The rail freight landscape in Europe looks much different from elsewhere. The lead of this article already mentioned Central Asia, where the overarching theme concerns trade route diversification. Building new railways and reaching new destinations is key for economic security and trade potential. RailFreight.com has reported extensively on the various agreements and studies being undertaken to work towards a trans-Afghan railway, for instance.

A similar situation is unfolding in southern Africa. The champion of rail in this region is Zambia: a similarly landlocked country. It will be the beneficiary of not one, not two, but three ongoing rail projects that originate in the country.

TAZARA and Lobito

The first two are the TAZARA (to Dar Es-Salaam, Tanzania) and the Lobito Corridor (to Angola). Both connect Zambia’s inland mines to ocean ports, creating or rehabilitating avenues for exports and economic growth. Whereas the TAZARA is a China-sponsored railway with national Zambian investments leading to Africa’s east coast, investment in the Lobito Corridor is the Western answer to the Chinese infrastructure ambitions in the region.

As a result, Zambia could soon have two functioning rail routes giving it access to the world’s oceans: one leading west, one leading east. Meanwhile, the country is gearing up for a third railway. The Mosetse–Kazungula–Livingstone (MKL) line will connect Zambia to its southern neighbour Botswana through a narrow 150-metre long shared border across the Zambezi river.

While this railway will not link to any coast, it will improve the country’s connectivity to its much richer neighbour. On 1 April, government representatives came together to reaffirm their commitment to building the MKL railway. A favourable situation for Zambia, considering Botswana is a relatively large importer of its copper wires.

A word of advice from Europe

The MKL project aims to enhance trade, connectivity, and regional integration, explains Zambia’s rail operator. MKL will span approximately 430 kilometres, comprising 365 kilometres from Mosetse (Botswana) to border town Kazungula. From Kazungula, it is another 65 kilometres to Livingstone (Zambia). MKL “is expected to improve cargo and passenger movement while reducing transport costs and easing pressure on road infrastructure.”

With rail-port connections to Durban (South Africa), Dar Es-Salaam and Lobito, Zambia looks set transport-wise for exports of valuable mining products. The MKL will improve trade with wealthy Botswana.

While Europe battles with its own rail maladies, the same sector is looking promising for Zambia. A word of advice from our continent: just make sure to keep those track access charges affordable and infrastructure reliable. In that aspect, Zambia may run into familiar problems, remaining dependent on the availability of rail infrastructure across borders.

As such, TRIPP could not only provide some welcome redundancy and diversification, but also speed up transportation on the Middle Corridor. That might make the China-Europe route more attractive compared to the Northern Route through Russia or maritime routes.

Raw materials

At the same time, the EU highlights the importance of such infrastructure for its own economic security. For example, Türkiye, Kazakhstan, and Tajikistan are among the EU’s main global suppliers of borates, phosphorus, and antimony. These resources are used in industrial applications.

“Enhanced connectivity could strengthen EU–Central Asia resource linkages, helping reduce dependency on single suppliers, integrate regional producers into EU value chains, and foster balanced, sustainable growth across the region”, the EU writes.

The Union adds that additional investment in feeder lines to access resources could “substantially enhance” the EU’s access to critical raw materials.

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.

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.

Or is there more at play for countries along the Middle Corridor? Located just south of Kazakhstan, Uzbekistan also aims to be part of the cross-Eurasia international trade frenzy. It is rarely seen as a core part of the China-Europe route, since freight can just transit Kazakhstan and pass the entire Central Asian part of the corridor in that way.

Still, Uzbekistan takes a different perspective. Oʻztemiryoʻlkonteyner, the freight forwarding subsidiary of Uzbekistan Railways, explains to RailFreight.com that “Uzbekistan is not merely a transit country within this network; it is steadily positioning itself as an important regional hub.”

Diversification is the strategy

The Middle Corridor provides opportunities for local businesses towards Europe and China. Both directions remain “vital” for Uzbekistan’s trade strategy and regional connectivity, says Mirziyod Mirkhamidov, Chairman of the Board at UTK.

“Our national strategy focuses on diversification of transit routes to ensure resilience and efficiency in regional trade. The objective is to reduce dependence on any single corridor, such as the traditional northern route via Russia, and to enhance the competitiveness of the Middle and Southern corridors”, Mirkhamidov adds.

