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Transport

Alatau to Become First City in Kazakhstan with Air Taxi System

Alatau, a newly established city in southern Kazakhstan near the country’s largest metropolis, Almaty, is set to become the first in the nation to launch an air taxi system. Kazakhstan’s Ministry of Artificial Intelligence and Digital Development recently signed a memorandum of understanding with U.S. based Joby Aero, Inc. for the purchase of electric vertical take-off and landing (eVTOL) aircraft valued at approximately $300 million. The aircraft will form the basis of a new urban air mobility system. The agreement also includes Alatau Advance Air Group Ltd., a local operator and integrator of air mobility technologies, and Vyacheslav Kim, chairman of the board of directors at Kaspi.kz and a key investor in the Alatau City development project. Plans for the construction of Alatau City were unveiled in late 2024, when four villages near Almaty were merged to create a new urban agglomeration. The city aims to attract $7.2 billion in investment and grow to a population of 2 million. It will also be part of a special economic zone that includes more than 170 planned projects worth a combined $24.4 billion. Authorities hope to position Alatau as a leading destination for investors. Joby Aero, Inc., a global leader in eVTOL aviation and the developer of certified electric air taxis, will supply aircraft capable of vertical take-off and landing. These aircraft will anchor Kazakhstan’s first urban air mobility initiative. The agreement also includes the creation of a testing site in southern Kazakhstan for certification and demonstration flights, along with plans to integrate air taxis into the transport systems of both Alatau and Almaty. Joby’s electric aircraft can travel up to 160 kilometers on a single charge and reach speeds of up to 322 km/h. The distance between Almaty and Alatau is approximately 34 kilometers. “Kazakhstan is taking a step into the future of innovative transport. The purchase of electric eVTOL aircraft marks an important milestone in developing smart cities and integrating cutting-edge technologies,” said Zhaslan Madiyev, Minister of Artificial Intelligence and Digital Development. “This move will shape Alatau as a city built on the technologies of tomorrow.” As previously reported by The Times of Central Asia, Kazakh authorities plan to launch commercial air taxi operations as early as next year.

Automotive Industry

Škoda Group Plans Joint Venture to Assemble Railway Vehicles in Uzbekistan

Czech manufacturer Škoda Group has announced plans to establish a joint venture in Uzbekistan to assemble railway transport vehicles, according to a statement from the company’s press service. The initiative was unveiled during President Shavkat Mirziyoyev’s official visit to Belgium on October 24, where he held a roundtable meeting with top European business leaders. Among the participants was Škoda Group CEO Petr Novotný, who described Central Asia as a highly promising market. Novotný presented the company’s strategic roadmap for entering Uzbekistan, backed by support from the European Commission and the European Investment Bank. The proposed joint venture will focus on three key areas: assembling railway vehicles under local conditions, providing long-term maintenance and repair services, and launching a Škoda Academy to train and upskill Uzbek specialists. “Each of the three areas represents a concrete step toward fulfilling the new Enhanced Partnership and Cooperation Agreement and the European Global Gateway strategy. We consider Uzbekistan to be a country opening up to new investments from European business partners. It has long been in our sights in terms of our strategic ambitions. We therefore very much welcome the opportunity to contribute to the development of sustainable transport, education, and technological modernization in the local market,” Novotný said. Škoda emphasized that the project aligns with Uzbekistan’s national goals to modernize its transport infrastructure and deepen partnerships with European industry. The company said that high-level discussions in Brussels underscored the strong potential for European technology and expertise to support the sustainable transformation of Uzbekistan’s railway sector.

