BAKU, Azerbaijan, February 20. The European Bank for Reconstruction and Development (EBRD) has signed a number of projects in Kazakhstan that are contributing to the fluidity of cargo traffic across the country and along the Trans-Caspian International Transport Route (TITR, or Middle Corridor), Huseyin Ozhan, EBRD Head of Kazakhstan, told Trend.
"With an area of 2,700,000 square kilometers (equivalent to the size of Western Europe), Kazakhstan is the ninth-largest country in the world. Building new or upgrading existing infrastructure to cope with the increase in cargo traffic is no easy task. The EBRD has been working for many years with key public- and private-sector companies in the country, such as KTZ (Kazakhstan Railways), to improve the efficiency of their operations and optimize transportation patterns. Last year, the EBRD signed a number of projects in Kazakhstan that are contributing to the fluidity of cargo traffic across the country and along the TITR," he said.
According to Huseyin Ozhan, transit cargo through Kazakhstan often begins its journey in the town of Khorgos, on the Chinese border. It then has to pass through the country’s largest city, Almaty, with its congested traffic.
"This is home to Kazakhstan’s largest private rolling-stock operator, Eastcomtrans. An EBRD loan of $40 million (36.9 million euros) will help Eastcomtrans expand its container handling capacity at one of the most congested junctions and ensure the uninterrupted operation of its railway park, which represents around 8 percent of the country’s total rolling stock. The funds will also be used to develop the Zhetygen logistical center, acquire up to 250 new rail cars, and maintain existing ones. Situated close to the border, the upgraded logistical hub will serve as an important junction on the Trans-Caspian Corridor," he noted.
Huseyin Ozhan pointed out that in 2023, the EBRD also provided a 25 million euros loan to one of the fast-growing local logistics companies, Atasu Group, and a 2.8 million euros loan to Temirservice Astana, which operates last-mile railway infrastructure and railway tracks around the capital city.
"These are dynamic and rapidly developing private logistics companies. The bank’s funds will be used to increase their efficiency and will contribute to greater reliability in the supply and distribution of goods for regional and domestic needs. The EBRD boosted the financial and operational resilience of Kazakhstan Temir Zholy (KTZ, or Kazakhstan Railways) by investing up to 100 million euros in its Eurobond. The investment will help Kazakhstan’s state-owned railway operator implement a range of crisis response measures, including the reorganization of its transit freight operations," he said.
The Middle Corridor is a transportation and trade route that connects Asia and Europe, passing through several countries in the region. It is an alternative route to the traditional Northern Corridor and Southern Corridor.
The route starts in China and crosses Central Asian countries such as Kazakhstan, Uzbekistan, and Turkmenistan. It then passes through the Caspian Sea, Azerbaijan, Georgia, and Türkiye before reaching Europe.
The Middle Corridor offers a land route that connects the eastern parts of Asia, including China, with Europe, bypassing the longer maritime routes.