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Kazakhstan and Russia Strengthen Cooperation on North-South Transport Corridor

Kazakhstan Temir Zholy (KTZ), the country’s national railway company, and Russian Railways have signed a landmark agreement aimed at modernizing railway infrastructure at nine border stations, increasing capacity, and developing a unified digital system for transportation and cross-border operations. The agreement was signed on November 27 during Russian President Vladimir Putin's state visit to Kazakhstan. Enhancing Key Trade Corridors This cooperation seeks to boost the efficiency of trans-Eurasian transport corridors, with a particular focus on increasing cargo volumes along the East-West and North-South routes. The North-South corridor, connecting Kazakhstan, Russia, Turkmenistan, and Iran, has an annual capacity of 10 million tons of cargo. So far, 1.8 million tons have been transported along this route in 2024, and plans are underway to double its capacity to 20 million tons annually. On November 26, Kazakhstan’s Minister of Transport, Marat Karabayev, emphasized the strategic importance of the North-South corridor. In July, Kazakhstan agreed on a roadmap with Iran, Turkmenistan, and Russia for the synchronized development of this corridor. To attract cargo flow, Kazakhstan has introduced special transit tariff discounts of 50%. New Agreements and Digital Connectivity During Putin’s visit, another significant agreement was signed between KTZ, Xi'an Free Trade Port Construction and Operation Co., Ltd. (China), and JSC Slavtrans-Service (Russia). The deal focuses on constructing the CRK Terminal, a transport and logistics hub at the Selyatino railway station in the Moscow region. Additionally, the three parties agreed to jointly use the Unified Digital Platform along the Xi'an (China) - Dostyk/Altynkol (Kazakhstan) - Selyatino (Russia) route. The CRK Terminal and Digital Platform are expected to enhance cargo transportation efficiency and e-commerce between China, Kazakhstan, and Russia. Boosting Regional Logistics Kazakhstan Temir Zholy also signed a memorandum with the Russian transport and logistics group FinInvest LLC to construct a multimodal transport and logistics center in Astana. This center aims to increase the transit of Russian goods through Kazakhstan, further solidifying the country’s position as a regional logistics hub.

Dredging Project in Kazakhstan’s Kuryk Port Completed

Kazakhstan Temir Zholy, the country’s national railway company, has announced the early completion of dredging works at the Caspian Sea port of Kuryk. The project was completed by its general contractor, Jan De Nul Kazakhstan LLP, in just four months. The dredging operation involved removing over 990,000 cubic meters of soil from the port’s seabed using the Vesalius, the most powerful dredger in the Caspian Sea. As a result, the water depth in the port’s operational area and approach channel has been increased to 7–8 meters. This enhancement allows for an increased draft of vessels entering the port, enabling them to achieve full loading capacity. The project significantly boosts the port's terminal capacity, further strengthening its role as a vital transit hub on the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. This strategic route connects China and Europe via Central Asia and the Caucasus. The Kuryk port currently handles up to 6 million tons of cargo annually, including 4.1 million tons through its railway terminal and 1.9 million tons via its automobile terminal.

First Train Tour Launched Between Kazakhstan and Uzbekistan

Kazakhstan is launching a new international train tour called “Silk Road,” connecting the cities of Almaty, Turkestan, and Tashkent. The first train on this route will depart on November 16. According to the Ministry of Tourism and Sports of Kazakhstan, the four-day tour will allow travelers to plunge into the atmosphere of ancient cities along the historic Silk Road. The itinerary covers the most important sights of Turkestan and Tashkent and includes guide services, meals, transfers, and entrance fees. Vice-Minister of Tourism and Sports Yerzhan Erkinbayev mentioned that the route will strengthen cultural ties between Kazakhstan and Uzbekistan and make travel more comfortable and affordable. The tour program includes visits to historical places such as the ancient city of Otyrar, the mausoleum of Arystan Baba, the historical and cultural complex Azret Sultan, and the most significant tourist complex in Central Asia, Caravan-Saray. In Tashkent, tourists can familiarize themselves with historical sights and modern architecture. Earlier, the media reported on the launch of a tourist route between China and Kazakhstan. The train from China, which began running in July 2024, passes through the Khorgos-Altynkol border crossing, adding a new opportunity for travel in Central Asia.

China and Afghanistan are the Main Importers of Kazakh Grain and Flour

In January-September 2024, Kazakhstan’s national railways company, Kazakhstan Temir Zholy (KTZ), transported 6.6 million tons of Kazakh grain and 2.7 million tons of flour. Of that amount, 5 million tons of grain and 2.1 million tons of flour were exported. KTZ Managing Director Bauyrzhan Urynbasarov announced this at a government meeting on October 7. According to Urynbasarov, Kazakhstan exported grain mainly to neighboring Central Asian countries (2.9 million tons), China (1.3 million tons), and Afghanistan (127,000 tons). Kazakhstan resumed grain supplies to Iran (211,000 tons), and 423,000 tons of grain were exported to Italy, Turkey, and Russia. From January to September, 495,000 tons of flour were exported to Central Asian countries, 639,000 tons to China, and 666,000 tons to Afghanistan. At the meeting, Deputy Prime Minister Serik Zhumangarin said that Kazakhstan must supply 2 million tons of grain to China this year, but the figure can be increased to 3 million tons. He also ordered an increase in flour supplies to Afghanistan. According to the Ministry of Agriculture, as of October 7, Kazakhstan had completed harvesting 93.2% of grain crops on 15.5 million hectares, and 23.5 million tons of grain had been threshed.

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...

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...