Trans-Caspian Route - The Times Of Central Asia

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С5+1

C5+1 Statement Omits Afghanistan, Prioritizes Trans-Caspian Trade

The United States and the five Central Asian republics have issued a joint statement on economic and security cooperation that makes no mention of Afghanistan, once a central concern of U.S. regional policy. The document followed the October 19 C5+1 ministerial meeting in Samarkand, Uzbekistan. Afghanistan's absence from the statement does not mean it has disappeared from negotiations or Washington's strategic interests. Nevertheless, a comparison with earlier C5+1 documents reveals a shift in the published agenda. Where Washington once placed considerable importance on connecting Central Asia with South Asia through Afghanistan, the latest statement focuses on trade across the Caspian Sea and investment in the region's minerals. Afghanistan's Changing Place in C5+1 Talks In July 2021, just weeks before the Taliban retook Kabul, C5+1 participants at a conference in Tashkent explicitly supported closer trade and transport links between Central and South Asia through Afghanistan, as well as efforts to secure peace in the country. That month, the U.S., Uzbekistan, Afghanistan, and Pakistan also announced plans for a quadrilateral platform to support trade and transportation projects linking the two regions. In July 2023, Afghanistan was the subject of a separate C5+1 special session in Astana. Officials called for an inclusive Afghan government that respected women's rights and backed further development of transport and energy links through the country. A joint statement issued by C5+1 leaders that September described Afghanistan as an important factor in Central Asian security. In the 2026 Samarkand statement, Afghanistan goes unmentioned even in the section on border security and terrorism. However, the October 2023 C5+1 connectivity statement had already highlighted the Trans-Caspian Trade Route, which connects Central Asia to Western markets, and also omitted Afghanistan. For Central Asian countries, the Afghan route remains important in practical terms. Uzbekistan is pursuing plans for a railway through Afghanistan to Pakistan, which would give it access to Indian Ocean ports. Kazakhstan is already a major supplier of food to Afghanistan, exporting around $216 million worth of flour and $122 million of wheat in the first seven months of 2026. In September, Kazakhstan and Uzbekistan also agreed with the United Arab Emirates to study a railway corridor through Afghanistan to Pakistan. Tajikistan, Uzbekistan, and Turkmenistan all share borders with Afghanistan. Uzbekistan and Turkmenistan also face the prospect of reduced water supplies from the Amu Darya as Afghanistan builds its Qosh Tepa Canal. Afghanistan's omission from a joint statement should therefore not be taken as a complete account of the policies of all five Central Asian states. What Constrains Washington One possible explanation lies in the U.S. approach to Afghanistan's current authorities. Washington allows practical contacts with representatives of the Taliban but does not recognize the government it has formed. The movement remains designated as a Specially Designated Global Terrorist, although it is not included in the U.S. Department of State's separate list of Foreign Terrorist Organizations. The designation restricts dealings with the Taliban, although U.S. sanctions rules permit many commercial transactions involving Afghanistan's governing institutions, including civilian infrastructure and transportation projects....

