“The signing of the EPC contract marks the transition from strategic agreements to the practical implementation of a large-scale project. We are creating a modern logistics hub that will strengthen the transit potential of Central Asia and become an important link in the Eurasian transport corridors. For us, this is not just a construction project – it is a long-term investment in the development of the regional economy and international trade”, said Silkway CA CEO Daniyar Tiesov.

Portfolio expansion

PTC Holding says that the logistics complex will strengthen the positions of Uzbekistan and Kazakhstan as key transit hubs between China, Central Asia, the Caucasus, and Europe. It will also complement PTC Holding’s international infrastructure from Dostyk TransTerminal to the multimodal terminal Poti TransTerminal.

The MPLC will occupy an area of 159.4 hectares. The completion of the first phase is scheduled for 2027 and covers an investment of 84 million dollars.

This funding will be allocated to two major project components: railway connectivity and institutional support.

“Beyond enabling critical infrastructure investments, this project supports important reforms that will strengthen Kazakhstan Temir Zholy’s financial sustainability and long-term competitiveness,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan and Turkmenistan.

“By combining phased investments, institutional reforms, and private capital mobilization, we are helping build a modern rail system that will deliver lasting economic and environmental benefits for Kazakhstan and the wider region.”

A new railway, tariffs and IPO support

The project will finance a new 322.3-kilometre railway line between Moyynty and Kyzylzhar in Kazakhstan. It will shorten the east-west corridor by 149 kilometres and enable double-stack container operations. The railway will be equipped with modern signalling and telecommunication systems, with the possibility of future expansion and electrification.

In terms of institutional support, the project will aid railway operator KTZ to implement tariff reforms, explore alternative financing mechanisms, improve financial and environmental management and prepare for the upcoming initial public offering (IPO).

The World Bank says that the project will contribute to a tripling of the freight volume on the Middle Corridor by 2030. It should also help to halve end-to-end transit times along the route. Additional benefits include a reduction in carbon emissions, improved market access, lower trade costs, job creation and local economic development.

A key feature of the project’s approach is the gradual reduction in reliance on sovereign guarantees. The initiative is a component of the joint plan for developing Kazakhstan’s Middle Corridor, which leverages the combined expertise and financial instruments of the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).

Support for Syria as well?

Several Middle Eastern media outlets also report World Bank support for Syria’s rail network. Reportedly, Syria will receive 50 million dollars in financing to develop rail transportation. This would include a purchase of 15 new locomotives and personnel training. However, this funding does not seem to be confirmed by the World Bank.

KTZ is reportedly considering entering not only the Kazakh stock market, but also international ones, such as LSE.

Kazakh Railways’ net debt amounted to some six billion dollars as of September 2025. The rail operator turned to consultants from Citigroup Inc., JPMorgen Chase & Co as well as Societe Generale in November 2025. They valued the company at ten billion dollars at least.

The earnings from the Initial Public Offering could at least in part go towards the elimination of KTZ’s debt, said the operator’s owner, investment fund Samruk-Kazyna.

On the edge of bankrupcy

Bloomberg’s reporting highlights that KTZ could be an attractive investment, considering the expectation of growing transit volumes in the coming years. Transit volumes for the first 11 months of last year increased to 27.9 million tons, compared to 27.5 million tons in 2024.

However, the Kazakh transport ministry had painted a different picture of KTZ a year and a half ago. KTZ was said to be on the edge of bankruptcy, transporting 73% of all freight below the cost price.

“The once self-sufficient company KTZ, for the reason of ineffective and conservative management, is on the edge of survival”, the transport minister at the time stated. “All lucrative services were transferred to private companies.” Kazakhstan floated the idea of privatising KTZ already in mid-2024.

Despite the rail operator’s troubled finances, Bloomberg may be right that there is cause for optimism. Subsidiary KTZ Express, which specialises in intermodal multimodal logistics, has reported impressive growth numbers for 2025.

KTZ Express: 2025 success

The volume of freight on the North–South corridor tripled, and volume on the China – Kazakhstan – Turkmenistan – Iran route quadrupled. Export container shipments increased by 43%, and imports tripled. For the TMTM (Trans-Caspian International Transport Route), exports saw a 71% increase, and transit volume grew by 15%. RailFreight.com has asked KTZ Express for nominal numbers, but the percentages indicate a clear positive trend for the company.

