Kazakhstan, EDB Bring Up Construction Of New Railway Route

9/24/2023 12:24:22 AM

(MENAFN- Trend News Agency) ASTANA, Kazakhstan, September 24. The management of the Eurasian Development bank (EDB) and Kazakhstan Railway (KTZ) discussed potential projects for the development of the national railway carrier during a meeting in Astana, Trend reports.

Chairman of the EDB Board, Nikolay Podguzov noted among the promising projects the construction of the Ayagoz-Bakhty railway line and a new border crossing on the Kazakh-Chinese border.

The Bank intends to provide financing, and at this stage, agreements have been reached on the allocation of a grant for the development of a feasibility study for the project from the EDB Technical Assistance Fund.

It is expected that the new infrastructure will increase cargo turnover by 20 million tons per year.

Over the past 10 years (2013–2022), the number of container trains on the China–Europe route has increased 200 times. The value of goods transited through Kazakhstan in 2022 by the United Transport and Logistics Company, of which 33 percent are owned by a Kazakh shareholder, is estimated at $30 billion, representing about 4 percent of the total value of trade between China and EU countries.

Kazakhstan occupies a unique geographical position and is a natural junction of the North-South and Europe-Western China transport corridors. The EDB pays special attention to the development of transport infrastructure in Kazakhstan, including railways.

Kazakhstan is the leader in terms of EDB investments, with 104 implemented projects in various industries, accounting for 57 percent of the bank's project portfolio, or $5.6 billion. In 2022, EDB investments in Kazakhstan reached $1.2 billion, which is five times more than in 2021. Since the beginning of 2023, more than $900 million has been invested, and the bank plans to invest at least $3.9 billion until 2026.

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