Transport and Logistics - The Times Of Central Asia

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river transport

Kazakhstan Eyes Revival of Ili River Corridor as Logistics Artery

River transport has long offered a cost-effective and environmentally friendly alternative for moving cargo. Inland waterways present an alternative route that could unlock new logistics pathways for Kazakhstan and the broader Central Asian region. Yet the development of river navigation remains hindered by several challenges. Kazakhstan’s inland waterway system faces numerous obstacles: insufficient investment, underdeveloped port infrastructure, an aging fleet, and bureaucratic red tape. Despite these issues, reviving river navigation could significantly boost mutual trade, increase cargo volumes, and ease pressure on overburdened road and rail networks. The government has initiated several projects aimed at doing just that. One notable initiative is the proposed route along the transboundary Ili River in the Almaty Region, connecting the city of Konaev with Yining in China’s Xinjiang Uyghur Autonomous Region. Originating in the Tien Shan mountains, where the Kunges and Tekes rivers merge, the Ili River stretches 1,439 km, with 620 km or 43% within Kazakhstan’s borders. [caption id="attachment_38136" align="aligncenter" width="2560"] Image: Ili River Port LLP[/caption] The project is a joint venture between Kazakhstan’s Ili River Port LLP and China International Water & Electric Corp. In an interview with The Times of Central Asia, Marat Julaev, CEO of Ili River Port LLP, stated that the navigable section of the route spans 450 km. Historically, the Ili served as a key transport artery, facilitating trade and connectivity with remote regions. “This route was navigable and operational until 1980. It was used to transport dry goods, ores, petroleum products, and consumer goods from China,” Julaev explained. Following the collapse of the Soviet Union, navigation along the Ili declined sharply. Extensive water usage in China caused water levels to fall, compounding the route’s inability to compete with road and rail alternatives. However, with mounting congestion and capacity constraints in land-based infrastructure, the river’s strategic role is being reconsidered. “In the Almaty Region, we’ve been allocated a 100-hectare plot on the coast of the Kapshagai Reservoir, providing a strategic advantage in reducing delivery time and costs,” Julaev told TCA. “Our Chinese partners, operating in Kazakhstan since 2006, are developing the route between Yining and Konaev.” [caption id="attachment_38137" align="aligncenter" width="2560"] Image: Ili River Port LLP[/caption] A central component of the project is the creation of a transport and logistics hub to consolidate and distribute cargo across Central Asia. The river port will offer terminal services, storage, sorting, equipment maintenance, and passenger transport. Plans also include developing production facilities and cargo terminals on-site. Commissioning is expected in 2027, with an initial cargo turnover capacity of one million tons annually, potentially rising to three million. According to Julaev, this development will enhance Kazakhstan’s foreign trade with China. Julaev emphasized one of the route’s key advantages: the ability to transport oversized cargo, including materials for Kazakhstan’s first nuclear power plant under construction in the village of Ulken on Lake Balkhash, which is fed primarily by the Ili. An equally critical issue is water availability. According to the UN Development Programme in Kazakhstan, over 44% of the country’s river flow originates in...

State Visit

Aliyev, Tokayev Pledge Deeper Cooperation as Azerbaijan Lifts Armenia Transit Ban