KTZ Express also celebrates the launch of several new services in 2025: A China-Afghanistan container service, a Kazakhstan-USA logistics cycle, a Chengdu (China)-Łódź (Poland) connection, Shanxi (China)-Azerbaijan and Kazakhstan-Belgium door-to-door deliveries.

To Antwerp with CMA CGM

On 18 February, KTZ Express also announced that it had conducted a pilot export shipment of broken rice via the Middle Corridor to the port of Antwerp in Belgium. This shipment was carried out ‘multimodally’, using rail infrastructure and shipping routes across the Caspian Sea and Black Sea.

“The logistics plan is based on the Kyzylorda – Aktau Port – Poti Port – Antwerp Port route, sequentially utilizing rail and sea transport. Sea transportation between the ports of Poti and Antwerp is carried out with the participation of the international shipping group CMA CGM Group”, the company specified.

Previously, KTZ Express organised freight shipments in this direction primarily overland via the Semiglavy Mar border crossing to Russia, followed by transit through Brest, Duisburg, and Antwerp.

The choice for the Middle Corridor route brings numerous benefits, however: shipping costs along the new route are lower than via the Northern Corridor, says KTZ Express, and have comparable transit times. The estimated transit time is approximately 30 days.

Potential freight exchanges relate to grain, coal, fertilisers, metals, chemicals and lumber. “The cooperation involves the comprehensive use of the infrastructure and transit capabilities of both countries, as well as the development of multimodal logistics solutions involving various modes of transport with return loads, which will reduce empty runs, optimise routes and minimise overall logistics costs”, adds KTZ.

Landlocked

Kazakhstan plays a major role in the Middle Corridor and China-Europe rail traffic more broadly. However, the country aims to diversify away from a single overland trade route. Due to their landlocked nature, the Central Asian countries take a keen interest in, for instance, enabling transport across Afghanistan. That would allow for access to the Indian Ocean through Pakistan’s Karachi port or the port at Gwadar.

Middle Corridor container traffic

Container transport along the Middle Corridor, a route where Kazakhstan and Georgia both play a key role in connecting Asia and Europe, has been on the rise. The number of containers travelling on this corridor grew by 15% between 2024 and 2025, reaching 36,000 TEUs. Despite the still relatively low figures (most of the goods still take the northern route via Russia), the Middle Corridor is showing real potential. Between 2023 and 2024, the number of container trains grew 26 times, from 11 to 287.

A good reason to inquire more about the company’s motivations, RailFreight.com thought, but let’s start with some of the basics: Rhenus Group has acquired a rail-connected container terminal in the south of Kazakhstan, setting it up for further development of integrated logistics services in the region, according to the logistics provider.

The ‘QAZContargo’ terminal is connected to national and international routes, among which is the Middle Corridor, connecting Asia and Europe overland. As such, the facility supports the growing import, export and transit volumes between China, Europe and across Central Asia. Rhenus hopes that the combination of its existing freight forwarding services and terminal infrastructure will strengthen its activities and supply chains in the region.

“Diversification rather than decoupling”

The acquisition of the QAZContargo terminal, however, is also informed by our rapidly changing world. Geopolitics is not leaving Central Asia untouched, and neither are rising logistics and compliance costs, Rhenus tells RailFreight.com. Together with a need for greater flexibility and responsiveness to customer demand, they are leading to a regionalisation of supply chains across Eurasia.

“Rather than retreating from global trade, companies are reconfiguring their networks to reduce dependency on single routes or gateways and to position logistics capabilities closer to key markets”, elaborates Rhenus. For Asia-Europe trade, the company sees diversification rather than decoupling. “China remains central, while Southeast Asia, India, and Türkiye are gaining importance as complementary hubs.” Moreover, inland rail corridors across Eurasia are becoming key enablers of resilient and adaptive supply-chain networks, in the words of the German logistics provider.

The result: inland capacity and multimodal corridors are growing in strategic importance. Rhenus’ recent moves are a response to that development. It points out that terminal infrastructure is a bottleneck across Eurasia: Terminals struggle to keep up with the growing trade volumes. The German company does not expect Eurasian terminals to close the gap in the coming decade.

