Rail cargo - The Times Of Central Asia

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Freight transit

First Russian Freight Train Reaches Iran via Kazakhstan and Turkmenistan

A Russian freight train has arrived at the Aprin dry port near Tehran after transiting through Kazakhstan and Turkmenistan, Iran’s ISNA news agency reported on November 8. The train carried 62 forty-foot containers loaded with paper, cellulose, and other paper products, according to Iranian officials. The cargo is destined for various regions in Iran and Iraq. The train crossed the Turkmenistan-Iran border at Incheh-Borun and reached Tehran in 12 days, marking a new phase in regional transit cooperation. Morteza Jafari, Deputy Director of Iranian Railways, said the arrival of the first Russian freight train is expected to enhance trade ties between Russia and Iran and lay the groundwork for regular rail services linking the two countries with Central Asia. He noted that Iran currently anticipates receiving one Russian container train every ten days, with plans to increase the frequency. Jafari emphasized Iran’s broader goal of becoming a regional hub for exports, imports, and transit by expanding coordination with neighboring and CIS countries. The new route underscores growing interest in enhancing rail connectivity across the Caspian region, where Iran is positioning itself as a key transit corridor. In August, Turkmenistan and Iran agreed to construct two additional railway lines at the Sarakhs border crossing to increase freight capacity. The decision followed discussions between Iranian Railways head Jabbar Ali Zakeri and Turkmenistan’s Minister of Railways Mammet Akmammedov during the UN Conference on Landlocked Developing Countries. Officials in both countries have stressed that expanded rail infrastructure will support faster, more reliable cargo movement across Central Asia and help integrate regional markets.

Rail Corridor

Beijing Meeting Charts Future of China-Kazakhstan-Turkmenistan-Iran Rail Corridor

On December 25, experts convened in Beijing to evaluate the performance and future potential of the China-Kazakhstan-Turkmenistan-Iran railway route. The meeting reviewed the route’s operational results for 2024 and explored opportunities for further development. Kazakhstan was represented by KTZ Express, a subsidiary of Kazakhstan Temir Zholy (KTZ), the national railway company. According to KTZ Express, cargo transportation volume along the route increased by 31% during the first 11 months of 2024 compared to the same period in 2023. This growth underscores the rising interest of market participants in the route and highlights Kazakhstan’s critical role as a transit hub in the global supply chain. Key Discussion Points Participants focused on several areas to enhance the route’s efficiency: Increasing cargo delivery speeds to further reduce transit times. Optimizing customs procedures to streamline cross-border operations. Implementing modern digital solutions to simplify logistics processes and improve transparency. Strategic Importance of the Route The China-Kazakhstan-Turkmenistan-Iran railway corridor is a vital link in Eurasian trade, facilitating the rapid movement of goods from China’s eastern coast to the Persian Gulf and Middle Eastern markets. This corridor has already achieved significant milestones, reducing delivery times between China and Iran to just 15 days. With its growing cargo volumes and strategic positioning, the China-Kazakhstan-Turkmenistan-Iran railway route is poised to become an even more significant player in Eurasian trade. Continued efforts to optimize its operations and infrastructure will further solidify its role in connecting key global markets.

Transport

Transforming Kazakhstan’s Railways: Strategic Infrastructure for Regional and Global Connectivity

