Tokayev participated in multiple one-on-one diplomatic discussions
Freshened Up: Kazakhstan's Railway Revolution
President Kassym-Jomart Tokayev hosted a flurry of meetings, as per our reports, based on insights from Akorda. During the Council of Foreign Investors under the Republic of Kazakhstan's presidency, Tokayev engaged in lively discussions with high-profile executives.
American powerhouse Wabtec, a global frontrunner in transportation technologies, has been a stalwart partner to Kazakhstan's burgeoning railway industry. To date, the company has pumped over $230 million into the nation's rail development.
Tokayev underlined Kazakhstan's eagerness for further strategic cooperation with Wabtec, spanning the production of innovative locomotives, expanding service centers, establishing a competence center, and increasing local production.
Similarly, the Head of State touched on investment cooperation matters with Marco Mariotti, President of Philip Morris International for the CIS and Central Asia. Philip Morris contributes to sustainable development, innovation, and ranks among the country's top taxpayers. Over the past 29 years, the company has disbursed more than 1.2 trillion tenges in taxes to the Kazakhstan government.
Citi Bank's Client Group CEO, David Livingston, also found himself in Tokayev's presence. The President underlined the bank's long-standing role as a trusted ally of Kazakhstan, expressing hope that Citi Bank would continue to participate in strategic infrastructure projects and provide support to small and medium-sized businesses, contributing to the diversification of Kazakhstan's real economy.
During a meeting with Gary Nagle, CEO of Swiss conglomerate Glencore, dialogue centered on expanding local content collaboration and plans for implementing joint ventures in the mining and metallurgical, as well as energy sectors. Glencore holds shares in the mining company "Kazakhstan," with its enterprises situated in East Kazakhstan, Akmola, and Ulytau regions.
criticized the substantial investments made but questioned the state of the railway industry's health. He expressed concerns about the industry's decline despite these mammoth investments. Some online users added to the discussion, stating that prominent sectors across Kazakhstan are primarily owned by foreign companies.
Kazakhstan's railway modernization mission is a crucial component of its broader vision to develop a robust transportation infrastructure and establish itself as a leading Eurasian logistics hub. Under a five-project portfolio worth approximately 2.3 trillion tenge (around $5.2 billion), the country aims to modernize 11,000 km of railways, strengthen connections with neighboring countries like China and Uzbekistan, and launch various strategic projects by 2029.
Significant investments have been funneled into railway infrastructure initiatives. In 2024 alone, repairs for over 1,400 km of tracks and the construction of approximately 1,000 km of new railway lines are planned. Key sections under development include Dostyk–Moiynty, Darbaza–Maktaaral, and the Almaty station bypass, which commenced in late 2023. Furthermore, the Trans-Caspian International Transport Route (TITR) serves as a strategic priority, with the inauguration of a Kazakh–Chinese terminal at the Xi’an Dry Port in 2024 leading to a 30-fold increase in transit volumes along this corridor.
International collaborations play a vital role in Kazakhstan's railway modernization drive. French rail technology company Alstom recently unveiled the nation's first railway service depot since 1988, sparked by a 2023 investment agreement involving an investment of 5.6 million EUR and creating about 100 local jobs. The depot's establishment underscores the growing international partnerships forged in the wake of Kazakhstan's railway sector's development.
Although Wabtec is not explicitly mentioned in the search results, Kazakhstan's ongoing railway modernization efforts create a favorable environment for collaborations with international rail equipment and technology companies such as Wabtec.
These efforts are integral to Kazakhstan’s ambition to become a key Eurasian logistics hub, reducing transit times and expanding freight capacity. As the rail sector undergoes this transformation, it reflects Kazakhstan’s aspiration to be a vital transit corridor in the evolving economic landscape of Eurasia.
- The railway industry's revitalization in Kazakhstan presents potential opportunities for partnerships with global leaders like Wabtec, given their expertise in finance and business, as demonstrated by their substantial investments in the nation's rail development.
- As Kazakhstan strives to establish itself as a leading logistics hub in Eurasia, there could be significant collaborations in the finance sector with institutions like Citi Bank, particularly in supporting small and medium-sized businesses, thereby contributing to the diversification of Kazakhstan's real economy.