Vegetable Oil Exports

Kazakhstan Begins Vegetable Oil Exports to Iran via Caspian Route

Vegetable oil producers in Kazakhstan have launched a new export route to Iran across the Caspian Sea, completing several trial shipments of rapeseed and sunflower oil in spring 2026, Kazakhstan’s Ministry of Agriculture said. According to Kazakhstan’s National Association of Oilseed Processors (NAOPK), the first shipment, consisting of 5,000 tons of rapeseed oil, departed from the Port of Aktau on April 4. The buyer was the Iranian company Kourosh Food Industry, while the supplier was one of Kazakhstan’s largest oil-processing plants affiliated with the association. On May 13, loading was completed for a second vessel carrying 5,000 tons of sunflower oil. The Agriculture Ministry said the shipments demonstrate strong interest among Iranian importers in products from Kazakhstan and point to the potential of the Caspian export corridor. NAOPK Chairman Yadykar Ibragimov said the Iranian market holds significant potential for exports of Kazakhstan’s oil and fat products. According to Ibragimov, Iran imports around 3.5 million tons of vegetable oils and oilseed meal annually, including approximately 1.5 million tons of vegetable oils. “Our countries share a border across the Caspian Sea and also benefit from a preferential customs regime under the free trade agreement between the Eurasian Economic Union and Iran,” Ibragimov said. He noted that Kazakhstan exported more than 100,000 tons of oil and fat products to Iran over the past three years, with around 94% consisting of oilseed meal. “The launch of vegetable oil transshipment through the Port of Aktau will significantly increase supply volumes,” he added. According to association estimates, the Aktau route could handle three to four shipments per month, allowing annual exports of 150,000-200,000 tons of vegetable oil through the new corridor. In the longer term, exports of vegetable oils and oilseed meal to Iran could exceed 500,000 tons annually. Kazakhstan’s Agriculture Ministry said development of the route will help diversify export destinations and reduce pressure on existing logistics corridors. “The launch of this new supply channel will help move closer to the goal of increasing the sector’s foreign currency revenues to $1 billion, as outlined in the 2026-2028 Road Map,” the ministry said. Kazakhstan previously reported record sunflower oil exports: between January and October 2025, the country exported more than 523,000 tons of sunflower oil worth approximately $532 million. Authorities aim to position Kazakhstan among the world’s top three vegetable oil exporters. At the same time, Deputy Foreign Minister Arman Issetov said in April that several joint projects between Kazakhstan and Iran had been frozen amid military tensions in the region. Despite geopolitical tensions, Astana and Tehran continue expanding trade and economic cooperation. The Times of Central Asia previously reported that Kazakhstan and Iran aim to increase bilateral trade turnover to $1 billion in the coming years, with plans to eventually double that figure.

Trans-Caspian Route

Kazakhstan to Develop Maritime Component of Trans-Caspian Transport Route

Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ), is moving to build its own maritime fleet to expand the Trans-Caspian International Transport Route (TITR). Also known as the Middle Corridor, the TITR is a multimodal transport corridor linking China and Europe through Central Asia and the South Caucasus, offering an alternative to routes that pass through Russia. KTZ Express Shipping, a subsidiary of KTZ, has signed contracts for the construction of six general-purpose dry cargo container ships. Agreements have been concluded with China’s Jiangsu Haizhongzhou Shipping Industry Co., Ltd. for the construction of four vessels and with Azerbaijan’s Baku Shipyard for the construction of two. The vessels will be river-sea ships with a deadweight of up to 9,900 tons and a capacity of up to 537 TEUs, adapted for operations on both the Caspian and Black Sea routes. This is expected to support the integration of the maritime segment into the TITR’s multimodal logistics chain. The ships will be equipped with modern navigation systems in line with international requirements and environmental standards. Their safety, reliability, and environmental performance are expected to enhance their suitability for international routes and increase confidence among global shippers. The project is intended to give Kazakhstan a larger role in the TITR by establishing a sustainable maritime component of the route. Kazakhstan’s maritime transport sector has recorded steady growth in recent years. In 2025, maritime cargo volumes reached 8 million tons, a 7% increase compared to 2024. Container traffic through Kazakh seaports rose by 29% to 90,637 TEUs, while cargo volumes transported along the TITR increased by 36%. Under the country’s comprehensive maritime infrastructure development plan for 2024-2028, Kazakhstan intends to establish a major transport and logistics cluster based on the ports of Aktau and Kuryk. The plan includes expanding container handling capacity, developing cargo terminals and international shipping logistics, and reducing administrative barriers. By 2028, total cargo throughput at the ports is expected to increase by 50%, while container handling volumes are projected to triple. Plans are also in place to increase container traffic along the TITR, including the transit of 600 container trains from China through Kazakhstan this year. As previously reported by The Times of Central Asia, freight volumes transported along the Middle Corridor through Kazakhstan have grown more than five times over the past seven years, increasing from 0.8 million tonnes to 4.5 million tonnes annually.

