Transport & Logistics - The Times Of Central Asia

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Transport & Logistics

Kazakhstan and Iran Expand Port Access to Boost Cargo Transit

Iran is ready to provide Kazakhstan with access to its port infrastructure to support cargo shipments to international markets, Iranian Minister of Roads and Urban Development Farzaneh Sadegh said during talks with Kazakhstan’s Deputy Prime Minister and Minister of National Economy Serik Zhumangarin. The meeting took place in Astana, where transport and logistics cooperation topped the agenda. The two sides discussed the development of the International North-South Transport Corridor, port infrastructure, bilateral trade, and transport links between Kazakhstan and Iran. Iranian officials said procedures had been finalized to allocate a land plot to Kazakhstan at Shahid Rajaee Port in Bandar Abbas, Iran’s main southern port on the Persian Gulf. According to Sadegh, the site will be transferred to Kazakhstan once the remaining legal procedures are completed. Tehran also offered Kazakhstan the opportunity to operate at Chabahar Port, Iran’s strategic deep-water hub on the Gulf of Oman, which provides direct access to markets in South and Southeast Asia. Chabahar is one of the key nodes of the International North-South Transport Corridor, which links Russia, Iran, India, and other countries. According to Sadegh, construction of the Chabahar-Zahedan railway, which would connect Chabahar to wider rail networks used for regional cargo transport, is more than 90% complete and is expected to be launched in the coming months. Once operational, the railway is expected to integrate Chabahar into an international rail network linking the Indian Ocean, Central Asia, and Europe. Kazakhstan, in turn, said it was ready to consider offering Iran port facilities, berths, and terminals at the Caspian ports of Aktau and Kuryk to support Iranian logistics operations. The two sides also highlighted the recently signed five-party railway agreement between China, Kazakhstan, Turkmenistan, Iran, and Turkey, as well as an upcoming four-party tariff agreement between Kazakhstan, Russia, Turkmenistan, and Iran, aimed at boosting regional trade and transit. “Strengthening cooperation is a strategic task set by our heads of state,” Zhumangarin said. “In 2025, trade turnover between Kazakhstan and Iran grew by 26.4% to $430.2 million. This confirms significant potential for further expansion, including within the framework of the roadmap to increase mutual trade to $3 billion and thanks to the free trade agreement signed between Iran and the Eurasian Economic Union.” Sadegh said her visit was focused on implementing previously reached agreements and expanding transport and logistics cooperation, which she said had gained importance amid current geopolitical changes. Officials also noted that cargo volumes along the North-South corridor rose by 12% in 2025 to reach 3.5 million tons, while railway freight traffic between Kazakhstan and Iran increased by 69%. To increase the corridor’s potential, Zhumangarin proposed developing a joint roadmap for transport infrastructure modernization, which he said could increase the route’s capacity to 20 million tons annually. As previously reported by The Times of Central Asia, Kazakhstan and Iran have continued expanding economic ties despite recent tensions involving Iran. Iranian investors are moving forward with industrial projects in Kazakhstan, including Solico Group’s planned cheese production plant in the Almaty region, while Kazakh vegetable...

