Logistics - The Times Of Central Asia

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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.

Bilateral Trade

Ukrainian Deputy Foreign Minister: Astana and Kyiv Seeking to Restore Trade

Ukrainian Deputy Foreign Minister, Olexandr Mishchenko, discussed prospects for trade and economic cooperation, including the possible resumption of the Intergovernmental Commission on Trade and Economic Cooperation, during a meeting on April 2 with Serik Zhumangarin, Kazakhstan’s Deputy Prime Minister and Minister of the National Economy. In comments to The Times of Central Asia, the Ukrainian Foreign Ministry representative said Astana and Kyiv are aiming to restore bilateral trade. Trade between Kazakhstan and Ukraine reached approximately $5.5 billion annually before the war but has since declined sharply. However, according to Kazakh data, the situation has begun to improve. The Ministry of National Economy reported that trade turnover between the two countries totaled $415.8 million in 2025, up 5.4% from $394.3 million in 2024. Kazakhstan’s main exports to Ukraine include ferroalloys, fertilizers, and rice, while imports from Ukraine consist of chocolate and other cocoa products, flour and confectionery, medicines, cheese, and cottage cheese. [caption id="attachment_46523" align="aligncenter" width="960"] Image: Ukrainian Embassy in Kazakhstan[/caption] Astana and Kyiv also intend to expand the range of goods traded. During interdepartmental consultations held in Astana, the sides discussed trade, investment, agriculture, logistics, and humanitarian cooperation, with a focus on export diversification. They agreed to intensify business contacts, consider resuming the Intergovernmental Commission, and expand cooperation in priority sectors, particularly the agro-industrial complex. Mishchenko said the countries also plan to strengthen cooperation in the energy sector and restore logistics chains. Until 2022, Ukraine provided key transit routes for Kazakh exports to Europe. Before 2022, a significant share of Kazakhstan’s westbound trade relied on routes passing through or near Ukrainian infrastructure. The war disrupted those pathways and forced a broader regional shift toward alternative corridors, including routes across the Caspian and South Caucasus, which remain longer, more complex, and often more expensive. “Territorial integrity remains the cornerstone of our cooperation. We are deeply grateful to Kazakhstan for its humanitarian aid: more than 600 tons were collected, particularly during the winter. This support was critical to Ukraine’s resilience,” Mishchenko said. The visit marked the first trip by a senior Ukrainian government representative to Kazakhstan in recent years. A large delegation of Ukrainian entrepreneurs accompanied Mishchenko, seeking to re-establish business ties with Kazakh partners. “Ukraine is already looking toward the post-war future, and concrete proposals for cooperation, including in energy, are being developed through bilateral engagement with Kazakhstan,” Mishchenko told The Times of Central Asia. “Kazakhstan’s energy resources create opportunities for mutually beneficial cooperation, including potential integration into Ukrainian markets.” Mishchenko noted that a Ukrainian business mission, the first in many years, visited Kazakhstan, including the Pavlodar Region, a major industrial hub with significant heavy industry and energy capacity. “This creates real demand for modernization, engineering solutions, and equipment supplies,” he said. The delegation held meetings with government officials, financial institutions, and business representatives, alongside regional visits aimed at launching joint projects. In Astana, talks were held with the leadership of Baiterek National Management Holding. Ukrainian entrepreneurs also visited the Astana International Financial Centre and the city administration, where they were briefed...

China-Kyrgyzstan-Uzbekistan Railway

China-Kyrgyzstan-Uzbekistan Railway Enters Active Construction Phase

Construction of the China-Kyrgyzstan-Uzbekistan railway has entered an active phase, following a meeting between the Kyrgyz government and representatives of the company implementing the project. According to the project company, preparation of the main design materials has been completed, while refinement and approval of the technical documentation are ongoing. At the same time, large-scale work has begun at construction sites. More than 5,000 people and approximately 5,600 units of specialized equipment are currently involved in the project. Tunnel excavation, earthworks, and bridge construction are underway, with total earthworks exceeding 3.5 million cubic meters. Erlist Akunbekov, Deputy Chairman of the Cabinet of Ministers of Kyrgyzstan and the official overseeing the project, highlighted the importance of strict compliance with environmental standards and safety requirements. He added that the government would provide the necessary support and coordination to ensure timely completion. Kyrgyz authorities view the railway as a strategic infrastructure project. The new transport corridor is expected to provide the country with direct access to international markets and strengthen its role in regional logistics. One of the key challenges during the design phase was the difference in railway track gauge. China uses the 1,435 mm standard, while Kyrgyzstan and Uzbekistan use 1,520 mm. As a result, a compromise has been reached: part of the railway in Kyrgyzstan will be built to the Chinese standard, with a transshipment hub created to ensure connectivity. Economically, the project is expected to boost exports, primarily agricultural products, to China, the Middle East, and Europe. At present, a significant portion of cargo is transported by road through Uzbekistan and Turkmenistan, with onward routes to the Azov and Black Seas, as well as via China to Pakistan and India. The launch of rail services is expected to reduce logistics costs and improve the competitiveness of Kyrgyz products in foreign markets.

