Kazakhstan Rail Gets $150M Boost: Almaty Bypass to Cut Transit Times

ALMATY, KAZAKHSTAN – The Asian Infrastructure Investment Bank (AIIB) has approved a USD 150 million loan for Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), to construct a critical new freight bypass around the country’s largest city, Almaty. The project is a cornerstone of Kazakhstan’s strategy to enhance its role as a key Eurasian transit hub and is expected to slash freight delivery times by 24 hours while reducing traffic at the congested Almaty junction by 40%.

The financing package, delivered through a non-sovereign structure, forms part of a larger collaborative effort with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), who will jointly provide support equivalent to USD 300 million. This partnership underscores strong international confidence in Kazakhstan’s transport modernization agenda and its efforts to build a more resilient and competitive logistics network. The project, for which KTZ began construction work in November 2023, is designed to divert freight traffic away from the city center, thereby improving urban mobility and freeing up existing lines for expanded passenger services.

The Almaty Rail Bypass will consist of a new 75 km single-track, electrified railway line running between Zhetygen station to the east of the city and Kazybek Bek station to the west. The comprehensive construction plan includes a total of 130 km of track, three switches, 13 bridges, and five overpasses. The project will be supplied with 228,000 domestically manufactured sleepers and 16,000 tons of rail, highlighting a commitment to local industry. By creating a dedicated freight corridor, the bypass will eliminate significant operational bottlenecks and reduce emissions associated with rail congestion in the densely populated urban area.

Strategically, the Almaty bypass is a vital component in strengthening Kazakhstan’s capacity to handle growing regional transit flows, particularly along the increasingly important Middle Corridor trade route connecting Asia and Europe. This infrastructure investment aligns with the nation’s broader development goals, including ambitious plans to achieve energy self-sufficiency by 2027 and a power surplus by 2029. By modernizing its core transport arteries, Kazakhstan is positioning itself not only as a critical logistics hub but also as a more integrated and self-reliant economic power in Central Asia.

Key Takeaways

• Major Decongestion: The bypass is projected to reduce rail traffic density at the Almaty junction by 40%, significantly improving freight transit times and efficiency.
• Boost for the Middle Corridor: The project directly enhances the capacity and reliability of the trans-Eurasian trade route, strengthening Kazakhstan’s role as a key transit nation.
• Improved Urban Mobility: By shifting freight traffic out of Almaty, the project will free up urban rail capacity, paving the way for improved and expanded passenger and commuter train services.

Editor’s Analysis

The Almaty Rail Bypass is more than a local infrastructure upgrade; it is a calculated geopolitical investment. In an era of shifting global supply chains, Kazakhstan is proactively reinforcing the Middle Corridor as a viable and resilient alternative to traditional East-West routes. The backing of major multilateral institutions like AIIB, IFC, and MIGA not only provides the necessary capital but also lends significant credibility to the project and the corridor’s long-term potential. This move solidifies Kazakhstan’s strategic importance, reducing its reliance on any single trade partner or route and positioning it as an indispensable linchpin in the evolving landscape of Eurasian commerce.

Frequently Asked Questions

What is the primary goal of the Almaty Rail Bypass?
The primary goal is to create a dedicated freight railway line that bypasses the city of Almaty. This will reduce congestion on the existing urban network by 40%, speed up freight delivery by 24 hours, and free up capacity for passenger services.

Who is financing the construction?
The Asian Infrastructure Investment Bank (AIIB) is providing a USD 150 million loan. This is part of a larger joint support package of up to USD 300 million from the AIIB, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).

How does this project impact international trade?
The bypass significantly strengthens the efficiency of the Middle Corridor, a key trade route connecting China and Europe via Central Asia, the Caspian Sea, and the Caucasus. By improving this corridor, Kazakhstan enhances its capacity to support regional and intercontinental transit flows.