Iran war accelerates Kazakhstan rail project between China and Europe

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Iran war accelerates Kazakhstan rail project

Highlights

Kazakhstan is accelerating its rail project amid the Iran war and risks around the Strait of Hormuz.
The Moyynty-Kyzylzhar line, more than 300 kilometers long, will be part of the Middle Corridor.
More than 90% of earthworks have been completed, with launch expected by year-end.

Demand shifts from sea to rail

National railway operator Kazakhstan Temir Zholy is expanding tracks and logistics infrastructure in response to rising demand for freight transport between China and Europe. CEO Talgat Aldybergenov told Bloomberg that Chinese clients are increasingly interested in overland routes because they offer more reliable and predictable delivery times amid military and maritime risks.

The main project is the new Moyynty-Kyzylzhar railway line, which will become part of the Trans-Caspian International Transport Route, also known as the Middle Corridor. The 322.3-kilometer section is expected to increase capacity on routes between East Asia and Europe and reduce cargo transit times.

Construction enters final stage

According to Kazakhstan’s Transport Ministry, more than 90% of earthworks on the line have already been completed. Track and sleeper installation is about 40% complete, while construction work on bridges, culverts, overpasses and other engineering structures is more than 65% finished.

More than 1,700 specialists and over 670 units of equipment are working at the site, with more than 10 subcontractors involved. The line will run through the Karaganda and Ulytau regions and is expected to shorten freight distances by 149 kilometers, easing congestion on the overloaded Moyynty-Zharyk section. Permanent operation is expected to begin by the end of the year.

The Middle Corridor gains new weight

For Kazakhstan, the project is not just an infrastructure buildout but a bet on the reshaping of global logistics. The country says transit through Kazakhstan has doubled over the past decade and reached 27.4 million tons in 2024; by 2026, it is expected to exceed 54 million tons.

If maritime routes through the Middle East remain unstable, demand for overland transport between China and Europe may continue to grow. For Kazakhstan, that means higher transit revenue; for China and the EU, it offers an additional route less dependent on narrow maritime chokepoints.

We also reported oil gains as U.S. strikes add uncertainty to Iran talks.

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