Kazakhstan expands ties with Afghanistan, seeking new markets

Kazakhstan will participate in the construction of the Turgundi-Herat-Kandahar-Spin Boldak railway in Afghanistan. The two countries signed a corresponding protocol of intent during Kazakhstan’s Minister of National Economy Serik Zhumangarin‘s visit to Kabul, as reported by the Kazakh government’s press service.

Under the arrangement, the two sides are expected to sign an agreement on cooperation in the field of transport and logistics. Once the document is secured, it will kick off the construction of the Turgundi-Herat railway, along with the necessary infrastructure and a logistics center in Herat.

Kazakhstan rests big hopes on this project, as it could significantly expand transport links between Central and South Asia and open access to the ports along the Indian Ocean coast. The new railway is set to become part of an important international transport corridor through Afghanistan, streamlining cargo delivery southward.

To facilitate the project, railway companies from Afghanistan, Kazakhstan and Turkmenistan will establish a joint venture within the jurisdiction of the Astana International Financial Centre (AIFC).

Although Kazakhstan hasn’t specified the amount of its investment in the project, the government of Afghanistan has reported that Astana is ready to allocate $500 million for the railway construction.

The new project is also expected to improve communication capabilities in Afghanistan, as Kazakhstan plans to lay a fiber-optic cable along the railway to connect nearby settlements to high-speed internet.

Expanding ties with Afghanistan, Kazakhstan also intends to supply domestically produced cars and buses to the country, open direct flights and provide Afghan students with technical education at Kazakh universities. In addition, Kazakhstan has shown interest in developing Afghan mineral deposits and signed $140 million worth of contracts for the supply of goods to Afghanistan.