Kazakhstan sits at the crossroads of Eurasia’s commodity flows. As global supply chains diversify and shippers seek more resilient, cost-effective alternatives, the country’s geography and infrastructure have gained renewed relevance. Kazakhstan links three major international rail corridors between East Asia, Central Asia, and Europe – including the Trans-Caspian Transport Corridor (TCTC), also known as the Middle Corridor, providing an alternative to the historically dominant overland and sea freight routes linking East Asia and Europe in the context of geopolitical risks affecting alternative routes.
Laura Vecvagare. Photo credit: International Financial Corporation
The TCTC integrates rail, road, and maritime infrastructure to move freight and containerized goods between Asia and Europe via Central Asia, the Caspian Sea, the South Caucasus, Türkiye, and onward to the Black Sea. Volumes at the China–Kazakhstan border alone are projected to exceed 100 million tons by 2040, with capacity expansions underway in Central Asia, across the Caspian crossing and at western gateways in Türkiye and the Black Sea. This trajectory highlights both the potential and the urgency: as traffic increases, bottlenecks could erode the corridor’s competitiveness unless infrastructure development keeps pace.
Kazakhstan’s rail backbone and the race to modernize
Kazakhstan’s rail network extends more than 16,000 kilometers, ranking among the top 30 countries globally by network length. However, structural constraints remain – including extensive single-track segments, limited electrification, asset depreciation, growing loads, and border bottlenecks. These challenges translate into slower rail movements and longer dwell times, which limit throughput on busy routes, require costly workarounds, and constrain Kazakhstan’s full potential as a transport and logistics hub.
In response, the Government of Kazakhstan has adopted the Railway Transport Development Program 2029, and Kazakhstan Temir Zholy (KTZ), the national railway operator, is planning a major capital investment program for 2025–2029 to modernize core infrastructure. The scale and urgency of these investments call for blended support, combining public commitments with private capital mobilized through trusted partners.
To help address a critical chokepoint, IFC has invested up to $50 million in KTZ and mobilized additional financing from the Asian Infrastructure Investment Bank and a MIGA guarantee provided to Standard Chartered. The total $300 million investment will support the construction of the Almaty Railway Bypass, a 130-kilometer electrified line designed to ease congestion around Almaty and improve freight flows along the TCTC.
The engagement also aims to promote railway sector reforms and enhance KTZ’s commercial focus. It seeks to diversify funding sources away from budget support and strengthen financial and environmental sustainability, improve interoperability and cross-border connectivity, and support trade diversification by providing a credible alternative route. Together, these measures can help position Kazakhstan’s railway sector – and the TCTC – as a competitive, sustainable backbone for intra-regional and intercontinental trade.
The big picture: building a resilient Eurasian trade network
Global logistics are changing. Businesses are rebalancing supply chains to manage risk, and governments are investing in corridors that provide redundancy and resilience. The TCTC will be a viable and valuable opportunity, provided its capacity, reliability, and integration continue to improve. With the Railway Transport Development Program 2029, KTZ’s modernization plan, and targeted investments like the Almaty Railway Bypass, Kazakhstan is taking strategic steps that put it on track to serve as a pivotal transport and logistics hub between East and West.
The World Bank Group is supporting the government of Kazakhstan to strengthen and modernize KTZ in line with evolving sector challenges.
Through a Joint Implementation Plan, aligned with Kazakhstan’s 2050 development objectives, this comprehensive effort seeks to advance railway-sector priorities by investing in resilient infrastructure, strengthening institutional reforms, and promoting long-term financial and environmental and social sustainability. Together, these measures aim to support Kazakhstan’s ambition to transform geography into opportunity, enhance Eurasian connectivity, and drive lasting economic growth.
Laura Vecvagare is IFC’s Regional Head of Industry for Infrastructure and Natural Resources in the Middle East and Central Asia.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