Logistics

Middle East Conflict Disrupts Logistics Routes for Deliveries to Kyrgyzstan

Military activity in the Middle East has caused serious disruptions to logistics routes used to deliver goods to Kyrgyzstan. In particular, the transit of cargo through Iran has completely stopped. This was reported to The Times of Central Asia by the Association of International Freight Forwarders of Kyrgyzstan. According to industry representatives, the auto parts market is already experiencing some of the most significant consequences. A substantial share of goods from the U.S., Europe, and the Middle East is delivered to Kyrgyzstan via the Iranian port of Bandar Abbas on the Persian Gulf. The port is considered a key transit hub through which a large volume of international cargo passes. However, due to the escalating situation in the region, maritime transport along this route has effectively been halted. As a result, many goods that have already been paid for and are intended for delivery to Kyrgyzstan remain stuck in ports of departure or transit zones. “A large volume of cargo used to be transported through the port of Bandar Abbas. We used this route for transit to the Emirates, to Dubai and Sharjah. Now we are effectively cut off from maritime transport. All the countries of the Persian Gulf are closed to us, and there are serious problems with air traffic in this region. A lot of cargo normally goes from Sharjah and Dubai to Kyrgyzstan, but these deliveries have now been suspended,” Igor Golubev, deputy chairman of the Association of International Freight Carriers of Kyrgyzstan, told The Times of Central Asia. According to him, equipment, auto parts, perfumes, and other goods are supplied to Kyrgyzstan from the countries of the Persian Gulf. If the conflict continues and logistics chains are not restored, Kyrgyzstan could face shortages of certain types of products. “Ships from all over the world used to arrive at the port of Bandar Abbas. It served as a transshipment hub from which we received a wide range of goods. Now this transit hub is effectively closed,” Golubev said. The disruptions have affected not only imports but also exports. According to the Association of Carriers, the transit of Kyrgyz cargo to Turkey and Europe, which previously passed through Iranian territory, has completely stopped. At present, more than 30 Kyrgyz trucks carrying goods remain in northern Iran, and their drivers are unable to return home. Additional difficulties have emerged due to fighting between Pakistan and Afghanistan. Kyrgyz logistics companies actively use the port of Karachi in Pakistan, and some cargo has traditionally been delivered to Kyrgyzstan through Afghanistan. This route is now also effectively closed. According to the Association of International Freight Carriers, negotiations are currently underway with Chinese partners on the possible use of alternative logistics corridors. The state-owned organization Kyrgyz Export told The Times of Central Asia that it is closely monitoring the situation and remains in constant contact with carriers. Authorities are also holding talks with Iran and other states in the region while considering alternative routes to restore the import and export of Kyrgyz goods.

Agriculture

Escalation in the Middle East Threatens Kyrgyzstan’s Agricultural Export Potential