Transport

New Highway Links Kyrgyzstan’s Issyk-Kul with Almaty in Kazakhstan

On September 29, a new highway was opened connecting the village of Tyup, in the northeastern part of Lake Issyk-Kul, with Kegen in Kazakhstan’s Almaty region. The 52-kilometer Tyup-Kegen road is of strategic significance, linking Kyrgyzstan’s most prominent tourist destination, Lake Issyk-Kul, with Kazakhstan’s largest city, Almaty, via the existing route through Kegen. This new corridor creates a direct 280-kilometer connection between Almaty and the northeastern shore of Issyk-Kul, significantly shortening the previous route to the lake’s northern edge. While the straight-line distance between Almaty and Issyk-Kul is only about 80 kilometers, travelers were previously forced to detour through Bishkek due to mountainous terrain. The journey to Cholpon-Ata, the largest resort town on the lake’s northern shore, used to span 460 kilometers and could take up to eight hours. Lake Issyk-Kul remains a top summer getaway for the region, particularly for Almaty residents seeking short weekend retreats. [caption id="attachment_36786" align="aligncenter" width="352"] @president.kg[/caption] The Times of Central Asia previously reported on the progress of long-standing plans to establish a more direct road between Almaty and Issyk-Kul. Kazakhstan and Kyrgyzstan signed a memorandum of understanding in 2007 for a route bypassing Bishkek, running through Uzynagash and Kemin and connecting directly to Cholpon-Ata. That project, however, stalled in its early stages. If completed, it would have reduced the travel distance to roughly 260 kilometers and substantially cut travel time. In June, Asman Airlines launched regular passenger flights from Almaty to Tamchy Airport on the northern shore of Issyk-Kul, further strengthening cross-border travel links. Experts believe the opening of the Tyup-Kegen highway will benefit not only tourism but also trade and cross-border cooperation between Kyrgyzstan and Kazakhstan. Enhanced transport accessibility is expected to stimulate small and medium-sized enterprises, boost agricultural trade and food supply chains, and create new employment opportunities for local communities. In addition, the new route offers expanded opportunities for logistics companies and the tourism sector, paving the way for deeper regional engagement between the two neighboring countries.

Transport

Trans-Afghan Corridor Becomes Central Asia’s New Trade Gateway Amid Competition

Kazakhstan plans to join in the Trans-Afghan Corridor project by constructing a 120-kilometer railway from Turgundi to Herat and establishing a transport and logistics center on Afghan territory. The new route is expected to expand the volume and improve the efficiency of Kazakhstan’s export and import shipments, while also providing access to the Indian Ocean, the Middle East, and the Persian Gulf. In August, Kazakhstan’s Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin, announced that the country plans to invest $500 million in the construction of the Turgundi-Herat railway in Afghanistan. The 120-kilometer line will provide the shortest route to the Indian Ocean, linking Kazakhstan and Central Asia with Pakistan’s seaports of Karachi and Gwadar. Kazakhstan’s Deputy Minister of Transport, Zhanibek Taizhanov, told The Times of Central Asia that the project is expected to take about three years from the approval of the design and cost documentation. “More precise timelines will be determined after the completion of all design stages, approvals, and the signing of contracts with contractors and investors,” said the ministry representative. The railway will give Kazakhstan access to new transport routes and markets. Amid intensifying global competition for transit flows, it offers a cheaper alternative shipping option and represents an important new logistics solution for the republic. This promising route, however, also carries risks, as Afghanistan remains one of the world’s most unstable countries. Even so, trade potential between Kazakhstan and Afghanistan is considerable. In 2024, bilateral trade turnover reached $545.2 million, with $527.7 million accounted for by Kazakh exports. Kazakhstan remains one of Afghanistan’s largest trading partners and a leading supplier of grain and flour. Looking ahead to exports and imports moving toward Pakistan, India, and beyond, the potential is considerable. Yet market participants have repeatedly noted that logistics remains the main barrier to trade in this direction. “Projected freight volumes along the route are estimated at 35–40 million tons per year. A comprehensive study of the region’s economic potential, logistics flows, and expansion prospects is underway,” Taizhanov told TCA, adding that once operational, the line is expected to become a crucial link in the international transport system, boosting trade between Central Asia and South Asia. In Afghanistan, the Taliban resumed nearly all regional and interregional transport projects initiated under the previous government. Active negotiations are underway on the construction of the Termez–Naibabad–Maidan Shahr–Logar–Kharlachi line, commonly referred to as the “Kabul Corridor,” the Mazar-i-Sharif–Herat railway, and the completion of the Khaf–Herat line, among others. Regional countries have also joined this large-scale effort. The Trans-Afghan project involves the interests of Russia, China, Uzbekistan, Turkmenistan, and Iran, all of which are seeking to benefit from its implementation. Geopolitics and transport interests In pursuit of greater export, import, and transit opportunities, Kazakhstan, Russia, Uzbekistan, and Turkmenistan are actively participating in these initiatives, offering their own rail routes through Afghanistan to Pakistan’s borders. For Iran and Tajikistan, the transnational corridor through Afghanistan is also attractive, providing a potential route to China via Kyrgyzstan. Turkmenistan and Kazakhstan plan to...