For Uzbekistan, the Middle Corridor (and other transport corridors) are strategic assets to reduce economic risk. That does not mean that transit income is completely out of the picture, even if Uzbekistan is not currently a key transit country. The CKU (China-Kyrgyzstan-Uzbekistan) line, once operational, will substantially shorten the distance between Western China and Uzbekistan, which may result in “some volume reorientation”.

However, adds Mirkhamidov, the CKU railway can also make Uzbekistan a key transit country between East Asia and Europe when it is completed.

The Chinese and the Europeans

The Chinese share Uzbekistan’s optimism for diversification and boosting regional trade. Companies from China “have shown particular enthusiasm” to invest in infrastructure projects, rolling stock supplies and the development of logistics centres in Uzbekistan. “China is one of Uzbekistan’s largest trade partners, and cooperation in railway logistics continues to expand”, notes Mirkhamidov.

Europe has seemingly not quite caught the same level of enthusiasm. However, adds the UTK chairman, “European companies are also paying closer attention to Uzbekistan’s transport potential, driven by the need to diversify global supply chains and establish more reliable overland connections between Asia and Europe.”

Logistics firms, port operators and investors are exploring partnerships in multimodal logistics, warehousing and digital customs systems, Mirkhamidov explains. “While European investors tend to be more cautious, interest is steadily growing as Uzbekistan improves transparency, operational reliability, and the overall investment climate.”

Working on improvements

In order to fulfill the country’s objectives and to boost the country’s trade capacity, Uzbekistan is working on a number of infrastructure projects. One of the most important is the electrification of the Bukhara–Miskin–Urgench–Khiva railway line, which should significantly improve both freight and passenger operations in the western part of the country.

Uzbekistan Railways also intends to renew its rolling stock fleet and upgrade its maintenance facilities by 2033. As for UTK, the freight forwarder is investing in new terminal infrastructure, including the construction of modern freight and logistics centers near major cities in cooperation with international companies in terminal handling and logistics. “These projects aim to increase throughput capacity and reduce congestion on existing lines”, UTK says.

The obstacles to be overcome

Yet, the development of international trade via rail is not without challenges. Border crossings are complex and customs procedures are not harmonised. Each border crossing can introduce delays, additional paperwork and technical standards, explains Mirkhamidov. Overcoming those challenges requires greater regional cooperation and more digitalised customs.

Uzbekistan is addressing infrastructure bottlenecks through targeted investments in electrification, double tracks and new signalling systems. Financing large-scale infrastructure projects poses another challenge, the UTK board chairman adds. Public-private partnerships can help close budgetary gaps, as does cooperation with international financial institutions such as the Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD).

“Finally, geopolitical uncertainties, changing trade dynamics, and environmental risks continue to influence corridor development. Uzbekistan’s approach to these risks is to maintain multiple transit options, diversify partnerships, and build strong domestic transport capacity to ensure continuity and reliability under any circumstances”, explains Mirkhamidov.

At the same time, Chinese media write that China-Europe freight trains “maintained stable operation.” China Railway does not have publicly available data on the development of freight traffic on that route, so the picture remains somewhat unclear.

However, the lack of numbers suggests that China-Europe traffic has disappointed compared to other directions. Earlier, the Eurasian Rail Alliance reported that rail container transportation was down by 22% in H1 2025 compared to H1 2024. In total, 160,600 TEU moved across Eurasia between January and June 2025.

It is likely that the decline in rail traffic is a direct result of lower maritime shipping rates, meaning that shippers are more likely to opt for ships rather than trains.

Western Land-Sea Corridor

China’s Western Land-Sea Corridor, which connects western provinces to ports in the Beibu Gulf, south of Beijing. In the first seven months of this year, freight trains transported 872,000 standard containers on the corridor, a 75.3% increase year-on-year, exceeding 800,000 containers 130 days ahead of schedule, according to China Railway.

“This year, 1,271 commercial vehicles were exported from Chongqing to Saudi Arabia and other destinations via Qinzhou Port, using a ‘railway cage wagon + roll-on/roll-off ship’ model”, writes the rail operator. “This boosts Chinese companies’ international expansion. The New Western Land-Sea Corridor’s logistics and efficient rail transport are increasing these exports.”