Critical Minerals

How Kazakhstan Is Seeking to Attract Global Capital to Critical Mineral Extraction

In March 2026, Kazakhstan moved into the spotlight of the global mining industry. Against the backdrop of an accelerating energy transition and a growing shortage of critical minerals, the government has launched a large-scale geological exploration program. Its strategic objective is to position the country as a key supplier of copper and rare earth elements (REEs) to global markets. For Western investors, this represents an important signal. A significant, relatively underexplored resource base is emerging, supported by regulatory reforms designed to facilitate access. The state assumes early-stage risks The new investment cycle was officially presented at PDAC 2026, one of the world’s largest mining conventions held in Toronto. Unlike previous initiatives that were largely declarative, Kazakhstan has backed its strategy with direct funding: approximately $81 million has been allocated from the state budget for geological exploration. The funds are intended to support a comprehensive assessment of mineral resources in 11 regions of the country. The central rationale is to lower entry barriers for private capital. The government is financing early-stage geological work, including mapping, airborne geophysical surveys, and preliminary resource evaluations. Investors are expected to receive access to “pre-qualified” sites with confirmed potential, an approach commonly used in established mining jurisdictions. This is particularly important because early exploration has historically been the riskiest and most capital-intensive phase of mining projects. The energy transition reshapes demand Growing interest from Western investors is driven by both domestic reforms and global market dynamics. Forecasts by the International Energy Agency indicate that demand for key minerals such as copper, lithium, and cobalt is likely to rise substantially by 2040. Existing mining and processing capacities may prove insufficient to meet projected needs. At the same time, geopolitical tensions are increasing. Processing of rare earth elements remains concentrated in a limited number of countries, making global supply chains vulnerable to disruption. In response, the United States and the European Union have introduced policies aimed at diversifying sources of critical raw materials. The EU’s Critical Raw Materials Act seeks to encourage investment in alternative supply chains. Against this backdrop, Kazakhstan, whose mineral exploration has historically focused on oil and uranium, is emerging as a potential contributor to global diversification efforts. Focus on junior mining companies and regulatory transparency One of the government’s key tools for attracting investment is the development of an ecosystem of junior mining companies specializing in early-stage exploration. Unlike large corporations, junior firms are often willing to assume the risks associated with drilling and initial geological assessments. If commercially viable deposits are identified, these companies typically sell their assets to strategic investors, helping to create a venture-capital-style market within the extractive sector. To support this model, Kazakhstan has reformed its Subsoil Code, introducing a “first come, first served” licensing principle. Digital platforms are now used to allocate exploration rights, reducing processing times and limiting opportunities for corruption. In effect, the country is adopting regulatory practices similar to those used in Australia, widely regarded as one of the world’s most investor-friendly mining jurisdictions. $1.1 billion project signals...

Middle Corridor

Freight Volumes on Middle Corridor Through Kazakhstan Rise Fivefold in Seven Years

Freight volumes transported along the Trans-Caspian International Transport Route (TITR) through Kazakhstan have increased more than fivefold over the past seven years, highlighting the growing importance of the corridor as companies seek alternatives to routes passing through Russia. According to Kazakhstan’s Ministry of Transport, volumes have risen from 0.8 million tons to 4.5 million tons annually. Also known as the Middle Corridor, the TITR is a multimodal transport route linking China and Europe via Central Asia and the South Caucasus. The rapid growth of the route reflects wider shifts in Eurasian logistics since Russia’s full-scale invasion of Ukraine in 2022. With many Western companies seeking alternatives to traditional northern routes through Russia, governments and logistics operators across Central Asia and the South Caucasus have accelerated investment in the Trans-Caspian corridor, hoping to position it as a key artery linking Asian manufacturing hubs with European markets. Container transportation has been one of the fastest-growing segments of the corridor. In 2025, approximately 77,000 TEUs were transported along the TITR. Authorities aim to increase this figure to 300,000 TEUs by 2029. Despite rapid growth, the corridor still carries far less cargo than traditional northern routes through Russia, underscoring both its potential and the scale of investment still required. The expansion reflects ongoing infrastructure development and growing cooperation among participating countries and logistics operators. Key contributing factors include improved conditions for international freight transport, such as simplified customs procedures, as well as significantly shorter delivery times, reduced from roughly 28-32 days to 13-17 days. Demand has also risen for integrated “single-window” logistics services designed to enhance transparency and reliability. Kazakhstan, Azerbaijan, and Georgia continue to coordinate efforts under joint roadmaps to eliminate remaining bottlenecks along the corridor. To ensure year-round navigation and strengthen competitiveness, Kazakhstan is investing in infrastructure on the Caspian Sea coast. Dredging has already been completed at Kuryk Port, while similar work is planned at Aktau Port this year to increase depth and improve vessel access. Construction is also underway at Kuryk on the Sarzha multifunctional terminal, a project being implemented in cooperation with Abu Dhabi Ports Group from the United Arab Emirates. The terminal is expected to have an annual capacity of five million tons. Meanwhile, a container hub has been launched at Aktau Port, further enhancing maritime logistics capacity along the corridor. Kazakhstan has also expanded its transport infrastructure abroad. A Kazakh-operated terminal with a capacity of 120,000 TEUs has been launched at the Georgian port of Poti, improving cargo handling efficiency along the TITR. The European Union is also supporting the corridor’s development. A grant has been allocated for the reconstruction of Berths No. 3 and No. 12 at Aktau Port. The funding will be used to purchase wind-resistant ship-to-shore cranes to ensure stable operations during adverse weather conditions. On the railway side, Kazakhstan is upgrading more than 2,000 kilometres of rail infrastructure connected to the corridor. In 2025, construction and modernisation work were completed on 911 kilometres of railway lines. Key projects include the construction of second...

