The implementation of the «Belt and Road» Initiative (BRI) and the «Nurly Zhol» program in Kazakhstan has played a key role in strengthening its position as a strategic transit hub of Eurasia.
The Belt and Road Initiative (BRI), proposed by the People’s Republic of China in 2013, aims to create a global infrastructure network that stimulates economic cooperation and integration between countries in Europe, Asia, and Africa. To date, over 140 countries and 30 international organizations have joined the initiative, which includes projects for developing transport, energy, logistics, and digital corridors.
Kazakhstan’s «Nurly Zhol» («Bright Path») program, launched by the First President of Kazakhstan, Nursultan Nazarbayev, in November 2014 in response to global economic challenges, was introduced as a new economic course aimed at modernizing the country’s infrastructure, stimulating economic growth, and improving transportation links both within Kazakhstan and internationally. The program’s main focus was on the development of transport and logistics, industrial, energy, and social infrastructure.
For Kazakhstan, participation in the BRI and the implementation of its own «Nurly Zho» program opened unique opportunities for integration into global trade flows and strengthened its position as a key transit hub in Eurasia. These two large-scale projects have played a significant role in modernizing national infrastructure, increasing investment volumes, and boosting international cooperation.
The BRI and «Nurly Zhol» initiatives in Kazakhstan have become catalysts for significant changes in the country’s transport and logistics sectors. Through cooperation with China, Kazakhstan has substantially modernized its infrastructure, increased the capacity of transport corridors, improved the efficiency of logistics operations, and expanded trade ties with various countries and regions.
The «Nurly Zhol» program aimed to transform Kazakhstan into a key transport and transit hub on the Eurasian continent, which fully aligned with China’s global Belt and Road Initiative.
The interaction between Kazakhstan and China within the framework of these initiatives has demonstrated impressive achievements in infrastructure modernization, the expansion of transport corridors, and the enhancement of trade flows. However, to further strengthen this dynamic and increase international recognition, new approaches and technologies are required.
Kazakhstan and China need to improve the effectiveness of their strategic initiatives, solidify their positions on the global stage by promoting innovation and sustainable development in the transport and logistics sectors. This will not only strengthen the economic interconnection between Eurasia and global markets but also ensure long-term stability and prosperity in the region.
The development of transport corridors is one of the key areas of strategic development for the Republic of Kazakhstan. The country sees itself as a bridge between major economic centers such as the European Union, China, Russia, and South Asian countries, including India. In 2023, the transport and warehousing sectors in Kazakhstan recorded a record influx of investment in fixed assets, reaching 2.5 trillion tenge. This is 40.3% (or 938 billion tenge) more than in 2022. The share of these sectors in total investment also increased from 10% to 14.5%, highlighting their growing importance in the country’s economy. Over the past five years, there has been a steady positive trend in investment growth: compared to 2019, the volume of investment has doubled — from 1.2 trillion tenge to 2.5 trillion tenge.
President of Kazakhstan Kassym-Jomart Tokayev emphasized the strategic importance of developing transport and logistics infrastructure in his Address to the Nation of Kazakhstan on September 2, 2024: «The development of the transport and logistics sector is our strategic priority. Our geographic location at the heart of Eurasia is our enormous competitive advantage. The investments we make in transport infrastructure will undoubtedly pay off. »
China plays a key role in this direction, being the largest investor in Kazakhstan’s transport sector. During the first «China-Central Asia» summit, Chinese President Xi Jinping announced the allocation of 26 billion yuan in financial assistance and grants to support cooperation between China and the Central Asian states and to aid in their national development.
More than a decade of cooperation within the framework of the Belt and Road Initiative has resulted in the following outcomes:
– More than 2,500 km of national railroads and 12,500 km of highways in Kazakhstan have been modernized;
– Trade between Kazakhstan and China has increased from $400 million in 1992 to $41 billion in 2023, representing a 100-fold increase;
– China has become Kazakhstan’s largest trading partner in Central Asia, accounting for nearly a third (28.3%) of Kazakhstan’s external trade turnover;
– The Belt and Road Initiative significantly surpasses other international infrastructure projects, such as the «Global Gateway,» in terms of funds invested. China has essentially become Kazakhstan’s main partner in transportation and logistics in Central Asia. Some countries in the region, such as Tajikistan, have even turned down loans from European institutions in favor of Chinese financing for their infrastructure development.
At this stage of analysis, 14 joint projects have been identified within the framework of the BRI and «Nurly Zhol» initiatives in the transport sector in Kazakhstan. Kazakhstan has managed to attract the largest amount of investment among the Central Asian countries, with China serving as the main investor in the region’s transport sector. The European Union and G7 countries have also contributed significant financial resources, reaching levels comparable to Chinese investments. The current analysis covers the scale of projects, funding sources, strategic importance, and the overall implementation of BRI in Kazakhstan.
Projects under the BRI umbrella encompass various sectors of the economy, including the development of interregional transport links, the modernization of urban infrastructure, and ports. In the context of transport infrastructure development, key transport corridors such as «Center-South» and «Center-West» are being reconstructed and modernized. Special attention is being given to strategic railway lines, such as Shalkar-Beineu and Arkalyk-Shubarkol. Additionally, the modernization of the Aktau port and the construction of new ports, such as Kuryk, as well as dry ports like the «Khorgos Eastern Gate,» are important elements.
