Cutting Friction, Not Just Distance: The Almaty Bypass and the Race to Make the Middle Corridor Competitive

 

Recent funding for the construction of the Almaty Bypass Railway is set to accelerate Kazakhstan’s growing role as a regional transit hub. By diverting freight traffic away from passenger rail corridors in Almaty, the bypass is expected to reduce congestion at the Almaty junction by 40% and shorten freight delivery times by up to 24 hours. This bypass is just one of Kazakhstan’s many railway projects, creating new connections and modernizing existing routes to reduce congestion and shorten delivery times. 

Improving efficiency and capacity across the country will reinforce Kazakhstan’s position as a critical link in the Middle Corridor, facilitating trade between China and Europe while avoiding Russian territory. As global supply chains increasingly prioritize diversification and resilience, expanded rail capacity strengthens Kazakhstan’s appeal as a reliable transit partner and reinforces the region’s strategic relevance in a shifting geopolitical environment.

The project has secured up to $50 million in investment from the International Finance Corporation (IFC), alongside loans of up to $150 million from the Asian Infrastructure Investment Bank (AIIB) and up to $100 million from Standard Chartered (SC), supported by a proposed guarantee from the Multilateral Investment Guarantee Agency (MIGA). Totalling $300 million, this financing will support the completion of a dedicated freight corridor just north of Almaty, creating an alternative route that bypasses the congestion currently constraining rail traffic through the city. 

The funding will be directed to Kazakhstan Temir Zholy (KTZ), Kazakhstan’s state-owned railway operator and the lead developer of the project. KTZ began construction of the bypass in November 2023 and has since completed the majority of excavation work. Once finished, the railway will comprise 130 km of electrified track in total, including a 75 km main line connecting Zhetygen station east of Almaty with Kazybek Bek station to the west. The broader project scope includes the construction of new stations, bridges, and overpasses, as well as upgrades at both terminal points, requiring a total of 228,000 domestically manufactured sleepers, the railroad ties that support the metal tracks, and roughly 16,000 tons of rail.