This situation presents both a challenge and a clear opportunity

These capacity constraints are compounded by the growing demand of customers. As shippers expect predictability and transparency, Rhenus seems to move into the region to take matters into their own hands. It says that modern terminals need to offer real-time visibility, flexible capacity management and offer consolidation, customs and distribution services.

“For Rhenus, this situation presents both a challenge and a clear opportunity. Beyond traditional forwarding activities, the focus lies on expanding handling capacity at key logistics and economic hubs, strengthening intermodal integration, and improving last-mile connectivity. These investments are fully aligned with customer demand for faster, more reliable, and more cost-efficient transport solutions across Eurasia”, the company explains.

Containerisation: one of the factors behind the Rhenus acquisition

At the same time, the increasing rate of containerisation in Central Asia has also pushed Rhenus to acquire the QAZContargo terminal. Containerisation in the region is still at an early stage: adoption sits around 6-8% depending on the market and research methodology. That is well behind Europe and East Asia, says Rhenus. It also reflects the high share of bulk commodities, historically wagon-based rail systems and limited inland terminal infrastructure. Unsurprisingly, containers are mostly used on China-Europe routes.

Nevertheless, there is a clear demand for a further adoption of containers as a standardised carrying unit. Rhenus considers that a strategic shift in how supply chains are designed and managed. “Containers enable greater reliability, improved cargo security, faster transshipment, and seamless intermodal connectivity across rail, road, and sea.”

“To scale these benefits sustainably, modern intermodal terminals are essential. In this sense, the growing importance of container-based transport was one of the factors behind the decision to acquire and further develop this terminal in Kazakhstan”, Rhenus says.

Developing consumer market

It is primarily retailers and e-commerce companies in the Almaty area that currently make use of Rhenus’ new terminal and that might benefit from its integrated intermodal services. However, there is not a single large industry that dominates. The container terminal also handles industrial and manufacturing goods, automotive components and chemical and energy-related products.

Yet, with Kazakhstan’s developing consumer market and industrial base, more of these goods are transported in containers and via scheduled rail services. “The terminal is therefore designed to serve a diversified customer base across multiple industries”, says Rhenus.

For example, the Altynkol-Khorgos border crossing has far surpassed initial expectations for 2025. Over 16.1 million tonnes of freight passed the checkpoint in both directions. This is 9% more than an internationally agreed upon plan within the framework of the Organisation for Co-operation between Railways (OSJD), explains the Kazakh national rail operator KTZ.

Kazakhstan exported 5.3 million tonnes of freight through the border crossing. In the opposite direction, 3,589 trains entered Kazakhstan for transit purposes.

A similar trend further north

At the same time, the Alashankou-Dostyk border crossing saw a record number of China-Europe freight trains in 2025. A total of 8,165 trains passed the location in 2025, 6.3% more than in 2024.

Efficiency improvements have allowed trains to be inspected and cleared immediately upon arrival, a customs officer is quoted as saying in the Chinese publication Xinhua. The measures include the increased use of intelligent inspection systems and image recognition technology.

The overall clearance time at Alashankou was cut by 18.4% compared to 2024. That was highly necessary due to the many delays incurred at both Alashankou/Dostyk and Altynkol/Khorgos in the past years. Now, a freight train can change gauges and complete reloading procedures in around two hours, an operations manager at Alashankou told Xinhua.

In early 2025, Kazakhstan and China decided to double the maximum number of freight trains that can pass through the border crossing each day. At Alashankou, that translated into a maximum of 28 daily trains. At Altynkol, 15 trains were allowed to pass daily.

However, they can also be sent southwest to the Kazakh ports of Aktau and Kuryk on the Caspian Sea, along the so-called Middle Corridor. Goods are then moved by ship to Baku, in Azerbaijan and continue their rail journey to Georgia. Once in this country, goods can be continued to be moved by rail through Türkiye or again by ship across the Black Sea and enter Europe via Romania, Bulgaria or Ukraine.

