KTZ Secures $540M Loan for Trans-Kazakhstan Railway Corridor Upgrade

Kazakhstan Temir Zholy (KTZ), the national railway operator, has secured a syndicated loan of up to 480 million Swiss francs (around $540 million) for a three-year term. Arranged by Abu Dhabi Commercial Bank and Deutsche Bank, the financing will support key infrastructure projects along the Trans-Kazakhstan Railway Corridor.

According to KTZ, the loan will fund construction of the Moiynty-Kyzylzhar section, upgrades to congested segments of the national rail network, and the refinancing of existing debt, The Caspian Post reports citing foreign media.

The Trans-Kazakhstan Railway Corridor is central to Kazakhstan’s strategy to solidify its role as a major overland transit hub connecting China and Europe. Infrastructure improvements are expected to reduce delivery times, lower logistics costs, create jobs, and diversify international trade routes, enhancing both the resilience of Kazakhstan’s economy and the competitiveness of its transport sector.

Currently, more than 80% of overland freight from China to Europe passes through Kazakhstan via the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. This route circumvents Russia and connects China to Europe through Central Asia and the Caspian Sea.

In 2024, freight volumes along the TITR surged by 60%, reaching 4.5 million tons. Kazakhstan aims to more than double that volume to 10 million tons by 2030, as part of its broader ambition to expand its footprint in global supply chains.