KAZAKHSTAN Railways (KTZ) has signed a syndicated loan agreement with Abu Dhabi Commercial Bank and Deutsche Bank to borrow up to SFr 480m ($US 595.5m), which will be used to finance key infrastructure projects along the Trans-Kazakhstan corridor.
The loan has a term of three years and was arranged with the support of Kazakhstan’s sovereign wealth fund Samruk-Kazyna, which owns 100% of KTZ.
KTZ says the new finance will be used to accelerate development of the Trans-Kazakhstan corridor and increase capacity for transit freight traffic, as directed earlier this year by the president of Kazakhstan, Kassym-Jomart Tokayev.
Key projects include the construction of a new line between Moiynty and Kyzylzhar and upgrades to increase capacity on congested sections of the network. KTZ says that the new loan will also be used to refinance existing debt.
Development of the corridor is seen as being of strategic importance for strengthening Kazakhstan's position as a key component of the rail route between China and Europe. KTZ says that the infrastructure projects within the corridor will reduce transit times for freight, and lower transport costs.
At present over 80% of freight moving from China to Europe by rail passes through Kazakhstan due to its location on the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor.
Freight traffic on the Middle Corridor grew by 60% in 2024 to reach 4.5 million tonnes. Kazakhstan aims to more than double this figure by 2030 to reach 10 million tonnes a year, as it seeks to increase its presence within global supply chains.
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