Azerbaijan’s President Ilham Aliyev began a state visit to Kazakhstan on Monday with a series of high-level meetings and a significant policy shift: Baku is lifting all restrictions on the transit of goods to Armenia. The move, announced during joint talks with Kazakh President Kassym-Jomart Tokayev in Astana, is one of the most concrete regional gestures since the end of the Second Karabakh War. The visit began with an official welcoming ceremony at Akorda Presidential Palace in Astana, where Presidents Kassym-Jomart Tokayev and Ilham Aliyev reviewed an honor guard before holding bilateral talks and chairing the second meeting of the Kazakhstan–Azerbaijan Supreme Intergovernmental Council. Speaking at a joint press briefing after the meeting, Aliyev confirmed that, “All restrictions on the transit of goods from Azerbaijan to Armenia and from third countries to Armenia through Azerbaijan have been lifted.” While no formal agreement was signed on Monday, the announcement is being viewed as a confidence-building measure at a moment of cautious diplomacy in the South Caucasus. Tokayev welcomed the development and stressed the importance of expanding cooperation between Kazakhstan and Azerbaijan in key sectors such as transport and energy. Ties on a Strategic Track Aliyev’s visit comes as Kazakhstan and Azerbaijan are expanding cooperation in multiple areas, including rail, ports, digital infrastructure, and energy. Monday’s talks produced several new accords and project announcements, including commitments to expand freight flows along the Trans-Caspian International Transport Route (Middle Corridor) - a logistics network connecting China to Europe via Central Asia, the Caspian Sea, and the South Caucasus. Since Russia’s 2022 invasion of Ukraine upended established overland trade routes, the corridor’s importance has surged, with Astana and Baku positioning themselves as key actors in a reconfigured Eurasian logistics network that bypasses Russian territory. In his welcoming address, Tokayev framed Aliyev’s state visit as of “critically important significance for the further development of our strategic partnership.” Tokayev described the relationship as “allied in nature,” calling Azerbaijan “a regional power that has strengthened its authority on the international stage.” He emphasized that developing multifaceted cooperation “remains a priority” and highlighted trade, economic, and political partnership as key goals. “Azerbaijan is a special country for Kazakhstan, a fraternal state,” Tokayev stated. “We are united by common historical roots, a rich spiritual and cultural heritage, and, ultimately, a shared mentality and outlook on developments. On this unshakable foundation, we are successfully developing our multifaceted cooperation.” Aliyev, in turn, praised Kazakhstan’s ongoing political and economic reforms, saying his country “fully supports [Tokayev’s] course of modernization” and is aiming to “strengthen cooperation in all areas” In a related development, Azerbaijan’s state energy firm SOCAR and Kazakhstan’s sovereign wealth fund Samruk-Kazyna are expected to deepen their collaboration in upstream energy projects and petrochemical exports, though no new energy deals were signed on Monday. Transit Opening to Armenia: Why Now? Aliyev’s announcement on transit restrictions - made in Astana, not Baku - was notable not just for its content, but its timing and setting. Since the end of the 2020 Second Karabakh...

Transport and Logistics

Bottlenecked: Eurasia’s Freight Lifelines Falter

Amid heightened geopolitical tensions and stricter border regulations, key transit routes linking China and Europe via Kazakhstan and Belarus have experienced severe disruptions. The resulting bottlenecks have exposed the fragility of Eurasian logistics and cast doubt on the reliability of the overland corridors central to China’s Belt and Road Initiative. From Military Maneuvers to Transport Gridlock For over two decades, Kazakhstan has invested heavily in developing its transit potential, aiming to become the main bridge between China and Europe. But in September and October this year, logistical bottlenecks began to appear, chiefly at border crossings. The disruptions were triggered by the closure of Belarusian‑Polish checkpoints following the launch of the Zapad 2025 military exercises (12‑16 September 2025) conducted by Russia and Belarus. On September 12, the day the exercises began, Poland suspended road and rail traffic after drones reportedly entered its airspace. Belarus claimed the drones had veered off course due to electronic warfare measures involving Russia and Ukraine. Despite this explanation, Poland invoked Article 4 of the NATO charter, prompting the alliance to launch Operation Eastern Sentry to bolster its eastern flank. The closure lasted nearly two weeks, during which more than 130 freight trains from China, carrying cargo worth billions of euros, were stranded. The China Factor and Limited Alternatives China responded diplomatically: on 15 September, Foreign Minister Wang Yi held talks in Warsaw; on 22 September, Politburo member Li Xi visited Minsk. Despite these efforts, border reopening was not immediately expedited. Alternative routes proved inadequate. The Trans‑Caspian International Transport Route (Middle Corridor) — through Kazakhstan and the Caspian Sea — is growing but still modest in capacity. In 2022 its potential was assessed at around 80,000 TEU annually. Some forecasts estimate it may rise to 10 million tons per year by 2027, but it remains well short of the volumes handled by the northern rail corridor. According to Logistan, the route currently has a monthly capacity of under 10,000 TEU, far short of the 40,000 TEU demand. The World Bank estimates that upgrading Middle Corridor infrastructure will require $27-$29 billion over 15 years, primarily for rail and port development. Amid these limitations, China tested a new maritime option: in September, an ice-class container vessel departed Ningbo-Zhoushan for the UK via the Northern Sea Route. The move indicates Beijing’s growing interest in Arctic alternatives to land corridors. Kazakhstan-Russia Hubs and “Gray” Transit As disruptions continued on the western flank, issues emerged in the south. Since mid-June, Russian logistics companies have reported delays at Kazakhstan’s border crossings. Kazakhstan’s Ministry of Finance attributed the slowdowns to increased inspections aimed at intercepting counterfeit goods. Forbes reported that roughly 7,000 trucks, carrying Chinese cargo worth hundreds of millions of dollars, were stranded. Many shipments used simplified declarations, often disguised as textiles or raw materials, and sometimes included dual-use items. Despite denials from both Kazakh and Russian authorities, freight companies cited congestion stretching for kilometers. The situation worsened after Russia imposed new migration rules restricting Kazakh drivers to 90 days of stay per year. The Kazakh government...