Kazakhstan’s rail network is a strategic national asset, vital for a country of its vast size and landlocked geography. Without direct access to the world’s oceans, railways serve as critical arteries for trade and transit. Under new geopolitical and logistical conditions, the importance of modernizing and expanding this network has become increasingly urgent. Spanning 21,000 kilometers, Kazakhstan’s railroads form the backbone of its transportation infrastructure. By 2030, the country plans to modernize 11,000 kilometers of highways and construct over 5,000 kilometers of new railways. Among these ambitious projects are the construction of second tracks on the Dostyk-Moyinty railway section, a bypass railway line around Almaty, and two new lines: Darbaza-Maktaaral and Bakhty-Ayagoz. Expanding Trade with China: Increased Cargo Traffic The Dostyk border station has become a key hub for exports to China and a vital transit point for East-West trade. In recent years, growing cargo volumes and limited capacity have placed immense pressure on its infrastructure. The Dostyk-Alashankou junction point, with a current capacity of 20 million tons annually, handled 15.2 million tons in the first 10 months of this year alone - a 15% increase compared to the same period last year. To address these challenges, construction of second railroad tracks on the Dostyk-Moyinty section began in November 2022. Part of the National Project: Strong Regions - Driver of the Country's Development, this project aims to increase the section’s capacity fivefold, from 12 to 60 train pairs per day. Transportation speeds between China and Europe are also set to improve significantly, from the current 800 kilometers per day to 1,500 kilometers per day. Official data indicates that 635 kilometers of the planned 836 kilometers have already been completed. The project involves 62 bridges, 242 pipelines, and a workforce of 24 construction companies and over 440 units of equipment. Completion is expected by late 2025. Private Investments Driving New Railway Lines Kazakhstan’s second major rail crossing with China, Altynkol station, has also reached its maximum capacity. Together with Dostyk, the two stations handle 28 million tons annually. This makes the development of the new 272-kilometer Bakhty-Ayagoz railway line essential. Connecting the border to the Semey-Aktogay section and the China-Europe corridor, the new line is expected to boost goods transportation to and from China by an additional 20 million tons. This project, realized under a public-private partnership model, will feature the construction of 11 stations, 47 bridges, 23 railroad overpasses, and eight highway overpasses. It will also include five pedestrian bridges and 16 observation structures, utilizing over 500,000 locally manufactured sleepers and 36,000 rails. Approximately 1,700 jobs will be created during the construction phase, with priority given to local residents. Alleviating Traffic in Almaty: A New Bypass Line The 73-kilometer bypass railway line around Almaty is set to increase cargo capacity by 17 million tons annually. By redirecting traffic to the Zhetygen-Kazybek Bey line, this project will reduce congestion at the Almaty junction by 40%. Faster delivery times for goods and passengers - up to 24 hours shorter - are among...

TITR

The Future of Transit in Kazakhstan

Increasing the volume of transit cargo through Kazakhstan is a strategic priority for the nation as it aims to become a transportation and logistics hub in Central Asia and the Caspian region, with its railways at the forefront of this effort. TCA spoke with Asem Mukhamedieva, Managing Director for New Projects at KTZ Express JSC, about the company’s current capabilities, prospects, and new projects in this direction. Kazakhstan’s Role in Transit Cargo TCA: Kazakhstan, has become a vital land transportation corridor between Asia and Europe. How does Kazakhstan Temir Zholy (KTZ) contribute to further increasing transit cargo, and what trends have you observed? Mukhamedieva- The volume of transit handled by KTZ Express in the first eight months of this year reached approximately 350,000 twenty-foot equivalent units (TEU). The China-Europe-China route saw a 36% increase, while the China to Central Asia route grew by 17%. Notably, the Trans-Caspian International Transport Route (TITR) dispatched 220 container trains, a twenty-fold increase from last year. TCA: What new routes have been launched, and what is KTZ doing to increase them? - KTZ is continuously expanding its transportation network and logistics services. One significant development is the Trans-Afghan route, which was launched this May. Under a pilot project, containers with aluminosilicate hollow microspheres were shipped from Pavlodar to Jebel Ali Port via Uzbekistan, Afghanistan, Pakistan, and the UAE. Offering competitive terms and tariffs has encouraged more cargo traffic along this route. In July, we cut delivery times in half — down to just five days — on the Xi’an-Altynkol-Tashkent route, compared to the previous 10-12 days. This success is largely due to the new terminal in Xi’an, built by KTZ and its Chinese partners. The terminal consolidates cargo from various Chinese provinces, streamlining logistics processes and significantly improving efficiency. We also launched several new logistics services to boost cargo traffic and strengthen international links. For example, in June, we introduced a regular South Korea-China-Kazakhstan-Central Asia route. We also reopened a previously unprofitable route from China to Iran and back, reducing costs by collaborating with Chinese partners. The Growing Importance of the Trans-Caspian Route TCA: You mentioned the growth of the TITR. Could you elaborate on the regions of China involved, the types of cargo, and what steps are being taken to attract more shipments? - The Trans-Caspian International Transport Route (TITR) has become a critical link in Eurasian logistics. This year, the route achieved remarkable growth. In September, we welcomed the 200th train dispatched via TITR at the Port of Aktau. Transit volumes for the first eight months of this year surpassed annual totals from previous years. Xi'an province leads in shipments, accounting for 57% of the total volume on this route. Other key provinces include Yiwu, Chongqing, Sanping, and Henan. Major markets for these shipments are Azerbaijan (62%), Georgia (23%), Turkey (7%), and EU countries (9%). Over 200 different commodity items were transported, with automobiles, components, textiles, and electronics making up 56% of the total. To maintain this momentum, we are working...