Middle Corridor

The World Bank Backs Kazakhstan’s Rail Shortcut

On February 19, 2026, the World Bank Board approved an $846 million IBRD guarantee to help the state-owned railway company Kazakhstan Temir Zholy (KTZ) mobilize $1.41 billion in long-term commercial financing. The financing is linked to a KTZ reform program under the umbrella “Transforming Rail Connectivity in Kazakhstan (Middle Corridor Development)” initiative. The purpose is to expand rail connectivity and upgrade logistics on Kazakhstan’s segment of the Trans-Caspian International Transport Route (TITR, Middle Corridor). The Asian Infrastructure Investment Bank (AIIB) will add a $564 million co-guarantee that shifts the financing away from a classic sovereign-loan model and toward private credit backed by multilateral risk coverage. The Multilateral Investment Guarantee Agency (MIGA) presents this operation as part of a wider World Bank Group approach that pairs corridor capital expenditure with steps to strengthen the operator’s financial sustainability and commercial viability. The operation is structured as a two-part package. First, it finances a new 322.3-kilometer railway on a new segment between Mointy and Kyzylzhar in central Kazakhstan. This segment is meant to remove a major network detour, shorten the TITR route within Kazakhstan by 149 kilometers, ease congestion on heavily used sections, and support double-stack container operations. The line is planned with modern signaling and telecommunications, plus design provisions for later expansion and electrification. Second, it ties the construction to a reform program at KTZ, including tariff reform, exploration of alternative financing mechanisms, stronger financial and environmental management, and preparatory work for a potential initial public offering. The World Bank is structuring delivery through a Multi-Phase Programmatic Approach with the stated aim of tripling freight volumes and halving end-to-end transit times on Kazakhstan’s Middle Corridor segment by 2030. Why This Segment Matters for the Middle Corridor Inside Kazakhstan, the Mointy–Kyzylzhar line is a central connector in the Trans-Kazakhstan east–west trunk carrying traffic from the China-facing gateways at Dostyk and Khorgos toward the Caspian outlets at Aktau and Kuryk. Mointy itself is a pivotal junction where train paths, locomotives, and crews are redistributed across multiple directions; as a result, any congestion there propagates quickly into corridor-wide delays. In early 2025, President Kassym-Jomart Tokayev directed acceleration of the Trans-Kazakhstan corridor. KTZ says the expected benefits include decreased pressure on heavily used central segments, fewer locomotive changeovers at key junction points, and, on some routings, the potential to cut more than a day from transit time between the Chinese border and Aktau. The World Bank’s 2023 Middle Corridor study stressed that the corridor’s most durable growth driver is regional trade among the core corridor economies: China–Europe movements remain important, but they compete with multiple alternatives, above all maritime shipping. An infrastructure upgrade adds economic value only if it reduces variability at the handoff points where delays accumulate, including rail-to-port interfaces, Caspian coordination, and national borders. Relieving the domestic bottleneck in Kazakhstan is economically meaningful only insofar as it stabilizes arrival times to Caspian terminals, creates more room for dispatching, and helps logistics providers offer shippers more predictable end-to-end service along the TITR. The emphasis is...