The Asian Infrastructure Investment Bank (AIIB) will provide a USD 150 million loan to support the construction of the Almaty bypass railway, a landmark investment aimed at improving freight transport efficiency, urban mobility, and regional connectivity in Kazakhstan.
The financing is being provided to the national railway company Kazakhstan Temir Zholy (KTZ) through a non-sovereign financing structure.
As part of a broader financing package, the International Finance Corporation (IFC), AIIB, and the Multilateral Investment Guarantee Agency (MIGA) will jointly provide support of up to the equivalent of 300 million USD to KTZ, combining IFC and AIIB investments with a MIGA guarantee. This multilateral partnership reflects a high level of international confidence in Kazakhstan’s transport modernization agenda and reinforces efforts to create a more resilient and competitive logistics network.
The Almaty Rail Bypass Project consists of the construction of a new single-track, electrified railway line for freight transport. Approximately 75 km long, the line will bypass the city of Almaty and will be built between Zhetygen station in the east and Kazybek Bek station in the west.
The route will provide a dedicated freight corridor outside the densely populated urban center. The project also includes the construction of new stations and related infrastructure, such as bridges and overpasses, as well as upgrades to both terminals of the line.
In practical terms, the project involves the construction of 130 km of track, of which 77 km is the main line, three switches, 13 bridges, five overpasses, and one level crossing, all of which require 228,000 domestically manufactured sleepers and 16,000 tons of rail.
The construction of the bypass railway route is an important step in modernizing Kazakhstan’s transport infrastructure and improving mobility in the country’s largest city. The creation of a dedicated freight rail route around Almaty will reduce operational bottlenecks, free up capacity for passenger services, and help reduce emissions associated with rail congestion. Strengthening the efficiency of rail transport will also expand Kazakhstan’s capacity to support regional transit flows across the Eurasian continent, including along the Middle Corridor trade route.
In November 2023, KTZ launched work on the construction of the railway bypass, which will reduce traffic density at the Almaty junction by 40% and cut freight delivery times by 24 hours.
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