Regarding urban development, significant projects include the construction of a railway system in Astana and the modernization of the Almaty-1 — Shu railway line, which will significantly enhance urban mobility. These projects aim to strengthen transport connectivity at both national and international levels, in line with BRI’s strategic goal of creating a global infrastructure network for trade and transportation across Eurasia.
The financing of projects in Kazakhstan is a blend of Chinese investments, local funds, and multilateral funding. The Export-Import Bank of China (Exim Bank) provided loans totaling about $727 million to implement several road projects. The Asian Infrastructure Investment Bank (AIIB) financed projects such as the Karaganda-Balkhash section and the «Center-West» road, offering loans amounting to $1.963 billion. The China Development Bank invested 80% of the funds for the modernization of Astana’s railway system, totaling $1.51 billion.
Additionally, Kazakhstan’s National Fund and «Kazakhstan Temir Zholy» (Kazakhstan Railways) made significant contributions to the implementation of transport projects, including the modernization of the railway network and ports. International financial organizations, such as the International Bank for Reconstruction and Development (IBRD), the European Bank for Reconstruction and Development (EBRD), the Islamic Development Bank, and the Asian Development Bank (ADB), also played a crucial role, providing a total of $3.4 billion in loans. Private investments were also attracted to projects such as the Eastern Europe-Eastern China highway, covering about 32% of the project’s cost.
Some projects, like the modernization of the Aktau port and the Shalkar-Beineu railway, did not have direct Chinese financing, demonstrating Kazakhstan’s ability to leverage the Belt and Road Initiative (BRI) framework to attract various sources of funding.
The projects implemented align with both Kazakhstan’s national development goals and the strategic objectives of the BRI. The strengthening of transport corridors, such as the Eastern Europe-Eastern China highway and key railway lines, helps reduce transit time, increase cargo capacity, and facilitate more efficient trade flows between Asia and Europe.
The projects are closely tied to Kazakhstan’s national strategic objectives and contribute to strengthening its position as a key transit hub in Eurasia. The modernization of transport corridors, such as the Eastern Europe-Eastern China highway and the development of railway lines including Shalkar-Beineu and Arkalyk-Shubarkol, has significantly reduced transportation time and increased load capacity, which has boosted transit volumes through Kazakhstan.
Infrastructure development has also stimulated economic activity in key regions of the country, such as Ulytau, Aktobe, and Kyzylorda, among others. Additionally, logistical efficiency has greatly improved due to the modernization of ports and the creation of dry ports, such as the «Khorgos Eastern Gate. »
Moreover, the improvement of urban mobility through projects in Astana and Almaty not only enhances the quality of life in these major cities but also supports economic activity, strengthening Kazakhstan’s strategic position in the regional and global transport system.
These projects contribute not only to the improvement of internal transport links but also reinforce Kazakhstan’s role as a transit bridge between Europe and Asia, which is a crucial component of the BRI initiative.
The implementation of the BRI in Kazakhstan has led to the strengthening of the country’s infrastructure and an increase in its role as a key transit hub in Eurasia. This has boosted trade volumes and contributed to the socio-economic development of the regions.
For the continued success of the BRI and «Nurly Zhol,» Kazakhstan and China must deepen cooperation, attract multilateral investments, and maintain the long-term financial sustainability of projects, while also introducing innovative approaches to improve the efficiency of transport corridors.
Projects carried out under the BRI in Kazakhstan span various sectors of the economy, including transport, logistics, and infrastructure. The funding of these projects is sourced from a combination of Chinese, local, and multilateral sources. With its unique geographical position at the center of Eurasia, Kazakhstan plays a pivotal role in the implementation of the BRI. In the future, the country intends to actively develop its transit potential by deepening cooperation with China and other countries while continuing to attract multilateral investments.
President of Kazakhstan Kassym-Jomart Tokayev has repeatedly emphasized the importance of the Belt and Road Initiative for Kazakhstan’s development. In his Address to the Nation on September 2, 2024, he stated: «The Belt and Road Initiative opens enormous opportunities for strengthening Kazakhstan’s transit potential and integrating into the global economy. We will continue to actively develop transport and logistics infrastructure, which will be the key to the prosperity of our country.
The Belt and Road Initiative (BRI) holds strategic significance not only for China but for the world as a whole. Through this initiative, China is emerging not just as an economic leader but as a driver of global cooperation, creating new opportunities for economic growth and sustainable development. The BRI focuses on developing infrastructure and trade connections, enhancing the interconnectedness of countries and regions, improving transport accessibility, and strengthening economic integration.
For China, this initiative opens access to new markets, resources, and partnerships, reinforcing its position on the global stage. Investment in infrastructure projects in partner countries helps boost their economic stability and improve living standards for their populations. Cooperation within the BRI framework creates a platform for the exchange of technologies, knowledge, and experience, leading to mutual strengthening and prosperity for the participating countries.
China plays a leading role in global development by promoting principles of peaceful cooperation, joint development, and a sustainable future for all nations. China’s contribution to global infrastructure development through the BRI facilitates the creation of new economic pathways, ultimately accelerating international trade, easing access to new markets, and reducing economic disparities between countries.
President Kassym-Jomart Tokayev emphasized the importance of this initiative for the region: «The Belt and Road Initiative represents a platform for building long-term and stable cooperation that will promote not only economic growth but also create conditions for sustainable development». Kazakhstan, being a crucial transit hub between Asia and Europe, plays a key role in the implementation of this initiative and will continue to collaborate with China to further strengthen regional and global economic ties.
China Studies Centre, Astana.