Steady growth since 2017

Since 2017, both routes have experienced significant growth in rail freight traffic, both in terms of TEUs and total tonnes moved. A first glance at the numbers already shows how the two routes have been used for different transport needs. The route to Małaszewicze has seen a much higher number of TEUs but proportionally lower figures for the total tonnes, compared to the Middle Corridor route.

For the China-Kazakhstan-Poland connection, TEUs handled have more than doubled over the past 7 years. From 175,102 in 2017 to 380,434, with the highest spikes during the years of the COVID-19 pandemic, especially 2021. With the still ongoing Russian invasion of Ukraine of 2022, however, TEUs have declined and are still below 2020 levels. Total tonnes moved between the China-Kazakh border crossings and Małaszewicze followed a similar trend, more than tripling over the time span analysed.

The Middle Corridor, on the other hand, deals with much fewer TEUs but a higher weight load than the route to Poland. Still, the pace of growth along this line is just as impressive. Between 2017 and 2024, TEUs have grown more than sixfold (despite remaining much lower than its counterpart), while total tonnes have risen more than two and a half times, for a total of more than 3,3 million last year.

Another index of the Middle Corridor’s growth is the number of container block trains, which went from 11 in 2023 to 358 last year and expectations to go over 400 trains in 2025. Surprise, surprise, Kazakhstan is partly behind this too. One of the main drivers behind the increase of container traffic along this route is the Xi’an Dry Port, located in the heart of China and co-managed by Kazakhstan.

More trains = more bottlenecks

Kazakhstan is actively pursuing a role as a key transit country for Asia-Europe trade flows, and therefore wants to eliminate bottlenecks that hinder freight flows. After all, infrastructure capacity constraints are the primary limitation along the Middle Corridor. In 2024 and 2025, Kazakh border crossing points (BCPs), especially Dostyk and Altynkol, struggled with increased traffic. For instance, China-Europe traffic through Altynkol surged by 28.3% in Q1 2025, partly due to the Red Sea crisis diverting more freight to rail.

This led to chaotic situations, with shipments stuck for up to a month. Kazakhstan attempted to alleviate pressure by moving freight from Dostyk to Altynkol, but Altynkol also faced backlogs. Ultimately, Kazakhstan resorted to banning certain wagon types at BCPs to ease the situation.

In other words, more trains means more congestion. As a result, the average time to clear a border crossing point has gone up substantially in recent years. Since 2018, there has been a clear trend of Kazakh BCPs operating slower and slower. At the same time, the cost of crossing BCPs has remained largely unchanged.

Kazakhstan is now working to future-proof itself: it is working on a third border crossing, it plans to modernise the Altynkol border crossing and has doubled the maximum allowed amount of passing trains at Dostyk (from 14 to 28) and Altynkol (from 8 to 15).

Slower and more expensive

The success of the Middle Corridor, and of Kazakhstan as a transit country, also depends on its ability to remain competitive and offer speed. Here too, there are obstacles to be overcome.

The average cost to move 20 tonnes of freight via rail over a distance of 500 kilometres in Kazakhstan has also increased since 2019. Despite reaching a new peak in 2023 (more recent data is not available), it had not yet surpassed all-time peak year 2014. Between 2011 and 2014, the cost of rail freight in Kazakhstan skyrocketed. According to monitoring organisation CAREC, that was a result of a number of tariff increases.

In 2025, we saw another such increase. Infrastructure manager KTZ slapped an additional 35% on freight tariffs in April. As a result, say private Kazakh companies, the tariffs doubled between 2021 and 2024.

With more congestion and lower average speeds, those added costs are not providing a better quality of service. Perhaps the sector will just need to wait for key improvements in BCPs, port terminals and along vital railways to complete.

The Khorgos rail infrastructure is often overwhelmed by the large number of trains trying to cross the border. The addition of six new tracks at Altynkol could help in that regard. It boosts the daily train handling capacity from 20 to 28 trains.

Apart from the new tracks, Kazakhstan is working on 32 kilometres of double track infrastructure between Altynkol and Zhetygen. The latter is located just north of the country’s largest city, Almaty, on the way towards Europe. The upgrade also includes five new sidings and the development of eight existing ones. As a result, the throughput capacity of the railway should grow from 18 to 33 daily trains. Completion is scheduled for 2026.