Central Asia’s Transport Logistics Shift Eastward

At a recent roundtable in Bishkek on economic ties with China, former Kyrgyz Prime Minister and former presidential economic advisor Akylbek Japarov called on Central Asian states to improve coordination on regional transport infrastructure. He noted that Kyrgyz transport companies increasingly view transit through the Chinese city of Kashgar as the most efficient route. Japarov argued that China, given its global stature, should engage with Central Asia as a unified and coordinated region rather than as a collection of separate states. “We are facing both an opportunity and a challenge,” he said. “We must think not in terms of competition between countries, but as a single interconnected system. Only in this way will we achieve sustainable growth and maintain our independence in the new world order.” Eastern Shift: Freight Volumes Rise Through China According to the Kyrgyz Association of International Carriers, a growing volume of freight is now transported through China, and this trend is expected to accelerate following the completion of the China-Kyrgyzstan-Uzbekistan railway. Deputy Chairman of the Association, Igor Golubev, told The Times of Central Asia that private carriers are independently negotiating routes with transit countries across both eastern and western corridors. “We are actively cooperating with neighboring countries, developing new routes, and finalizing logistics. There are some challenges, like visa issues and fuel surcharges, but they are all solvable,” Golubev said. Previously, some carriers established routes through Turkmenbashi to transport goods across the Caspian and Black Seas to Europe. However, a shortage of ferries in Turkmenistan has created a serious bottleneck. In response, the Turkmen government is reportedly exploring the purchase of additional vessels. Western Routes: Costly and Complex Logistics along western routes remain difficult. Sanctions and transit restrictions through Russia, the shortest and most economical path to Europe, have forced freight operators to reroute via the so-called Middle Corridor. This involves ferrying goods across the Black Sea to Georgia, transporting them to Azerbaijan, then shipping them across the Caspian Sea to Aktau (Kazakhstan) or Turkmenbashi (Turkmenistan), and continuing overland to Uzbekistan and Kyrgyzstan. “This route is very expensive. Waiting for ferries adds to the costs,” Golubev explained. “We rarely use the Black Sea route. European cargo is primarily transported via Turkey, Iran, and the Caspian Sea. These logistics remain expensive and time-consuming.” Exploring Southern Routes: Pakistan and the Push Toward Karachi As Chinese industrial output continues to expand, the country’s existing logistics infrastructure is increasingly strained. Beijing is investing in new railways, expanding route networks, and seeking to streamline carrier operations. Amid high costs and administrative hurdles in western corridors, Kyrgyz carriers are turning to the east and south. Last year, Pakistani transport companies and wholesalers participated in the Kyrgyzstan Logistics Forum. Talks are now underway to secure access to Pakistan’s port of Karachi. “We had planned a joint motor rally with Pakistan, but tensions at the India-Pakistan border forced us to postpone,” Golubev said. A new route is being considered that would pass through China and Iran, bypassing Afghanistan. “Pakistanis are already using Afghan transit...

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...

Transport & Logistics

Will Construction Of Kyrgyzstan’s “Chinese Railroad” Start This Year?

The China-Kyrgyzstan-Uzbekistan railroad construction project is the largest project in Kyrgyzstan’s transport sector, according to the authorities in Kyrgyzstan, and its implementation will help realize the transit potential of the republic while connecting it with the countries of southeast Asia. The new railroad will be important not only for the three named countries through which it will pass; it will also shorten the route from East Asia to the Middle East and Southern Europe. The total length of the Kyrgyz branch will be 280 kilometers. It’s worth noting that Beijing developed a feasibility study for this project back in the early 2000s, whereby the route was first determined. The Chinese study proposed building a shorter route across the territory of Kyrgyzstan, which would have been about 250 kilometers long. But the authorities in Kyrgyzstan at the time proposed lengthening the route by over 100 kilometers in order to add more villages to the route, thereby securing access to the economic benefits of the railroad for more citizens. For the longest time, authorities in the three countries couldn’t agree on which gauge to set. This hinged on the fact that China, Turkey and Iran are building using the European gauge of 1.435mm, while Central Asian countries use the Russian standard of 1.620mm. As a result, the parties decided on a so-called transition from one gauge to the other. According to some reports, this transition will be located in Kyrgyzstan in the village of Kazarman. China will build its part of the railroad line to this settlement on its own. Financing for the Kyrgyz part of the railroad will be determined by the authorities in Kyrgyzstan in concert with their counterparts in Uzbekistan and other investors. The project’s cost is estimated at $4.7 billion. In the future, Kyrgyzstan plans to connect the new route with the northern part of the railroad in order to re-export Chinese goods to Russia. Chinese leader Xi Jinping recently hosted President Shavkat Mirziyoyev of Uzbekistan on a state visit to Beijing, where the two leaders discussed the China-Kyrgyzstan-Uzbekistan railroad, among other economic issues. In a conversation with his Uzbek counterpart, Xi Jinping noted that the countries should speed up negotiations and start construction of the railroad as soon as possible, which is a key component of China’s “One Belt, One Road” mega-project.

