ASTANA, Kazakhstan, July 23. The European Bank for Reconstruction and Development (EBRD) will provide a senior corporate loan of up to 200 million Swiss francs (about $224 million) to Kazakhstan Railways (KTZ, a national company), Trend reports.
According to EBRD, loan proceeds will enable the Borrower to restructure its financial obligations maturing in 2024, free up capital, and mobilize additional financial resources to continue the implementation of infrastructure investment projects to support further development of the Trans-Caspian International Transport Route (TITR, or Middle Corridor).
KTZ is a holding company that manages railway infrastructure and operates freight and passenger train services in Kazakhstan. It owns and operates a railway network of 16,000 km in total length, with more than 1,730 locomotives, 44,555 freight vehicles, and 2,300 passenger wagons. It is fully state-owned through the Samruk-Kazyna Sovereign Wealth Fund. In 2023, KTZ reported revenues of $4.2 billion and EBITDA of $1.1 billion.
The Middle Corridor is a transportation and trade route that connects Asia and Europe, passing through several countries in the region. It is an alternative route to the traditional Northern Corridor and Southern Corridor.
The route starts in China and crosses Central Asian countries such as Kazakhstan, Uzbekistan, and Turkmenistan. It then passes through the Caspian Sea, Azerbaijan, Georgia, and Türkiye before reaching Europe.
The Middle Corridor offers a land route that connects the eastern parts of Asia, including China, with Europe, bypassing the longer maritime routes.