China-Kazakhstan trade, logistics ties deepen via corridor expansion

Kazakhstan is ramping up efforts to develop the "Middle Corridor" as a vital logistics artery connecting China and Europe, with plans to invest $10 billion to expand its railway and infrastructure capacity to meet surging cross-border freight demand.

Talgat Aldybergenov, former chairman of Kazakhstan's national railway company Kazakhstan Temir Zholy (KTZ), said the volume of Chinese goods transported to Europe via Kazakhstan has seen a notable increase following recent global shipping disruptions.

"Compared to sea freight, land transport offers higher reliability and more predictable delivery times, and Chinese customers' interest in land transport is growing day by day," Aldybergenov said.

Amid shifting global supply chains and regional complexities, the Middle Corridor has emerged as a preferred alternative for international traders. Spanning over 4,250 kilometers, the route links China and Europe through Kazakhstan, Azerbaijan, Georgia and Turkiye. Data from UK-based Abrdn Group show that freight volume along this corridor has surged nearly tenfold since 2022.

Recognizing transport connectivity as a strategic priority, Kazakhstan has already deployed about half of its projected $10 billion infrastructure budget for the period up to 2030.

A major highlight of this year's 900-km railway construction plan is the 300-km Bakhty-Ayagoz railway. Upon completion, it will serve as the third railway port between Kazakhstan and China. With these upgrades, bilateral rail freight capacity is expected to nearly double, jumping from the current 55 million metric tons to 100 million by 2030.

The expansion pace of the Middle Corridor is visibly accelerating. In the first quarter, 173 freight trains operated along the route, each carrying 55 containers. KTZ aims to run 600 trains this year, with a projected 67 percent growth next year.

To ensure smooth operations along the expanding route, KTZ is actively upgrading its transport fleet through deepening cooperation with Chinese enterprises. The company has signed a contract to procure 270 locomotives from China to address capacity shortages.

Furthermore, to overcome the historical shipping bottleneck on the Caspian Sea, KTZ is investing over $100 million to acquire six cargo ships. Four of these vessels are currently being built by Chinese shipyards and are expected to be delivered starting next year.

Simultaneously, Kazakhstan is expanding its logistics footprint in China and beyond. The Kazakhstan terminal at the Xi'an International Trade and Logistics Park, which officially opened in 2023, has become a crucial hub. As of November, the terminal had handled over 250,000 tons of consolidated and transshipped cargo. To further facilitate end-to-end delivery, KTZ is also in active negotiations to acquire container terminals in European countries, including Romania, Hungary and Germany. Regional transit is also booming, with container freight between China and Iran via Kazakhstan more than quadrupling to 4,600 containers last year.

The flourishing logistics sector reflects the broader strengthening of bilateral ties. Shakhrat Nuryshev, Kazakh ambassador to China, announced in April that China-Kazakhstan trade volume reached $13.2 billion in the first quarter, a robust year-on-year increase of 46.6 percent.

The two nations are actively tapping potential in key areas such as industrial cooperation and transport connectivity, Nuryshev said, emphasizing that the Belt and Road Initiative continues to lay a solid foundation for long-term regional economic collaboration.