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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...

Logistics

Kazakhstan Begins Construction of Major International Logistics Hub in Kostanay

Kazakhstan has officially begun construction of a major transport and logistics complex in the northern city of Kostanay, aiming to establish a critical transit hub linking China, Central Asia, and Europe. The new “Tobyl” Logistics Hub is set to enhance the country's role in regional and global supply chains. Designed to integrate into international transport corridors, including routes to China, Central Asia, Turkey, Iran, Afghanistan, and Europe, the facility is scheduled to be operational by 2027. It is expected to significantly boost transit capacity along the “Northern Kazakhstan, Southern Urals” corridor and facilitate freight movement toward the People's Republic of China. In the first half of 2025, Kazakhstan’s transit freight volume reached 16.8 million tons, marking a 4% year-on-year increase. Strategic Investment for Economic Growth “The complex will reduce logistics costs for businesses, support export-oriented manufacturing, attract investment into processing industries, and stimulate the creation of new industrial enterprises,” said Aydyn Alimov, Director of the new logistics center. “We believe Tobyl will become a business magnet and a driver of regional industrial growth.” The hub will feature advanced infrastructure, including terminals, warehouses, customs clearance facilities, IT zones, and service areas operating under a “one-stop-shop” model. A digital cargo tracking system will provide real-time logistics monitoring. The project is being developed with the participation of JSC Kedentransservice, Kazakhstan’s largest logistics operator, and is backed by the state-owned Industrial Development Fund. Covering an area of 133.6 hectares, the Tobyl complex represents an investment of 64 billion KZT (approximately $122 million). It is designed to process up to 400,000 twenty-foot equivalent units (TEUs), or more than 11 million tons of cargo annually, and will create 500 new jobs in logistics, IT, and service sectors. A Catalyst for Regional and National Development “We are not just building a logistics hub, we are laying the foundation for a new economic geography,” said Deputy Prime Minister Yermek Kosherbayev at the groundbreaking ceremony. “Tobyl will become an intellectual platform where logistics, digitalization, education, and industry converge. This is not just a regional but a national project, a catalyst for growth across the country.” According to the government, the Tobyl hub will also promote sustainable exports from the Kostanay region and foster deeper industrial cooperation within the Eurasian space. Kostanay is already Kazakhstan’s leading automotive manufacturing hub. In 2024, local automaker Allur produced 90,515 vehicles, comprising passenger cars, trucks, and buses, out of a national total of 134,000. In 2025, a new KIA plant with an annual capacity of 70,000 vehicles is expected to launch, along with facilities for producing automotive components and spare parts. Earlier this month, Kazakhstan and China signed an updated strategic agreement to strengthen railway links and increase cargo throughput along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor.

Logistics

Kazakhstan Faces Potential Logistics Disruptions Amid Iran-Israel Conflict

Kazakhstan’s Minister of National Economy, Serik Zhumangarin, has warned that the only significant risk to the national economy stemming from the conflict between Iran and Israel is a potential disruption to southern logistics routes. “We are closely monitoring developments in the Middle East and hope for a peaceful resolution. In terms of losses, we primarily export food to Iran, and we do not expect these events to affect that trade. The population there still needs to be fed. Our main concern is logistics. The only railway line heading south runs through Iran,” Zhumangarin told reporters on the sidelines of a Senate meeting. The route in question is the Kazakhstan-Turkmenistan-Iran segment of the North-South International Transport Corridor (Zhanaozen-Gyzylgaya-Bereket-Etrek-Gorgan), constructed between 2009 and 2014. The corridor reduces the distance from China to Iran by 500 kilometers when passing through Kazakhstan. However, Zhumangarin noted that Kazakhstan currently transports only a small volume of goods via this route, citing the poor condition of Iran’s railways. Iran’s railway infrastructure adheres to European standards with a track gauge of 1,435 mm, while Kazakhstan’s railcars are designed for a 1,520 mm gauge. Despite this technical discrepancy, Astana had been seeking to expand freight operations along this corridor. In February 2025, Kazakhstan’s ambassador to Tehran, Ontalap Onalbayev, met with Jabbar Ali Zakaria, head of the Iranian Railway Organization, to discuss plans to increase annual transit freight from 275,000 tons (2024) to 5 million tons. Following the escalation of the Iranian-Israeli conflict, Kazakhstan is now compelled to evaluate alternative logistics routes, Zhumangarin noted. “We have contingency options; we can route shipments through Georgia or use Chinese ports. This adds complexity to logistics, but if long-term consequences arise, we will adapt and support our business community. It’s too early to make firm predictions,” he stated. Kazakhstan’s trade turnover with Iran totaled approximately $350 million in 2024, with trade reaching $120 million in the first five months of 2025. As previously reported by The Times of Central Asia, in response to recent U.S. airstrikes in Iran, Central Asian nations, including Kazakhstan, have urged all parties to pursue diplomatic solutions and avoid any further escalation.