Railways

Central Asia’s Rail Corridors: U.S. and Chinese Partnerships in Perspective

Kazakhstan’s railways are modernizing with a U.S. supplier, while Kyrgyzstan and Uzbekistan are advancing a new trans‑mountain link with China. On September 22, 2025, Wabtec and KTZ announced a multi‑year locomotive and services package worth about $4.2 billion, described by the company as its “largest” agreement. In parallel, China, Kyrgyzstan, and Uzbekistan formalized a joint company to build the long-planned CKU railway, with China holding a 51% stake. Central Asia’s rail networks are thus being reshaped by two major partnerships - one with the United States and one with China. Rather than a zero-sum rivalry, these projects show how regional governments are pursuing different infrastructure strategies to expand connectivity. Kazakhstan and Wabtec: Modernizing an Existing Network In September 2025, Kazakhstan’s railway operator KTZ signed a $4.2 billion agreement with U.S.-based Wabtec for 300 Evolution Series ES44ACi locomotives. The diesel-electric engines are tailored for Kazakhstan’s 1,520 mm gauge network and harsh climate, replacing aging Soviet-era stock. Wabtec finalized full ownership of the Astana locomotive plant in late 2023; production and services for 1,520-mm stock are now fully under Wabtec’s Kazakhstan subsidiary. Local manufacturing and long-term service contracts are expected to expand domestic engineering capacity. The locomotives’ digital diagnostic systems should improve fuel efficiency and maintenance intervals. According to the official Wabtec press release, the agreement “strengthens KTZ’s role as a critical and reliable hub for the Middle Corridor,” while KTZ CEO Talgat Aldybergenov said it “confirms our commitment to advanced technologies in the transport sector”. Rail accounts for about 64% of Kazakhstan’s freight turnover (2024), so locomotive performance directly affects Middle Corridor throughput. Financing details have not been disclosed, but the purchase appears to be domestically funded through KTZ and state support. For Astana, the order fits its multi-vector foreign-policy approach: Kazakhstan continues its partnerships with France’s Alstom, China’s CRRC, and Russia, maintaining balance across suppliers. While the locomotives are diesel, Kazakhstan is also electrifying key lines with European partners. Diesels provide an immediate boost without new catenary investment, and Wabtec claims lower emissions than previous models. Over time, expanded electrification could complement this upgrade. Overall, the Wabtec partnership represents incremental modernization. This is an interoperability-based approach that strengthens existing routes rather than building new corridors from scratch. [caption id="attachment_37655" align="aligncenter" width="950"] Image: trains.com - One of Kazakhstan’s modern Evolution Series diesel locomotives (model TE33A) produced through a partnership with U.S. firm Wabtec. Kazakhstan’s railways carry about 64% of the country’s freight, making such upgrades crucial for trade connectivity.[/caption] The China–Kyrgyzstan–Uzbekistan (CKU) Railway: Building a New Corridor After nearly three decades of discussion, China, Kyrgyzstan, and Uzbekistan launched construction of the CKU railway in late 2024. The 523 km line will run from Kashgar (Xinjiang) through the Kyrgyz mountain ranges to Andijan, Uzbekistan. It will provide a second direct China–Central Asia connection, bypassing reliance on Kazakhstan’s network. The CKU is designed with dual gauges: standard (1,435 mm) in China and broad (1,520 mm) in Kyrgyzstan and Uzbekistan, with a dry-port transshipment hub in Makmal, Kyrgyzstan. This compromise allows integration with existing Central...

