THE Kazakhstan government wants to end the monopoly of state-owned Kazakhstan Railways (KTZ) for freight operations, and is targeting the introduction of independent operators on the country’s national network from 2027, Zhanibek Taizhanov, head of the Railway and Transport Committee, said during a press briefing on May 29.

“Today, two private carriers are working in pilot mode - they are being tested,” Taizhanov said. “We have two years until 2027 to prepare the entire legislative framework and to work out all technological processes. And after that, these players will be fully represented in our market.”

TTT Service and Dar Rail have been providing rail freight services in Kazakhstan since the end of 2018, operating approximately 5% of Kazakhstan's internal rail freight traffic. KTZ remains entirely responsible for export, import and transit rail freight traffic.

The Kazakhstan government formally announced plans to offer independent freight operators access to the national railway network in June 2024. Kazakh businesses are reportedly in favour of competition as a means of bringing down transport costs. However, despite launching the pilot, the initiative took years to come to fruition due to fears over the financial stability of KTZ. According to a report by the Asian Development Bank published in 2022, granting full access to private railway carriers in Kazakhstan could have led KTZ to default on its debt obligations.

Under the planned reforms, KTZ will become an infrastructure manager within the Ministry of Transport and will provide all operators with “equal and non-discriminatory access to the national railway network.” Its assets will be transferred to a newly established railway carrier.

The government has promised to complete the legal framework by the end of 2026. This will include new rules for setting relevant access charges and mechanisms for attracting private investment.

The government expects private operators to purchase 128 mainline locomotives, many of which are likely to be built by Kazakh locomotive plants, with Alstom and Wabtec both possessing facilities in Astana.