Escalating tensions in the Middle East are putting pressure on Kyrgyzstan’s export routes, a significant portion of which previously transited through Iranian territory. Iranian ports in the Persian Gulf and on the Caspian Sea have provided Kyrgyz producers with access to markets in the Middle East and Europe. According to the National Statistical Committee of Kyrgyzstan, cattle exports from Kyrgyzstan declined fivefold in 2024. In 2025, domestic meat prices rose sharply amid what authorities described as uncontrolled exports of cattle carcasses, primarily to Uzbekistan and Tajikistan. In response, the State Antimonopoly Service introduced maximum retail prices for lamb and beef in the domestic market and imposed a temporary ban on livestock exports to neighboring countries. To stabilize supply, the government approved meat imports from India for processing plants, while domestic production was intended to meet internal demand. Against this backdrop, many farmers shifted their focus to exporting chilled meat to Iran. In 2024, shipments resumed, beginning with an initial 10-ton consignment, after which volumes gradually increased. The Ministry of Agriculture announced plans to raise lamb exports to Iran to 1,000 tons. In addition to meat, Kyrgyz companies exported legumes, grains, and dried vegetables to Middle Eastern markets via Iranian ports. Honey, beans, and nuts were also shipped to Europe using Iranian transit routes. However, in the context of renewed military tensions, Kyrgyz exporters may now need to seek alternative logistics corridors or new destination markets. Any rerouting is likely to increase transportation costs and reduce the price competitiveness of Kyrgyz agricultural products. In 2023, the Eurasian Economic Commission signed a free trade agreement with Iran, which entered into force on May 15, 2024. The agreement provides for the creation of “green customs corridors,” the digitalization of trade procedures, and the introduction of electronic transit mechanisms. According to EEC Minister for Trade Andrey Slepnev, the deal was intended to facilitate accelerated access to the Iranian market for companies from the Eurasian Economic Union. Under the agreement, goods from EAEU member states benefit from tariff preferences, including zero or reduced import duties in Iran. Iranian products receive comparable preferences within the EAEU market. Last year, Tehran also proposed that Bishkek consider establishing its own merchant fleet, using Iranian ports in the Persian Gulf and the Caspian Sea to export Kyrgyz agricultural products and expand transit opportunities.

Logistics

U.S. Logistics Companies Look to Kyrgyzstan for Talent and Digital Solutions

Kyrgyzstan recently hosted CABXPO-2025, an international business and logistics forum that highlighted the country’s growing role as a point of interaction between Central Asia and global logistics markets. Held with the participation of the High-Tech Park, the forum brought together more than 500 companies from across the region. The Park, operational for over a decade, has become a key pillar of Kyrgyzstan’s expanding digital economy. One of the most notable aspects of CABXPO-2025 was the presence of senior executives and owners from major American freight companies. Their visit to Bishkek provided a platform for exchanging industry expertise, recruiting talent, exploring digital logistics solutions, and attracting Kyrgyz dispatchers to work with the United States freight market. According to Chubak Temirov, Deputy Director of the High-Tech Park, the forum stood out for its inclusion of investors from Silicon Valley, who expressed interest in identifying promising IT startups in Kyrgyzstan and other Central Asian countries. Nevertheless, a large portion of attendees represented transport and logistics businesses, particularly those operating in the U.S. market. Temirov noted that long-haul truck driving remains one of the most in-demand professions among Kyrgyz labor migrants heading to the U.S. and Europe. In recent years, several Kyrgyz nationals have successfully established their own transport companies in the U.S., managing fleets of hundreds of trucks. These examples of social mobility have become an important source of motivation for younger generations. [caption id="attachment_41411" align="alignnone" width="300"] @TCA[/caption] At the expo, several American companies with Kyrgyz roots were actively recruiting. Many base their dispatch operations in Bishkek or Osh while managing freight movements across the U.S. Forum participants were able to enroll in two-month dispatcher training programs, with company representatives offering employment upon completion. Aidar Abitov, a representative of a U.S.-based freight carrier, told The Times of Central Asia that his company operates more than 600 trucks and continues to expand. While the physical transportation takes place in the U.S., the company’s dispatch and technical support operations are located in Bishkek. Employees undergo training in areas such as cargo booking, transport coordination, and working with brokers, becoming official members of the U.S. company without leaving Kyrgyzstan. English proficiency remains a key requirement. The company’s medium-term goal is to support a fleet of 1,000 trucks. The forum also drew attention to IT innovations from Kyrgyzstan and Uzbekistan. A team from Tashkent showcased real-time software for monitoring cargo and vehicle fleets. The system tracks truck locations, vehicle condition, and driver behavior, including signs of fatigue or drowsiness. According to the developers, their solutions are already in use by thousands of logistics companies in the U.S., managing tens of thousands of trucks. One of the developers, Azimjon Akhmadjonov, told The Times of Central Asia that participating in CABXPO was primarily an opportunity to exchange ideas and build professional networks. He highlighted the role of such events in connecting Kyrgyz and Uzbek professionals working in the United States and in helping form a cross-border community of experts. The Kyrgyz government has positioned forums such as CABXPO as...