The third railway between China and Kazakhstan is being rapidly constructed. Why is the capacity still tight?

Thanks to the development of the China-Europe freight trains, especially the new geopolitical emergencies (the Russia-Ukraine conflict), it has reshaped the trade and logistics routes between East and West Europe.

This year, the second route of the Dostyk-Moint railway in Kazakhstan that connects with the Alashankou port in Bortala Mongol Autonomous Prefecture, Xinjiang, China, will be put into operation. The railway transport capacity between China and Kazakhstan will be increased from the current level to 62 million tons. It is expected that after all the projects are completed by the end of 2027, the cargo volume will reach 100 million tons.

The Kazakhstan logistics terminal in Xi'an is one of the most promising and dynamic projects. As a hub transit center in China, Xi'an's inland port scale is first-class nationwide. More than 30% of the container trains departing for the EU originate from Xi'an, and approximately 40% of the imports from the CIS countries also flow through Xi'an. This terminal has become an important node of the Trans-Caspian International Transport Route (TITR). TITR is also known as the "Middle Corridor," which includes the North Line via Russia, the Central Line across the Caspian Sea, and the Central Kyrgyzstan-Uzbekistan branch line.

Due to the Russia-Ukraine conflict, Europe, which is at odds with Russia, focuses on the "Middle Corridor" and attempts to build trade and logistics routes bypassing Russia. Central Asian countries hope to rely on the "Middle Corridor" as the strategic cornerstone of their future survival and development. This transportation artery connecting China, Central Asia, and Europe shortens the cargo transportation time by half and reduces transportation costs.

Kazakhstan recently includes plans to establish six multimodal transport centers in China, as well as plans to construct new border ports to solve the overloading problem of the Khorgos port.

In addition, multiple logistics terminals have been built and launched in Aktau Port (Kazakhstan), Sheljatino (Russia), Swislach (Belarus), and Hungary in collaboration with Chinese partners.

In 2024, the rail freight volume between China and Kazakhstan grew by 13%, reaching 32 million tons, setting a new record. The third railway between China and Kazakhstan, the Ayaguz (Kazakhstan)-Tacheng (China) Railway, is under construction.

The future growth of two-way investment between China and Europe will further drive the development of trade and logistics in countries along the China-Europe freight train routes.

Original article: https://www.toutiao.com/article/1833274796769412/

Disclaimer: This article only represents the views of the author.