Kazakhstan raises $300M for Middle Corridor development

The International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), the Asian Infrastructure Investment Bank (AIIB), and Standard Chartered have allocated $300 million (the equivalent in Swiss francs) to Kazakhstan's national railway operator for the development of the Middle Corridor, IFC Managing Director Makhtar Diop wrote on social media, Report informs.

Diop noted that the funds are being allocated for the construction of a 130-kilometer electrified rail bypass around Almaty.

The bypass is expected to reduce congestion around Almaty by more than 40 percent, cut delivery times by up to 24 hours, and improve freight flows along the Trans-Caspian Transport Corridor (TCTC), also known as the Middle Corridor, an overland route linking China and Central Asia to the Caspian Sea and onward to Europe.

The financing comprises an IFC investment of up to $50 million, an AIIB loan of up to $150 million, and an SC loan of up to $100 million supported by a proposed MIGA guarantee.

"The Almaty Railway Bypass will be a pivotal upgrade for our network, unlocking capacity and reducing congestion around Almaty. It will enable KTZ to handle growing long-haul freight volumes more efficiently, strengthen the resilience of regional logistics, and enhance the competitiveness of the Trans-Caspian Transport Corridor as a reliable bridge between Asia and Europe," said Dair Kusherov, Chief Financial Officer of Joint Stock Company National Company Kazakhstan Temir Zholy (KTZ, Kazakhstan Railways).

The project represents a major milestone in the collaboration between international financial institutions and KTZ on rail infrastructure financing. It sets a model for upcoming railway projects in the country, including strong financial and operational due diligence, high environmental and social standards and the use of guarantees to mobilize private capital.

In 2024, freight traffic along the Trans-Caspian International Transport Route increased by 62%, reaching 4.5 million tons. In 2025, freight traffic along this route is expected to increase to 5.2 million tons, of which 4.2 million tons will transit the countries participating in the route. Of this volume, 2.5 million tons will be dry cargo (96,000 TEUs), and 1.7 million tons will be oil.

By 2027, the Middle Corridor's throughput capacity may reach 10 million tons per year, strengthening Azerbaijan's transit potential and creating conditions for attracting new investment in infrastructure.

The target forecast for freight traffic via the Trans-Caspian International Transport Route for 2030 is 11.4 million tons.