In an interview, Kirill Volkov, Head of the Media Communications Department at JC NC KTZ, discusses the company's IPO roadmap, international cooperation development, and establishing a unified operator for the North-South International Transport Corridor.
Could you elaborate on KTZ's reform progress, specifically the company's transition to a joint-stock company, and are there plans for an IPO in 2025?
KTZ's IPO is scheduled for 2025 in line with the Kazakhstan Government Resolution. To this end, several preparatory measures must be completed for a successful IPO launch:
• raising regulated tariffs to ensure operational sustainability - currently being negotiated with the authorized state body;
• securing exclusive transit operations rights for the National Railway Company.
The final decision on KTZ's 2025 IPO will depend on the successful completion of these preliminary steps.
President Tokayev has recently announced plans to develop Kazakhstan's railway infrastructure, specifically the Trans-Kazakhstan railway corridor as a crucial Trans-Caspian route link. Could you please share details about ongoing and upcoming projects? What investments and timeframes are involved, and what economic impacts are projected once these new lines become operational?
Kazakhstan prioritizes the advancement of multimodal logistics and the enhancement of the country’s transit potential. The concept of the Trans-Kazakhstan railway corridor focuses on achieving high throughput capacity, faster cargo delivery, and seamless service by leveraging cutting-edge technologies. Operational efficiency will be driven by intelligent management and diagnostic systems, robust digital security, and innovative rolling stock solutions.
This year, several key projects aimed at expanding the capacity of Kazakhstan's railway infrastructure are set to be completed:
the construction of second tracks along the 836-km Dostyk–Moyynty railway section, which will boost the section's throughput capacity by five times and ensure uninterrupted export of domestic goods;
the development of a bypass railway line around Almaty, redirecting transit cargo flows to a shorter route. This will reduce congestion at the Almaty hub by 30% and cut transit container train travel times by an average of 24 hours;
By 2026, the Darbaza–Maktaaral railway line is expected to be completed. This initiative is designed to enhance infrastructure capacity along the Kazakhstan-Uzbekistan border, optimize the redistribution of cargo flows, and alleviate congestion on routes leading to and passing through Central Asia.
The company's plans include the construction of new railway lines connecting Moyynty-Kyzylzhar and Altynkol-Zhetygen alongside the implementation of an automatic blocking system.
In addition to the construction of new railway lines and following presidential directives, these infrastructure developments will be complemented by railway digitalization initiatives and the creation of multimodal transport hubs, aimed at achieving seamless integration across all transport modes.
Is there a program in place for expanding the capacity of cross-border railway checkpoints?
NC KTZ JSC's capacity expansion program features three major projects:
- the Dostyk-Moyynty second track construction project, scheduled for completion in the second half of 2025 (two years ahead of the project timeline), will quintuple capacity on the China corridor;
- a new Darbaza-Maktaaral railway line construction project will reduce congestion at the Saryagash checkpoint, enabling up to 20 million tons of additional annual freight towards Central Asia;
- the Almaty station bypass line will help decongest the Almaty hub and increase throughput capacity towards Central Asian countries.
The implementation of these infrastructure projects will help Kazakhstan to achieve a twofold growth in rail transit volumes.
Furthermore, work is also progressing on the construction of a third border crossing with China, the Bakhty–Ayagoz route, which is expected to attract additional freight traffic from Russia and Belarus.
In line with the Head of State's directives, the Trans-Kazakhstan Railway Corridor (TKRC) is being developed, featuring the construction of a new Moyynty–Kyzylzhar railway line, the addition of second tracks on the Altynkol–Zhetygen section, and the deployment of automatic blocking systems along TKRC routes.
What is the anticipated completion timeline for establishing the joint logistics operator for the North-South International Transport Corridor? Can you update us on the progress of negotiations with the Turkmen partners?
The creation of a unified logistics operator for the eastern branch of the North-South ITC remains under development, requiring extensive multilateral coordination given the complex geopolitical landscape and multiple national stakeholders. However, work in this direction continues, as the development of the eastern route is of strategic importance.
Meanwhile, KTZ Express JSC continues active route development and container shipping operations. The company has already completed shipments of newsprint paper and fertilizers in January-February this year. The range of transported goods is expected to expand in the future to include agricultural products.
Read next content