Agriculture

Special Report: Prospects Look Good for Kazakh Wheat Exports

According to the International Grains Council, Kazakhstan's wheat harvest for the 2024/2025 season is expected to reach 16 million tons. As the harvesting campaign begins, the country's lack of elevator capacity and the problem of mainline railroads are concerns. Idle trains are still a problem, which leads to the introduction of regular restrictions and bans on the acceptance and shipment of wheat due to congestion on the railroad. Market participants note that the railroad cannot cope with the volume of shipments during the autumn rush, with its infrastructural ceiling on shipments at only 1 million tons of grain per month. This leads to a collapse at border railroad crossings and, consequently, a price drop in the domestic market. One obvious solution is to expand Kazakhstan's elevator capacity and grain storage facilities; this is one of the reasons for the increased load on the railroad infrastructure. Thus, according to the Ministry of Agriculture, 191 licensed grain-receiving enterprises have a total storage capacity of more than 13.2 million tons. In addition, agricultural producers have storage capacities for 15.8 million tons of grain, which, as the ministry assures, is enough to store grain considering the projected harvest. Also, according to the ministry, the construction of new grain storage facilities and the expansion of existing ones are envisaged. In 2024-2026, it plans to operate five granaries with a capacity of 30,200 tons. The national railway company Kazakhstan Temir Zholy (KTZ) has already established a grain headquarters, involving representatives from local executive bodies, the National Chamber of Entrepreneurs "Atameken," and shippers. This headquarters ensures adequate transportation for the upcoming season's harvest. As Salamat Abzhaliyev, Deputy General Director for Marketing and Planning of KTZ-Gruzovye Transportations LLP, noted during the briefing held at the end of August, for seven months of the current year, the total volume of grain loading on the network of railroads of the country amounted to 4.7 million tons. Only in Kazakhstan did wheat transportation increase by 3%, amounting to 1.1 million tons. An important factor affecting the efficiency of transporting grain and milling products is the availability of specialized wagons. In addition to boxcars, grain carriers are designed to transport these specific cargoes. Today, the total fleet of boxcars and grain cars on the railroad is about 16,000 and 12,000, respectively. According to KTZ, this fleet is sufficient to fulfill all agreed transportation plans. According to forecasts of the International Grain Council, the export of Kazakhstani wheat in the 2024/2025 season is projected at 10 million tons. During the first six months of the year, 2.4 million tons of wheat have already been shipped. The main buyers of domestic grain are traditionally Uzbekistan, China, Tajikistan, Italy, and Afghanistan. Grain exports to China have grown 5.7 times in the last three years, which makes China a key export destination. China is ready to accept large volumes of grain from Kazakhstan. Today, the country buys about 10 million tons of wheat worldwide, including from Kazakhstan. However, further development of trade is constrained by limited transportation...

Export/Import Rail cargo

Kazakhstan’s Rail Transportation of Cargo Rises to Over 122 Million Tons

Kazakhstan’s national railway company Kazakhstan Temir Zholy (KTZ) reports that from January-June 2024, it transported more than 122 million tons of cargo. Transportation within the country increased by 2.1% compared to the same period last year and amounted to 81.5 million tons, and over 41 million tons of cargo were destined for export. During this period, KTZ transported 47.5 million tons of coal, including 34.8 million tons within the country. The volume of grain transportation within the country increased by 5%, to 1.1 million tons. During the first half of the year, rail transportation of ferrous metals increased by 7.2%, to 2.2 million tons; iron ore and manganese by 9.6%, to 10.5 million tons; and non-ferrous ore and sulfur, by 13%, to 12.1 million tons. Rail transportation for exports of oil increased by 8.3%, to 2.7 million tons; ferrous metals by 6% to 1.6 million tons; chemical fertilizers by 10% to 648 thousand tons: iron ore and manganese by 4% to 5.6 million tons, and 68% for construction cargo by 68% to267 thousand tons.