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The Board of Executive Directors of the World Bank has approved an $846 million guarantee from the International Bank for Reconstruction and Development (IBRD) to mobilize $1.41 billion in long-term private financing for a major railway project along Kazakhstan’s section of the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. The project is further backed by a $564 million co-guarantee from the Asian Infrastructure Investment Bank (AIIB). The initiative is designed to improve the efficiency and resilience of Kazakhstan’s rail network while strengthening the financial sustainability and commercial viability of Kazakhstan Temir Zholy (KTZ), the national railway operator. A central component of the project is the construction of a new 322.3-kilometer greenfield railway line between Mointy and Kyzylzhar. The link is expected to eliminate a significant detour, shorten the route by 149 kilometers, reduce congestion on heavily used sections, and enable double-stack container operations. The new line will be equipped with modern signaling and telecommunications systems and designed to allow for future expansion and electrification. According to project documentation, the upgrade is expected to contribute to tripling freight volumes and halving end-to-end transit times along the Middle Corridor by 2030. By shifting cargo from road to rail, it is also projected to reduce transport-related emissions, supporting Kazakhstan’s climate commitments and broader sustainable development objectives. Official data indicate that freight volumes transported through Kazakhstan along the TITR increased by 36% in 2025. In addition to infrastructure investment, the project includes technical assistance and institutional strengthening for KTZ. This includes support for tariff reform, exploration of alternative financing mechanisms, improvements in financial and environmental management, and preparation for a potential future initial public offering (IPO). “Beyond enabling critical infrastructure investments, this project supports important reforms that will strengthen Kazakhstan Temir Zholy’s financial sustainability and long-term competitiveness,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan and Turkmenistan. By combining phased infrastructure investments, institutional reforms, and private capital mobilization, the initiative aims to develop a modern rail system capable of delivering long-term economic and environmental benefits for Kazakhstan and the wider Eurasian region.
Kazakhstan will construct a 500-meter railway bridge over the Syr Darya River as part of a strategic infrastructure initiative to bolster transport links with Uzbekistan, Kazakhstan Temir Zholy (KTZ), the national railway company, has announced. Preparatory works are already underway, with construction progressing on a 152-kilometer segment of the new Darbaza-Maktaaral railway line, stretching from Erdaut station to the Syr Darya floodplain. The full project will include 35 bridges in total. The Darbaza-Maktaaral line is seen as vital for strengthening Kazakhstan’s transport and transit infrastructure. It is expected to ease pressure on the congested Saryagash-Tashkent rail corridor and the heavily utilized Saryagash border station, enabling a significant increase in freight traffic to Uzbekistan and beyond-to Tajikistan, Afghanistan, and Iran. Once operational, the railway is projected to carry over 20 million tons of cargo annually. In addition to its international significance, the project is poised to stimulate economic development in southern Kazakhstan. By directly linking the Maktaaral and Zhetysai districts to the national rail network, it will eliminate the need to transit through Uzbek territory, streamlining domestic logistics and enhancing regional accessibility. Completion of the Darbaza-Maktaaral railway is scheduled for 2026.
Uzbekistan is preparing to establish new trade and industrial zones near its border with Kyrgyzstan, President Shavkat Mirziyoyev announced during a government meeting on April 16. The Andijan region currently exports approximately $200 million in goods to Kyrgyzstan each year. To boost trade further, Mirziyoyev proposed the development of industrial zones in Kurgan-Tepe and Khojaabad, modeled after similar projects on the Afghan border. He directed officials to engage with local businesses and select one of the two sites to begin detailed planning. Addressing Border Bottlenecks Concerns were raised during the meeting over logistical challenges at the “Dostlik” checkpoint in Khojaabad. Residents and freight operators have expressed frustration with persistent delays. Railway Project to Transform Regional Trade Mirziyoyev also highlighted the strategic importance of the planned Uzbekistan-Kyrgyzstan-China railway. Once completed, the railway is expected to reduce shipping times by up to a week and shorten the overall route by 1,000 kilometers. Cargo volumes could increase tenfold, he noted. The agreement to build the railway was signed on June 6, 2024, in Beijing. The 523-kilometer route will connect Kashgar in China to Andijan in Uzbekistan, passing through Kyrgyz cities including Torugart and Jalal-Abad. The project includes the construction of modern logistics hubs, warehouses, and terminals, and is intended to significantly strengthen transport links between Central and East Asia.
