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Nazrin Abdul

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The International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), the Asian Infrastructure Investment Bank (AIIB), and Standard Chartered have jointly allocated $300 million (denominated in Swiss franc equivalent) to Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ), to support the development of the Middle Corridor.

As reported by Azernews, the announcement was made by IFC Managing Director Makhtar Diop in a social media post.

The funding will be used to construct a 130 km electrified railway bypass line around Almaty, Kazakhstan’s largest city. The project is designed to reroute freight traffic away from the urban area, eliminate long-standing infrastructure bottlenecks, and significantly enhance the capacity and reliability of rail transport along the Middle Corridor connecting East Asia and Europe.

“With the implementation of this project, congestion around Almaty will be reduced by more than 40%, while cargo delivery times will be cut by up to 24 hours,” Diop noted.

The financing package includes up to $50 million in investment from IFC, a loan of up to $150 million from AIIB, and a loan of up to $100 million from Standard Chartered, backed by MIGA guarantees.

Kazakhstan Temir Zholy’s Chief Financial Officer Dair Kusherov said the Almaty railway bypass will become one of the most significant upgrades to the national rail network, easing congestion around the city and unlocking new capacity.

“This project will enable KTZ to handle freight volumes more efficiently, strengthen the resilience of regional logistics, and enhance the competitiveness of the Middle Corridor as a reliable bridge between Asia and Europe,” he said.

It is worth recalling that cargo transportation along the Trans-Caspian Route increased by 62% in 2024, reaching 4.5 million tons. In 2025, freight volumes are expected to rise to 5.2 million tons, with 4.2 million tons transiting through the territories of the corridor’s participating countries. Of the total volume, 2.5 million tons will consist of dry cargo (96,000 TEU), while 1.7 million tons will account for oil shipments.

By 2027, the Middle Corridor’s annual capacity is projected to reach 10 million tons, further strengthening Azerbaijan’s transit potential and creating conditions for attracting new infrastructure investments. Looking ahead, the target freight volume for the Middle Corridor by 2030 is set at 11.4 million tons.