KTZ, Wabtec & US EXIM: Modernizing Kazakhstan’s Rail Fleet

Introduction

Kazakhstan Temir Zholy (KTZ) and Citibank have finalized a Mandate Agreement for USD 1.6 billion in financing over ten years to modernize KTZ’s locomotive fleet, as part of a contract with Wabtec. The agreement, supported by the Export-Import Bank of the United States (US EXIM), was formalized on November 6, 2025, during an official meeting in Washington, D.C.

Financing and Agreements

Citibank will coordinate the financing for KTZ’s locomotive fleet modernization project. The Export-Import Bank of the United States (US EXIM) is providing a guarantee to ensure the transaction’s completion. The agreement was signed on November 6, 2025, in Washington, D.C.

Wabtec Contract and Locomotive Details

In September, Wabtec and KTZ entered a USD 4.2 billion contract for Evolution Series locomotives, including long-term maintenance and service support. This contract includes new units and maintenance services for KTZ’s existing fleet. The Evolution Series locomotives are designed for Kazakhstan’s climate and terrain, with improved fuel efficiency and extended maintenance intervals. The locomotives will be produced at the Lokomotiv Kurastyru Zauyty plant in Astana, a Wabtec Transportation Engines Holding B.V. subsidiary. The program aims to upgrade KTZ’s traction rolling stock and improve energy efficiency.

Training and Development Initiatives

KTZ and Wabtec signed a cooperation agreement for personnel training and professional development. In 2027, Wabtec will host KTZ-Freight Transportation employees at its US facilities for training on TE33AT series locomotives, including the HPCR EVO diesel engine. Training will continue in Kazakhstan, with Wabtec certification upon completion. The initiative also includes internships for Kazakhstani students and graduates through the Bolashak state program.

US EXIM Support and Strategic Importance

US EXIM has supported KTZ’s fleet renewal since 2012, with a USD 425 million loan agreement for 200 Evolution Series locomotives. In August 2025, EXIM approved a second transaction of USD 448 million for new Wabtec locomotives. KTZ’s rolling stock is essential for Kazakhstan’s transport network. The modernization enhances operational efficiency and supports freight transport demands. Upgrading KTZ’s locomotive fleet supports international trade, including routes like the Trans-Caspian International Transport Route and the Belt and Road Initiative, enhancing Kazakhstan’s role in Eurasian trade.

Conclusion

The agreements between KTZ, Citibank, and Wabtec, supported by US EXIM, facilitate the modernization of KTZ’s locomotive fleet. These initiatives include financing, locomotive supply, maintenance, personnel training, and support for international trade routes.

Company Summary

Kazakhstan Temir Zholy (KTZ): KTZ is the national railway company of Kazakhstan, responsible for the operation and maintenance of the country’s railway network.

Citibank: Citibank is acting as the financing coordinator for the project.

Wabtec: Wabtec is a supplier of locomotives and related services.

Export-Import Bank of the United States (US EXIM): US EXIM provides financial support for the project.

Wabtec Transportation Engines Holding B.V.: Subsidiary of Wabtec, operating the Lokomotiv Kurastyru Zauyty plant in Astana.

Technology

Evolution Series locomotives: Next-generation locomotives designed for improved fuel efficiency and longer intervals between maintenance cycles.

TE33AT series locomotives: Locomotive series for which training will be provided.

HPCR EVO diesel engine: Diesel engine used in TE33AT series locomotives.