At the same time, Uzbek Railways’ container subsidiary, O’ztemiryo’lkonteyner, has organised a new multimodal service between the two countries. It agreed with the Chinese company Vostosun Group to organise container transportation. First, the containers will leave China by ship to Iran. Once in the Iranian Bandar-Abbas port, they will continue via rail into Turkmenistan, before arriving in Uzbekistan.

KTZ also points out that the volume of rail freight between Kazakhstan and Uzbekistan, a (currently small) part of which is Chinese traffic, amounted to 11,5 million tonnes in 2024. The company does not have data on how that compares to earlier years, but it likely constitutes growth. In 2023, overall freight turnover between the two countries across all modes of transportation was around 31 million tonnes.

Interestingly, KTZ adds that there was an average of 26 daily freight trains crossing just the Saryagash border crossing into Uzbekistan. By comparison, there were also 26 daily China – Europe freight trains crossing the Khorgos border crossing in the first quarter of 2025. Khorgos is a major rail checkpoint between Kazakhstan and China on the Middle Corridor.

China – Kazakhstan

Moreover, rail freight between China and Kazakhstan has been growing steadily. It has surged by 450% since 2015, with a small drop in pandemic year 2021. KTZ attributes a big part of the increase to its dry port in the Chinese city of Xi’an, from where a lot of freight departs westward.

The doubling of China – Central Asia freight was announced alongside a meeting of Kazakh, Uzbek and Tajik rail representatives. “The meeting focused on the need to ensure timely receipt and export of cargoes and to increase the share of container transportations. A protocol was signed as a result of the meeting”, KTZ explained.

This new route is supposed to help Beijing in becoming more involved with the development of the Belt and Road Initiative. To support this, China Railway’s Beijing department has facilitated priority for the train, Chinese media write. The department owns the Beijing Railways Logistics Center, from which the train departed.

More rail transportation to Central Asia

China has been on a streak of launching new rail services to Central Asia. Earlier this month, the country started exporting second-hand cars via rail to Uzbekistan from Chengdu. China now also engages in multimodal shipments to Afghanistan with a rail leg. Last year, it also started sending newly manufactured cars from Xinjiang to Kazakhstan and containers from the island of Hainan to Kyrgyzstan.

Land-locked Kyrgyzstan has lauded the line as improving its international connectivity, easing access to foreign markets overland. President of double-landlocked Uzbekistan, Shavkat Mirziyoyev, provided a similar comment: “This road will allow our countries to enter the wide markets of South Asia and the Middle East through the promising Trans-Afghan Corridor”, he said, referring to efforts to bridge Afghanistan by rail and reach the Indian Ocean.

The financing hurdle

The agreement comes after the three countries long struggled with funding for the route. Especially the expensive Kyrgyz section, through mountainous terrain, proved to be an obstacle. In April, a Kyrgyz government official said that the country would need eight billion dollars.

Kyrgyzstan would have to fund its own part, but it has a large national debt and is legally barred from drawing too much money from a single international investor. It can legally borrow up to 45 per cent of its external debt from a single foreign source. The country already owes 42 per cent of its debt to China alone, and it would likely have to borrow from China if the country were to borrow money for the CKU line, which it is reluctant to do. It seems that the countries have found a solution, but they did not specify how the money is going to be acquired.

Bypassing Bishkek

The 523-kilometre rail line will start in Kashgar, in China’s Xinjiang region. From there, it will cross Kyrgyzstan’s southern border and continue to a gold processing plant in Makmal. Then, it will pass through the major city of Jalal-Abad and end in Uzbekistan’s fertile Ferghana valley, in the city of Andijan.

China, Uzbekistan and Kyrgyzstan reportedly also quarrelled over the route that the line should take. Perhaps understandably, Kyrgyzstan appealed for the route to make a stop in its northern capital city and financial centre Bishkek. However, it seems that the Kyrgyz had to concede on this issue.

Joint venture

The operation and maintenance of the line was a less controversial issue. Earlier this year, Uzbekistan proposed that the three countries establish a joint venture to that end. Kyrgyzstan and China were quick to respond positively.

The shape or form that the joint venture will take remains unclear for the time being, as the involved parties have made no comment on the matter.

Also read:

• Construction on CKU line to start in October 2024
• After Germany, China is also planning to build a transport hub in Uzbekistan
• Kyrgyzstan struggles to find money for CKU line construction