, the financing will support key infrastructure projects along the Trans-Kazakhstan Railway Corridor. According to KTZ, the loan will fund construction of the Moiynty-Kyzylzhar section, upgrades to congested segments of the national rail network, and the refinancing of existing debt. The Trans-Kazakhstan Railway Corridor is central to Kazakhstan’s strategy to solidify its role as a major overland transit hub connecting China and Europe. Infrastructure improvements are expected to reduce delivery times, lower logistics costs, create jobs, and diversify international trade routes, enhancing both the resilience of Kazakhstan’s economy and the competitiveness of its transport sector. Currently, more than 80% of overland freight from China to Europe passes through Kazakhstan via the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. This route circumvents Russia and connects China to Europe through Central Asia and the Caspian Sea. In 2024, freight volumes along the TITR surged by 60%, reaching 4.5 million tons. Kazakhstan aims to more than double that volume to 10 million tons by 2030, as part of its broader ambition to expand its footprint in global supply chains.

China-Europe Freight Train

Kazakhstan and Russia to Expand Rail Freight Volumes, Including China-Europe Transit

Kazakhstan Temir Zholy (KTZ), the national railway operator, and Russian Railways (RZD) are preparing to boost cargo transportation volumes in the second half of 2025 and into 2026, according to a statement released by KTZ. On July 21, KTZ Chairman of the Board Talgat Aldybergenov met in Moscow with Oleg Belozerov, CEO and Chairman of the Board of Russian Railways, to assess the implementation of their Strategic Partnership Agreement, signed in November 2024 in Astana. The agreement outlines plans to modernize railway infrastructure at nine key border crossings, expand capacity, and introduce a unified digital logistics system aimed at improving efficiency and cross-border freight operations. Boosting Rail Throughput During the July 21 meeting, the two sides signed a protocol to enhance operations at interstate junction points. Under the new framework, train throughput is expected to rise by 30%, from 65 to 85 train pairs per day, beginning in the second half of this year. They also discussed increasing freight volumes along the eastern branch of the North-South International Transport Corridor, which traverses Kazakhstan and connects Russia with Turkmenistan and Iran. With a current annual cargo capacity of 10 million tons, the corridor is gaining prominence as a strategic trade route. Advancing China-Europe Rail Transit KTZ and RZD further agreed to accelerate the automation of rail transit between China and Europe. Key upgrades will include the automatic registration of transit declarations and integration with the information systems of Russian and Belarusian railway operators. According to KTZ, freight volumes have continued to rise steadily. In the first half of 2025, total rail cargo volume surpassed 45 million tons, representing a 4.1% year-on-year increase. Container transit reached 273,300 twenty-foot equivalent units (TEU), marking an 18% rise compared to the same period in 2024.

Trade

Zhetysu Terminal in Almaty to Welcome First China-Europe Freight Train

Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), has announced that the new Zhetysu container terminal in Almaty will receive its first container train on June 10. The train departed from the joint Kazakh-Chinese cargo terminal in Xi’an, China, on June 1. The Zhetysu terminal is set to become Almaty’s largest container hub for the consolidation and distribution of Chinese goods, handling cargo transported by both rail and road. It will offer comprehensive logistics services, including warehousing, customs clearance, and door-to-door delivery on a "first and last mile" basis. Strategically located at the intersection of major international transport routes, Zhetysu is expected to play a key role in facilitating cargo movement along the Trans-Caspian International Transport Route (TITR), a growing trade corridor connecting China and Europe via Kazakhstan. Strategic Synergy with Xi’an Terminal The terminal will operate in coordination with the Kazakh-Chinese terminal in Xi’an, which became operational in February 2024. That facility has an annual handling capacity of 133,000 twenty-foot equivalent units (TEUs), significantly boosting bilateral trade and transit freight volumes. In related news, KTZ reported that the 100,000th container, measured in TEU, has now departed from Xi’an along the TITR. The train, comprising 50 containers, is carrying electronics, furniture, and consumer goods bound for European markets.

Transportation

Kazakhstan’s Terminal in Xi’an Drives Surge in China-Europe Freight

Kazakhstan’s logistics terminal in Xi’an, a major transportation hub in China’s Shaanxi Province, has catalyzed a dramatic surge in container traffic along the Trans-Caspian International Transport Route (TITR), boosting Kazakhstan’s position as a critical player in regional trade. According to Kazakhstan Temir Zholy (KTZ), the national railway operator, freight volume from China via this corridor increased 33-fold in 2024. Operational since February 2024, the terminal has become a linchpin in cross-continental trade, enhancing the flow of goods between China and Europe through Kazakhstan. Xi’an hosts China’s largest dry port and is a pivotal launch point for freight to Europe. Over 30% of all container trains departing China for the European Union originate from Xi’an, while about 40% of China's imports from the Commonwealth of Independent States (CIS), which includes Kazakhstan and Russia, are routed through the city. The Kazakhstan terminal in Xi’an currently has an annual handling capacity of 133,000 twenty-foot equivalent units (TEU). In 2024, it processed over 276,000 tons of cargo, equivalent to approximately 23,000 TEU. In the first four months of 2025 alone, the terminal handled 10,524 TEU (or 126,288 tons). Plans are in place to expand throughput to 83,000 TEU annually by 2030. The terminal predominantly facilitates the shipment of vehicles and auto parts from top Chinese manufacturers including BYD, Geely, Chery, and Hongqi. It also processes large volumes of electronic goods, metal products, and consolidated cargo. This development underscores Kazakhstan’s growing strategic role in the TITR, a route increasingly seen as a vital alternative to the Northern Corridor passing through Russia. As trade dynamics shift, Kazakhstan continues to assert itself as a central transit hub connecting China with Central Asia and Europe.