Dostyk

At the same time, Kazakhstan’s other main rail border crossing with China, Dostyk-Alashankou, is on track for a good 2025 end result. In the first 11 months of the year, traffic was up by 6% and reached 17.8 million tonnes. An important side note is that the number of wagons grew by only 1%, to 450,200 units.

“We are already observing growing international interest in the Middle Corridor for its strategic role as the land bridge between Asia and Europe and interest goes beyond on the infrastructure”, explains Nussupov. That includes policy coordination and trade facilitation, and yes, not just with China.

“So, from our side, trade reforms, infrastructure upgrades and digital innovation will help to attract more European and Chinese stakeholders that will hopefully position our country as the central player in future Eurasian trade”, adds Nussupov.

International interest creates Kazakh wins

Players from both east and west are taking an interest in the Central Asian country. The Chinese, for example, are involved in developing the Khorgos Eastern Gate port logistic terminal on the Kazakhstan-China border, a key node on Asia-Europe transport routes.

The Europeans help Kazakhstan and other Central Asian countries simplify trade documentation, harmonise customs procedures, and train officials and SMEs in a digital trade environment through the EU-funded Ready4Trade programme.

Those efforts, as well as hard infrastructure investments, not only contribute to streamlining logistics along the China-Europe route, but have another impact as well. “Better infrastructure along the Middle Corridor is creating new business opportunities for Kazakhstan’s companies and investors abroad, so we are becoming not just a transit country but also a growing trade partner and production hub.

Geoeconomic transformation

In that way, the investments in infrastructure pursue a “strategic geoeconomic transformation of trade flows and supply chain connectivity”, in the words of Nussupov, who identifies three key ‘wins’ for Kazakhstan: lower logistics costs and faster capital turnover can boost agricultural exports, enhance transit and stimulate domestic growth.

“These new developments enable Kazakh producers to access European and Chinese markets more easily”, says Nussupov. To illustrate, the investments help facilitate imports of high-tech and industrial equipment from Europe to support Kazakh domestic production and strengthen the country’s supply chains. In other words, the corridor is becoming a two-way channel for trade and investment, rather than just a transit route.

As for agricultural exports, Kazakhstan sees many European officials visiting the country to talk business, especially regarding the alignment of regulations. After all, when it comes to Europe, “we have to be at very high standards”, explains Nussupov.

Lastly, the investments, which also include upgrades at the Caspian Sea ports of Kuryk and Aktau, key railways like Dostyk-Moyynty and border crossings, boost the performance of rail transit.

Good old transit

That brings the discussion back to what the Middle Corridor is known for: transit on the China-Europe route. Regardless of the skepticism of Europeans, Kazakhstan sees a positive trend and expects even more in the future.

Previously, shipping freight along this route took 38 to 53 days, depending on border delays and congestion. As of October 2025, that time has been slashed to just 19 to 33 days, with plans to further reduce it to 14 to 18 days. In one notable instance, says Vice Minister Nussupov citing the World Bank, a shipment even completed the journey in just 13 days. The Kazakh segment of the route, from the border crossing at Dostyk to the Aktau port, now takes only five days.

Trade volumes are also on the rise. In 2020, the corridor handled around 1 million tonnes of freight. For 2025, the target is 5 million tonnes, with expectations to reach 11 million tonnes annually by 2030.

More money in exchange for certainty

This perhaps unlikely success comes amid a changing global logistics landscape. Nussupov points to a paradigm shift that began after the covid pandemic. “The first significant event was the Suez canal blockage which showed how easily global trade can be disrupted and how important it is to have alternative and reliable routes.”

“I remember the Baltic Dry Index rising up to the 5,000s. Reliability has now become the new currency of logistics.” The consequence is that companies now prefer to pay a bit more for a guarantee that goods will arrive on time, without unexpected delays or political risks along the route.

Many companies prefer to pay a bit more for the guarantee that their goods will arrive on time, without unexpected delays or political risks along the route. In this environment, the Middle Corridor is not just an alternative, but a strategic route that combines speed, safety, and sustainability. So I think that in this environment the Middle Corridor is not just an alternative, but a strategic route that combines speed, safety and sustainability.”