Kazakhstan Temir Zholy (KTZ) and Citibank have signed a key Mandate Agreement to secure USD 1.6 billion in financing over ten years for the modernisation of KTZ’s locomotive fleet, under a contract with Wabtec.
Citibank will act as the financing coordinator for this strategic initiative, which is backed by the Export-Import Bank of the United States (US EXIM), providing a guarantee to ensure the transaction’s successful completion.
The agreement was formalised during an official meeting in Washington, D.C., between United States Secretary of State Marco Rubio and the President of Kazakhstan, Kassym-Jomart Tokayev, on 6 November 2025, ahead of the planned celebrations marking the tenth anniversary of the C5+1 diplomatic platform.
In September, Wabtec and KTZ concluded a USD 4.2 billion contract to supply Evolution Series locomotives along with long-term maintenance and service support. This multi-year order is the largest locomotive deal in Wabtec’s history and encompasses both the new units and maintenance services for KTZ’s existing fleet. The new locomotives will revitalise KTZ’s locomotive fleet and support the company’s ongoing rail expansion. Built to operate in Kazakhstan’s harsh climate and mountainous terrain, the next-generation Evolution Series locomotives are engineered for improved fuel efficiency and longer intervals between maintenance cycles, helping maximise reliability and availability at optimal operating costs.
These locomotives will be produced domestically at the Lokomotiv Kurastyru Zauyty plant in Astana, a Wabtec Transportation Engines Holding B.V. subsidiary. The programme represents a comprehensive upgrade of KTZ’s traction rolling stock, enhancing energy efficiency and ensuring the railway can meet the growing demand for freight transport reliably.
Training and development agreements
During the official visit, KTZ and Wabtec also signed a cooperation agreement on personnel training and professional development. In 2027, Wabtec will host KTZ-Freight Transportation employees at its US facilities for hands-on training covering the operation and maintenance of TE33AT series locomotives, including the HPCR EVO diesel engine. After the initial programme, training will continue in Kazakhstan, with participants receiving official Wabtec certification upon completion.
The initiative also supports internships and practical training for students and graduates from Kazakhstani universities through the Bolashak state programme, aiming to strengthen human resources in Kazakhstan’s railway sector, implement advanced technologies, and improve the operational efficiency of rolling stock.
US EXIM support
US EXIM has played a key role in supporting KTZ’s fleet renewal. In 2012, the bank signed a USD 425 million loan agreement with KTZ and its subsidiary Joint Stock Company Lokomotiv to finance the delivery of 200 Evolution Series locomotives and associated parts from GE Transportation, now part of Wabtec. Building on this long-standing partnership, in August 2025 EXIM approved a second transaction of USD 448 million to support the procurement of the new Wabtec locomotives. This backing underscores EXIM’s ongoing commitment to facilitating strategic railway infrastructure investments in Kazakhstan, ensuring both the financing and risk mitigation necessary for large-scale fleet modernisation projects.
KTZ rolling stock and Kazakhstan’s rail significance
KTZ’s rolling stock, comprising hundreds of locomotives and thousands of freight wagons, is the backbone of Kazakhstan’s transport network. The ongoing modernisation of the fleet not only improves operational efficiency but also ensures that the rail system can meet future demands for high-capacity, reliable freight services. A modern, well-maintained locomotive fleet is essential for sustaining growth in domestic transportation and for handling increasingly complex logistical needs across the country’s vast territory.
Rail transit in international trade
Kazakhstan’s strategic location at the crossroads of Europe and Asia makes its rail network a critical artery for international trade. Rail transport enables the efficient movement of goods between China, Europe, and the Middle East, offering a cost-effective and environmentally friendly alternative to road transport. The upgrade of KTZ’s locomotive fleet is therefore not only an investment in national infrastructure but also a key enabler of global supply chains, supporting trade corridors such as the Trans-Caspian International Transport Route and the Belt and Road Initiative. By enhancing reliability, speed, and capacity, KTZ is strengthening Kazakhstan’s role as a vital hub in Eurasian trade.
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