Transport & Logistics

Kazakhstan Leads Initiatives for Central Asian Trade and Connectivity

Kazakhstan's strategic location as the gateway from China's western border to Europe makes it a linchpin in the Trans-Caspian International Trade Corridor (TITR). The TITR starts from China, transits the whole width of Kazakhstan, crosses the Caspian Sea to Azerbaijan and Georgia, eventually reaching Europe via Turkey or the Black Sea. Although it is sometimes also called the "Middle Corridor", this latter term more properly refers to the TITR segment running from Kazakhstan to the South Caucasus. Started over six years ago as an autonomous bilateral initiative between Kazakhstan and Azerbaijan to bolster cross-Caspian trade, the Middle Corridor project antedates the TITR. The TITR, as well as the more limited Middle Corridor, have drawn considerable support from international financial institutions (IFIs) like the Asian Development Bank, European Bank for Reconstruction and Development and the World Bank, as well as national development organisations including the U.S. Agency for International Development. The network of the TITR association now counts eleven participating states (Azerbaijan, Belarus, China, Estonia, Georgia, Kazakhstan, Latvia, Lithuania, Poland, Turkey and Ukraine) as well as 25 transport and logistics companies including ports, vessels, railways and terminals. Kazakhstan's role and leadership Kazakhstan, given its geographic centrality in the region, may rightly be considered the keystone of the TITR in Central Asia, just as Azerbaijan is its keystone in the South Caucasus. Under the leadership of President Kassym-Jomart Tokayev, the country has taken significant steps towards realising the potential of this important trade route, cementing its role as a crucial Eurasian transit hub. One example demonstrating Kazakhstan’s key role is the country’s targeting of a substantial increase in cargo traffic along the TITR, with an ambitious goal of 500,000 containers per year by 2030. The roadmap between Azerbaijan and Kazakhstan for the development of the Middle Corridor across the Caspian Sea is one component of Tokayev’s vision. It complements the broader economic objectives that Tokayev has established for his country's progress, but more importantly, his active engagement with IFIs and neighbouring countries underscores his commitment to greater collaborative development and regional integration. Understanding the challenges and the impact for key countries The Middle Corridor saw a 33 per cent surge in container traffic in 2022, but this has fallen significantly in 2023. That is because the dynamic growth revealed limitations such as issues at border crossings, transhipments and co-ordination, all producing lengthy transport delays. To address these challenges, Kazakhstan—along with Azerbaijan and Georgia—has initiated upgrades to the corridor. In November 2022, the three countries signed a roadmap that outlined priority actions and investments for optimising the corridor's efficiency and increasing its capacity. The TITR diversifies trade routes and reduces the dependence of countries in Central Asia and South Caucasus on Russian imports. Opening up new markets in the Middle East and North Africa (and eventually in South and Southeast Asia) will accelerate economic growth by promoting the production of more complex and value-added products. A World Bank study forecasts a 30 per cent increase in trade along the route, with Kazakhstan’s exports...

Transport & Logistics

How Will Free Trade Zone Between EAEU and Iran Affect Kazakhstan?

The free trade Agreement between the Eurasian Economic Union (EAEU) and Iran will ensure an increase in annual mutual trade to U$18-20 billion in the near future, Andrey Slepnev, a member of the Board for Trade of the Eurasian Economic Commission said during a briefing. The free trade agreement between the EAEU and Iran is scheduled to be adopted on December 25th 2023. “Iran is a large market, our neighbor, and a key country in the international North-South transport corridor,” said Slepnev. “We consider this new agreement as one of the elements of this corridor." Slepnev stated that currently trade between EAEU countries with Iran is carried out, among other things, within the framework of the interim agreement adopted in 2019, which covers about 360 commodity items. But even this has made it possible to double mutual trade in three years, from $2.5 billion to more than $5 billion, and in 2022 to bring it to $6.2 billion. “The conclusion of a full-scale agreement will allow us to double trade in a short time. The first target we are focusing on is $18-20 billion, which is quite realistic to achieve in the foreseeable future," said Slepnev, adding that implementation of the agreement will be carried out on the basis of the WTO. For this purpose, work will be carried out on the harmonization of regulations, since Iran is not a WTO member. In addition, the parties will strive to increase the volume and channels for making payments in their national currencies. “In Kazakhstan, we see prospects for the supply of traditional Kazakh products to Iran; first of all, wheat, barley, agri-food products, metals, and chemical products. This agreement will allow Kazakhstan to increase its presence in the Iranian market," he added. Slepnev stressed that the expansion of the EAEU trade partnership with third countries will make it possible to use and actively develop the transit and transport potential of EAEU countries. Trade with Iran naturally involves the use of the North-South corridor, and will also contribute to the communications in the East-West corridor, which runs through the countries of Central Asia and Russia. “The demand for these intercontinental transport corridors is constantly increasing in the context of international tension. Economically, we live in a time when the one who is faster wins, so our advantage is speed and convenience," Slepnev concluded.