Transport

Kazakhstan’s Rail Deal – A Long Way from Soviet-Era Locomotives

The roots of the $4.2 billion deal in which American firm Wabtec will provide 300 locomotives for Kazakhstan’s growing railway infrastructure emerged soon after the country’s 1991 independence, when the new government needed to upgrade its decaying Soviet-built locomotives. Pennsylvania-based GE Transportation, a major producer of railway equipment, helped with the modernization program in the mid-1990s and continued business with Kazakhstan in the following decades. In 2019, Wabtec, a transportation and technology company, bought GE Transportation. Wabtec celebrated the deal that was announced on Monday during Kazakh President Kassym-Jomart Tokayev’s visit to New York for the U.N. General Assembly. How big was the deal? The agreement has been described in different shades of magnitude. The U.S. Commerce Department said it was “the largest locomotive deal in history” – Wabtec said it was the largest in Wabtec’s history – and the Kazakh government and media have generally steered clear of historical references. Other big international railway deals include a 3 billion euro Siemens project in India that was announced in January 2023. Under that deal, the German company is to deliver 1,200 electric locomotives and provide 35 years of full service maintenance. In March this year, France-based Alstom said it had delivered 500 electric locomotives to Indian Railways, part of a 3.5 billion euro contract to deliver 800 locomotives for freight service. That contract was signed in 2015. Who gets the credit? U.S. Commerce Secretary Howard Lutnick described the deal with Kazakhstan as “President Trump’s America First trade policy in action.” Still, GE Transportation, which later became part of Wabtec, has been a key part of Kazakhstan’s railway industry for years. The company modernized hundreds of diesel freight locomotives decades ago and later transferred technology to Kazakhstan, developing engineering skills that could be used to build new trains. Wabtec acquired full ownership of a manufacturing facility in Astana in 2023 and says it has exported locomotives to countries including Tajikistan, Mongolia, Moldova and Ukraine. “I mean, it’s great,” Evan A. Feigenbaum, a former U.S. State Department official, said of this week’s deal in a post on X. “But GE and Wabtec have been doing a locomotive business in and with Kazakhstan for 20 years. I was in the Bush Administration as the deputy assistant secretary of State overseeing Central Asia and was giving speeches and talks about locomotives and Kazakhstan back then…” Feigenbaum said. Kazakhstan’s decision to make a big agreement with Wabtec fits with its policy of developing ties with a wide range of diplomatic and business partners. Alstom, of Europe, and Chinese locomotive maker CRRC are also significant players in Kazakhstan’s railway industry. What does the deal mean for Kazakhstan? A lot. Railways underpin the economy. Rail transport accounts for about 64% of Kazakhstan’s total freight turnover, far more than other forms of transport such as air and road, according to Kazakh railway officials. Kazakhstan is one of the biggest countries in the world, ranging from its Chinese and Russian borders in the east to the Caspian Sea in the...

Transport

Kazakhstan Moves to Ban Electric Scooters from Sidewalks

Kazakhstan’s Ministry of Internal Affairs is preparing new legislation that would prohibit electric scooters from being used on sidewalks, Deputy Minister Igor Lepekha announced. Initial restrictions on scooters were introduced in 2023, requiring riders to limit their speed to 6 km/h on sidewalks. However, compliance has been minimal, largely due to limited state enforcement and the failure of kick-sharing companies to implement speed-limiting technologies. The issue resurfaced at the highest level on September 8, when President Kassym-Jomart Tokayev called for urgent measures to improve pedestrian safety. Lepekha stated that previously rejected amendments to scooter regulations have now been redrafted. “These proposals to tighten control have already been submitted to parliament by the Ministry of Internal Affairs, but a number of them did not find support. In this regard, new amendments have been developed jointly with deputies, providing for a ban on the movement of electric scooters on sidewalks,” he said. The Ministry also proposes new safety responsibilities for kick-sharing companies and wants to give local authorities the right to regulate scooter use within their jurisdictions. “The municipality could decide for itself on which streets and at what times they can be ridden and when they should be prohibited, thus defining zones,” Lepekha added. Since the beginning of the year, Kazakhstan has recorded 361 traffic accidents involving electric scooters, resulting in 365 injuries and one death. According to a government report, authorities documented 29,000 traffic violations by scooter riders in 2025 alone, with 8,000 devices impounded. As of August 29, the Ministry had recorded 213 accidents and 224 injuries, along with 24,000 violations and 2,500 scooters sent to impound lots. The figures indicate that in the two weeks following Tokayev’s directive, scooter-related violations increased by 5,000, and the number of impounded devices more than doubled. As The Times of Central Asia previously reported, enforcement has intensified particularly in Almaty, where the highest number of violations has been reported.