Transport and Logistics

Kazakhstan Bets on U.S. Technology to Modernize Railways

Kazakhstan’s railways are not just about moving freight - they are about positioning the country at the heart of Eurasia’s transport map. In a region where China’s Belt and Road, Russia’s transit corridors, and Europe’s markets converge, rail infrastructure has become a strategic asset. Against this backdrop, Kazakhstan Temir Zholy (KTZ) has signed a landmark $4.2 billion agreement with U.S.-based Wabtec for the supply of 300 TE33A locomotives and the maintenance of both existing and newly acquired rolling stock. The deal, which includes the construction of social infrastructure in regions where service centers are located, is one of the largest in the history of Kazakhstan’s rail sector, underscoring Astana’s ambition to cement its role as a key Eurasian logistics hub. To explore the agreement’s significance and the implications for Kazakhstan’s rail sector, The Times of Central Asia spoke with Asan Umbetov, Deputy General Director for Locomotive Operations at KTZ-Freight Transportation. TCA: What does this agreement mean for Kazakhstan’s railway sector? Umbetov: Kazakhstan is increasingly positioning itself as a key transport and logistics hub in Eurasia, with freight volumes having multiplied in recent years. To remain competitive, we need a modern and reliable locomotive fleet. Many of our diesel locomotives from the 1970s and 1980s are nearing the end of their service life. The TE33A series offers clear advantages: reduced fuel consumption, lower maintenance costs, operational readiness of up to 95%, enhanced traction, and resilience in extreme weather. They also improve working conditions for crews, featuring air conditioning, refrigerators, and onboard sanitation. This investment supports not only transport efficiency but also job creation, increased tax revenue, and the growth of adjacent industries, such as maintenance, warehousing, and logistics. In essence, modernizing our locomotive fleet is an investment in Kazakhstan’s broader economic and strategic positioning in Eurasian freight transport. TCA: How would you assess KTZ’s cooperation with Wabtec to date? Umbetov: Wabtec brings over a century of global experience and has operated in Kazakhstan for more than 27 years. Initially focused on modernizing 2Т10МК locomotives, the company launched the Locomotive Assembly Plant (LAP) in Astana in 2009. Today, the plant is staffed entirely by Kazakh citizens, including its management, and manufactures freight, passenger, and shunting locomotives certified under Eurasian Customs Union standards. In 2024, Wabtec opened an engineering center at LAP to provide technical expertise across the CIS. Its specialists will also participate in the development of the new TE33A series. Wabtec’s Astana Diesel Service plant handles major overhauls of Evolution-series diesel engines and other components, while seven service centers across Kazakhstan ensure ongoing maintenance. The company also supports the Bolashak program, offering paid internships for Kazakh students at its U.S. facilities. Since LAP’s launch, 572 locomotives have been produced for KTZ, and 40 units have been exported to Kyrgyzstan, Moldova, Tajikistan, Azerbaijan, Ukraine, Turkmenistan, and Mongolia. The plant has achieved a localization level of 40%. TCA: When will the new locomotives be delivered? Umbetov: Deliveries under the current contract will continue until 2026. The new agreement, covering 300 locomotives, spans the...

Transport and Logistics

Kazakhstan Expands Role as a Regional Logistics Hub at TransLogistica 2025

Almaty has reinforced its status as Central Asia’s logistics capital with the opening of the 28th Kazakhstan International Exhibition Transport and Logistics - TransLogistica Kazakhstan 2025. The event, being held at the Atakent Exhibition Center from September 30 to October 2, has gathered 303 exhibitors from 21 countries, underscoring the growing international interest in Kazakhstan’s transport sector. Organizers reported a 21% increase in participation compared with 2024, with new entrants from India, Romania, and Pakistan joining companies from Kazakhstan, China, and Russia. National pavilions represented Belarus, Latvia, Lithuania, and Estonia. Diplomatic and business delegations from several countries, including Finland and Pakistan, also attended. The event combined an exhibition floor with technical seminars led by logistics firms presenting developments in warehousing, machinery, and digital solutions. A central session was the VII International Business Forum “New Silk Way,” which featured a video address by President Kassym-Jomart Tokayev. In his remarks, Tokayev announced the launch of a second track on the Dostyk–Moyynty railway, a project intended to expand export and transit capacity on the Trans-Kazakhstan corridor linking China and Europe. [caption id="attachment_36805" align="aligncenter" width="1280"] Image: TransLogistica Kazakhstan 2025[/caption] Another focus was the Trans-Caspian International Transport Route, known as the Middle Corridor. Kazakhstan and Azerbaijan signed a memorandum aimed at strengthening the route’s role as a multimodal link between Asia and Europe. The agreement follows a series of regional initiatives to adapt to new transport realities and diversify trade flows away from more traditional corridors. Beyond high-level sessions, participants examined practical issues facing the sector. Delegates also visited the Burunday Container Terminal to review operations in intermodal freight and storage. TransLogistica 2025 was organized by Iteca and ICA Events Group with support from Kazakhstan’s Ministry of Transport and the national rail operator Kazakhstan Temir Zholy. While annual exhibitions often serve as promotional platforms, the scale of this year’s event and the agreements announced highlight Kazakhstan’s broader effort to position itself as a transit hub at the center of Eurasian trade routes.