Astana (TDI): Kazakhstan Temir Zholy (KTZ) has signed a major $1.6 billion financing agreement during President Kassym-Jomart Tokayev’s official visit to the United States to upgrade its locomotive fleet over the next decade.
The deal, concluded between KTZ and Citibank with support from the US Export-Import Bank (US EXIM) as guarantor, ensures long-term locomotive deliveries from Wabtec until 2038.
The locomotives will be manufactured in Kazakhstan at the Lokomotiv Kurastyru Zauyty JSC plant in Astana, a subsidiary of Wabtec Transportation Engines Holding B.V.
This procurement program is aimed at a comprehensive upgrade of traction rolling stock, which will significantly improve the energy efficiency of transportation and reliably meet the growing needs of freight traffic.
The agreement marks another milestone in Kazakhstan’s effort to modernize its transport infrastructure and expand connectivity along major trade corridors, including the Trans-Caspian International Transport Route (TITR).
Enhanced locomotive capacity is expected to boost the country’s role as a critical transit hub between Europe and Asia.
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The partnership with Wabtec and leading American financial institutions underscores the growing trust of international investors in Kazakhstan’s industrial and economic reforms.
The localization of production at the Astana plant will also create high-skilled jobs and strengthen Kazakhstan’s manufacturing capabilities.
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In the long run, the project is set to enhance the reliability and sustainability of Kazakhstan’s railway system, supporting the nation’s broader goals of achieving carbon neutrality and positioning itself as a logistics powerhouse in the Eurasian region.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight. He is a seasoned journalist and analyst with over a decade of experience in the media industry. He has deep expertise in national politics and international relations and regularly contributes as an analyst to national and international media outlets.
