Kazakhstan’s state railway operator is getting up to $300 million to build a new rail line that will ease congestion and speed up freight between Asia and Europe. The financing from International Finance Corporation (IFC), the Asian Infrastructure Investment Bank (AIIB), and Standard Chartered – backed by a guarantee from the Multilateral Investment Guarantee Agency – will fund construction of the 130-kilometer electrified Almaty Railway Bypass, the institutions announced. The project aims to cut congestion around Almaty by over 40 percent and shave up to 24 hours off delivery times along the Trans-Caspian Transport Corridor.
The Trans-Caspian corridor, also called the Middle Corridor, is an overland route linking China and Central Asia to the Caspian Sea and onward to Europe. Traffic has been growing as companies look for alternatives to other Asia-Europe routes, but that growth has created bottlenecks. The Almaty bypass will add capacity, improve reliability, and help freight move faster through Kazakhstan.
“The Almaty Railway Bypass will be a pivotal upgrade for our network, unlocking capacity and reducing congestion around Almaty,” said Dair Kusherov, Chief Financial Officer of Kazakhstan Temir Zholy. He noted the bypass will let the railway handle more long-haul freight efficiently while strengthening the Trans-Caspian corridor’s role as a reliable link between continents.
The deal breaks down to $50 million from IFC, $150 million from AIIB, and $100 million from Standard Chartered. MIGA’s proposed guarantee helps Standard Chartered offer longer-term commercial lending—something crucial for big infrastructure projects. The setup is meant to serve as a model for future rail projects in Kazakhstan, with strong financial checks, high environmental and social standards, and the use of guarantees to bring in private money.
Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources in the Middle East and Central Asia, said the investment supports Kazakhstan’s push to modernize its rail network and expand electrification. The project should generate benefits beyond the railway itself—improving trade, helping the private sector compete, and strengthening the overall logistics system. AIIB’s Konstantin Limitovskiy called the bypass essential for Kazakhstan’s role as a connectivity hub across Eurasia.
